Preparedness Assessment for the Integration of Sustainability Criteria into the Public Procurement of Infrastructure in Vietnam

The report finds that while Vietnam has a basic legal framework for environmental protection, sustainability criteria are rarely integrated into infrastructure procurement, which remains driven by the lowest immediate cost. Environmental Impact Assessments (EIAs) are the primary tool, but their implementation is weak due to limited monitoring and low fines for non-compliance. Small and medium-sized enterprises (SMEs) lack the capacity and information to meet higher standards, though they are increasingly pressured by foreign markets and donors. The report recommends a phased roadmap for SPP, including the integration of sustainability standards into the pre-selection of developers, increased awareness campaigns, and the potential use of public-private partnerships (PPPs) to improve life-cycle cost efficiency.

• The Environmental Impact Assessment (EIA) is the primary mandatory tool for large infrastructure projects, but its effectiveness is hampered by limited resources for follow-up and weak implementation.
• Sustainability criteria are generally absent from the national bidding law and are instead relegated to ministry decrees or technical specifications, where they typically account for only 10% to 20% of the total score.
• The Ministry of Finance prioritizes the lowest immediate project costs over sustainability, and there is a lack of technical capacity to calculate life-cycle costs, which disadvantages sustainable designs.
• Existing penalties for non-compliance with environmental standards are insufficient, with some fines as low as USD $40, making it more economical for companies to pay the fine than to comply.
• Vietnamese SMEs struggle to implement environmental and social standards due to financial difficulties and a lack of information on how to obtain certifications, though they are driven by requirements from foreign markets and FDI companies.
• There is a significant lack of awareness and valuation of sustainability standards, such as ISO 26000, within government ministries, leading to a lack of financial and training support for the market.
• The Vietnamese government is exploring public-private partnerships (PPPs) as a financing mechanism to replace decreasing Official Development Aid (ODA), but there are concerns that sustainability standards may be lowered to attract private investors.

APA

Moerenhout, T., & Lam, N. T. (2011). Preparedness Assessment for the Integration of Sustainability Criteria into the Public Procurement of Infrastructure in Vietnam. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/preparedness_assessment_infrastructure_vietnam.pdf

Chicago

Moerenhout, Tom, and Nguyen Tung Lam. Preparedness Assessment for the Integration of Sustainability Criteria into the Public Procurement of Infrastructure in Vietnam. International Institute for Sustainable Development, 2011. https://www.iisd.org/system/files/publications/preparedness_assessment_infrastructure_vietnam.pdf.

Wikipedia

{{cite report |last1=Moerenhout |first1=Tom |last2=Lam |first2=Nguyen Tung |title=Preparedness Assessment for the Integration of Sustainability Criteria into the Public Procurement of Infrastructure in Vietnam |publisher=International Institute for Sustainable Development |date=December 2011 |url=https://www.iisd.org/system/files/publications/preparedness_assessment_infrastructure_vietnam.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{moerenhout2011preparedness, author = {Moerenhout, Tom and Lam, Nguyen Tung}, title = {{Preparedness Assessment for the Integration of Sustainability Criteria into the Public Procurement of Infrastructure in Vietnam}}, institution = {International Institute for Sustainable Development}, year = {2011}, month = dec, url = {https://www.iisd.org/system/files/publications/preparedness_assessment_infrastructure_vietnam.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }