Workplace Relationships: When the Line Between Affection and Duty Blurs The case happened at Sanyo Vietnam Co., Ltd.  At first glance, it seemed minor — until the truth surfaced: over 7.6 million USD  had been misappropriated back in 2009. The Japanese director and his trusted secretary not only managed the company together but also shared a personal relationship that went far beyond the professional boundary. That closeness destroyed every layer of internal control, creating the perfect environment for internal corporate fraud  to thrive. Giám đốc và thư ký Everyone Knew… But No One Spoke Up Early warning signs were there: unusual expenses, missing documents, suspicious transactions. Some employees, especially those close to the secretary, brushed it off — “It’s a foreign company, they have plenty of money.”A few saw what was wrong, yet chose silence — out of fear: fear of retaliation, fear of losing their job, and most of all, fear that no one would believe them. When power is concentrated in one person — and that person shares a “special” relationship with the one managing the money — any control process becomes just a piece of paper. By the time the fraud was exposed, the money was gone. The director received a life sentence , and the secretary 12 years in prison. A painful lesson on how internal corporate fraud  can silently destroy a company from within. When No One Speaks Up, the Numbers Will I’ve seen many companies fall into the same trap:Everyone senses something is wrong, yet no one dares to speak — until it’s too late. The Sanyo case is just one of many examples showing that a company’s biggest risk doesn’t come from the outside — it grows quietly inside. That’s why bigVUN exists — to help businesses build independent control systems , detect irregularities early, and protect their integrity. Contact bigVUN  – to keep your organization clean, transparent, and sustainable.

In recent years, Vietnam internal fraud cases  have revealed how employees in trusted positions misuse their authority for personal gain. These hidden risks exist across departments and often go unnoticed until serious damage is done. In many companies, individuals in key positions or those with special trust from the general director often possess certain powers, from signing contracts to managing company assets and expenses. This authority, if left unchecked, can lead to fraudulent behavior. This article analyzes job roles that are vulnerable to internal fraud, common types of misconduct, and key points for prevention based on real patterns seen in internal control in Vietnam companies. 1. Secretary, Assistant, Interpreter – High Risk in Vietnam Internal Fraud Cases Duties: Close access to executives, often influencing procurement and vendor selection. Types of Fraud: Receiving under-the-table commissions after contracts are signed Taking monthly kickbacks (5–10%) from suppliers or service providers Using company credit cards or entertainment budgets for personal use Privately selling scrap materials without returning the money to the company Manipulating salary increases for members of a personal inner circle 2. HR and Admin – Vulnerable Role in Vietnam Employee Fraud Prevention Duties: Recruiting temp workers, managing canteen services, ordering office supplies, and arranging company vehicles. Types of Fraud: Inflating service prices and receiving a 10% commission Falsifying headcount or overtime hours Reporting inflated meal counts for worker meals 3. Payroll and Payment Accountant – Target for Internal Control in Vietnam Companies Duties: Handling monthly payments to vendors and employee payroll. Types of Fraud: Colluding with the purchasing team to process fake payments Forging documents and worker time data for illegal disbursements 4. Procurement Staff – Common Source of Vietnam Procurement Fraud Duties: Sourcing packaging, raw materials, and industrial supplies. Types of Fraud: Collaborating with secretaries and assistants for kickbacks Registering vendor companies under relatives’ names to sell to their own company Inflating quantity needs and collecting monthly commissions 5. Asset and Equipment Managers – Hidden Threats in Vietnam Internal Fraud Duties: Managing maintenance and repairs of company machines and equipment. Types of Fraud: Taking company machines offsite for "repairs" and selling parts Overstating maintenance costs Falsifying breakdowns that don’t actually require third-party repair Deliberately damaging equipment and colluding with vendors for commission 6. CapEx Buyers, Secretaries – Fraud via Inflated Asset Procurement Duties: Purchasing large equipment or movable assets. Types of Fraud: Colluding with suppliers to inflate pricing and share the excess amount 7. Import–Export Officers – Logistics-related Fraud Risk in Vietnam Duties: Managing inbound shipments of raw materials and outbound finished goods. Types of Fraud: Taking 10% kickbacks from logistics and lifting service providers Falsifying customs clearance costs to overcharge the company 8. IQC Staff – Fraud in Quality Control and Supplier Management Duties: Checking