Detecting and Addressing Fraud in FDI Companies in Vietnam: Lessons from Real-World Cases

bigVUN
Feb 27
3 min read

Updated: Jun 10

In recent years, several FDI companies in Vietnam have fallen victim to serious internal fraud due to language barriers, poor oversight, and unchecked authority in key departments. These cases reveal the vulnerabilities that foreign-invested companies in Vietnam may face when internal control systems are weak or non-existent. This article highlights multiple real-world incidents of corporate fraud in Vietnam, showing how quickly financial losses can occur, and why effective FDI risk management is essential for sustainable operations.

1. Major Financial Fraud at Sanyo Vietnam Co., Ltd.

Time Period: From July 2008 to April 2009
Case Details:
- In a notorious case of corporate fraud involving foreign investment in Vietnam, the Japanese managing director and his assistant embezzled over USD 7.6 million from both the company’s bank accounts and customer receivables. The stolen funds were not registered in the company’s revenue records until the fraud was uncovered.
Consequences:
- The stolen amount was never recovered, as it had already been spent.
- The managing director was sentenced to life imprisonment.
- The assistant received a 12-year prison sentence.
This incident underscores the urgent need for strong internal controls in FDI companies operating in Vietnam.

2. Collusion and Fabrication in Multiple FDI Enterprises

GN** Co., Ltd.
- Time Period: From March 2019 to June 2019
- Case Details: Employees from the purchasing, plastic extrusion, and warehouse departments collaborated to create false goods receipts and payment documents. This led Glonics Vietnam Co., Ltd., a well-established foreign-invested manufacturer, to pay for plastic pellets that never existed, resulting in losses exceeding VND 2.1 billion.
- This case illustrates how fraud in the procurement process can pose serious threats to FDI companies in Vietnam, especially when proper audit mechanisms are absent.
HS** Electronics Co., Ltd.
- Time Period: From January 2019 to July 2019
- Case Details: Exploiting their roles in shipping and returns, several employees stole goods from inventory and sold them for personal gain. The fraud caused damages totaling VND 1.3 billion.
- This emphasizes the importance of inventory control and fraud detection strategies in Vietnam-based FDI firms.
SS*** Electronics Vietnam – Thai Nguyen.
- Case 1:
  - Time Period: From February 2020 to April 2020
  - Details:The head of the production department took advantage of weak supervisory systems to misappropriate 17,880 mobile phone screens, valued at VND 2.4 billion.
- Case 2:
  - Time Period: November 2020
  - Details: An employee abused their access to delivery orders and removed 528 display sets and 37 screens, with a total value exceeding VND 1.7 billion.
    
    Both cases reveal how internal fraud can go undetected in fast-moving production environments when internal control in Vietnam-based FDI plants is not adequately enforced.
JR Electronics Co., Ltd.
- Time Period: From October 2018 to September 2023
- Case Details: A Vietnamese interpreter at the company manipulated internal operations by directing staff and communicating with external suppliers to inflate invoices for office supplies, labor leasing, and maintenance services. The fraudulent amount totaled approximately VND 4.7 billion.
- This highlights how even support roles can be exploited, reinforcing the need for cross-departmental checks and anti-fraud training for FDI enterprises in Vietnam.

The Hidden Cost of Undetected Corporate Fraud

While the above cases resulted in legal action, many forms of internal fraud in FDI companies remain undetected. These activities often involve subtle manipulation, collusion, and gaps in oversight that are hard to trace. They pose a long-term threat to the reputation, profitability, and legal stability of any foreign investor in Vietnam

How We Help FDI Companies Prevent Fraud in Vietnam

With over a decade of experience supporting foreign-invested businesses in Vietnam, our team provides practical, results-driven services:

Internal Audit and Monitoring

We design and implement transparent internal control systems that identify suspicious activities early and help you avoid major losses.

Employee Training and Ethics Programs

We offer workshops that promote awareness of fraud prevention, business ethics, and personal accountability, tailored to FDI companies in Vietnam.

Legal Compliance Support

We provide legal advisory services to strengthen your company’s defense against fraud and ensure alignment with Vietnamese laws and international standards.

Partner With Us to Protect Your Investment

Our mission is to help foreign investors in Vietnam build secure, ethical, and transparent operations. Whether you’re launching a new plant or auditing an existing one, we’re here to help you prevent fraud before it happens.