{"id":7327,"date":"2017-12-20T19:09:55","date_gmt":"2017-12-20T16:09:55","guid":{"rendered":"http:\/\/anticorr.media\/?p=7327"},"modified":"2017-12-22T11:13:28","modified_gmt":"2017-12-22T08:13:28","slug":"vlasti-vetnama-arestovali-byvshego-gendirektora-neftyanoj-goskompanii","status":"publish","type":"post","link":"https:\/\/anticorr.media\/en\/vlasti-vetnama-arestovali-byvshego-gendirektora-neftyanoj-goskompanii\/","title":{"rendered":"Vietnam’s Corruption Crackdown Is All About Protecting Its Economic Miracle From Its SOEs"},"content":{"rendered":"

This material belongs to: Forbes<\/a>.<\/p>\n

Vietnam\u2019s\u00a0export-led economy<\/a>\u00a0has grown at an enviable 6% or so since 2012 and shows no signs of stopping, if you listen to analysts on the ground. The country\u2019s low costs and abundance of blue-collar labor help that expansion, which\u00a0in turn is ballooning the\u00a0middle class. Government incentives add to the enthusiasm of foreign investors, who now push out everything from shoes to smartphones.<\/strong><\/p>\n

But the investors still want a cleaner place to do business, while Vietnam\u2019s own companies may struggle for reception overseas. So this year the Communist country is stepping up a crackdown on corruption among its numerous state-owned enterprises to ensure graft doesn\u2019t spoil the economic miracle, those analysts say.<\/p>\n

\u201cI do think the government is properly addressing the concerns of people that the state-owned enterprises are being plundered by a corrupt few,\u201d says Frederick Burke<\/a>, partner in the international law firm Baker McKenzie<\/a> in Ho Chi Minh City<\/a>. He points to a glut of graft cases since September. \u201cThe fact they\u2019ve been able to do what they\u2019ve done in the past couple months is I think significant in that they\u2019re serious about reining in some of the more flagrant abuses.\u201d<\/p>\n

High-profile cases in 2017<\/strong><\/h3>\n

Transparency International<\/a>, a nonprofit that tracks graft worldwide, ranked Vietnam 113th\u00a0worst of 176 countries and regions that it surveyed last year for perceptions of corruption. But the country has wielded an Anti-Corruption Law\u00a0for 12 years. At least four government agencies can attack graft. And Vietnam goes on an anti-corruption swing every few years. This year was one.<\/p>\n

This month the former chairman of state-run\u00a0Vietnam Rubber Group<\/a> and four other leaders of offshoot companies received prosecution orders for alleged crimes,\u00a0news media in Hanoi reported<\/a>. They invested in areas outside their legal boundaries and mobilized capital without permission, news website VietnamNet Bridge<\/a> says.<\/p>\n

The company neither answered a call to its Ho Chi Minh City offices nor replied to an e-mail request for comment.<\/p>\n

\"\"
This picture taken on October 30, 2017 shows politburo member Dinh La Thang<\/a> during a national assembly session in Hanoi. Dinh La Thang, a former member of Vietnam’s communist Politburo, was arrested on December 8, 2017, accused of financial mismanagement during his stewardship of the country’s oil and gas giant PetroVietnam<\/a>. Source: AFP\/Getty Images.<\/figcaption><\/figure>\n

In September a court in Hanoi gave a death sentence to Nguyen Xuan Son<\/a>, former director general of Vietnam\u2019s\u00a0Ocean Bank<\/a>, for embezzlement. The bank\u2019s former board chairman received a life sentence over embezzlement and \u201cabusing position and power to appropriate property,\u201d among other charges,\u00a0Voice of Vietnam<\/a>\u00a0says. The bank\u2019s publicity office in Hanoi did not answer calls.<\/p>\n

