The gradual opening of Vietnamese public procurement

In recent years, Vietnam has been multiplying free trade agreements (FTAs) with third countries, demonstrating its willingness to fully integrate into the global economy. This integration shall necessarily be carried out through an alignment with international standards. Therefore, the ratification of trade agreements appears to be the main means to achieve this end. 

After twelve years of negotiations, the entry into force of the EVFTA and its application into the public procurement sector is a perfect illustration of this process.

Indeed, although Vietnam is not a party to the WTO Government Procurement Agreement, it has agreed to open up its public procurement on the basis of compliance with international principles governing these contracts. 

Article 9.21 of the EVFTA highlights the common interest of the parties to "promote the international liberalization of government procurement". This liberalization requires (but not only) the application of the principles of transparency, impartiality and non-discrimination throughout the process. 

First, the principle of non-discrimination allows European companies to be entitled to the same treatment as Vietnamese companies during the entire procurement process. This equivalence of treatment enables fair competition between the parties  and creates a favorable and attractive environment for the development of European business in Vietnam and for the import of european know-how. 

Then, the principles of transparency and impartiality complement and reinforce each other. The transparency of the process allows parties to ensure free and informed access to each other's businesses. 

For example, this involves making available certain information considered as essential (e.g. price; nature of the market, etc.) to ensure undistorted competition. However, transparency in the procurement process also helps to avoid conflicts of interest or frauds. In this regard, each party is invited to strengthen its national legal arsenal in this area or at least to apply it effectively. 

In addition to these three essential principles, the EVFTA stipulations promote the use of electronic means to disseminate notices and calls for tenders as well as any documentation relevant to public procurement. 

The aim of this modernization is to reduce administrative procedures and, with them, the financial and time costs. While Vietnam must make efforts to use electronic means, in particular by setting up a single platform free of charge, the European Union intends to support Vietnam in this transformation. Indeed, the EVFTA states that "the Union is providing Vietnam with technical and financial assistance for the development, implementation and maintenance of an automatic system for translating and publishing summary notices in English". 

Thus, the compliance with the above-mentioned principles, backed by the digitisation of this sector, will allow fair and equal access to Vietnamese public procurement for European and Vietnamese candidates.