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Public Procurement in Vietnam

Public procurement in Vietnam is a major instrument for implementing public investment, infrastructure expansion, and socio-economic development programs. With a large population and a rapidly growing economy, government procurement plays a critical role in channeling public expenditure into construction, public services, technology, healthcare, and industrial development.

The procurement system in Vietnam is governed by a comprehensive legal framework and supported by a nationally integrated eProcurement platform. Government tenders in Vietnam are issued by central ministries, provincial authorities, and public entities, ensuring broad market participation across sectors and regions.

For domestic suppliers and international companies, Public Procurement in Vietnam represents one of the most dynamic and high-volume procurement markets in East Asia and the Pacific, characterized by strong digital adoption, legal clarity, and increasing alignment with international procurement standards.

Country & Economic Overview

Vietnam is an active member of the Asian Development Bank (ADB), IMF, WTO, IFAD, and UNCTAD. These memberships influence procurement reform, donor-funded procurement rules, and international market access.

Public Procurement Governance Framework

The central regulatory body for public procurement in Vietnam is the Public Procurement Agency under the Ministry of Planning and Investment. The agency is responsible for policy formulation, regulatory oversight, capacity building, and supervision of procurement activities nationwide.

Vietnam does not operate a single national central purchasing body. Each ministry and province establishes and manages its own central purchasing arrangements within its administrative authority.

Legal & Regulatory Framework

The public procurement system in Vietnam is governed by the Public Procurement Law and its implementing decrees, notably Decree 63/2014/NĐ-CP and the Public Procurement Law 2023. These instruments define procurement planning, tendering methods, bid evaluation, contract award, and oversight mechanisms.

Key legal provisions include:

• Life Cycle Costing: Clause 12.3.d and 12.4.d (Decree 63/2014/NĐ-CP)
• Most Economically Advantageous Tender (MEAT): Clauses 18.4b, 19.1, 30.3, 31.1
• SME participation: Clause 6.3 (Decree 63/2014/NĐ-CP)
• Bid securities: Clause 11 (Public Procurement Law)
• Domestic preference: Clause 14 (Public Procurement Law)
• Complaint resolution: Clause 92 (Public Procurement Law)

All contract award information is publicly disclosed through the national e-Procurement system and the Public Procurement Newspaper.

Procurement Procedures & Thresholds

Vietnam applies structured and competitive procurement procedures, with clearly defined thresholds and methods.

Key procedural characteristics include:

1. One-stage one-envelope procedures for goods, non-consulting services, and works under defined thresholds
2. Direct selection procedures for low-value contracts
3. Mandatory publication of procurement notices
4. Defined bid validity requirements

Tender thresholds and direct contracting limits are defined under Article 28 of the Public Procurement Law and Decree 63/2014/NĐ-CP, with monetary ceilings differentiated by contract type.

E-Procurement System in Vietnam

Vietnam operates a comprehensive national eProcurement platform known as VNEPS - Vietnam National e-Procurement System. The system is the backbone of public procurement implementation and transparency.

The system is supported by the World Bank and used for World Bank-financed procurement. Tender documents are fully downloadable, and the platform applies the UNSPSC spend taxonomy.

Procurement Market Characteristics

Vietnam operates one of the largest procurement markets in the region, both in volume and value.

• Number of annual tenders: 349,468
• Value of annual tenders (USD): 37,000,000,000
• Number of annual contracts: 349,468
• Value of annual contracts (USD): 37,000,000,000

Domestic suppliers dominate procurement participation, while international bidders participate mainly in large-scale and specialized contracts.

Transparency, Complaints & Oversight

Transparency is a defining feature of public procurement in Vietnam. All procurement notices, bidding documents, and award results are published electronically.

During the reporting period, 106 complaints were accepted and justified, while 281 complaints were rejected, indicating active use of administrative review mechanisms.

Sustainability & Green Public Procurement

Vietnam has adopted national green public procurement strategies and a formal policy roadmap. Sustainable procurement is explicitly addressed under the Public Procurement Law 2023 and Decree 24/2024/ND-CP.

Green procurement is applied across multiple sectors, including agriculture, energy, transport, water and sanitation, information and communication technology, and industry.

Specific environmental certifications and eco-labeling requirements are recognized, and training resources such as the Green Public Procurement Toolkit are available.

Social & Ethical Procurement Considerations

The procurement framework in Vietnam incorporates inclusive and social objectives. Preferential treatment is provided to contractors meeting employment thresholds for women, persons with disabilities, war invalids, and ethnic minorities under Clause 10.1.h of the Public Procurement Law 2023.

Local sourcing requirements further support domestic industry and suppliers through legally defined preference mechanisms.

Key Challenges & Practical Insights for Bidders

Bidders engaging in government tenders in Vietnam should consider the following:

• Mandatory registration and active use of the VNEPS platform
• High competition levels, especially for service contracts
• Strict compliance with electronic submission and eSignature requirements
• Understanding domestic preference and sustainability criteria

Overall, Public Procurement in Vietnam is a digitally advanced, high-volume, and policy-driven procurement market. Its strong legal foundation, transparency mechanisms, and integration with international standards make it a strategic destination for qualified domestic and international suppliers.