Vietnam Internal Fraud Cases: Real Carton Box Procurement Scandal Costing FDI Millions

bigVUN
Nov 7, 2024
2 min read

Updated: Jun 11

In Vietnam’s foreign-invested enterprises (FDIs), procurement operations—especially for variable-cost items like carton boxes—require strict internal control and transparency. Unfortunately, Vietnam internal fraud cases still occur when process gaps and blind trust are exploited.

This article presents a real-life Vietnam procurement fraud case, where a trusted employee manipulated the carton box purchasing process, causing significant financial damage to an FDI company over a two-year period.

A Shocking Internal Fraud Case in Vietnam's Procurement Process

In Vietnam’s foreign-invested enterprises (FDIs), procurement operations—especially for variable-cost items like carton boxes—require strict internal control and transparency. Unfortunately, Vietnam internal fraud cases still occur when process gaps and blind trust are exploited.

This article presents a real-life Vietnam procurement fraud case, where a trusted employee manipulated the carton box purchasing process, causing significant financial damage to an FDI company over a two-year period.

How a Common Vietnam Procurement Fraud Case Went Undetected for Two Years

The fraud began when a long-time employee was promoted to the purchasing department. Gaining full trust from management—and benefiting from loose oversight—they exploited the system with little resistance.

Carton boxes were regularly purchased at 175,000 VND, while the actual market price was 135,000 VND. Over two years, the employee personally profited an amount equal to nine times their annual salary. This shocking example highlights the urgent need for better Vietnam fraud risk management and employee fraud prevention strategies.

Why Vietnam Internal Fraud Cases Continue to Happen

The company discovered the issue too late. Despite clear overpricing and suspicious vendor management, they could not claim damages or pursue legal action—because a signed contract had already been approved by the CEO.

This shows how Vietnam corporate compliance weaknesses and poor internal controls can block effective accountability. Without proper safeguards, even senior decision-makers can unknowingly enable fraud.

Lessons Learned: How FDI Companies Can Prevent Internal Fraud in Vietnam

This case is a powerful reminder: Internal control in Vietnam—especially in procurement—is essential to prevent financial and reputational damage.

FDI companies operating in Vietnam should:

Regularly review supplier contracts and pricing structures
Conduct internal audits and vendor background checks
Insert protective clauses into purchasing agreements
Establish strong approval and compliance workflows
Invest in fraud awareness training for staff

Need Support to Prevent Procurement Fraud in Vietnam?

At Vietnam's Unbiased Network (bigVUN), we specialize in helping FDI companies identify vulnerabilities in their procurement systems and improve cost control processes.

Our services include: