Activities

Culture 'bribes, kickbacks' in business

Thursday, 05/04/2012, 13:06 GMT+7

To solve the quiet, 67% of comments for that business, money is money wise to go ahead. The majority believe that sending a gift, envelope express our thanks to the staff as "common practices".
 

VCCI and the Government Inspectorate published research situation of corruption in the corporate sector in Vietnam on 4/4. Most companies have acknowledged, they have the agent has caused the victims of corruption.

Corruption occurs in many sectors of the procedures for business registration, application for certificate of land use rights, land, taxation, customs, market management, construction and banking. Up to 40% of reviews said the unofficial costs about 1% of the total annual cost of the enterprise; 13% of businesses said that this clause represents more than 5%.

In the area of ​​granting land use right certificates, up to 39.9% believe that business relationships must be familiar with the new land, land. More than 18% of staff said they were suggested to solve the envelope when the procedures in this area. 83% send gifts or money.

Although the government has implemented several programs to support business loans for investment, production and business, but the majority said that the loan procedures are complex. To reach the capital, more than 60% of firms that have relationships with banks or credit officers. Nearly 50% said the money should be fostering new credit, get loans.

Where loans from commercial banks, also need to "kickbacks." To them priorities for themselves, they must pay a fee. But myself to lobby for staff appraisal and consulting staff concerned for their records, and sometimes the process, they say this percentage to pay another cent.

In the area of ​​electricity supply, water can also corrupt. 8.55% for foreign business bill payment, they must pay additional costs for unofficial power supply unit. 4.1% to pay additional costs for business unofficial water supply. Array own bidding, nearly 42% said that the gifts sent to the staff is very popular.

In the relationship between officials of the state enterprises, 67% suggested that, money is money wise to go ahead. 63% point of that, the companies send presents, envelopes expressed gratitude to the staff as general practices.

Research suggests that, in relation to business - business, common forms of corruption is money from the "kickbacks" in the contract value. This form was also noted as a common practice in many transactions, do, to keep the relationship or promote other activities such as payments, delivery of goods and services.

The introduction of "envelope" for government officials, before or after, whether to thank or purpose "cost" to government officials to solve is quite common and considered acceptable practices in business in Vietnam. In addition, corruption is identified as the gifts, shares, stocks, invited to travel ...

Causes of corruption is wrong in the perception and corporate culture. For example, said that corruption is not customary and correct to "show gratitude." Low salary was a reason arise.

Mr. Conrad F Zellmann, deputy director of Transparency Organization toward (TT) said that businesses are aware of their role, but seems to abet the unofficial payments. In particular, corporate culture plays a big role in creating favorable conditions for corruption. To mitigate this situation, Mr. Conrad F Zellmann that should facilitate further promote integrity in business, strengthening the dialogue between government and enterprises.

 

 

The report is based on the 270 enterprises surveyed, seven focus group discussions and 12 depth interviews in Hanoi, Hai Phong, Da Nang, Ho Chi Minh City, Dong Nai and Can Tho. The study focuses on the corruption in the relationship between enterprises and public authorities and between enterprises and enterprises.  

Written : Hoàng Lan