Vietnam Country Profile

Judicial System

Individual Corruption

The US Department of State 2009 reports that the judicial system, and thus, the prospect of a fair trial, is strongly distorted by political influence, endemic corruption and inefficiency. In effect, there is no clear or effective mechanism for citizens to take on cases of abuses committed by authorities. According to Freedom House 2009, many lawyers fear to take on sensitive political cases due to potential harassment and retaliation by state officials.

Business Corruption

There is evidence that court judgments on business-related issues are often ignored when the affected party can use informal channels of influence (such as bribes) to prevent the enforcement of the judgment. According to KPMG & the Economist Intelligence Unit 2007, the legal system is loaded with conflict and overlap, which in many instances provides opportunities for corruption. Heritage Foundation 2010 further states that due to a lack of independent and widespread corruption in the judiciary, contracts are therefore weakly enforced. Companies should be aware that bribes are typically demanded during the inspection and investigation process prior to trial. To illustrate, a number of officials from the Government Inspectorate (GI) have allegedly received bribes in order to prevent cases from being further pursued. A 2008 report by the Finnish Embassy in Hanoi supports this view and refers to cases where judges have been asking for money or extorting bribes in economic cases.

Political Corruption

The Constitution of Vietnam grants the judiciary independence from political influence. However, according to Freedom House 2009, the judiciary lacks independence from political interference in practice, and the ruling Communist Party of Vietnam (CPV) controls courts at all levels. Therefore, courts rarely rule against members of the government. The US Department of State 2009 reports that CPV influence over the courts has been particularly notable in high profile cases in which a person was charged with criticising or harming the CPV. Moreover, it reports that many judges do not have adequate legal training, and their appointments are based on personal relationships with party officials or for their political views. Moreover, a 2008 report by the Finnish Embassy in Hanoi refers to cases where judges, investigators and prosecutors have either directly or indirectly taken bribes to mishandle documents or to reduce sentences and punishment. It further reports that there have been instances where corruption has taken place during the investigation and handling of corruption cases. Some judges, investigators and prosecutors have been punished and held criminally responsible for their actions. Low salaries have hindered the development of the judiciary, although the government reportedly runs training programmes for court officials.

Frequency

The World Bank & IFC: Doing Business 2010:
- It takes 34 procedures and 295 days at a cost of 28.5% of the claim to enforce a contract through the courts, which is significantly more efficient than regional averages.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the independence of the judiciary from influences of members of government, citizens, or companies a score of 3.8 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give both the efficiency of the legal system for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 4 on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

The World Bank & IFC: Enterprise Surveys 2009:
- Close to 50% of companies surveyed believe that the court system is fair, impartial and uncorrupted.

USAID: Vietnam Provincial Competitiveness Index 2008:
- In most provinces, less than 33% of companies report that the legal system provides a mechanism for companies to appeal officials' corrupt behaviour, whereas the highest registered provincial percentage is 54%.

- The percentage of companies with confidence that the legal system will uphold property rights and contracts is quite high across Vietnam, ranging from 69% to 93% in the provinces.