Bid rigging, falsified tender dossiers, unlawful interference in bidding — at what point does criminal liability under Article 222 of the Penal Code arise, and where is the line with administrative fines? This article analyses the 7 groups of criminalised conduct, quantified damage thresholds and prison frames of 1–20 years.
1. How many enforcement levels apply to bidding violations?
Article 16 of the Bidding Law 22/2023/QH15 (23 June 2023, effective 1 January 2024) lists prohibited conduct in bidding: giving, receiving or brokering bribes; bid rigging; fraud; obstruction; failing to ensure fairness and transparency; unlawful transfer of awarded contracts; violating competition safeguards. Depending on nature and severity, violations face administrative fines under Decree 122/2021/ND-CP or criminal prosecution under Article 222 of the Penal Code.
2. The 7 groups of conduct subject to criminal prosecution under Article 222
Clause 1, Article 222 (“Crime of violating bidding regulations causing serious consequences”) lists 7 groups:
- (a) Unlawful interference in bidding activities;
- (b) Bid rigging;
- (c) Fraud in bidding;
- (d) Obstruction of bidding activities;
- (dd) Violating fairness and transparency safeguards in bidding;
- (e) Organising contractor selection where funding for the package is undetermined, causing arrears owed to the contractor;
- (g) Unlawful transfer of awarded contracts.
Distinction: “bid rigging” is collusion among bidding parties; “fraud in bidding” is unilateral deception such as falsifying capacity dossiers. Rigging in private bidding (outside the Bidding Law’s scope) does not constitute Article 222.
3. Damage thresholds: how much triggers imprisonment?
The crime’s name states its constitutive requirement: serious consequences quantified specifically:
- Clause 1: causing damage of VND 100 to under 300 million, OR damage under VND 100 million where the offender has been disciplined or administratively sanctioned for the same conduct and reoffends (the “or administratively sanctioned” phrase added by Point k, Clause 1, Article 2 of Law 12/2017/QH14, effective 1 January 2018);
- Clause 2: causing damage of VND 300 to under 1,000 million;
- Clause 3: causing damage of VND 1 billion or more.
Warning for officials: “having been disciplined OR administratively sanctioned and reoffending” lowers the threshold below VND 100 million — an official previously disciplined for bidding who reoffends is easily exposed to criminal liability.
4. Prison frames of 1–20 years and additional penalties
- Clause 1: non-custodial reform of up to 3 years or 1–5 years’ imprisonment;
- Clause 2: 3–12 years’ imprisonment — for self-seeking motives; committed by an organised group; abusing position or power; using sophisticated, cunning tricks;
- Clause 3: 10–20 years’ imprisonment;
- Clause 4 (additional penalties): prohibition from holding positions or doing certain work for 1–5 years, or confiscation of part or all of assets.
Article 222 was not amended by Law 86/2025 — it remains in its Law 12/2017 version (verified independently multiple times).
5. When is it only an administrative fine?
Article 37 of Decree 122/2021/ND-CP (28 December 2021, effective 1 January 2022) imposes fines of VND 200–300 million (organisation level; individuals pay half) for prohibited bidding conduct “that does not constitute a crime under Article 222 of the Penal Code”. This exclusion clause is the boundary: the same conduct reaching the VND 100 million damage threshold (or with a prior record) moves to Article 222; below the threshold it draws an administrative fine of VND 200–300 million. The maximum fine in the bidding sector is VND 300 million (organisations).
6. Disciplined officials who reoffend: the short road to criminal liability
For officials handling bidding, a prior disciplinary record is a particularly dangerous threshold-lowering factor: a subsequent violation causing under VND 100 million in damage may still constitute the crime at Clause 1. Offenders need not be state officials — private contractors who rig bids or commit fraud at the threshold also face prosecution.
7. Does remedying consequences and returning money mitigate?
Compensating damage and disgorging illegal profits are important mitigating circumstances (Article 51 of the Penal Code). Conversely, “for self-seeking motives” is an aggravating frame determinant at Clause 2 — returning money may affect charging and framing. Not every Bidding Law violation can become a crime — only the 7 groups at Clause 1, Article 222; other procedural violations draw only administrative fines (Articles 36–37 of Decree 122/2021).
8. Compliance checklist for contractors and bid inviters
- Do not discuss or agree prices or dossiers with other bidders;
- Declare capacity and experience truthfully; never falsify documents;
- Confirm funding sources before organising contractor selection;
- Do not transfer awarded contracts unlawfully; follow subcontracting rules;
- Keep complete bidding records to demonstrate transparency under inspection.
Textual note: the 2023 Bidding Law replaced the 2013 law; the 2023 law was amended by Law 57/2024/QH15 (effective 15 January 2025) and Law 90/2025/QH15 (effective 1 July 2025). Older articles citing the 2013 law or Decree 63/2014 are outdated.
Further reading
The information above is for reference only and does not constitute legal advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.
