Japanese Tenma under investigation in Vietnam for alleged $215,000 bribery

The Finance Ministry has established an investigation team to verify the reports by some Japanese media including Asahi that plastic firm Tenma had bribed Vietnamese officials in 2017 and 2019.

Vietnam's Minister of Finance instructed director of the General Department of Taxation, general director of the General Department of Customs to report to the case of Tenma Vietnam before May 26.

The Government news portal cited inforation from Asahi as saying representatives from Tenma confessed on April 1 to prosecutors in Tokyo that its Vietnam's subsidiary had imported a batch of molds and Vietnamese officials demanded 1.8 billion yen ($16.7 million) tax.

In order to avoid paying the tax obligation, CEO of Tenma Vietnam, based in Bac Ninh province, had gave a senior customs official 10 million yen ($86,000) in cash.

Media in Japan also reported that in August 2019, Bac Ninh tax authorities had asked Tenma Vietnam to pay tax dues, including corporate income tax, worth 89 million yen ($826,400).

Tenma Vietnam paid 15 million yen ($129,000) in cash to tax officials to get the tax lowered to 2.6 million ($24,300), VnExpress cited the report.

Later, the company was investigated for giving bribe to Vietnamese officials and violating competition laws in Japan.

Bac Ninh customs officials have denied the allegations, VnExpress says. 

Pham Chi Thanh, deputy head of Bac Ninh Customs Department, said that Tenma, as a firm involved in processing for export, is eligible for zero import and value-added tax duties under Vietnamese law.

This means its imported goods does not have to pay any tax, and allegations that customs officials have received bribes for reducing the company's tax dues are baseless, he said.

Ngo Xuan Tong, director of Bac Ninh Taxation Department, said that apart from the newspaper report, his department has not received any official document from Japanese authorities on the matter.

He said that the department had only fined the company VND500 million ($21,500) for its delay in paying income tax on a portion of revenue, which are not related to the above-mentioned import tax incentives.

Tenma Vietnam was established at the Que Vo Industrial Park in Bac Ninh Province in 2007. It produces plastic parts for vehicles and household items.

Two previous instances of Japanese companies bribing Vietnamese transport officials to the tune of $262,000 and $473,000 respectively have been recorded.

Source: MOF, VGP, VnExpress