Individual Corruption

According to Transparency International’s Global Corruption Barometer 2010, one out of five citizens surveyed who had contact with registry and permit services in 2009 report to have paid a bribe. It is also reported that in order to extort bribes, public officials sometimes delay citizens’ access to passports, according to the US Department of State 2010.

According to a February 2009 article from Time, the Vietnamese government decided to distribute approximately USD 12 million to poor Vietnamese citizens as part of an economic stimulus package. However, it turned out that most of the funds were pocketed by corrupt local officials, and villagers throughout the country report that as much as 90% of their funds were siphoned off by local bureaucrats.

Business Corruption

The Ministry of Foreign Affairs of Denmark and the World Bank Report 2009 states that widespread corruption within the construction sector represents a serious problem. The study reports that Vietnam's construction sector has grown rapidly over the past several years but is still dominated by a few well-connected state-owned companies and presents extensive opportunities for corruption to occur. The study found that few corruption cases in the construction sector are detected, investigated and taken to court.

From the late 1990s and onwards, various clusters and industrial parks have been established in Vietnam to attract foreign investment. According to a 2008 study by the Finnish Embassy in Hanoi, corruption in such investment projects has caused large losses to the state. The Government Inspectorate (GI) reported in 2006 that inspections of 14 major government projects revealed several cases of financial irregularities worth VND trillions. Among these projects was the Ho Chi Minh City East-West Highway Project. In addition, the Vietnam Construction Association has reported that more than 40 construction projects have suffered losses from bad investment decisions, wastefulness and corruption since early 2006. The detection of corruption in infrastructure projects partly funded by foreign development assistance led the World Bank to threaten to call off support and demand the return of funds and Japan to temporarily freeze its low-interest aid loans to the country.

Political Corruption

The most important quasi-government agencies involved in public spending in Vietnam are so-called Project Management Units (PMUs). These units oversee implementation of major infrastructure projects, which are often funded by foreign development assistance. According to Transparency International's National Integrity System 2006, there is a high potential for embezzlement and other kinds of corruption in PMUs. As a result, these units have been the target of many government anti-corruption efforts.

The state construction agency, Project Management Unit 18 (PMU 18), which operates under the Ministry of Transport, formed the epicentre of a major corruption scandal in Vietnam. The unit is partly financed by foreign aid and is responsible for a budget of around USD 2 billion for roads and other public infrastructure projects. In 2006, the media uncovered serious levels of kickbacks and irregularities within PMU 18 and top officials were accused of spending public funds on purchasing private homes and betting millions of dollars on football matches. According to a 2008 news article from the American Chamber of Commerce, nine people, including a former director of PMU 18, were sentenced to long jail sentences on gambling and bribery charges in connection with the scandal.

Frequency

The World Bank & IFC: Doing Business 2012:
- In order to obtain a construction permit, a company must go through 10 procedures and spend 200 days at a cost of approximately 109% of income per capita.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give government administrative requirements (permits, regulations, reporting) in Vietnam a score of 2.7 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

Transparency International: Global Corruption Barometer 2010:
- 22.7% of households who had contact with registry and permit services in 2009 report to have paid a bribe.

- 4.2% of households who had contact with the utilities services in 2009 report to having paid a bribe.

- 29.2% of households who had contact with medical services in 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2009:
- 1.6% of companies identify licensing and permits as a major constraint to doing business.

- 52% of companies expect to make informal payments to public officials to 'get things done'.

- 48% of companies expect to give gifts in order to get a construction permit.

- 15% of companies expect to give gifts in order to get an operating licence.

- 19% of companies expect to give gifts in order to get an electrical connection, nearly 3% for a telephone connection and nearly 4% for a water connection.