People

New Zealand is a transit and destination country for human trafficking, but the issue is not very prevalent and the government has reduced its efforts to combat this crime. Vulnerable workers from Pacific Island countries, Asia and Latin America are forced into labour in the agricultural, dairy, construction, viticulture, food service and hospitality sectors. Aboard foreign-flagged fishing vessels, men from South East Asia are subjected to forced labour, including debt bondage. Some people who come to New Zealand with the promise of employment in venues such as restaurants and beauty parlours are forced to work in brothels. Some children have also been victims of commercial sexual exploitation. Social networks are playing an increasing role in the recruitment of victims. The COVID-19 pandemic increased the reluctance of many foreign nationals to leave New Zealand, and those who breached their visa conditions were more vulnerable to workplace exploitation.

Incidents of human smuggling are also low. While the problem does exist, it is not common due to New Zealand’s geographic isolation and the absence of land borders with other countries. People arrive in the country mainly through air travel, so abduction and coercion are less prominent. Indeed, effective border controls and strong governance make New Zealand an unattractive destination for human smugglers and there have been no incidents in recent times. New Zealand has a small population and is known for being accepting of foreign nationals. Previous reports indicated that people from South West Asia are smuggled through New Zealand, as travellers who transit the country can qualify for an Australian visa. Individuals can either enter with a fraudulent passport from a visa-free country, or have their boarding pass swapped by criminals in the transit lounge of an airport. Extortion and protection racketeering are predominantly prevalent among organized crime groups active in the country.

Trade

Arms trafficking in New Zealand is difficult to quantify due to the large number of unregistered firearms in circulation. With unregistered firearms in homes, organized criminals target properties to get hold of them for their activities. Increasing possession of firearms by gangs has increased violence and competition over territories in the drug trade. Due to the profitability of the trade, the demand and the price of firearms has increased. Currently, almost all privately-owned firearms remain unregistered, making it difficult for police to control. Despite government efforts – including the creation of a registry and the adoption of strict ownership obligations – gun crime is on the rise.

Counterfeit goods are not commonly found in New Zealand. However, there are concerns that counterfeit car parts are being imported alongside legitimate aftermarket parts, making them difficult to trace. Also, counterfeit watches, bags and clothing are present in the market, but are not prevalent. Regarding the trade in illicit goods, cigarettes and alcoholic beverages are the main concern for the government. The country recently passed legislation that implements an annually rising legal smoking age, effectively banning smoking for future generations. Before this law was passed, the country had some of the highest cigarette prices in the world due to excise taxes. This led to an increase in the smuggling of cut-price cigarettes by international crime syndicates. Customs officials reported that criminal groups have started to focus more of their activities on contraband tobacco products. With the ban on cigarettes, a general reduction in demand for tobacco is expected over time, but in the short-term there may be an increase in the sourcing of illicit tobacco and vaping products.

Environment

Timber harvesting is well-regulated in New Zealand, supported by the country’s independent judicial system and its strong legislative and regulatory frameworks. This, combined with strong law enforcement, has made illegal logging rare, with incidents involving only small quantities of timber. To prevent illegal wood entering the market, the government has partnered with Australia to encourage industry certifications in source countries where illegal timber is common.

New Zealand has some poaching issues. The threatened jewelled gecko is the main target for wildlife poaching and illegal export, along with other exotic species like kea, kaka, tuatara, and various frog species. Fauna crime incidents mainly involve foreign actors. Moreover, the country's extensive network of islands has made its exclusive economic zone (EEZ) for fishing one of the largest in the world. With less than 10% declared as protected areas, New Zealand is vulnerable to illegal, unreported and unregulated (IUU) fishing. Despite these challenges, maritime law enforcement is strong. While the country's trade in ivory may not be as significant as other nations, it appears to have increased dramatically since 2016. Most of the ivory arrives from South Africa, Zimbabwe, Botswana and some from Mozambique. Ivory can also be re-exported from Great Britain and Australia. Usually, ivory is sold in auction houses that do not require proof of origin for the items on sale. Other fauna commodities include saiga horns from Malaysia, show shells, coral, elephant feet, primate skulls and dried seahorses.

