Discussion on Vietnamese legal regulations on handling violations related to collusive agreements in bidding activities

Abstract

Collusive tendering (bid rigging) constitute unlawful conduct that occurs when competing bidders secretly coordinate to control bidding outcomes to inflate the prices of goods or services. Despite the absence of an official definition of bid rigging under Vietnamese law, the Law on Competition, the Law on Bidding and the Law on Public–Private Partnership Investment enumerate acts of collusion, including arrangements to ensure that a particular bidder wins the contract. Sanctions for such violations include administrative penalties, criminal liability, and civil compensation for damages. However, law enforcement remains limited due to overlapping and unclear provisions between the Law on Competition and the Law on Bidding. Hence, this paper analyzes legal provisions governing sanctions and enforcement jurisdiction over collusive tendering, then proposes measures to improve the legal framework and to strengthen the independence, professional capacity, and coordination mechanisms among competent authorities in addressing bid rigging practices.