Competition and Procurement in Energy Projects in Vietnam: Risks, Opportunities and Future Prospects

Investment and trade in oil and gas have played a significant role in the development of the Vietnamese economy. This article surveys the evolution of the market liberalisation in Vietnam as well as the current legal framework that governs energy projects. With reference to relevant cases, the article provides the current state of affairs in competition law in investment and public procurement in energy (oil and gas) projects in Vietnam and offers a critical analysis of some of the main challenges facing investors in this sector. It is shown that Vietnam has come a long way in providing attractive opportunities for investors in the energy sector and in establishing a level playing field for virtually all business ventures. However, there are still inherent gaps and lack of coherence between the procurement legislation and other related laws and regulations including competition rules. As a result, in order to enhance the effectiveness of the Vietnamese legal framework on procurement, this article stresses the need for harmonisation between bidding law and competition law; the use of electronic bidding systems, which may both be accessible to a broader group of bidders and provide cost-savings; the application of the criteria of “Value for Money” in selecting contractors; and strengthening enforcement to fight collusion in bidding processes.