Corruption Risks in Vietnam’s Energy Sector

Filed under - Oil and gas

Published on 21 June 2017 as a TI Helpdesk answer
What are the key corruption risks in the energy sector in Vietnam, with a focus on international budget aid, including aid from European donors?

Purpose

Identify general risks of corruption, especially in the energy sector and determine what they mean for potential donors

Content

  1. Overview of Vietnam’s energy sector
  2. Overview of corruption risks in Vietnam
  3. Corruption risks for budget support in the energy sector
  4. References

Summary

A growing population, a rising appetite for goods and services, rapid urbanisation, and fast growing economic activities in industrial and service sectors are exerting increased pressure on energy supplies in Vietnam. The availability of an adequate and reliable energy supply is an essential prerequisite for maintaining the country’s record of socially inclusive economic growth and achieving the government’s socio-economic development goals.

Overall, the energy sector in Vietnam is affected by weak governance due to a lack of transparency, few checks and balances, bureaucracy and close ties between government and businesses. With the Vietnamese government planning to attract more investment and donor money to guarantee energy security, it has made increasing efforts to tackle corruption, which have failed to cause significant improvements.

An increasingly vibrant civil society and a growing social media realm exerts pressure on the government to continue their path of anti-corruption policies. As for international budget aid, there are concerns that large infrastructure projects and public-private partnerships will increase the risk of corruption and will be subject to corrupt practices. When it comes to investment in renewable energy, it remains to be seen how these types of investment will affect corruption.

Author(s): Katrin Heger
Transparency International
tihelpdesk@transparency.org

Reviewed by: Roberto Martinez B. Kukutschka, Transparency International tihelpdesk@transparency.org
Publication date: 21 June 2017
Number: 0

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Country / Territory - Vietnam   
Region - Asia Pacific   
Language(s) - English   
Topic - Environment   |   Oil and gas   
Tags - Budget support   |   Energy   |   Vietnam   

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