Corruption Still Rampant in Vietnam

August 13, 2015 Taxation in Vietnam

HANOI – Despite efforts by the government of Vietnam to stop corruption, a significant portion of businesses claim that they still have to pay bribes to tax inspectors.

Nearly a third of businesses in Vietnam have been asked by tax inspectors and other tax workers to pay bribes, according to the results of new research released by the Vietnam Chamber of Commerce and Industry (VCCI).

The VCCI surveyed 2 542 registered businesses from across Vietnam, including state enterprises and foreign businesses, and found that 32 percent claimed that they have had to pay “unofficial fees” to tax officials.

The VCCI added that there are approximately 1.6 million household businesses in Vietnam, none of which were surveyed, and it is conceivable that these small businesses face the same, if not harsher, corrupt treatment by tax officials.

It was also noted in the survey that along with the businesses which did not pay “unofficial fees”, approximately 40 percent of respondents felt that their tax filing process would be made intentionally more difficult by tax officials if they did not pay a bribe.

In an effort to reduce the occurrence of bribery, the government is currently pushing through new measures aimed at encouraging businesses to complete their tax filing online, reducing opportunities for corrupt tax officials to demand payment.

Photo By: Tartarin2009 (mostly off)