HA NOI, VNS, May 29, 2009. Experts from the Ministry of Construction and the British Department for International Development worked on an initiative to provide more financial transparency in the construction industry.
Le Van Lan, director of the Steering Committee on Anti-Corruption’s General Affairs and International Co-operation Department, said the construction industry played a vital role in the Vietnamese economy.
However, investment in the industry was considered at a high risk of corruption. This was why, in 2008, Viet Nam took part in the Construction Sector Transparency Initiative (CoST), which runs until next year.
Pham Sy Liem, deputy chairman of the Viet Nam Construction Association, said contracts for public construction accounted for 10 per cent of GDP, one third of the State budget.
William Paterson, a technical advisor on CoST, said losses in the international construction industry due to corruption amount to 15 to 30 per cent.
He said that in Viet Nam, annual construction growth of 12 per cent was the main driver behind the growth of Gross Domestic Product (GDP) and it was important to minimise unnecessary costs, delays and waste.
He said construction contracts were particularly prone to corruption because of their size, technical complexity, extensive approval processes and easy concealment of sub-standard worksmanship and materials.
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Building Industry set for clean-up, May 29, 2009.
CoST: Construction Sector Transparency Initiative “The Construction Sector Transparency (CoST) initiative will promote increased transparency and accountability in publicly financed construction projects around the world. Information on construction projects will be put in the public domain to promote good quality, sustainable infrastructure at a reasonable price, to reduce corruption and to promote responsible management of public finances.”