Lecturer: Mr. Han Jung Woo Group members: Mr. Luu Ha Long Ms. Tran Hoang Ha Ms.

Le Hoang Bao Tran Ms. Nguyen Huu Quynh Anh

Table of contents

Part I: The cultural foundations for bribery in Vietnam versus France. Part II: The regulation on anti-bribery law in Vietnam versus France. Part III: Top 3 bribery cases in France.
The implications to Pho24.

Part IV: SWOT analysis and advices for Pho24s business expansion.

Part I: The cultural foundation for bribery

Bribery in Vietnam
According to CPI (Corruption Perceptions Index), Vietnam have 60% entrepreneurs were demanding bribes. Surveying the global fraudulent, Ernst & Young published 96% enterprises certification by involved bribery and corruption.

Asia and The Pacific 56% World Average Number 24% Singapore 7% Malaysia 16% Indonesia 17% China 81%

Bribery

Enterprises in Vietnam Forced to raise corruption. The administrative agencies are forcing. Not dare to denounce

Culture
Corruption

Corruption

Bribery

Business Opportunities

Corruption or Loosing business opportunities?

Bribery in France
7% people in the Society in France have to pay a bribe in 12 month. On October 26th 2010, France is one of 25 countries have the lowest corruption and bribery. The ratification of the Convention on Combating bribery of OECD (the Organization for Economic Cooperation and Development) shows almost none of the proceeding have bribery for public foreign officials.

Bribery

Commissions Exceptional commercial expenses

Their deduction for tax purposes, if they were paid to a foreign public official.

Since the 1970s, Bribery accepted in France only in International Business transactions were concerned.

Vietnamese perceives bribery

Government officials and public servants

Cause bribery and corruption

Low salary of state employee

Take advantages from their Power and Authority

Find more income resources

Vietnamese live with bribe and corruption. Accept it is part of our Culture.

French perceives bribery

Bribery is an act of violation of people trust

Bribery

Low esteem

Part II: The regulation on antibribery law

Bribery
Definition:
An illegal action that that involves offering or accepting a valuable asset in exchange for a particular services or goods. E.g.: money, intangible assets, services, goods, promise in return, etc.

France
Member of Economic Co-operation and Development
(OECD).

For the Bribe: Individuals: a penalty of up to 10 years imprisonment and a

fine of 150,000Legal entities: face fines of up to 5 times compare to individuals, as well as additional penalties

E.g. for up to five years: exclusion from government contracts, prohibition from offering their shares to the public, the closing of an establishment, etc.).

Vietnam
Vietnam Criminal Code amendments and supplements 2009/XXI/Section A/Number 279

2-7 years: Causing serious consequences; Having been disciplined for such acts but repeat their violations; Been convicted of one of the crimes specified in Section A of this
Chapter, not remission, but also violated.

7-15 years: An organized manner; Abusing positions and powers; Committing the crime more than once; Know of bribery are the property of the government; Requesting of bribery, harassment or cunning tricks; The bribe is valued at ten million and fifty million; Causing other serious consequences.

Vietnam (Cont.)
15-20 years: The bribe is valued between fifty million dong and under three hundred
million; Causing very serious consequences. Over 20 years, life imprisonment or capital punishment: The bribe is valued at three hundred million or more; Causing particularly serious consequences other. Banned from holding certain position from one to five years, may be fined an amount five times the value of the bribe, the confiscation of part or all of the assets.

Part III: Top 3 bribery cases in France

Alcatel-Lucent pays $137m to settle US bribery case

In between 2001-2006, Alcatel-Lucent spent lots of money to bribe officials in the government system in China, Costa-Rica, Malaysia, and Taiwan.

Former President of Costa-Rica

The ELF Aquitaine Scandal in 2003

There were about 37 defendants involved and they were accused of receiving the bribe up to 400 million from ELF to support for ELF business activities.