materials, parts, and semi-finished goods before production or storage. Types of Fraud: Accepting bribes from suppliers to ignore product defects Allowing incorrect or low-grade materials to pass Skipping formal inspection procedures to accelerate warehousing Covering up supplier quality issues to maintain the vendor relationship 9. Factory Staff & Workers – Everyday Fraud Often Overlooked Includes: Factory managers, team leaders, workers Types of Fraud: Doing personal work during paid overtime hours (e.g., online business, freelancing) Leaving the workplace during shifts but returning only for clock-in/out Stealing easily sold company items Even minor fraud can severely damage employee morale and trust. Establishing strict internal control in Vietnam companies  is critical to protect business integrity and sustainability. Need expert support to prevent internal fraud in your Vietnam operations? Contact us to get practical and tailored solutions for your company. # InternalFraud #CorporateFraud #EmployeeMisconduct #InternalControl #ProcurementFraud #AccountingFraud #QCfraud #SupplierBribery #FraudPrevention #ManagementTips #FDIcompanies #LeadershipTrust #CorporateGovernance #LossPrevention

Fraud can bleed money and erode trust long before anybody notices. In Vietnam—where Vietnam FDI regulations , Vietnam investment laws , and shifting Vietnam corporate compliance  rules govern daily operations—late detection is common. Below are the four core reasons, drawn from real Vietnam internal fraud cases , that explain why wrongdoing stays unreported. 1 Fear of Exposure Among Hired Directors Hired directors worry that headquarters will question their competence if fraud surfaces. Under strict Vietnam legal risks for foreign companies  and rising Vietnam labor cost 2025 , reporting misconduct can risk contract renewal, visa status, or bonus packages. 2 Leadership Complicity When top management benefits from kickbacks, “self-audit” collapses. Cover-ups override transparency, undermining internal control in Vietnam companies  and gutting any Vietnam whistleblowing policy  intended to surface problems. 3 Employees Weaponizing Inside Knowledge Staff who learn about fraud sometimes use it for leverage—threatening to expose Vietnam procurement fraud  or inflate claims during negotiations. Weak Vietnam vendor management  and high Vietnam procurement risk  let this tactic thrive. 4 Fear and Workplace Pressure Many employees know the risks of speaking up: isolation, retaliation, or covert surveillance. Without robust Vietnam anti-corruption measures  and credible Vietnam fraud risk management  processes, silence feels safer than honesty. Common Compliance & Cost Pain Points for Foreign Investors Doing business in Vietnam demands mastery of Vietnam business registration rules, adapting to the Vietnam foreign ownership limit, and decoding complex Vietnam investment laws. Hidden losses grow inside Vietnam manufacturing costs, opaque Vietnam operational cost breakdown reports, inflated Vietnam logistics cost comparison tables, and rising Vietnam office rental price and Vietnam utility costs for factories. HR inefficiencies escalate due to weak Vietnam payroll compliance, high employee turnover rates, and insufficient employee fraud prevention measures. Procurement abuses range from routine over-invoicing to systemic Vietnam corruption in supply chain schemes—often undetected until an external review. What BigVUN Delivers We specialize in helping foreign-invested companies in Vietnam gain full control over cost management and procurement operations . At BigVUN, we understand that unethical practices—such as non-transparent commissions, data manipulation, and personal profiteering —not only lead to financial losses but also damage a company’s reputation and disrupt internal culture. Our services help businesses: Identify inefficiencies , analyze operational performance, and compare cost-effectiveness across vendors and departments. Optimize budgets  by leveraging transparent data and accurate documentation aligned with the real objectives of foreign investors in Vietnam. Establish transparent processes , create internal rules to prevent illegitimate commissions , and strengthen integrity within the organization. With years of hands-on experience at multinational companies, we offer solutions tailored specifically for FDI enterprises operating in Vietnam , minimizing fraud risks, maximizing cost efficiency, and supporting sustainable business growth . Secure Your Vietnam Investment Today Facing hidden costs or fraud risks?Let BigVUN help you take back control—with transparent data, cost efficiency, and trusted Vietnam corporate fraud prevention . Contact us for tailored solutions for FDI enterprises in Vietnam .

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: Internal audit and fraud investigation Vendor due diligence and cost benchmarking Fraud prevention system setup Procurement process optimization FDI compliance consulting in Vietnam Contact us today  for a confidential consultation and strengthen your operations with robust fraud prevention in Vietnam .

