The alleged non-payment of bills by a listed Australian infrastructure developer is threatening trade relations between Vietnamese contractors and other Australians wishing to win work in the area,according to reports.

An Australian contractor with business interests in Vietnam said the Australian Consulate has now been brought into the picture to ascertain whether the company's claims that the debts in question were fabricated by local suppliers. This claim was put to EnergyReview.net last week by the CEO of the company at the centre of the dispute.

It is understood a negotiator for the company was detained by Vietnamese authorities several weeks ago en route from the airport, had his passport confiscated and was locked up overnight.

Behind the scenes negotiations by Australian expats operating in Vietnam, concerned that the dispute would tarnish the reputation of Australian contractors, saw the man released. The dispute continues.

The name of the contractror and the project in question have been withheld for legal reasons.