PM orders verification on alleged bribery by Japanese firm

The PM has ordered government bodies to verify reports that Japanese company Tenma bribed Vietnamese officials JPY25 million ($215,000) to minimize tax payments.

Vietnam, Tenma bribery, PM orders verify allegations, Japanese firm bribe Vietnamese officials

"If the reports are true, these officials must be punished to create a transparent and fair business environment and to prevent tax losses," Prime Minister Nguyen Xuan Phuc said in a release on the government’s website.

Eleven customs and tax officials in the northern province of Bac Ninh, where plastic appliances maker Tenma Vietnam is located, have been suspended for 15 days starting Wednesday pending investigations into the allegations that the company had bribed Vietnamese officials on two occasions, in 2017 and last year.

Minister of Public Security To Lam said Tuesday that Vietnam was working with Japan to verify the reports.

Japanese newspaper Asahi reported May 12 that Tenma representatives have confessed to prosecutors in Tokyo that company subsidiary Tenma Vietnam had imported in June 2017 a batch of molds on which Vietnamese officials demanded a value-added tax of JPY1.8 billion ($16.7 million).

To avoid this obligation, Tenma Vietnam paid a senior customs official VND2 billion (JPY10 million or about $86,000) in cash.

The newspaper also reported that in August last year, Bac Ninh tax authorities had asked Tenma Vietnam to pay tax dues, including corporate income tax, of JPY89 million ($826,400).

It said Tenma Vietnam paid VND3 billion (JPY15 million or around $129,000) in cash to tax officials to get the dues lowered to JPY2.6 million ($24,300).

Representatives from Bac Ninh’s People Committee, the highest executive body in the province, said Tuesday that a preliminary review by local police has not showed any abnormal signs.

Bac Ninh customs and tax officials have denied the allegations, saying that Tenma, as a firm involved in processing for export, is eligible for zero import and value-added tax duties under Vietnamese law, and therefore the allegations are baseless.

Tenma Vietnam continues to operate normally at the Que Vo Industrial Park in Bac Ninh. Company representatives told local media that all of its senior officials are either away from the province or still in Japan.

The company, established in 2007, produces plastic parts for household items and vehicles.

News Related


HSC among best-performing companies on Vietnam stock exchange

Ho Chi Minh City Securities Company (HoSE: HCM) was honored among the best performing-companies on the Vietnam’s stock exchange in 2019. Read more »

Vietnam to benefit most from global apparel manufacturing diversification

Vietnam would remain a prime candidate for gains over the near term, according to Fitch Solutions. Read more »

Belgian firms updated on business opportunities in Vietnam

An online conference on business and investment opportunities for Belgian firms in Vietnam was jointly held by the Belgium – Vietnam Alliance (BVA) and the Belgian- Luxembourg Chamber of Commerce (Beluxcham) in Vietnam... Read more »

Investing in automation to help logistics firms compete

As the pandemic brings opportunities to the e-commerce sector, the local logistics industry also has a chance to grow. Read more »

Allow foreign ownership in fuel distribution, ministry proposes

The Ministry of Industry and Trade has proposed that fuel distributors be allowed to sell a maximum of 35 percent of their stake to foreign investors. Read more »

Vietnam first-half coal imports surge to record high as power demand grows

HANOI — Vietnam’s coal imports in the first half of this year surged by more than 50% to a record high, government data showed on Monday, mostly to feed the country’s growing number... Read more »

Reference exchange rate revised down

The State Bank of Vietnam set the daily reference exchange rate at 23,216 VND per USD on July 14, down 4 VND from the previous day. Read more »

HCM City optimistic about tourism growth

HCM City Department of Tourism has expressed optimism about the local tourism after Covid-19 during a question and answer session with the deputies from HCM City People’s Council. Bui Ta Hoang Vu, director... Read more »

Fee reduction bolsters domestic automobile market

After much anticipation, the Government has issued Decree No 70 on reducing registration fees on domestically-manufactured and assembled motor cars. With the resultant 50% cut in fees, car-owners will save tens of millions... Read more »

Gemadept dissolved the international port of Gemadept Nhon Hoi

According to Gemadept, the purpose of dissolving Gemadept Nhon Hoi International Port is to restructure and focus on core business activities. Photo: Gemadept Gemadept JSC (Code: GMD) has just announced the dissolution of... Read more »