Fraudulent activities within businesses, particularly in foreign-invested enterprises, can reveal significant weaknesses in management. Implementing robust Vietnam corporate fraud prevention  strategies is critical to mitigate Vietnam internal fraud cases  and protect your operations. This article explores a real-world case in Vietnam, highlighting the importance of tight internal control in Vietnam companies  to avoid unexpected costs, such as sudden spikes in Vietnam utility costs for factories . Case Study: A Foreign-Invested Enterprise in Vietnam Faces Fraud Risks A foreign-invested enterprise in Vietnam, operating under Vietnam FDI regulations , established an on-site cooking facility to provide meals for workers. The facility included a food storage warehouse, preparation zones, cooking stations, and serving areas, all equipped for efficient operations. To manage this, the company partnered with an industrial catering service provider, a common practice in doing business in Vietnam . However, loose Vietnam vendor management  led to significant Vietnam legal risks for foreign companies . The Problem: Loose Management Enabled Fraudulent Activities Due to insufficient oversight, the catering provider exploited the company’s resources, leading to a 300% spike in water bills for three consecutive months. This was a direct result of poor Vietnam corporate fraud prevention  measures. The provider used the company’s infrastructure, including free electricity and water, to serve external clients, significantly reducing their own Vietnam operational cost breakdown  while increasing the company’s Vietnam utility costs for factories . Key issues included: Outsourced Security Failures : Security personnel, under instructions from involved parties, failed to log vehicles transporting goods for external clients, a clear violation of Vietnam corporate compliance . Contract Loopholes : The contract with the catering provider lacked clear terms on asset usage, exposing the company to Vietnam procurement fraud . Weak Internal Controls : Certain individuals manipulated processes, highlighting the need for stronger internal control in Vietnam companies . Internal Factors Contributing to Vietnam Corporate Fraud Risks Several internal factors facilitated this issue: Lack of Oversight : The absence of robust Vietnam fraud risk management  allowed the catering provider to exploit resources undetected. Poor Contract Management : Ambiguous terms in the contract failed to protect the company’s assets, a common issue under Vietnam investment laws . Employee Collusion : Internal parties leveraged their positions, underscoring the importance of Vietnam employee fraud prevention  measures. Solutions for Vietnam Corporate Fraud Prevention To address these Vietnam internal fraud cases , the company implemented the following Vietnam corporate fraud prevention  measures with support from Vietnam business consulting services : 1. Drafting Robust Contracts New contracts included specific clauses to govern the use of company assets, ensuring they are used solely for internal purposes. This aligns with Vietnam FDI regulations  and reduces Vietnam legal risks for foreign companies . 2. Introducing Compensation Clauses Contracts now clearly define the provider’s responsibility to compensate for misuse of resources, protecting the company’s Vietnam operational cost breakdown . 3. Implementing Anti-Fraud Measures The company adopted Vietnam anti-corruption measures , including stricter oversight of catering operations and regular audits by Vietnam audit services for foreign companies . 4. Conducting Food Source Inspections Regular inspections ensure the safety and quality of food, mitigating Vietnam procurement risk  and ensuring compliance with Vietnam corporate compliance  standards. 5. Evaluating Meal Quality Periodic evaluations ensure meals meet nutritional and hygiene standards, addressing worker needs and aligning with Vietnam labor law issues . Why Vietnam Corporate Fraud Prevention Matters Sudden spikes in Vietnam utility costs for factories  can hinder business growth, especially for companies navigating Vietnam manufacturing costs  and Vietnam labor cost 2025 . By prioritizing Vietnam corporate fraud prevention , businesses can avoid costly oversights and ensure compliance with Vietnam investment laws . Take Action with Vietnam Business Consulting Services Don’t let small issues derail your operations in Vietnam. Partner with Vietnam legal advisor for foreign companies  or Vietnam FDI support services  to strengthen your Vietnam fraud risk management . For expert guidance, contact our Vietnam business consulting services  team to safeguard your business. Contact us today for tailored solutions to optimize your operations and mitigate Vietnam internal fraud cases.

