Vietnam Country Summary

FATF Status

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

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 faces significant challenges related to crime and corruption, despite the government's efforts to combat these issues. Corruption remains widespread, fueled by low transparency, inadequate accountability mechanisms, and overlapping bureaucratic jurisdictions, while the country grapples with serious criminal activities including human trafficking, drug trade, and cybercrime, often exacerbated by the involvement of organized crime networks and corrupt officials.

Vietnam's economy is significantly bolstered by foreign direct investment (FDI), which reached a stock of $297 billion by the end of 2023, driven by government policies favoring export-oriented manufacturing and a favorable demographic profile. The country has made strides in enhancing its investment climate through various free trade agreements, including the EU-Vietnam Free Trade Agreement and the Regional Comprehensive Economic Partnership, which provide better market access and encourage reforms. However, challenges such as corruption, regulatory uncertainty, and a lack of skilled labor persist, alongside a complex legal environment that can hinder foreign investment, despite ongoing efforts to improve transparency and governance.