New Zealand's rare nephrite jade, also known as pounamu or greenstone, has become a lucrative target for illegal trade on the black market. Concerns are growing about large-scale smuggling operations from isolated beaches and rivers on the west coast. By law, pounamu found on tribal land belongs to the residents, but the increasing demand has led to more smuggling activities. Reports about this crime suggest that pounamu is occasionally traded for methamphetamine. Pounamu aside, non-renewable resource crimes are not currently an area of concern in New Zealand thanks to the country’s tightly controlled industries, limited corruption and small population.

Drugs

Consumption of heroin remains low and stable. Due to the country's geographical isolation, heroin mostly arrives in commercial air cargo. (Alternative transportation methods include sea travel in containers and on yachts, and in light aeroplanes.) In 2021, police discovered home-bake heroin labs in the country for the first time since the mid-1980s, indicating that there is a local market for the drug. But that market seems small due to the drug's high cost and the fact that it is typically consumed through needle injection, which is not a popular choice among potential users. The non-medical use of pharmaceutical opioids is becoming a concern for authorities.

Like heroin, cocaine use is limited in New Zealand due to its high price. However, drug seizures have been increasing. In 2022, for example, New Zealand recorded the largest cocaine seizure in the country’s history. The gap between the amount of drugs seized and local use of the drug indicates that New Zealand and other Pacific Island countries mostly serve as transit points for cocaine headed to Australia, the largest drug market in the region and one of the world's most lucrative for cocaine. Asian triads, Latin American cartels, Australian motorcycle gangs and local organized crime groups cooperate to make the trans-Pacific drug trade possible. Cocaine typically arrives in the country via air and sea.

Cannabis remains the most widely used illicit substance in New Zealand, with a slight increase observed. Much of it is grown and trafficked locally. Cannabis is primarily sold through social networks, but it is also available in semi-public drug houses known as 'tinny' houses, which are popular with adolescents. Cannabis from abroad mostly originates in, or transits through, Australia, the United States, Canada, the Netherlands and South Africa. Only a small number of people who use cannabis medicinally obtain it legally.

Synthetic drugs are a significant threat to New Zealand, with increasing use and greater shipping options. Methamphetamine is the most prevalent street drug. Due to high demand, the drug is a key driver of several violent crimes such as robberies and burglaries. Additionally, the wealth generated by this drug is transforming New Zealand gangs into more sophisticated criminal groups with national and transnational partners in Asia and Australia, among others. The lower price of methamphetamine suggests high availability, but it also indicates that no gang has a monopoly on the drug market. The recreational use of ketamine in New Zealand has the potential to overtake cocaine in popularity. Organized criminal groups have increased supply. Although ketamine is unlikely to replace MDMA or methamphetamine as the synthetic party drug of choice, seizures over the past six years have more than doubled.

Cyber Crimes

Cybercrime is becoming an increasingly serious threat in New Zealand: reports indicate that more than a third of New Zealanders have fallen victim to cybercrime in 2020. Despite many people taking more precautions online, surveys have revealed that they feel more vulnerable since the outbreak of the COVID-19 pandemic. Cybercriminals are taking advantage of people working remotely and exploiting the increased digital footprint of individuals and businesses. The scale and impact of ransomware and other types of cyber extortion have also increased significantly.

The New Zealand government's response to cybercrime is described as fragmented and underfunded. Authorities are still grappling with how to respond to national and international cyber incidents on a whole-of-government scale. There is a need for sufficient upskilling of government staff, including police, to enable them to respond effectively to a wide range of cyber threats.

The frequency and impact of cyber extortion, including ransomware and data theft, have both increased. Cybercriminals are using Monero as their preferred cryptocurrency for ransom payments, as transactions made with this cryptocurrency are more difficult to track than with Bitcoin and other options. The frequency of cyberattacks doubled in 2021, highlighting the urgent need for greater investment in cybersecurity measures.

Financial Crimes

New Zealand is considered a major conduit for financial crimes. The main threats facing the country are fraud and tax evasion. Another area that needs to be addressed is the lack of a register for trusts or for ultimate beneficial ownership. Such a register would support the customer due diligence frameworks already in place, and it would increase the visibility of potential financial crimes. Financial crimes like e-commerce imitation scams, pyramid schemes, investment scams and credit card fraud have also been increasingly reported in the country. Although New Zealand has robust legislation to tackle financial crimes, it still faces challenges due to a shortage of experienced financial crime specialists. The belief that corruption in the country is negligible has made financial crime a low-priority issue.