How to manage costs effectively and motivate employees in a business?In foreign-invested companies operating in Vietnam, sustainable growth depends on two pillars: tight cost management and high employee engagement. Yet common obstacles keep leaders awake at night: Vietnam procurement fraud, collusion among interest groups, placing trusted associates in key positions, and isolating honest staff. These practices destroy motivation, inflate Vietnam manufacturing costs, and undermine long-term performance. Eliminate Vietnam Procurement Fraud with a No-Commission Policy Receiving commissions from suppliers not only increases expenses but violates Vietnam corporate compliance standards. BigVUN designs and enforces a clear no-commission policy, protecting companies from Vietnam procurement risk and reinforcing transparency. Integrity and Trust through Strict Oversight We work independently of internal factions, following Vietnam anti-corruption measures and Vietnam whistleblowing policy guidelines. Our team monitors every step of the procurement workflow, blocking hidden rebates and rooting out Vietnam corruption in supply chain decisions. Why BigVUN Is the Best Choice Integrity and Strict Oversight Nineteen years serving FDI clients have taught us how Vietnam legal risks for foreign companies arise. We supervise the entire procurement chain, preventing all forms of Vietnam internal fraud cases. Optimized Procurement Costs Through market analysis, supplier benchmarking, and Vietnam vendor management best practices, we lower Vietnam operational cost breakdown items—from Vietnam labor cost 2025 estimates to Vietnam logistics cost comparison data. Comprehensive Solutions Beyond procurement, BigVUN offers cost analysis and consulting on Vietnam investment laws, enabling foreign business leaders to make decisions based on transparent data and a deep understanding of the investment environment . Building a Clean Environment A transparent workplace boosts morale and curbs the Vietnam employee turnover rate. Our training on Vietnam employee fraud prevention plus internal control in Vietnam companies keeps teams motivated and loyal. Your Next Step If you need a reliable partner to control spending and defeat Vietnam procurement fraud, BigVUN is ready. Contact us today or leave your details, and our consultants will respond immediately.

Why do some employees repeatedly commit fraud within businesses? Additionally, various other forms of fraud exist within businesses, such as falsifying work hours, manipulating payroll, or enabling relatives to establish supply services and sell goods to the company at unusually high prices. Why Internal Fraud Happens in Vietnam Companies There are many reasons employees commit fraud, such as: Personal Gain Some employees seek "undermoney" or kickbacks due to greed, gambling, or maintaining an unsustainable lifestyle. Abuse of Internal Relationships Workers with close ties to directors or influential groups feel untouchable and free to manipulate payroll or supply chains. Lack of Internal Controls Without strong internal control in Vietnam companies , it’s easy to falsify work hours, alter payroll, or overcharge through self-owned vendor networks. Weak Corporate Culture If a company fails to punish unethical actions, employees assume fraud is acceptable and widespread. Short-Term Thinking Some prioritize immediate personal gain over the risk of job loss or reputational damage. Low Professional Ethics Even when aware their actions are wrong, some rationalize small-scale fraud as harmless to a large company. Lack of Professional Ethics: Even when aware of the wrongdoing, some employees rationalize their actions, believing that the illegal gains are insignificant compared to the company’s scale, leading to the acceptance of fraudulent behaviors. How BigVUN Helps with Vietnam Employee Fraud Prevention We provide independent and practical solutions to help foreign investors and local businesses prevent internal fraud: Transparent Procurement Oversight We eliminate non-transparent commissions and reduce Vietnam procurement fraud , aligning with anti-corruption policies. Strong HR & Payroll Controls Our approach reinforces Vietnam payroll compliance , minimizes the Vietnam employee turnover rate , and supports smart hiring through Vietnam HR outsourcing . Real-Time Cost Visibility We track the full Vietnam operational cost breakdown , from Vietnam labor cost 2025  to Vietnam logistics cost comparison , helping you detect cost anomalies early. Vendor & Relationship Mapping By monitoring supplier relationships, we support better Vietnam vendor management  and reduce Vietnam corruption in supply chains . Whistleblowing & Ethics We guide you in building a practical Vietnam whistleblowing policy , supporting long-term Vietnam corporate fraud prevention Why Foreign Companies Trust BigVUN We understand the complexities of Vietnam FDI regulations  and Vietnam investment laws —and help clients operate within the legal framework while minimizing risk. We never participate in or consult on tax-related issues, keeping our role focused on compliance, risk management, and operations. Our services are fully independent, avoiding internal influence, and we act as your neutral partner in navigating Vietnam legal risks for foreign companies . Whether you're planning Vietnam business registration , adjusting to Vietnam foreign ownership limits , or simply want clean, transparent operations—we’re here to help. Ready to Strengthen Internal Controls? Vietnam employee fraud prevention  is not just about stopping wrongdoing—it's about protecting your business, reputation, and investment. Contact BigVUN today  or leave your information.Our team is ready to help you build a fraud-free workplace in Vietnam.

