Tightening procurement oversight and cracking down on cronyism and 'ask-for-favors' in bidding

The directive notes that, while procurement oversight has shown progress, there remain shortcomings and latent risks of loss and waste, along with the emergence of negative practices. To address this, the Prime Minister requires ministries, sectors, localities, state-owned corporations and state-owned enterprises to implement a synchronized set of measures to ensure open, transparent, competitive, and effective bidding activities.

Scope of review across the procurement lifecycle

Management agencies and project owners are required to review the entire process—from the survey phase, cost estimation, and policy approval through to bidding, construction, and settlement—to ensure efficient use of funds and strict compliance with the law.

Restrictions on Build-Transfer (BT) contracts

For Build-Transfer (BT) contracts, the directive requires approval only for projects that are truly urgent, deliver high economic-social benefits, and align with master planning. Units are instructed not to propose BT projects if the works can be implemented through other forms such as BOT, BTL, public investment, or private investment.

Where land funds are used for payment, authorities must clearly identify the location, area, and estimated value from the project planning stage to avoid disputes, legal obstacles, and costs arising from delayed payments.

Accountability for bidding and prevention of responsibility-shifting

The Prime Minister assigns full responsibility for bidding activities within each ministry, sector, and locality’s control, and requires that responsibility not be shifted or avoided. The directive also links the accountability of the head of the agency to the results achieved, and calls for preventing the development of a “xin - cho” mechanism.

Inspection, audit, and supervision

The directive emphasizes strengthening inspection, audit, and supervision, including the prompt detection and strict disciplining of violations such as bid-rigging, collusion, and the exploitation of office for personal gain. Penalties are to follow the principle of “no exceptions,” ensuring that small violations do not accumulate into major misconduct.

Bid pricing, procurement methods, and bid documents

On technical aspects, the Prime Minister calls for accurate and complete bid package pricing and strictly prohibits price inflation. The use of sole-source procurement or selecting bidders/investors in special cases must comply with regulations, and must not favor “friendly” bidders who lack capacity.

Preparation of bidding documents and evaluation of bids must ensure competition, fairness, and transparency. The directive also requires addressing any criteria that limit competition or advantage certain bidders. Procurement consultant selection must guarantee capability, with binding responsibility mechanisms and clear sanctions.

Contract execution controls

During contract execution, project owners and relevant agencies must intensify monitoring of progress and quality, manage advances, and prevent bid transfers or the use of subcontractors in ways that contravene regulations. Collusion, formalizing documents, or inflated quantities that cause budget losses are strictly prohibited.

Handling procurement petitions

The directive requires timely and thorough consideration of procurement petitions and prohibits delays. It also requires strict handling of cases where petitions are false and intended to obstruct procurement activities.

Transparency and centralized procurement

Agencies are instructed to promote transparency of information on the National Procurement Network, increase centralized procurement to cut costs, and strengthen inspection quality for large projects or packages—particularly for cases applying sole-source procurement.

Training and implementation responsibilities

The Prime Minister calls for training and capacity building to raise the competency of procurement officers to meet management needs in the new context.

For implementation, ministries, sectors, localities, and state-owned enterprises must internalize and seriously implement the directive. The heads of entities bear responsibility if procurement violations occur in bidder or investor selection.

Role of the Ministry of Finance

The Ministry of Finance is tasked with monitoring and guiding implementation, compiling implementation status, urging stronger inspection and supervision—especially for key projects—and continuing to research and apply information technology and digital transformation in bidding activities to raise transparency, efficiency, and system safety.