The Ile de France trials in between 1991-1996

In Mar, 2005, French Court had handled the trial to judge in the case of bribery and corruption in procurement contracts for the construction or renovation of 300 of the 470 high school in the France. The project lasted for 10 years with the contract value up to 1.4 billion. 2 percent of the value of the contracts to various political parties: 1.2 percent to the ruling Rassemblement Pour la Rpublique and 0.8 per cent to the Socialist Party.

Implications to Pho24

Part IV: SWOT Analysis & Advices

STRENGTH
On October 26th 2010, France is one of 25 countries have the lowest corruption and bribery. The ratification of the Convention on Combating bribery shows almost none of the proceeding have bribery for public foreign officials. Bribery is an act of violation of people trust

According to Corruption Perceptions Index, Vietnam have 60% entrepreneurs were demanding bribes. Enterprises in Vietnam are forced to raise corruption and not dare to denounce. Vietnamese live with bribe and corruption and accept it is part of our culture

WEAKNESS
Since the 1970s, Bribery accepted in France only in International Business transactions were concerned. Pho 24s business expansion in France should clearly considered as international transaction. Which names us in the list of bribery acceptation

OPPORTUNITY
France is a member of the Economic Co-operation and Development, the most significant international treaty on foreign bribery OECD stands for international organization that attempts to help democracies work together to address the economic, social and governance challenges of globalization as well as to exploit its opportunities

The French Criminal Code forbid all suggestion or making, any offer, promise, gift, present or advantage, of any kind to an individual holding a public office or discharging a public service It is also prohibited act of corruption and for the relevant individual to request or accept such a bribe. French criminal law also prohibits acts of corruption towards any person who holds a management position or job other than that of public official. It applies to all individuals and legal entities.

THREATS

Individual : face with fines of up to 150,000; 10 years for corruption, plus; Additional penalties. Legal entities: Five times compare with individuals, Additional penalties

References

Edda Muller - La responsable de TI pour l'Allemagne, Nouvelobs.com and Le nouvel Observateur site. http://tempsreel.nouvelobs.com Thnh Dng (thanhtra.com.vn), Mot goc nhin moi ve tham nhung tai Vietnam, Vien Khoa Hoc Thanh Tra. Accessed on Sep 3rd 2011 http://www.giri.ac.vn/?lang=&cateid=1&mod=2&newid=966 Alcatel-Lucent History. Available at: < http://www.alcatellucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w38TIE SYGYRq6mpEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UAB5_FFA!!/delta/base64xml/L3dJdyEv d0ZNQUFzQUMvNElVRS82X0FfNUxJ>. Accessed on Sept 1st,2011. Alcatel-Lucent About Us. Available at:< http://www.alcatellucent.com/wps/portal/aboutus>. Accessed on Sept 1st,2011. Alcatel-Lucent b pht 2,5 triu USD v hi l. Available at:< http://www.ictnews.vn/Home/kinh-doanh/alcatel-lucent-bi-phat-25-trieu-usd-vi-hoilo/2008/01/1CMSV87407/View.htm>. Accessed on Sept 1st,2011. Alcatel-Lucent pays $137m to settle US bribery case. Available at:< http://www.bbc.co.uk/news/business-12085143>. Accessed on Sept 1st,2011. Political corruption cases. Available at:< http://www.u4.no/themes/politicalcorruption/cases.cfm>. Accessed on Sept 1st,2011. Cuu Ngoai Truong Phap bi ket an. Available at:< http://www.chaobuoisang.net/cuungoai-truong-phap-bi-ket-an-498581.htm>. Accessed on Sept 1st,2011. Cac dong minh cua Tong Thong Phap ra toa vi tham nhung. Available at:< http://vietbao.vn/The-gioi/Cac-dong-minh-cua-tong-thong-Phap-ra-toa-vi-thamnhung/10903176/159/>. Accessed on Sept 1st,2011.

THANK YOU