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Vietnam widens graft probe into $16bn airport project

Vietnam widens graft probe into $16bn airport project

Vietnam’s Government Inspectorate is escalating its scrutiny of the nation’s most expensive infrastructure undertaking, recommending a broader probe into alleged bidding violations at Long Thanh International Airport. The agency, which oversees state administration, cited serious irregularities in how contractors were selected and how subcontracting was handled for several contract packages. This latest development follows a series of high-profile detainments of executives from major firms involved in the initiative, signaling a deepening crisis for the US$16 billion project.

Procedural Failures and Legal Complexities

The investigation centers on specific financial and administrative breaches. Officials uncovered illegal subcontract transfers and irregularities in payments across multiple contracts. One package, valued at over 3.2 trillion dong, or approximately US$120 million, was identified as particularly problematic.

The agency found that key organizations, like the Airports Corporation of Vietnam (ACV) and the traffic management body, did not fully adhere to legal procedures during the preparation and appraisal of cost estimates. Various consulting firms also failed to follow proper protocols regarding the approval of these estimates.

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The flaws extend to the contractor selection process itself. The statement notes shortcomings that undermine the integrity of how massive contracts were awarded. While the corporation and the traffic body have not responded to requests for comment, the transfer of these findings to the public security ministry indicates the legal stakes are high. Long Thanh has already been marred by scandal, with several executives detained on charges of violating bidding regulations. This includes the former chairman of the Airports Corporation of Vietnam and a former head of Vietnam Construction and Import-Export.

Schedule Pressures and Labor Shortages

While the legal battles rage, physical construction continues with a compressed timeline. Long Thanh International Airport is located about 50 kilometers east of Ho Chi Minh City in the southern province of Dong Nai. The facility is scheduled to begin trial operations in September. It also aims to welcome its first commercial flight by December.

Long Thanh will initially handle 25 million passengers a year. The ultimate capacity is expected to rise to 100 million passengers and five million tonnes of cargo across four runways once fully completed.

However, the lack of reliable transport links to the commercial hub has already raised doubts about the airport’s immediate operational readiness. To combat a severe shortage of construction workers that contributed to missed deadlines, authorities drafted hundreds of soldiers to the site last month. This drastic intervention highlights the precarious state of the workforce logistics. A project of this scale requires a specialized and steady labor force, yet the inability to secure adequate human resources speaks to broader management failures.

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Unravelling the Bidding Process

The recurring pattern of legal non-compliance and subsequent executive arrests surrounding Long Thanh mirrors a familiar dynamic observed in large-scale infrastructure development: the gap between ambitious capital investment plans and the practical realities of regulatory enforcement. When massive state-led initiatives rush toward implementation, the complexity of coordinating thousands of subcontractors often exposes weaknesses in the tendering process that are only revealed when the work begins to slow.

The specific failure to follow legal procedures for cost estimates and appraisals indicates a systemic issue where financial planning may have prioritized speed over the rigorous vetting required for a project of this magnitude. This disconnect often manifests not just in legal scandals, but in the physical reality of labor shortages and the need for extraordinary measures, such as drafting military personnel, to force the construction forward.

As Long Thanh approaches its trial run, the dual pressures of clearing legal hurdles and resolving physical construction issues will determine whether the airport can meet its projected opening date.

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