New de­cree stream­lines bid­ding

Viet Nam News - - Business -

The re­cently is­sued De­cree 63/ 2014/ NÑ- CP, which has de­tails of the Law on Bid­ding, is ex pected to en­sure trans­parency and ef­fi­ciency, and help avoid any over­lap dur­ing the bid­ding process. Direc­tor of the Bid­ding Man­age­ment De­part­ment un­der the Min­istry of Plan­ning and In­vest­ment Leâ Vaên Taêng spoke to Viet­nam News Agency about the new bid­ding reg­u­la­tions.

What are the im­por­tant points of De­cree 63?

The Law on Bid­ding, which came into force on July 1 this year, has in­no­va­tive ideas com­pared with the pre­vi­ous law, es­pe­cially the pro­vi­sion on se­lect­ing bid­ders.

The pol­icy of giv­ing in­cen­tives in the bid­ding par­tic­i­pa­tion has caused con­cern among bid­ders.

The De­cree 63 has de­tailed the in­cen­tives for do­mes­tic bid­ders when they join in­ter­na­tional bid­ding pro­cesses, to­gether with in­cen­tives for the use of lo­cal prod­ucts.

With such in­cen­tives, do­mes­tic bid­ders and lo­cal prod­ucts will get pri­or­ity over for­eign bid­ders and im­ported prod­ucts, re­spec­tively.

In ad­di­tion, the ceil­ing for di­rect pro­cure­ment (mone­tary lim­its for di­rect pro­cure­ment) has been low­ered to VNÑ500 mil­lion ( US$ 23,500) for con­sul­tancy bid­ding pack­ages and VNÑ1 bil­lion ($ 47,000) for pro­cure­ment bid­ding pack­ages.

The De­cree 63 also raises the stan­dards for eval­u­a­tion of bids, which will help procur­ing agen­cies and en­ti­ties to ef­fec­tively se­lect con­trac­tors ap­pro­pri­ate to the de­mands of each bid­ding pack­age.

How will the de­cree help im­prove the ef­fi­ciency of the bid­ding process?

The de­cree will en­cour­age fair com­pe­ti­tion in the bid­ding process.

Ear­lier, in­di­vid­u­als or en­ti­ties who wanted to par­tic­i­pate in pro­cure­ment pro­ceed­ings had to buy bid doc­u­ments from the procur­ing en­ti­ties. In some cases, it was very dif­fi­cult for the bid­ders to buy doc­u­ments as the procur­ing agen­cies de­lib­er­ately cre­ated dif­fi­cul­ties.

The De­cree 63 reg­u­lates that bid doc­u­ments which have not pur­chased from procur­ing agen­cies and en­ti­ties will still be ac­cepted.

This new reg­u­la­tion would help cre­ate fair com­pe­ti­tion in the bid­ding pro­ceed­ings.

Do you think that the Law on Bid­ding and De­cree 63 will help re­move the over­laps and in­con­sis­ten­cies among rel­e­vant reg­u­la­tions?

Ear­lier, there were bid­ding reg­u­la­tions in many dif­fer­ent laws such as the Law on Con­struc­tion. How­ever, with the Law on Bid­ding, this over­lap has been re­moved com­pletely as the rel­e­vant en­ti­ties will com­ply only with the new law dur­ing the bid­ding pro­ceed­ings, with­out re­fer­ring to any other law.

How will the new reg­u­la­tions on bid­ding en­sure more ef­fi­cient use of the State’s cap­i­tal?

I am sure that with the De­cree 63, the use of the State’s cap­i­tal will be more ef­fi­cient.

This is be­cause the ceil­ings on di­rect pro­cure­ment in pro­cure­ment and con­sul­tancy bid­ding pack­ages have been cut from VNÑ5 bil­lion ($235,800) to VNÑ1 bil­lion ($47,000), and from VNÑ3 bil­lion ($141,500) to VNÑ500 mil­lion ($23,500), re­spec­tively, and for goods bid­ding pack­ages from VNÑ2 bil­lion to VNÑ1 bil­lion.

Last year, the num­ber of di­rect pro­cure­ments was high, though di­rect pro­cure­ments were not as eco­nom­i­cal as the pro­cure­ments made through bids.

With the ceil­ings on di­rect pro­cure­ment cut, the num­ber of bid­ding pack­ages will in­crease. It will help re­duce cor­rup­tion and bribery, and help to boost sav­ings.

The devel­op­ment of ebid­ding in the com­ing years will fur­ther boost sav­ings and ef­fi­ciency.

Re­gard­ing projects, I think through bid­ding, high-qual­ity con­trac­tors would be se­lected at com­pet­i­tive prices, which will cer­tainly en­hance ef­fi­ciency. – — VNS

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