World Bank case brings benefits

The Vietnam Chamber of Commerce and Industry’s (VCCI) Integrity and Transparency in Business Initiative for Vietnam (ITBI) is among more than 30 initiatives from over 20 countries that have been selected by Siemens in an initial tranche of $40 million out of an overall $100 million integrity initiative to promote clear markets committed by Siemens with the World Bank on July 2, 2009.

The German firm and the World Bank agreed on a comprehensive settlement last year following the company’s acknowledged past misconduct in its global business and a World Bank investigation into corruption in a Siemens subsidiary’s project in Russia several years ago.

Under the commitment made by Siemens, the German firm will pay $100 million over the next 15 years to support global efforts to fight fraud and corruption. Siemens will provide funds to organisations and projects aimed at combating corruption through collective action, training and education.

The World Bank will have audit rights over the use of these funds and veto rights over the selection by Siemens of anti-corruption groups or programmes receiving funds.

Erdal Elver, president and CEO of Siemens Vietnam, said the company looked to contribute in different areas to the development of Vietnam, which it considered an important market for the German firm.

“It is important for us to join in projects to support initiatives in that area of integrity, transparency and anti-corruption to be able to create a fair market condition in the country, not only for Siemens but also for other players,” Elver said.

The Vietnam’s ITBI aims at bringing companies operating in the country together to work towards improving integrity and transparency of the way business is conducted. Awareness raising, promotion of dialogues among multi-stakeholders and training are the key activities to ensure the sustainable improvement of transparency and integrity of doing business in Vietnam.

The initiative is implemented by VCCI in collaboration with relevant Vietnamese agencies and businesses with technical support of international organisations including the Transparency International and International Business Leaders Forum. The initiative is supported by embassies of Sweden and the United Kingdom in Hanoi and a group of businesses during 2009-2012.

“Anti-corruption is a very long journey for Vietnam. A period of three years is not enough, but we have to go along with support from the community,” said Nguyen Quang Vinh, director general of the VCCI’s Office for Business Sustainable Development.

“The initiative forms a dynamic partnership among businesses, governments, civil society organisations and international organisations for improvement of business standards that has significant influence on the fight against corruption in Vietnam,” Vinh said.