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A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ThAi nguyen University Socialist Republic of Vietnam Southern luzon STATE University Republic of Philippines HARMONIZATION OF PUBLIC COMPETITIVE TENDERING : EMPIRICAL EVIDENCE FROM THE MINISTRY OF HEALTH IN VIETNAM Advisor : Name of Student Dr Alice T Valerio : NGUYEN DUY PHUONG English Name : NOAH Date of Birth : 13-12-1974 Course SLSU-DBA1 : Hanoi May, 2013 i A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY HARMONIZATION OF PUBLIC COMPETITIVE TENDERING : EMPIRICAL EVIDENCE FROM THE MINISTRY OF HEALTH IN VIETNAM A Dissertation Presented to the Faculty of the Graduate School of Southern Luzon State University in Collaboration With Thai Nguyen University In Partial Fulfilment of the Requirements for the Degree Doctor in Business Administration NGUYEN DUY PHUONG May 2013 ii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ACKNOWLEDGMENT I would like to express my gratitude to Dr Alice T Valerio for being an outstanding advisor and excellent professor Her constant encouragement, support, and invaluable suggestions made this work successful She has been everything that one could want in an advisor I would like to thank her for providing me ideas on the research methodology and valuable insights on public procurement system and international bidding implementation issues I am deeply indebted to my committee member, Dr Lee Kari Ling for her time and effort in reviewing this work Also, I would like to thank all the lecturers of DBA1 course for helping me to complete this thesis which I have been their student for three years I would like to acknowledge my best friends in the DBA class for reviewing my thesis and providing valuable feedback I am grateful to Mr Ngo Anh Cuong and Mrs To Ngoc Lan for their help and valuable advice, and for being great friends throughout my program stint I am deeply and forever indebted to my family for their love, support, and encouragement throughout my entire life I would like to thank my wife, Bui Thi Nga, who has provided a tremendous amount of love and support throughout this study On a final note with love are for my children, my five-year old daughter and three-year old son! iii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY DEED OF DECLARATION I, Nguyen Duy Phuong (English name: Noah), hereby submit my thesis for oral examination, entitled “HARMONIZATION OF PUBLIC COMPETITIVE TENDERING: EMPIRICAL EVIDENCE FROM THE MINISTRY OF HEALTH IN VIETNAM”, truthfully declare that the said paper is a product of my original research investigation Signed this …………………….2013 at Thai Nguyen University NGUYEN DUY PHUONG DBA Candidate iv A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY TABLE OF CONTENTS Page ACKNOWLEDGMENT iii DEED OF DECLARATION iv TABLE OF CONTENTS v LIST OF TABLES ix LIST OF FIGURES x LIST OF ABBREVIATIONS xi APPROVAL SHEET xii ABSTRACT xiii CHAPTER I INTRODUCTION 1 Background of the Study Statement of the Problem 3 Objectives Hypotheses of the Study Significance of the Study 6 Scope and Limitations of the Study 7 Definition of Terms CHAPTER II 13 REVIEW OF RELATED LITERATURE 13 Systems Theory 13 Administrative Theory 14 v A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY Procurement Legislation and Studies 15 Procurement Administrative Theories and Studies 20 Legislation of Vietnam and International Community for Procurement 23 Conceptual and Theoretical framework 24 CHAPTER III 29 RESEARCH METHODOLOGY 29 Research Design 29 Time and Place of the Study 30 Sampling Procedures 31 Data Collection 31 Research Instrument 34 Statistical Treatment 36 Methods of Analysis 40 CHAPTER IV 42 RESULTS AND DISCUSSION 42 Provisions in ILT and LLT in Vietnam 42 Public Procurement Activities in MOH 56 Procurement and Bidding Practices in Terms of Transparency and Openness Measures 62 Formulation of efficient public procurement 64 CHAPTER V 74 CONCLUSION AND RECOMMENDATIONS 74 Summary 74 Conclusion 75 vi A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY Recommendations 76 REFERENCES 98 vii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY APPENDIES Appendix Page LETTER REQUEST FOR THE CONDUCT OF THE SURVEY .80 SURVEY QUESTIONNAIRE 82 CURRICULUM VITAE .89 BUDGET REVENUES AND EXPENDITURES 95 TOTAL GOVERNMENT EXPENDITURE , 1990-2010 95 CORRUPTION PERCEPTIONS INDEX 96 MINISTRY OF HEALTH STRUCTURE 97 viii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY LIST OF TABLES Table Page Factors affecting the harmonizing 35 Likert scale summated rating for openness and transparency procurement 41 Discrepancy in public procurement 43 Department of Administrators 58 Testing result of reliable of Model 65 Description of Mean and Standard Deviation .66 Post Hoc Tests openness and transparency procurement 67 Model Summary Option 69 ANOVA F-Test 69 10 T-test coefficient 70 11 Linear regression for 02 removed variables 72 12 T-test for Coefficient and Multicollinearity 72 ix A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY LIST OF FIGURES Figure Page Conceptual framework of the study 27 Data collection procedure 33 Distribution of respondents by position in the MOH 56 Distribution of age of respondents 57 Distribution of total working years of the respondents .58 Distribution of the respondents by department 59 Frequency of submitting bidding documents under LCB 62 Frequency of applying transparency level 63 Frequency of applying the most opening purchase method 64 x ... SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY DEED OF DECLARATION I, Nguyen Duy Phuong (English name: Noah), hereby submit my thesis for oral examination, entitled... MINISTRY OF HEALTH IN VIETNAM”, truthfully declare that the said paper is a product of my original research investigation Signed this …………………….2013 at Thai Nguyen University NGUYEN DUY PHUONG... Administration NGUYEN DUY PHUONG May 2013 ii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ACKNOWLEDGMENT