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Official Gazette

Tuesday, March 31, 2020

Draft amendments to the Bidding Law unveiled

Updated: 16:51’ - 28/08/2012

The Ministry of Planning and Investment (MPI) has recently unveiled its proposed amendments to the 2005 Bidding Law, with a view to better managing state funds, increasing competitiveness and transparency, obtaining higher economic efficiency and fighting corruption in bidding activities. 

Noteworthily, the MPI proposes expanding the existing law’s regulatory scope.

Le Van Tang, head of the MPI’s Bidding Management Department, said although the current law provides a bidding process to select suppliers for state-funded projects, other new procurements have arisen in reality, including investment in overseas or public-private partnership projects.

The drafting board therefore recommends an expansion of the 2005 Bidding Law’s governing scope to cover all bidding activities of state-owned enterprises and those to select contractors for bid packages under offshore direct investment projects with state funds accounting for at least 30 per cent of their total investment value.

This means all procurements of state-owned enterprises, including purchase of materials, fuels and supplies for their routine operation and production and business activities, must go through bidding. However, this point is still controversial.

Some stress that enterprises should be empowered to choose their own way to select suppliers for materials, fuels and supplies.

Meanwhile, others say the procurement for such goods and services is proportional to the budget of state-owned enterprises. If enterprises are allowed to skip bidding for such purchases, the enterprises’ heads must take responsibility for any arising problems, thus a specific sanctioning mechanism would be needed.

Another important issue mentioned in the draft law is online bidding.

Nguyen Xuan Dao, deputy director of MPI’s Bidding Management Department said the pilot online bidding scheme was successfully implemented during 2009-2011. Thus, it was time to legislate online bidding and expand its governing scope so as to improve the effectiveness of anti-corruption efforts as well as public investment and bidding activities.

Accordingly, project contractors and investors may be selected through an e-bidding process which enables bid solicitors and interested bidders to complete almost all required procedures electronically via the national bidding network. Of the seven steps of the e-biding process, including (i) posting bidding information; (ii) issuing bidding dossiers; (iii) submitting bids; (iv) opening bids; (v) evaluating bids; (vi) appraising, approving and notification of bidding results; and (vii) finalizing, signing and managing contracts, the first four ones may be conducted online.  

To be qualified for online transactions, all e-documents must contain digital signatures of lawful representatives and be sent successfully to the national bidding network.

The Vietnamese version of the draft law is now available at the Government’s e-portal .-


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