Vietnam’s fast-growing economy and digital adoption have made it a hotspot not only for legitimate investment opportunities but also for fraudulent schemes. From fake real estate deals to crypto trading scams, both local and foreign investors are increasingly falling victim to well-orchestrated fraud. These scams are often complex, fast-moving, and designed to evade traditional legal safeguards.

If you have been affected, knowing your legal rights and acting quickly can make the difference between partial recovery and complete loss. In this article, we explore the legal steps available to recover funds from investment scams in Vietnam and share practical advice to help investors protect themselves.

Common Types of Investment Scams in Vietnam

Investment scams in Vietnam come in various forms, many of which mirror global fraud trends but with local twists. Common examples include:

• Ponzi or pyramid schemes disguised as investment clubs or financial products promising unusually high returns.
• Fake real estate projects, often involving nonexistent resort developments or “pre-sale” land in unlicensed zones.
• Crypto and forex trading platforms promising daily profits but lacking legal registration.
• Social media investment groups using influencers or fabricated success stories to lure victims.
• Offshore investment scams that request wire transfers to foreign accounts under the guise of business expansion.

These scams are often accompanied by slick marketing, phony documents, and temporary payouts to build credibility and lure in more investors.

Legal Framework for Addressing Investment Fraud in Vietnam

Vietnamese law recognizes investment fraud under both the Penal Code and Civil Code, depending on the nature and evidence of the scam.

• Criminal liability applies under Article 174 of the 2015 Penal Code, which governs “fraudulent appropriation of property” (lừa đảo chiếm đoạt tài sản). Penalties may include imprisonment, monetary fine, prohibition from holding certain positions and asset seizure. 
• Civil liability may apply if the matter involves breach of contract or misrepresentation without sufficient evidence of criminal intent.
• The Law on Cybersecurity and Law on Advertising may also apply for online investment fraud or misleading marketing tactics.

Understanding whether a case falls under criminal or civil jurisdiction is crucial in selecting the appropriate legal strategy.

How to Report an Investment Scam to Authorities in Vietnam

Victims of investment scams in Vietnam can file a criminal denunciation or complaint to several government bodies, depending on the nature of the fraud:

• Local police departments: For offline scams or those involving individuals or companies operating physically in Vietnam.
• Ministry of Public Security (MPS): For larger or cross-border scams, especially involving online elements.
• Cybersecurity and High-Tech Crime Division: For scams originating from websites, apps, or social media.
• State Bank of Vietnam or Ministry of Finance: If the scam involves unlicensed banking, securities, or investment services, victims may also file complaints with the SBV or MOF, which can coordinate with police for further investigation 

Complaints should be submitted with as much documentation as possible, including contracts, transfer receipts, chat messages, and screenshots of websites or apps involved.

Legal Options to Recover Funds After an Investment Scam

Victims have several legal avenues for fund recovery, though each comes with its own challenges:

• Criminal complaint: Filing a complaint for fraud can lead to criminal prosecution and asset seizure if the scammer is identified.
• Civil lawsuit: Victims may sue for damages based on breach of contract or unjust enrichment, especially if the scammer is a registered business or individual.
• Request for injunction: In urgent cases, courts may issue temporary asset freezes or property attachment orders under the Civil Procedure Code to preserve recovery prospects. 
• Third-party liability claims: Legal action may also be possible against facilitators such as banks, agents, or co-conspirators.

An experienced Vietnamese law firm can advise whether to pursue civil, criminal, or dual-track litigation depending on available evidence and recovery goals.

Challenges Victims May Face in Recovery

While Vietnam has a growing legal infrastructure to handle financial fraud, victims still face significant challenges:

• Delays in investigation: Criminal cases may take many months or even longer to process, particularly if the scammer has gone into hiding.
• Offshore transactions: Funds wired overseas or through crypto wallets are harder to trace and recover.
• Fake identities: Many scammers use forged IDs or register under shell companies.
• Burden of proof: Victims must show that the scam involved intent to defraud and not simply a failed business deal.

