Vietnam Country Summary

FATF Status

Vietnam is on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Latest FATF Statement - 21 February 2025

Since June 2023, when Vietnam made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime, Vietnam has made limited progress. The FATF strongly encourages Vietnam to coordinate internally to demonstrate progress on its action plan to address its strategic deficiencies, including by: (1) increasing risk understanding, domestic co-ordination and co-operation to combat ML/TF; (2) enhancing international co-operation; (3) implementing effective risk-based supervision for FIs and DNFBPs; (4) taking action to regulate virtual assets and virtual asset service providers; (5) addressing technical compliance deficiencies, including with respect to the ML offence, targeted financial sanctions, customer due diligence and suspicious transaction reporting; (6) conducing outreach activities with the private sector; (7) establishing a regime that provides competent authorities with adequate, accurate and up-to-date information on beneficial ownership; (8) ensuring the independence of the FIU and enhancing the quality and quantity of financial intelligence analysis and disseminations; (9) prioritizing parallel financial investigations and demonstrating an increase in the number of ML investigations and prosecutions undertaken; and (10) demonstrating that there is monitoring of FIs and DNFBPs for compliance with PF TFS obligations and that there is co-operation and co-ordination between authorities to prevent PF TFS from being evaded.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Vietnam was undertaken in 2024. According to that Evaluation, Vietnam was deemed Compliant for 2 and Largely Compliant for 12 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 2 of the Effectiveness ratings.

Vietnam has established laws to combat corruption, with a focus on transparency and accountability, yet corruption remains widespread due to low media freedom and inadequate enforcement mechanisms. The government has created various agencies to address corruption, but civil society advocates for a more independent oversight body. Additionally, Vietnam faces significant challenges with organized crime, including human trafficking, drug trade, and financial crimes, exacerbated by corruption and a lack of judicial independence.

Vietnam's economy is significantly driven by foreign direct investment (FDI), with an FDI stock reaching $297 billion by the end of 2023. The government has implemented favorable policies for FDI, particularly in export-oriented manufacturing, while also facing challenges such as corruption and regulatory uncertainty. Despite these hurdles, Vietnam's young and educated workforce, along with competitive labor costs and a growing number of trade agreements, continue to attract foreign investors.

Vietnam's investment climate is characterized by a strong emphasis on attracting foreign direct investment (FDI), which is crucial for its economic growth. The government has implemented policies that favor export-oriented manufacturing, supported by political stability, a young workforce, and numerous free trade agreements. However, challenges such as corruption, regulatory uncertainty, and a weak legal framework continue to pose significant hurdles for foreign investors.