Welcome to BigVUN — where we help businesses optimize their purchasing process, master Vietnam procurement risk, and control costs in the most efficient way. With 19 years of experience in purchasing management and cost analysis, our trustworthy team gives foreign-invested companies in Vietnam the confidence that their investment decisions are both sound and effective while doing business in Vietnam. Why Vietnam Procurement Risk Demands Attention Dishonest actors exploit system loopholes to create Vietnam procurement fraud, Vietnam corruption in supply chain, and other Vietnam internal fraud cases.BigVUN applies robust Vietnam fraud risk management techniques, enforces Vietnam anti-corruption measures, and supports an actionable Vietnam whistleblowing policy to ensure transparent sourcing and Vietnam corporate fraud prevention. Navigating Vietnam FDI Regulations and Compliance Foreign firms must comply with ever-evolving Vietnam FDI regulations, Vietnam investment laws and the Vietnam foreign ownership limit.We guide clients through Vietnam business registration, Vietnam tax policy for foreign investors, and overall Vietnam corporate compliance, reducing Vietnam legal risks for foreign companies. Operational Cost Breakdown: Labor, Logistics, Utilities Vietnam remains cost-competitive, yet expenses are rising: Vietnam labor cost 2025, Vietnam manufacturing costs, and Vietnam office rental price top the list.Our dashboards show a full Vietnam operational cost breakdown, including Vietnam logistics cost comparison and Vietnam utility costs for factories, so leaders can benchmark quickly and reinforce effective Vietnam vendor management. Internal Control & Fraud Prevention for Foreign Companies BigVUN strengthens internal control in Vietnam companies by tightening payroll and HR processes: Vietnam HR outsourcing strategies and best practices for hiring local employees in Vietnam Clean Vietnam payroll compliance workflows that meet Vietnam labor law issues head-on Programs to cut the Vietnam employee turnover rate while boosting engagement Action-oriented Vietnam employee fraud prevention training backed by our seasoned Vietnam management consulting team End-to-End FDI Support Services with BigVUN Beyond cost control, we connect clients to a curated network of partners: Vietnam business consulting services, Vietnam FDI support services, and Vietnam market entry services Independent Vietnam accounting firms for FDI, Vietnam audit services for foreign companies, and a trusted Vietnam legal advisor for foreign companies Contact us today to discover how BigVUN transforms your procurement function, minimizes Vietnam procurement risk, and accelerates sustainable growth.

Meals provided during lunch, dinner, or overtime shifts are vital for workers' well-being and productivity, especially in foreign-invested companies adhering to Vietnam FDI regulations. Many businesses in Vietnam offer free meals as part of their employee welfare programs to comply with Vietnam labor law issues. However, this well-intentioned policy can become a loophole exploited by unethical individuals, leading to Vietnam procurement fraud and undermining Vietnam corporate compliance. The Problem: Exploiting Workers’ Meals Most workers have limited meal options and often hesitate to voice complaints about subpar quality due to fear of workplace repercussions. This vulnerability is exploited by individuals in authority through practices that contribute to Vietnam internal fraud cases, such as: Fixed Kickbacks : Meal providers offer a hefty “thank you” sum to the person in charge after signing contracts, a common tactic in Vietnam corruption in supply chain . Meal Budget Cuts : Responsible individuals pocket 10% of the invoice value monthly from suppliers, inflating Vietnam manufacturing costs . Consequences of Fraudulent Practices To offset these illicit gains, meal suppliers cut corners, resulting in severe consequences: Substandard Food : Meals lack nutrition, with proteins like fish or meat often not fresh, forcing workers to skip meals or eat insufficiently. Food Poisoning : Poor meal quality has led to health issues, prompting workers to bring their own food, sometimes violating workplace rules. Poor Sanitation : Unregulated outside food increases rodent infestations in factories, with some client shipments found contaminated, causing reputational damage and highlighting Vietnam procurement risk . A Case in Point: A Real-World Example In a foreign-invested company in Vietnam, free meals were provided to comply with Vietnam labor law issues . However, after signing a meal supplier contract, the person in charge received a “thank you gift” worth 50 million VND, a clear case of Vietnam procurement fraud . Monthly Kickbacks : They continued to receive 10% of meal invoices, inflating Vietnam operational cost breakdown . Contract Manipulation : The director’s assistant ensured the contract remained active despite worker complaints, bypassing internal control in Vietnam companies . Inflated Reports : Approximately 30% of workers brought their own meals, yet the supplier and involved personnel profited from unclaimed