These issues make it critical to act quickly and preserve all evidence from the start.

Strategies to Improve Your Chances of Recovery

Recovering funds from an investment scam in Vietnam requires both persistence and strategic action. Many victims make the mistake of assuming that filing a complaint alone is sufficient. In reality, navigating Vietnam’s legal and financial systems demands proactive planning, especially when dealing with cross-border elements or online schemes. Authorities often prioritize cases where victims demonstrate preparedness and cooperate with investigative procedures.

To improve your odds of recovery, consider the following steps:

• Collect and preserve all documentation: Contracts, screenshots, receipts, emails, bank transfer records, and chat logs are essential in establishing the scope and nature of the fraud. These materials can serve as primary evidence in both criminal and civil cases.
• Consult with legal counsel early: A law firm familiar with Vietnamese fraud litigation can help you choose the right legal path, whether criminal, civil, or both. They can also assist in drafting formal complaints, communicating with authorities, and representing you in court.
• Report the scam to multiple authorities: Filing reports with different agencies, local police, the Ministry of Public Security, and financial regulators, can create multiple pressure points and increase the likelihood of asset tracing or legal action.
• Act swiftly: Time is a critical factor. Delayed action often means that funds have already been moved through layers of accounts or converted into hard-to-trace assets like cryptocurrency.

By combining a legal strategy with investigative follow-through, victims stand a much better chance of achieving a meaningful recovery.

A coordinated legal strategy combining both civil and criminal approaches can be particularly effective.

Tailored Approaches: Individuals vs. Companies

For Individuals:

• Individuals are more likely to be approached through personal networks or social media with informal, too-good-to-be-true opportunities.
• Scams targeting individuals often lack formal contracts, making it essential to preserve all forms of communication and proof of payment.
• Quick action and legal support can help file well-documented criminal complaints, which are crucial when the scammer operates without a traceable entity.
• Legal representation also supports victims in mediation attempts and claims for restitution if the perpetrator is apprehended.

For Companies:

• Businesses may be targeted through fake joint ventures, tech investments, or fraudulent suppliers.
• Corporate victims often suffer higher financial losses and may have more documentation, which aids in litigation.
• Companies can leverage internal legal teams, compliance structures, and regulatory relationships to expedite complaints and trace lost assets.
• Where cross-border elements are involved, businesses may consider international arbitration or cooperation mechanisms alongside domestic legal proceedings.

Regardless of status, both individuals and companies benefit significantly from legal counsel experienced in investment fraud and asset recovery.

Preventing Investment Fraud: What Investors Should Watch For

To avoid becoming a victim in the first place, investors should be alert to red flags such as:

• Guaranteed high returns or “no-risk” opportunities.
• Lack of business licenses or unclear legal documentation.
• Pressure to invest quickly or through informal channels.
• Payments requested via crypto or foreign wire transfers.
• Unverifiable claims of success or celebrity endorsements.

Investors should always verify the legitimacy of any opportunity through the State Securities Commission (SSC), State Bank of Vietnam (SBV), or by consulting legal professionals.

Conclusion

Investment fraud is a growing threat in Vietnam, but victims are not without recourse. The key is to act decisively and with the support of experienced legal counsel. With the right strategy and early intervention, it may be possible to trace assets, hold perpetrators accountable, and recover some or all of your lost investment.

If you believe you’ve been the victim of a scam, don’t wait until the trail runs cold. Legal action, when taken quickly and strategically, can dramatically improve your chances of a successful recovery.

Le & Tran is recognized as a leader in Vietnam’s legal landscape, earning praise from top legal publications like Chambers, Legal500, and Benchmark Litigation, as well as being highly recommended by AmCham Vietnam and the US Consulate. Our top-ranked Criminal Lawyers are known for delivering practical and strategic solutions that protect your rights and interests. Whether navigating complex disputes or resolving sensitive legal challenges, we’re here to guide you every step of the way with precision and professionalism. For professional support in recovering funds from an investment scam in Vietnam, contact us at info@letranlaw.com.