How to deal with corruption in transitional and developing economies: A Vietnamese case study

Abstract

Purpose

The purpose of this paper is to propose alternate dispute resolution (ADR) as a possible tool to prevent corruption.

Design/methodology/approach

After the literature reviews on theory of corruption, the Pacific Consultants International (PCI) case of the Japanese prosecution is examined as a case study of Vietnam, based on some empirical research.

Findings

The PCI executives were indicted and sentenced guilty on all counts and the Japanese Government has frozen Yen‐loan until the Vietnamese Government prosecutes the Vietnamese official.

Research limitations/implications

This would be a tip of the iceberg. It would be difficult to find all the details of corruption at practice.

Practical implications

For enhancing transparency in such informal practice, if it is inevitable, a special dispute processing panel should be established as a Japanese and Vietnamese joint venture as ADR.

Originality/value

This is the first major case in which the Japanese Government, which was internationally criticised for its inaction despite adopting the international anti‐corruption regime, took action against the Japanese official development assistance‐related bribing case in Ho Chi Minh City.

Citation

Sato, Y. (2009), "How to deal with corruption in transitional and developing economies: A Vietnamese case study", Journal of Financial Crime, Vol. 16 No. 3, pp. 220-228. https://doi.org/10.1108/13590790910971775