Criminal Actors

New Zealand's organized crime scene is mainly dominated by loosely structured criminal networks with several operating within the country’s borders. These networks are primarily involved in human trafficking and drug trafficking, especially in bigger cities. Moreover, criminal networks focusing mainly on cyber-criminality are becoming more active in New Zealand with increasing attacks against essential services, critical infrastructure providers, government entities and large corporations. Another worrying trend for the government is the rise of Islamophobia and far-right extremist groups, promoted by social networks, following the Christchurch terror attacks in 2019. The views of these groups are likely to cross over into criminal territory and influence criminal activity. New Zealand networks are actively cooperating with their international counterparts in their illicit activities. Being linked to transnational crime groups is pushing local groups to reorganize and professionalize their structures. They have not only expanded across the country but internationally, too. Foreign actors are also an integral part of the criminal markets in the country. For instance, major drug finds in New Zealand have implicated Asian syndicates, Australian motorcycle gangs and Latin American cartels. Human trafficking is likewise linked to foreign actors, as recruitment agencies and unregulated job brokers in the country collaborate with counterparts in South East Asia and India. There are also traditional ethnic and motorcycle gangs involved in different criminal activities, although the common thread is drugs – particularly methamphetamines. While there are structures and leaders, they are not always tightly managed. Nevertheless, they can be considered as ‘mafia-style’ groups as the profits from drug trafficking are allowing them to expand in size and reach.

The private sector in New Zealand (including the financial, legal, accounting, real estate and retail sectors) offers opportunities for money launderers to move large amounts of illegitimate funds while providing anonymity. New Zealand professionals offer high-risk legal services to overseas clients, further compounding the issue. In recent years, there have been a few cases of attempted or actual infiltration of police, and/or corruption of individual police members by organized crime. However, there is currently no evidence of systematic corruption of police or border control or direct involvement of law enforcement in criminal markets.

Leadership and governance

New Zealand is considered one of the most stable countries in the world, with a high level of respect for political rights and civil liberties. The country has a reputation for conducting free and fair elections, but concerns have been raised regarding discrimination against minority populations such as the Māori. Reports have also surfaced about foreign influence in politics and education. Despite these issues, New Zealand's separation of powers, rule of law, lack of corruption and good transparency are noteworthy. Although New Zealand is recognized as one of the least corrupt countries in the world, the absence of an anti-corruption body is a cause for concern. On the other hand, the country's budget transparency is widely praised, as it provides extensive information to both citizens and parliament.

New Zealand has a strong international presence and is party to more than 1 900 international treaties. The country actively cooperates with Australia to detect illegal vessels and plays host to various sub-committees and negotiations regarding free trade agreements with the United Kingdom, the European Union and China. The legal framework against organized crime in New Zealand is robust, with policies and laws related to human trafficking, arms trafficking, flora and fauna protection and more. However, deficiencies have been identified in the country's arms possession policies, due to the high number of armed civilians in the country and inferior anti-money laundering legislation and enforcement. The latter is a threat to the country as it faces a potential influx of illicit funds due to increasing drug trafficking.

Criminal justice and security

New Zealand's judiciary is recognized as having one of the lowest risks of corruption in the world. The country is a leader in restorative justice efforts, which focus on re-education and behaviour change rather than punishment for offenders. However, despite due-process protection for defendants and detainees, the duration of pre-trial detention has increased due to stricter bail requirements and more relaxed time limits for the conclusion of cases. While prison conditions generally meet international standards, some facilities are ill-equipped to house detainees with disabilities or mental health issues. Indigenous people are disproportionately represented in the penal system.

The New Zealand police force is divided into 12 districts and has effective mechanisms in place to prevent and detect corruption, with no reported incidents of impunity. However, authorities have reported a lack of resources in certain cases, and occasional procedural confusion that has resulted in prosecutors charging some suspected traffickers under different statutes, such as labour violations. The police have also been accused of racially profiling Māori people and young people through the use of a mobile app connected to the national intelligence system. There have been calls for more officers – to improve the police-to-population ratio – and calls for better financial intelligence within the police.

New Zealand's remote and isolated islands, along with tight border controls, make it less vulnerable to major transnational crimes. These crimes do still occur, with drug trafficking and the import and export of illicit goods mostly facilitated by the country’s reliance on shipping and fishing vessels. The New Zealand customs force is adequately equipped to deal with border security threats and the country also employs various measures to tackle biodiversity risks such as illegally imported animals. Officials are motivated to ensure that international fisheries are managed well. Although the risk of human smuggling via boat is low, it still occurs and the government continually reviews its border enforcement regulations and visa restrictions. Despite an increase in cyberattacks and scams during the post-pandemic period, law enforcement is moderately trained and equipped to prevent and counter these activities.

