Transforming Vietnam: a quest for improved efficiency and transparency in central government procurement

Abstract

This case study on Vietnam investigates how a country's institutional framework can determine its participation in the World Trade Organization's Government Procurement Agreement (GPA). Using a cost-benefit approach, this article explores the relationship between institutional framework and procurement liberalisation, and examines how effective institutional reforms can trigger liberalisation. Findings show that the critical success factors for institutional reform are political commitment, the ability to craft an appropriate agenda, and eventual compliance with rules. There is an inverse relationship between costs and benefits of institutional reform, suggesting that Vietnam might prefer employing GPA observer status as a means for procurement liberalisation.