Despite the resignation of Icelandic Prime Minister Sigmundur David Gunnlaugsson and Spanish Industry, Energy and Tourism Minister Jose Manuel Soria following their exposure in the recently leaked Panama Papers, it appears there is little appetite to follow up potential tax evasion involving Vietnam-based businesses.
Several Vietnamese people who were named in the documents from the tax haven have said that it was normal to be on the list and they had not done anything illegal while local organisations responsible for anti-corruption efforts have only called for ‘co-operation’ with international agencies and ‘various agencies’ to investigate the issue.
Nguyen Thi Phuong Thao, CEO and co-founder of Sovico Holdings, the parent company of VietJet Air, said her name on the list because Sovico had acquired Furama Resort.
CEO and co-founder of Sovico Holdings Nguyen Thi Phuong Thao
She said, "We acquired the Furama Resort in 2005 from Furama Ltd. Which was owned by the Hong Kong-based Lai Sun Corporation and it is just a regular acquisition. I'm not surprised that there are names of foreign resorts named because foreign investors often share the same staff structure and investment models."
According to Thao the bidding process was legal and it was ‘normal’ to set up offshore companies for investments. But because Furama Ltd. took consultancy from law firm Mossack Fonseca, it was inevitable that the name of Sovico Holdings would appear on the list.
Establishing an offshore company is not illegal or proof that there are illegal activities.
Nguyen Duy Hung, Chairman and CEO of Saigon Securities Inc. (SSI), said he had permits to open offshore accounts and make overseas investments. "We have set up offshore companies and opened overseas accounts in accordance with all the laws and procedures and fulfilled all financial obligations to Vietnam as well as the host countries," he said.
Chairman and CEO of Saigon Securities Inc. Nguyen Duy Hung
Also on the list is Dam Bich Thuy, who had held the CEO position at ANZ Bank Vietnam. Thuy's name is listed because she responsible for ANZ/V-TRAC, a financial leasing company that was established in the British Virgin Islands.
"Records of all entities opened business on the islands will be kept. So it doesn't mean everyone has their names on the list has conducted illegal business," Thuy said.
Local agencies have not made official statements about the names listed on the database. Pham Trong Dat, head of the Government Inspectorate Anti-Corruption Bureau said co-operation from various agencies and with international organisations were required to investigate the issue.
As many as 189 individuals and companies in Vietnam were named in the Panama Papers after the International Consortium of Investigative Journalists published information from the world's biggest data leak on May 9.