Economic and financial environment

New Zealand is not a major international banking centre due to its geographical isolation and strong law enforcement. As a result, the scale of money laundering is believed to be low. However, there is evidence to suggest that some drug funds and proceeds from commercial crimes are increasingly being laundered in the country. New Zealand's open economy and free flow of capital and people make it vulnerable to transnational organized crime groups seeking to move funds through its financial system and legal structures. While independent analysis shows that New Zealand has made significant progress towards addressing its anti-money laundering deficiencies, areas such as banking, real estate, professional services and financial intelligence have been identified as ‘significant’ in terms of their scale, role and vulnerability. Although the overall risk of money laundering in the country is low, it has increased in recent years.

New Zealand's developed economy, high quality of life and economic freedom make the country attractive to criminal networks seeking new markets. Despite ongoing challenges to set New Zealand’s economy on a sustainable growth path, government policies to protect jobs during the pandemic helped the economy to recover rapidly. In the third quarter of 2021, the unemployment rate fell to its lowest level since 2007, and the employment rate rose to its highest level on record. To achieve its financial stability objectives, the reserve bank in New Zealand has begun to tighten monetary and macroprudential policies. Together with policy measures to increase housing supply, this should help moderate housing price inflation. While the fiscal deficit has begun to fall from the highs reached during the first wave of the COVID-19 shock, additional consolidation measures may help to put public finances in order. As capacity constraints take effect and macroeconomic policies are tightened, economic growth is expected to slow. Similarly, growth in consumption is expected to ease to a more sustainable pace as employment growth slows.

Civil society and social protection

The New Zealand government has taken a comprehensive approach against human trafficking, forced labour and slavery, focusing on prevention, protection and enforcement in line with the country's international obligations. Only a small number of victims have been identified, but the government has been diligent in its identification efforts and has provided protection to those victims. Legal alternatives are provided to foreign victims to prevent their removal to countries where they may face hardship or retribution. The law gives immigration officers discretionary powers to protect victims from facing criminal charges or sanctions, and the police provide protection for witnesses who feel threatened or intimidated, even going so far as to help victims create new identities.

Similarly, several measures have been taken across central and local governments to prevent people from becoming involved in organized crime. Certain institutions implement programmes that hold serious and persistent youth offenders accountable for their actions, along with addressing the root causes of the offences and thereby reducing the likelihood of young people adopting a life of crime. Moreover, measures are being taken to reduce the influence of gangs within prisons, and to reduce the chance of gang members reoffending. Labour inspections, including in brothels, are common in the country to prevent trafficking. While these initiatives are positive, money laundering is still an area of concern as there are still several constraints when it comes to preventing this crime.

New Zealand has a vibrant civil society and there are no significant restrictions on the ability of NGOs to operate and solicit funds. Anti-corruption institutions and independent organizations actively collaborate with civil society, and several NGOs are working on human trafficking issues. The country has a free and robust independent media sector, although the profit motives of certain media groups sometimes undermine the sector’s independence and pluralism. Journalists generally work in a safe environment, free from violence and intimidation, although they do face online harassment. Journalists experienced violence, insults and death threats during protests against COVID-19 restrictions in early 2022, which was a rare occurrence in the country. Workers in New Zealand enjoy the freedom to organize and bargain collectively, and trade unions actively engage in political debates and campaigns.

People

For more than two decades, Vietnam has been a source, destination and transit country for human trafficking. Women and children from ethnic minority groups and economically disadvantaged backgrounds are particularly vulnerable. While the Vietnamese government claims to prioritize combatting human trafficking, it does not comply with the minimum international standards to fight this crime. Rather, Vietnam is a major source country for trafficking women, especially underage girls, with Vietnamese women heavily represented in the regional and global sex industries. Criminal actors involved include local recruitment agencies, family members and acquaintances of victims, and foreign actors such as Chinese and Korean ‘bride recruitment’ brokers. Criminals are increasingly professional, and form closed interprovincial, transnational and international networks. Since the outbreak of the COVID-19 pandemic, human trafficking has worsened in Vietnam as illicit activities have become harder to detect and Vietnamese are reported to be exploited for forced criminality in scam compounds across South East Asia.

