Econ
Half of Vietnam’s businesses suffer from economic crimes, frauds: PwC
The rate is higher than 46% in Asia-Pacific and 49% globally, according to PwC’s Global Economic Crime and Fraud Survey.
As much as 52% of Vietnamese businesses have suffered from economic crimes and frauds in the past two years, PricewaterhouseCoopers (PwC)’s said in its first-ever Vietnam-centric report.
The rate is higher than 46% in Asia-Pacific and 49% globally, according to PwC’s Global Economic Crime and Fraud Survey.
PwC pointed out three most common types of economic crimes and frauds namely assets misappropriation (40%), bribery and corruption (36%), and fraud committed by consumers (33%).
The consulting firm said that 53% of frauds were committed by internal actors, 36% caused by external perpetrators like customers, vendors, agents, and intermediaries.
Economic incidents have caused both losses and non-financial risks. Up to 32% of Vietnamese survey respondents said that they lost more than $100,000 to frauds in the past two years. In addition, they have also been impacted by economic incidents, mostly damage to reputation and brand strength, employee morale, and business relations.
Vietnamese respondents lag well behind the rest of the world when it comes to using key technologies to protect themselves from fraud. They are also facing many challenges with respect to anti-bribery and anti-corruption, PwC said in the report.
It noted that as the Vietnamese market becomes more integrated internationally, there is a growing need for organizations to adopt appropriate frameworks, policies and procedures to protect themselves from potential damages.
As of end-2017, Vietnam had 561,064 businesses operating in economic and services sectors (354,244), industry and construction (146,376), and agro-forestry-fisheries (55,997), according to the General Statistics Office.
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PwC pointed out three most common types of economic crimes and frauds namely assets misappropriation (40%), bribery and corruption (36%), and fraud committed by consumers (33%).
The consulting firm said that 53% of frauds were committed by internal actors, 36% caused by external perpetrators like customers, vendors, agents, and intermediaries.
Economic incidents have caused both losses and non-financial risks. Up to 32% of Vietnamese survey respondents said that they lost more than $100,000 to frauds in the past two years. In addition, they have also been impacted by economic incidents, mostly damage to reputation and brand strength, employee morale, and business relations.
Illustrative photo
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It noted that as the Vietnamese market becomes more integrated internationally, there is a growing need for organizations to adopt appropriate frameworks, policies and procedures to protect themselves from potential damages.