Vietnamese intelligence agents went to Germany in July to kidnap businessman\u00a0Trinh Xuan Thanh<\/a>, according to\u00a0this report<\/a>. Thanh was wanted for financial crimes and Vietnamese officials said he returned home on his own. The\u00a0German government<\/a>, however, protested to Vietnam over the apparent kidnapping and said Thanh was\u00a0seeking asylum<\/a>\u00a0there.<\/p>\n

Divestment trend<\/strong><\/h3>\n

Although 2017 saw a spike in graft cases, Vietnam still has distance to cover. People living in the financial hub Ho Chi Minh City say land-use graft is still common, likewise petty stuff such as police officers accepting bribes at traffic stops.<\/p>\n

\u201cMany people are pessimistic about the public service in Vietnam and don\u2019t trust they have a clean government compared to other countries,\u201d says Trung Nguyen<\/a>, international relations dean at Ho Chi Minh University of Social Sciences and Humanities<\/a>. \u201cIt hampers the economic growth,\u201d he says, adding that would-be entrepreneurs either cancel their ambitions or do business underground.<\/p>\n

But anti-corruption work has a partner in busting crime. It’s Vietnam\u2019s\u00a0nonstop effort<\/a>\u00a0to sell off, privatize and more efficiently operate its state-owned enterprises. Why? It’s those companies that are spawning the corruption.\u00a0Some may\u00a0fancy they can operate without bringing in profits, Burke says. A no-profit mentality, which invites corruption, obviously makes a company less competitive in a market economy.<\/p>\n

A reduction of SOEs to date, including the sale of thousands of firms in the 1990s, had reduced\u00a0public firms’ assets to\u00a080% of GDP in 2015<\/a>. By 2020, per a plan by the Ministry of Planning and Investment, the\u00a0private sector\u2019s contribution<\/a>\u00a0to the economy is expected to reach 50%,\u00a0Vietnam Economic News<\/a> says.<\/p>\n

Vietnam investigates former PetroVietnam head for corruption<\/h3>\n

This material belongs to: EFE<\/a>.<\/p>\n

Vietnamese authorities have opened an investigation into a former chairman of PetroVietnam<\/a>, Phung Dinh Thuc<\/a>, over financial losses suffered by the state-run energy company, the Ministry of Public Security<\/a> said Wednesday.<\/strong><\/p>\n

The ministry said in a statement that Thuc deliberately violated economic regulations causing serious consequences in connection with the construction of the Thai Binh 2<\/a> thermal plant.<\/p>\n","protected":false},"excerpt":{"rendered":"

This material belongs to: Forbes. Vietnam\u2019s\u00a0export-led economy\u00a0has grown at an enviable 6% or so since 2012 and shows no signs of stopping, if you listen to analysts on the ground. The country\u2019s low costs and abundance of blue-collar labor help that expansion, which\u00a0in turn is ballooning the\u00a0middle class. Government incentives add to the enthusiasm of […]<\/p>\n","protected":false},"author":3,"featured_media":7328,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60,3,38],"tags":[58,64,93,71,121,243,157,79,62,95,94,104,199,76,118,63,80,78,153],"class_list":["post-7327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mnenie-eksperta","category-review","category-investigation","tag-politiki","tag-antikorrupcionnaya-politika","tag-borba-s-korrupciej","tag-vzyatka","tag-vymogatelstvo","tag-vetnam","tag-germaniya","tag-gossluzhashhie","tag-korrupciya","tag-korrupciya-v-bankovskoj-sfere","tag-korrupciya-v-biznese","tag-korrupciya-v-politike","tag-korrupciya-v-policii","tag-moshennichestvo","tag-politicheskaya-korrupciya","tag-protivodejstvie-korrupcii","tag-stroitelstvo","tag-chinovniki","tag-ekonomicheskaya-korrupciya","has-thumb"],"translation":{"provider":"WPGlobus","version":"3.0.2","language":"en","enabled_languages":["ru","en"],"languages":{"ru":{"title":true,"content":true,"excerpt":false},"en":{"title":true,"content":true,"excerpt":false}}},"yoast_head":"\nVietnam's 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