Human smuggling is also a significant issue in Vietnam, particularly along its borders with China and Cambodia. Many Vietnamese citizens use smugglers to seek economic opportunities in China, Taiwan, South Korea, Japan and Europe. Human smuggling hotspots, such as Nghe An province, receive millions of dollars in remittances annually. However, economic difficulties have been exacerbated by the COVID-19 pandemic, leading to reports of pregnant women crossing the border into China with the help of cross-border smuggling networks and reportedly selling their babies. Smuggling networks are highly organized, with established diaspora communities in Europe being a key factor in human smuggling from Vietnam. Smugglers often disguise themselves as job recruitment organizations and communicate mainly on social media to make detection difficult.

Protection racketeering and extortion have been longstanding issues in Vietnam. While it has not formalized into mafia and/or cartels as seen in other countries, specific actions and operations are challenging for law enforcement agencies. These criminal activities are typically organized by perpetrators with extensive criminal records, as well as drug dealers and users. The movement of the country’s illegal credit market into the digital domain makes this market particularly difficult to control, with criminals using cutting-edge technology to commit crimes. In many cases, criminals are aided by state-embedded actors, notably the police. Despite law enforcement efforts, many victims refuse to cooperate with authorities in denouncing crime, partly because they are afraid of retaliation and partly because they believe that, if this group of criminals is removed, another group will emerge.

Trade

Vietnam’s arms trafficking market is moderate compared to other countries, but it still serves as a potential source, destination and transit point, especially in border areas with China and Cambodia. Illicit arms manufacturing is reportedly on the rise in some regions, particularly in complex security areas like Hanoi, Hai Phong and Ho Chi Minh City. This trend is partly due to the growing use of cyberspace, including social media and e-commerce, which make it difficult for authorities to detect and address the crime. Mafia-style groups mainly sell arms in Ho Chi Minh City, while foreign buyers, particularly Chinese and Cambodian nationals, often engage as buyers. For poor agricultural families in northern and south-eastern Vietnam, arms trafficking reportedly constitutes a significant source of income.

Counterfeit goods are a widespread problem in Vietnam, especially during the Lunar New Year, with domestic and transnational criminal networks using various methods to trade counterfeit goods in and through the country. Vietnam, along with China, is a major manufacturer of many consumer goods worldwide, which has led to the proliferation of counterfeit goods’ production, sales and consumption, including of high-end brands. Inspecting and controlling counterfeit goods is challenging, particularly in provinces with extensive borders, marked by numerous shortcuts and trails. E-commerce transactions also make it difficult for market surveillance officials to track perpetrators. The latter are generally willing to accept fines if caught, given that some sanctions for counterfeiting offences are relatively light.

Vietnam faces a significant challenge in preventing the illicit trade of excise goods. Smugglers use a variety of methods, such as concealing goods in parcels and using fishing boats and cargo ships to transport them by sea routes. Smuggled cigarettes are typically transported in small quantities by bus along the Moc Bai route in the south, and by passenger cars and trucks, primarily at night. Despite authorities’ efforts to control this activity, smuggled cigarettes are becoming more readily available in the domestic market and sold at competitive prices. The smuggling of excise goods is facilitated by the low standard of living in hotspot areas, the interlaced terrain of canals marked by shortcuts and trails and the ease of transporting tobacco products. This problem is not limited to cigarettes, as excise goods ranging from alcohol, beer and gasoline to electronic components and telephones are also smuggled.

Environment

Vietnam has emerged as a major hub for illegal and high-risk timber originating from neighbouring countries, such as Laos and Cambodia, and is enabled by corrupt state-embedded actors. The country’s wood processing industry is dependent on smuggled timber imports, which has turned Vietnam’s illicit timber market into one of the world's largest. Precious rosewood species are also smuggled through Vietnam and supplied to Chinese buyers. Despite new regulations aimed at cleaning up the timber sector, importers continue to bring large volumes of tropical hardwood into the country from deforestation hotspots in Asia and Africa. Although the illegal timber trade in Vietnam exhibits the characteristics of organized crime, such as illegal cross-border movements, violence and corruption to facilitate activities, as well as being subject to a hierarchical and networked organization, it is often not considered as such by the Vietnamese criminal justice system.

