Firm-Level Corruption in Vietnam

The increasing focus on combating bribes has also led to a series of punitive actions against corrupt public officials and bribe-providing firms in Vietnam. While the sampling was adjusted over time to accommodate the rapidly changing business environment in Vietnam, other aspects, including the questionnaires, were maintained virtually identical. Significant variation in bribe payments is also observed across firms over time. Only 38% of the bribe-paying firms and 14% of the entire sample paid bribes in both periods. Also noticeable is that 15% of the 1,046 firms that did not pay bribes in 2005 did incur an informal payment in 2007. The enterprise interviews also imply that companies tend to accept corrupt bureaucratic practices. If the corrupt official has discretionary power in implementing, executing, and enforcing rules relevant to the firm's doing business, this will affect the threat point in the negotiation between the official and the firm.