Vietnam set to widen graft probe of US$16 billion airport project

[HANOI] Vietnam’s Government Inspectorate has recommended further investigation into alleged bidding violations at Long Thanh International Airport, expanding a probe that has already seen the detention of multiple executives from companies linked to the project.

Officials uncovered illegal subcontract transfers in several contract packages, including one worth more than 3.2 trillion dong (US$120 million), as well as irregularities in subcontract payments, according to a statement from the agency. The inspectorate has transferred its latest findings to the public security ministry for further investigation.

Investors including Airports Corporation of Vietnam, known as ACV, and Vietnam Air Traffic Management Corporation, along with consulting firms, failed to fully comply with legal procedures during the preparation, appraisal and approval of cost estimates, the agency said. The contractor selection process was also marred by shortcomings, it added. 

ACV and Vietnam Air Traffic Management Corporation did not immediately respond to requests for comment.

Long Thanh airport, about 50 km east of Ho Chi Minh City in the southern province of Dong Nai, is set to begin trial operations in September before welcoming its first commercial flight in December. The airport will initially have the capacity for 25 million passengers a year, but the lack of reliable transport links to Vietnam’s commercial hub has already raised questions about its readiness.

The project has been beset by scandal with several executives detained for allegedly violating bidding regulations, including the then-ACV chairman and a former chairman of Vietnam Construction and Import-Export. 

SEE ALSO

New airports, high-speed rails, Olympic complex: Vietnam shifts into top gear

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

It has also missed several key deadlines. Last month, hundreds of soldiers were drafted in to help ease a shortage of construction workers. 

The airport has an estimated total investment of more than US$16 billion.

Construction started in 2021 and, once completed, the facility will have four runways with annual capacity expected to eventually reach 100 million passengers and five million tonnes of cargo. BLOOMBERG