Vietnam is also a significant player in the illegal wildlife trade. Ivory is a considerable trade in the country, which has further increased since the onset of the COVID-19 pandemic, and illegal ivory can be found in retail outlets and on online platforms. Turtles, reptiles, pangolins and tigers are commonly trafficked species in the country. Illegal fishing is rampant and poses a significant threat to aquatic species, particularly in the case of sea cucumbers and giant clams. Mafia-style groups are the primary actors behind the trade of wildlife parts, but authorities have been unsuccessful in apprehending the leaders behind these groups. Traditional markets for wildlife have given way to new trading methods, such as social networks, e-commerce sites and electronic financial transactions.

Vietnam is also a hotspot for smuggling non-renewable resources such as oil, sand, gold and diamonds. Private sector actors, domestic criminal networks, local fishermen and foreign actors are involved in these activities. Oil smuggling is concentrated in the waters bordering Thailand, Indonesia, Singapore and Malaysia, where foreign vessels allegedly sell oil to Vietnamese boats disguised as fishing boats. The war in Ukraine is reported to have caused a surge in smuggled oil, gas and minerals, as energy and mineral prices have risen. The perpetrators use various tactics such as misdeclaring the name and quantity of goods and purchasing minerals from licensed enterprises to export them illegally to foreign countries.

Drugs

Although the country’s heroin trade is not among the largest in the world, heroin remains a major drug market within Vietnam, with consumption occurring throughout the country. It is often transported using small transport mechanisms, with the trade facilitated by corrupt government and border officials in rural borderland provinces. The criminal actors involved in this trade include domestic and transnational criminal networks, particularly those from China and Korea, which frequently come to Vietnam to traffic drugs. While Vietnam was once a historical poppy cultivator, there is currently little to no poppy cultivation reported in the country. The demand for heroin remains high, even though methamphetamine has become the most commonly used drug in recent years.

Vietnam has become a major hub for the synthetic drug trade, with authorities documenting a large number of synthetic drugs being illegally transported to the country from South East Asia, Europe and North America. These are intended for consumption in Vietnam or transport to third countries. The synthetic drug trade is growing, with local demand reportedly on the rise in almost all provinces. Methamphetamines produced in the Golden Triangle are regularly destined for Vietnam or for transit through the country, with synthetic drug traffickers routinely being caught along Vietnam’s north-western border with Laos. Drug traffickers take advantage of favourable customs procedures and electronic clearance of goods, parcels and postal items to smuggle synthetic drugs.

Cocaine is smuggled into Vietnam from China, Laos, Cambodia, Europe and Western Africa. Customs authorities have reported a rise in smuggling methods, with traffickers avoiding importing large quantities in favour of smaller ones to avoid detection. Nevertheless, cocaine is Vietnam’s smallest drug market. Regarding cannabis, Vietnam is a destination for the drug from various countries, including the US, Canada, the UK, the Netherlands, Australia, Laos and Cambodia. Domestic cultivation, storage, trade and cannabis use are also increasing, particularly among Vietnamese youth. Cannabis seizures are low, with smuggling occurring mostly by land or air routes. Vietnamese syndicates are involved in indoor cannabis cultivation in many Western countries. Criminals, including Chinese and Taiwanese nationals, collude with domestic perpetrators to rent facilities in Vietnam to smuggle drugs from the Golden Triangle to third countries, using social media, dating apps, e-commerce and other technologies to facilitate this illicit trade.

Cyber Crimes

Vietnam has a significant cybercrime market, mainly involving different types of hacking activities. While the criminal groups had previously lacked the advanced technology needed for serious attacks, the emergence of software as a service has enabled them to carry out large-scale cyber-attacks using purchased malware and hacking toolkits. This has led to a surge in cybercrime during the COVID-19 pandemic, with the damage caused by computer viruses estimated to be more than US$ 1 billion per year. Vietnam’s government agencies, communications, aviation, energy and medical facilities have all been targeted by cyber-attacks aimed at destroying or stealing data.

Financial Crimes

Vietnam has experienced a surge in financial crime, especially financial fraud and tax evasion, as criminals were able to exploit the COVID-19 pandemic. Financial crime is often closely linked to cyber-crime, with fraudsters using various techniques such as e-commerce and social media platforms, Ponzi schemes, and fake websites and SMS messages to steal money and personal data. Criminals also impersonate state officials to persuade victims to deposit money into their accounts or use their bank information to steal money. Moreover, the trade of personal and corporate data to facilitate fraud is also on the rise in the country. To avoid taxes, criminals engage in the illegal trade of VAT invoices and misrepresenting goods, including luxury cars. Recently, law enforcement agencies throughout Vietnam have dismantled numerous networks that were illegally purchasing VAT invoices worth billions of Vietnamese Dong.