meals, a practice BigVUN identified as a key Vietnam internal fraud case . The result? Meal quality deteriorated, with 70% of meals left uneaten or discarded, persisting for months until BigVUN intervened with robust Vietnam fraud risk management . BigVUN’s Solution: Transparent Management and Fraud Prevention With extensive experience in Vietnam corporate fraud prevention , BigVUN delivers: Tight Cost Management : Controlling input costs to align with Vietnam operational cost breakdown  and reduce Vietnam manufacturing costs . Service Quality Assurance : Ensuring meal services match their true value, addressing Vietnam procurement risk . Fraud Prevention : Implementing Vietnam employee fraud prevention  through segregation-of-duties dashboards and Vietnam whistleblowing policy  to detect and prevent exploitative practices. BigVUN’s solutions align with Vietnam anti-corruption measures , ensuring transparency and safeguarding workers’ rights while maintaining compliance with Vietnam corporate compliance  standards. Conclusion: Building Integrity for Business Success Unaddressed Vietnam procurement fraud  not only inflates Vietnam labor cost 2025  but also erodes trust and damages business reputation. By implementing robust Vietnam fraud risk management  and transparent processes, BigVUN helps companies eliminate exploitative practices like skimming workers' meals, ensuring compliance with Vietnam corporate compliance  standards. A culture of integrity not only safeguards workers’ rights but also drives cost efficiency and competitive advantage. Contact us today  for consultation and support to protect your business from Vietnam internal fraud cases  and build a transparent, profitable operation in Vietnam!

(A real-world lesson for foreign investors doing business in Vietnam) Fraud in business operations—no matter the scale or industry—remains a critical threat. In Vietnam internal fraud cases , improper relationships inside the supply chain are especially damaging because they violate Vietnam FDI regulations , inflate costs, and erode trust with partners. The story below shows how a seemingly minor favour to “family” turned into a textbook case of Vietnam procurement fraud . Where Did Vietnam’s Procurement Process Go Wrong? Lax monitoring systems A weak cross-check mechanism let a secretary’s relative sell components to an outsourcing partner above market price , escaping routine audits designed for Vietnam corporate compliance . Exploitation of family relationships Fraudsters often weaponise kinship. Here, the internal staff member used family as a “mask,” a pattern common in Vietnam corruption in supply chain  scandals. Ineffective preventive measures A blanket ban on gifts or commissions helps, but alone it cannot defeat Vietnam procurement risk  schemes that bypass formal rules. BigVUN’s Solution: Transparent and Effective Procurement Management Cases like these cause not only financial losses but also long-term damage to a company’s reputation. BigVUN, with expertise in procurement management and cost control, offers comprehensive solutions that enable companies to: Build robust monitoring processes : Track every step in the supply chain, from order placement to payment. Prevent internal fraud : Establish cross-check systems among departments to ensure no loopholes for exploitation. Evaluate and make costs transparent : Utilize cost analysis tools to compare market prices and identify anomalies in transactions. Result: inflated production costs, worse price competitiveness amid rising Vietnam labor cost 2025 , and reputational damage precisely when foreign shareholders expect efficient Vietnam vendor management . BigVUN’s Solution: Transparent Procurement & Robust Fraud-Risk Management BigVUN applies proven Vietnam fraud risk management  to FDI factories: Objective What BigVUN Delivers Build robust monitoring End-to-end tracking from PO to payment, aligned with Vietnam corporate fraud prevention  standards. Prevent internal fraud Segregation-of-duties dashboards that expose hidden relationships before cash flows. Evaluate & make costs transparent Market-price benchmarking and anomaly alerts that reveal unexplained mark-ups—the core of Vietnam procurement fraud . By enforcing clean supplier onboarding, validating beneficial ownership, and embedding whistleblowing hotlines compliant with the latest Vietnam anti-corruption measures , BigVUN closes the very loopholes that fraudsters exploit. Conclusion: A Culture of Integrity Drives Competitive Advantage Fraud is not new, but its tactics grow more sophisticated with every quarter. FDI manufacturers that ignore Vietnam fraud risk management  pay twice: once in cash, and again in lost reputation. A transparent culture built on advanced controls reassures partners, customers, and regulators alike. Let BigVUN accompany your business.  Together we will hard-wire transparency, slash hidden costs, and keep your Vietnam expansion both compliant and profitable.

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. J R  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. Please contact us immediately to receive further assistance.