Vietnam is currently undergoing a sweeping anti-corruption drive known as the “blazing furnace” campaign. Initiated by the government in 2016, this crackdown utilizes stricter laws, specialized investigative agencies, asset recovery, and public education to combat deeply ingrained corruption across one of Southeast Asia’s fastest-growing economies.
Unprecedented Reach
The purge has reached unprecedented levels, resulting in high-profile arrests and resignations across the country. The most staggering example is the case of businesswoman Truong My Lan, who was sentenced to death in April 2024 for her role in a monumental $12.5 billion financial fraud — the largest in Vietnamese history. Her case underscores what researchers describe as an “inherent” corruption problem in the country’s fast-growing economy, historically characterized by bribes, facilitation payments, and kickback schemes that have long been treated as the cost of doing business.
A Double-Edged Sword for Business and Law
For businesses and legal professionals, the “blazing furnace” acts as a double-edged sword. In the short term, the purge has caused significant turbulence and bureaucratic delays, as officials — fearful of making missteps — have become reluctant to approve permits, sign off on transactions, or exercise routine discretion. Investment timelines have slowed and regulatory uncertainty has increased.
However, the campaign has simultaneously created a surge in demand for legal services. Lawyers are increasingly needed to help companies establish proper compliance systems, internal policies, audits, and due diligence frameworks that can withstand heightened scrutiny. Legal experts emphasize that despite the initial headaches, the ultimate goal of removing corruption “can only be good for a country” — and that firms which invest in compliance infrastructure now will be best positioned as Vietnam’s regulatory environment matures.
Progress and Persistent Challenges
Vietnam has made tangible progress. Its Transparency International Corruption Perception Index ranking improved from 113th in 2016 to 77th in 2022 — a meaningful climb that reflects both enforcement action and shifting institutional culture. Yet experts are candid that complete eradication of corruption remains “another generation and a half away.”
The reason is structural. Poverty and limited access to infrastructure and public services persist as underlying drivers of corruption, creating environments in which facilitation payments feel rational or even necessary to ordinary citizens and low-level officials alike. Fully resolving the problem will require addressing these foundational societal challenges alongside the ongoing crackdown — not merely prosecuting bad actors at the top, but investing in the institutions, wages, and public services that reduce the incentive to corrupt at every level of society.
Implications for International Practice
For international law firms and multinational companies operating in Vietnam, the “blazing furnace” era demands a recalibration of risk. Anti-bribery and corruption compliance frameworks built for mature Western regulatory environments must be adapted for a market in rapid institutional transition. Global companies must conduct rigorous due diligence on local partners, implement robust internal reporting mechanisms, and ensure that compliance training reflects the specific pressures present in Vietnam’s business culture. The stakes — reputational, legal, and financial — have never been higher.
Sources
“Anti-corruption: Vietnam’s ‘blazing furnace’ crackdown a double-edged sword for lawyers.” International Bar Association, 2026.
Ibaraki, Toshio, Yoshiaki Muto, Thuy Hang Nguyen, Takeshi Yoshida, and Boris Hall. “Vietnam and Japan: Anti-bribery and corruption compliance for global companies.” Global Compliance News, 2026.