Criminal Actors

Mafia-style groups in Vietnam are involved in human trafficking, arms trafficking and drug trafficking, often operating alongside legitimate enterprises in the hospitality sector. They use increasingly sophisticated techniques to engage in non-attributable markets and have been reported to engage in extortion. While violence from these groups is generally low to moderate, they are known to openly carry weapons. Drug lords control territory in the north-west, while arms trafficking groups operate in Ho Chi Minh City.

Criminal networks in Vietnam exist both at the national and transnational levels. Domestic groups include loosely organized criminal networks that engage in various activities such as online gambling, fraud, black credit crimes, illegal wildlife trade, arms trafficking and illicit logging operations. There are also transnational linkages between Vietnamese and foreign criminal networks, which pose a significant threat to the country’s security, stability and socio-economic development.

Since economic liberalization, Vietnam has faced practical challenges from foreign criminal actors. While the extent of foreign actors’ control over criminal markets is unclear, they are known to be increasingly involved in various activities, including human trafficking, arms trafficking, drug trafficking and timber trafficking. Chinese and Cambodian nationals are the most active participants in these illicit markets. Evidence suggests that Chinese actors are prevalent in the online gambling market. Vietnam’s drug markets and non-renewable resource crime markets are dependent on interactions between local and foreign actors, with the most significant contributors being China, Laos, Cambodia, the Philippines, Thailand and Taiwan.

Despite anti-corruption campaigns, corrupt officials and state involvement in criminal markets continue to impede law enforcement and crime-prevention efforts. State-embedded actors have influence over markets such as wildlife trafficking, human smuggling, financial crime and protection racketeering. High-ranking officials in government, law enforcement and the military have been identified as participating in criminal networks. Furthermore, private sector actors in Vietnam are heavily involved in various illicit markets such as the illegal smuggling of wood, non-renewable resource crime, illicit trade in excise goods, drug trafficking and financial fraud. They also play a direct role in labour trafficking and transportation related to smuggling and trafficking of illicit goods and people. The involvement of private sector actors in criminal activities is fuelled by the large proportion of informal sectors in the country, with the control of these sectors by organized crime groups varying. There have been instances where businesses have been used as a cover for drug traders to smuggle drugs and narcotics into Vietnam or to enable the illegal trade of VAT invoices by selling their legal entity certifications.

Leadership and governance

Vietnam’s Communist Party is the only legal party in the country, leaving other political parties to operate in secret or from abroad. Despite efforts to combat crime and corruption, pervasive problems like kickbacks, nepotism and cronyism continue. Growing public discontent is evident, and human rights activists and journalists are increasingly viewed as a threat by the government. Although the Vietnamese government has taken a strong stance against organized crime, the presence of state-embedded actors remains strong in various illicit markets. Economic crime and corruption are increasing in certain sectors, including healthcare and education, and law enforcement and anti-corruption agencies continue to commit corruption-related crimes. Anti-corruption law enforcement remains highly selective and is linked to political rivalries. Vietnam’s Access to Information Law is also criticized for limiting access to information on politics, defence, national security, foreign relations, economics and technology.

Vietnam has joined many bilateral and multilateral agreements to combat organized crime. It is also a member of international and regional police organizations and has signed bilateral drug control cooperation agreements with Cambodia, China, Hungary, Laos, Myanmar, Russia, the US and Thailand. Vietnam has ratified several UN conventions and protocols but has reservations about falling under the jurisdiction of the International Court of Justice. Vietnam has implemented a comprehensive legal framework to address a wide range of issues related to law enforcement and combatting organized crime. Although the framework is regarded as fairly complete, some limitations and inadequacies remain, making investigative work difficult. In particular, there are no regulations related to high-tech crimes in some laws.

Criminal justice and security

Vietnam has come under scrutiny for the harsh conditions in its prisons, which fall short of international human rights standards. Major issues include inadequate and unsanitary food, overcrowding and a lack of access to clean water. Physical abuse, including violence used to silence dissidents, is known to take place openly in prisons. There has been a rapid increase in the number of people sentenced to death in recent years, and allegations of arbitrary killings by government agencies have surfaced. The Vietnamese judicial system lacks independence due to the Communist Party’s influence over judges, particularly in cases involving threats to the government. Human rights defenders are perceived as a risk to the government, leading to an increase in crackdowns, restrictions and arrests of NGOs, civil society actors and journalists. The inhumane treatment and unjustified detention of people who use drugs in recent years provide further evidence of a deterioration in the justice system.

