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Corruption Cases and Law Enforcement in Public Investment: a Vietnam Perspective

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Corruption Cases and Law Enforcement in Public Investment: a Vietnam Perspective Corruption Cases and Law Enforcement in Public Investment: A Vietnam Perspective A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy To Thanh Nguyen Master of Law, Vietnamese Police University RMIT University Graduate School of Business and Law College of Business February 2019 Declaration I would like to certify that except where the due acknowledgement has been made, the work is that of the author alone; the work has not been submitted previously, in whole or in part to qualify for any other academic award; the content of the thesis is the result of work which has been performed since the official commencement date of the approved research program; any editorial work, paid or unpaid, carried out by a third party is acknowledged; and, the ethics, procedures and guidelines have been followed. To Thanh Nguyen Date: 05 February 2019 ii Abstract This research examines corruption offences in public investment in Vietnam. An important part of the research is to examine and evaluate effectiveness and accountabilities of anti-corruption in public investment in Vietnam, including the Government Inspectorate of Vietnam, the People’s Procuracy of Vietnam and the People’s Public Security Forces of Vietnam based on their functions, powers and responsibilities. The aim of this research was to examine corruption and criminal behaviour in public investment in Vietnam, to identify practical policies, models and strategies for the purpose of improving the capacities and effectiveness of anti-corruption in public investment in Vietnam. The overall objective of this research was to research the corruption offences in public investment in Vietnam; to evaluate the effectiveness and accountabilities of anti- corruption in public investment in Vietnam, including the Government Inspectorate of Vietnam, the People’s Procuracy of Vietnam and the People’s Public Security Forces of Vietnam based on their functions, powers and responsibilities; and to analyse corruption offences in public investment in terms of organisational structures and criminal behaviour to identify practical recommendations to enhance the success in combating corruption in public investment in Vietnam. A combination of qualitative and quantitative methods was employed in this study. The research has implications for anti-corruption commission policy makers and researchers in Vietnam. iii Table of Contents Declaration ....................................................................................................................... ii Abstract ........................................................................................................................... iii Table of Contents ........................................................................................................... iv List of Appendices ........................................................................................................ viii List of Tables .................................................................................................................. ix List of Figures .................................................................................................................. x Acknowledgements ......................................................................................................... xi Chapter 1: Introduction ................................................................................................. 1 1.1 Background of Vietnam .......................................................................................... 1 1.1.1 Historical Background ..................................................................................... 2 1.1.2 Cultural Background ........................................................................................ 3 1.1.3 Economic Background ..................................................................................... 3 1.1.4 Public Investment in Vietnam’s Economy ....................................................... 5 1.1.5 Anti-corruption in Asia and Vietnam ............................................................... 6 1.1.6 Corruption in Vietnam’s Public Investment .................................................. 13 1.1.7 Anti-corruption Agencies in Vietnam ............................................................ 15 1.1.8 History of Anti-corruption Law in Vietnam .................................................. 16 1.1.9 The Limitations of Anti-corruption Law in Vietnam ..................................... 18 1.1.10 Statement of the Problem ............................................................................. 19 1.2 Aim of Research, Research Objectives and Research Questions ......................... 20 1.3 Research Design .................................................................................................... 21 1.4 Outline of Chapters ............................................................................................... 21 Chapter 2: Literature Review ...................................................................................... 25 2.1 Introduction ........................................................................................................... 25 2.2 Corruption Types .................................................................................................. 25 2.2.1 Grand Corruption ........................................................................................... 26 2.2.2 Petty Corruption ............................................................................................. 26 2.2.3 Political Corruption ........................................................................................ 27 2.2.4 Summary of Corruption ................................................................................. 28 2.3 Purpose of Corruption ........................................................................................... 28 2.4 Theoretical Framework of Corruption .................................................................. 29 2.4.1 Institutional Theories of Corruption Definition ............................................. 30 2.4.2 The Economic Impact of Corruption ............................................................. 32 2.4.3 The Relationship Between Culture, Trust and Corruption ............................ 35 2.5 Corruption in Vietnam .......................................................................................... 46 2.5.1 Corruption in Public Investment .................................................................... 46 2.6 Conclusion ............................................................................................................ 49 Chapter 3: Methodology ............................................................................................... 51 3.1 Introduction ........................................................................................................... 51 3.2 Research Methodology (Mixed Methods Research) ............................................. 51 3.3 Research Design .................................................................................................... 52 3.3.1 Mixed Method Exploratory Sequential Design ............................................. 53 3.4 Research Approaches ............................................................................................ 54 iv 3.5 Document Analysis ............................................................................................... 54 3.5.1 Source of Information .................................................................................... 55 3.5.2 Pre-planned Materials .................................................................................... 55 3.6 Qualitative Methodology (Semi-structured Interview) ......................................... 56 3.6.1 Methodology Overview ................................................................................. 56 3.6.2 Qualitative Research Strategy ........................................................................ 57 3.6.3 Interview Preparation ..................................................................................... 61 3.6.4 Data Analysis ................................................................................................. 63 3.7 Quantitative Methodology (Online Survey) ......................................................... 63 3.7.1 Methodology Overview ................................................................................. 63 3.7.2 Qualitative Research Strategy ........................................................................ 64 3.7.3 Survey Preparation ......................................................................................... 64 3.7.4 Data Analysis ................................................................................................. 65 3.8 Ethical Considerations .......................................................................................... 65 3.9 Conclusion ............................................................................................................ 66 Chapter 4: Corruption in Public Investment in Vietnam ......................................... 67 4.1 Introduction ........................................................................................................... 67 4.2 Overview of Corruption and Anti-corruption in Vietnam .................................... 67 4.2.1 General Corruption .......................................................................................
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