General Secretary To Lam emphasized that amending the Bidding Law and related laws is an urgent |
These are not merely technical or legal flaws but actual bottlenecks in the institutional system that hinder the
effective functioning of the state and the economy’s development.
Therefore, amending the Bidding Law should not merely focus on process adjustments but be approached as an
emergency institutional reform to ensure the effectiveness of public policies, unlock development resources, and
strengthen trust in the government apparatus.
Four major shortcomings – consequences of outdated legislative thinking
First, the current bidding process is overly complex and rigid, leading to delays in implementing numerous
public investment projects. From planning the selection of contractors to approving bidding documents, evaluating,
appraising, and approving results, each step involves multiple layers of bureaucracy, taking several months or even
years. As a result, the economy loses short-term growth opportunities, and national productivity declines in the
long term.
Second, the regulation prioritizing the “lowest price” criterion in bid evaluation directly impacts the
quality of construction works. When the contractor’s capacity is not commensurate with the project’s scale, and
costs are cut to the maximum to win the bid, the inevitable consequence is the deterioration of the works, cost
overruns, and even the need for repairs immediately after completion. This not only causes budget losses but also
damages the people’s trust.
Third, the prevalence of bid cancellations, rebidding, or contractors abandoning projects midway is causing
wastefulness in terms of time, manpower, and social costs. According to the State Audit Office, in 2023 alone,
thousands of packages could not be implemented as scheduled, delaying the supply chain and affecting many related
fields.
Fourth, many officials, even those with responsibility and good intentions, have been disciplined or
prosecuted for violations during the bidding process. This is partly due to unclear and frequently changing
regulations and partly due to the pressure of completing tasks without flexible legal tools. As a result, a
mentality of avoidance, fear of signing, and fear of taking responsibility has emerged, leading to a “freeze in
action” within the public authority system.
The current bidding process is overly complex and rigid, leading to delays in implementing numerous public |
Some other serious shortcomings
Fifth, the Bidding Law does not distinguish between sectors with highly specific characteristics, such as
healthcare, national defense, and science and technology. Applying the same rigid process to all types of projects
hinders these sectors’ ability to respond quickly to emergencies or specific needs. In particular, the shortage of
medicines and medical supplies in many hospitals during the COVID-19 pandemic clearly demonstrated the confusion and
deadlock of the current bidding system. We are tying our own hands and making things difficult for ourselves.
Sixth, the Law currently lacks a comprehensive mechanism to evaluate the actual performance of contractors
after winning bids. There is no contractor ranking system, no updated data, and no clear sanctions for poor-quality
construction units. As a result, there are cases of weak contractors continuing to win bids for other projects,
creating a vicious cycle of inefficiency and waste.
Seventh, social supervision of bidding is still very limited. Inspections and audits are mostly internal,
lacking the involvement of independent organizations, professional associations, the press, and the public.
Meanwhile, some significant corruption cases were only discovered after they had caused severe consequences. If there
had been an early warning mechanism and independent supervision from the outset, the bidding system could have
self-corrected sooner.
Reform according to international standards: Can no longer be delayed
Given this situation, a systemic reform is necessary, based on principles proven effective in international
practice:
First, shift from the “lowest price” criterion to the “best value” model (value for money), evaluating bidding
documents comprehensively based on quality, progress, life-cycle costs, and socio-economic benefits.
Second, develop a national bidding database, comprehensively integrating electronic bidding (e-GP) as
implemented in countries like South Korea, Singapore, and Chile, to reduce costs, increase transparency, and shorten
bid evaluation time.
Third, strengthen decentralization for investors, along with intelligent post-inspection mechanisms, credit
scoring, and performance evaluation based on final results and project investment efficiency.
Fourth, supplement flexible legal frameworks and design specific bidding procedures for sensitive or urgent
sectors with large-scale and high-risk projects, always accompanied by transparent supervision mechanisms and clear
sanctions.
Fifth, establish an independent Bidding Supervision Council, involving experts, industry associations, and
social representatives, to ensure integrity, fairness, and early detection of irregularities.
Reforming the Bidding Law is not just a policy option but an urgent need for institutional reform.
|
A law should not continue to hinder development
Reforming the Bidding Law is not just a policy option but an urgent need for institutional reform. If a law continues to
hinder action, paralyze officials, waste resources, and erode trust, it must be amended immediately, decisively, and
comprehensively.
General Secretary To Lam’s warning at the National Assembly could not be clearer. This is the time for the entire
political system to get involved. We cannot develop with a law that ties the hands of those who implement it and
opens the door for the interests of vested groups.
Reforming the Bidding Law is an institutional challenge in the current era, but it is also an opportunity to help
Vietnam step into the era of modern governance – where the law is not just a preventive barrier but also a driving
force for development.
Dr. Nguyen Si Dung
– 06:26 21/05/2025
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Recapping the results of public investment in the first months, with 37 out of 47 ministries and agencies and 27 out of 63 localities having a disbursement rate below the national average, the Prime Minister requested to clarify this issue, identify the causes, and point out the difficulties, obstacles, bottlenecks, and responsibilities of the ministries and sectors. He asked, “Why, with the same conditions and policies, do some places perform well while others do not? Is it due to the people or the leaders?”
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The government has proposed the implementation of nine specific mechanisms and policies for the Quy Nhon – Pleiku expressway, along with an adjustment to the preliminary total investment for the Bien Hoa – Vung Tau expressway (phase 1), raising it from VND 17,837 billion to VND 21,551 billion.
“Streamlining the Bidding Process: An Efficient Approach”
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“In a recent meeting with the National Assembly, Party General Secretary To Lam addressed the shortcomings of the current bidding process by referring to the project ‘1 law amends 7 laws’ related to investment and bidding. “
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“Vietnam’s economy has traditionally been driven by its robust export sector. However, amidst the looming threat of US tariffs, KIS Securities predicts that domestic consumption and public investment will emerge as the primary growth drivers going forward.”