Vietnamese law enforcement is perceived as having reduced its efforts to combat human trafficking due to a lack of collaboration between government agencies and municipalities, low budgets and low levels of awareness about trafficking. Vietnam has also been accused of failing to enforce regulations related to flora and fauna crimes and the illicit oil trade, while corruption impedes prevention efforts related to wildlife crimes. Nevertheless, Vietnam has established diverse law enforcement agencies and community-based crime prevention groups, and has integrated anti-cybercrime and security efforts into one department. Local non-governmental organizations have also set up hotlines for reporting wildlife crimes, which have aided wildlife prevention efforts.

Smuggling hotspots are found throughout the country, particularly in the border provinces and major cities with airports and seaports. Despite this, Vietnam has strengthened its border control capacity and increased its staff in recent years, cooperating with other Greater Mekong nations to combat drug crime. Vietnam faces challenges in combatting cybercrime, particularly as it relies on infrastructure equipment and core network technology systems provided by foreign companies.

Economic and financial environment

Vietnam has a legal framework aimed at preventing and controlling money laundering but it is not perceived as effective as four high-risk groups are not yet included in the framework. They are payment intermediaries, online lending, virtual currency and pawn services. In addition, pawnshops are transforming and contributing to illegal credit activities further facilitating fraud, theft and gambling. Although Vietnamese laws prohibit gambling and organizing gambling in any form, banks still face significant challenges in controlling the flow of money into gambling and online betting sites. Vietnam’s largely cash-based economy, high economic growth rate and lack of credible regulatory controls make it highly susceptible to money laundering and Vietnam is considered one of the world’s highest risk countries for money laundering and terrorist financing.

Although the business environment in Vietnam has improved, with safer and more equitable treatment and improved administrative procedures, challenges such as non-transparent business conditions, slow inspection activities and a congested information technology environment remain key obstacles for businesses. Criminal groups are known to be involved in both illicit and licit economic activities, for example in the timber industry. The government has tried to regulate the economy and tackle concerns related to e-commerce, but criminal usage of specialized software and the dark web pose a continuing challenge.

Civil society and social protection

Vietnam’s mechanism for protecting victims of human trafficking continues to fall below minimum international standards. Some small steps have been taken, such as implementing child-centred investigative policies and increasing international law enforcement cooperation. In addition, the government operates a 24-hour hotline for victims of various crimes, including trafficking. While the hotline has received fewer trafficking-specific calls in recent years, it has received an increase in total calls. Vietnamese victims of human trafficking are entitled to travel funds and essential needs, such as shelter, medical support, psychological support, legal aid, educational support and vocational training. However, organizations providing victim support are often short-staffed and poorly funded. Additionally, Vietnam lacks a whistleblower protection programme, and the country’s ‘social evils’ narrative undermines victim rehabilitation and reintegration into society. Government officials have been known to ‘pocket’ fees paid by drug users’ families and to forcefully detain drug addicts. Although the law recognizes and concretizes denunciation issues, many flaws remain in the implementation of whistleblower protection regulations.

Vietnam has implemented various national and international strategies to prevent and combat organized crime, but measurable results have not been publicly available. The country has also implemented various programmes to improve the prevention of wildlife trade, including incorporating wildlife protection programmes into faculty and student training curricula. Policies and legal documents have been put in place to combat illegal mining and mineral smuggling, and there are grassroots crime prevention networks with a hotline for reporting the illegal wildlife trade. Hanoi also has its own community-based crime reporting initiatives.

Vietnam’s media environment remains tightly controlled by the Communist Party, with the country considered among the worst in the world for press freedom. Non-state actors in Vietnam range from government-sponsored organizations to ‘pseudo-NGOs’ operating under strict government surveillance. As a result, these organizations are reluctant to criticize government activities. The only sources of independently reported information are bloggers and independent journalists, both of whom face harsh persecution for their activities. Many bloggers and journalists are currently imprisoned in Vietnam, where mistreatment is common. Vietnam is one of Asia’s most notorious countries for imprisoning peaceful activists, with the number of ‘prisoners of conscience’ having markedly risen in recent years.