Business Corruption

According to Global Integrity 2009, bribery is a common practice in order to win a government contract. While this tendency varies by province, it is apparently most pronounced in Hanoi. Several reports, such as the World Bank & IFC’s Enterprise Surveys 2009, and the USAID’s Vietnam Provincial Competitiveness Index 2010 also illustrate that corruption is widespread in the procurement sector. Both reports show that a significant number of surveyed companies report to pay bribes or give gifts in order to win government contracts. Moreover, the USAID report also mentions that former state-owned enterprises are significantly more likely to pay bribes when bidding for government procurements.

Access a list of corruption cases related to public procurement in Vietnam. See more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

According to the US Commercial Service 2011, public procurement can, in practice, be characterised as a multi-layered decision-making process that often lacks efficiency and transparency. Several sources, including Transparency International's National Integrity Systems 2006 and the 2008 report by the Finnish Embassy in Hanoi, report that corruption and nepotism are major problems in public procurement. State officials are known to use their authority to secure contracts for family members. Furthermore, officials have disregarded tender procedures by accepting kickbacks from bidders, and they have used official cars as gifts to win business contacts.

Access a list of corruption cases related to public procurement in Vietnam. See more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 3.4 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 2.9 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism').

USAID: Vietnam Provincial Competitiveness Index 2010:
- On average, 41.4% of companies pay commissions (informal charges) on government contracts.

The World Bank & IFC: Enterprise Surveys 2009:
- 43.7% of companies surveyed expect to give gifts in order to secure a government contract.

- The value of a gift expected to secure a government contract is 2.5% of the contract value.