Research Report on Companies’ Use of Internal Control and Codes of Conduct in Viet Nam

Research Report on Companies’ Use of Internal Control and Codes of Conduct in Viet Nam

March 4, 2019

Viet Nam’s economy has been growing rapidly in the last two decades and has contributed significantly to the country’s development. However, both practitioners and scholars have raised concerns about the prevalence of corruption in the business sector, both in business-to-government (B2G) and business-to-business (B2B) relations.

Various surveys and studies have shown that corruption in business has not been reduced in the last decade. Furthermore, corruption has emerged as a threat to the viability of companies operating in Vietnam, undermining the country’s economic growth prospects and long-term sustainability.

This study was conducted in the context of the newly revised Anti-Corruption Law, passed by the National Assembly of Viet Nam on 20 November 2018, and due to come into force in July 2019. That law’s private sector chapter1 mentions a number of new provisions that are placed on companies, in particular Internal Control (IC) systems and Codes of Conduct (CoCs).

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