Bidding Law 2013: Improving Efficiency of State Capital

On February 13, 2014, the Procurement Management Department under the Ministry of Planning and Investment organised a conference to introduce new basic contents of the Bidding Law 2013.

 

The law consists of 13 chapters with 96 articles, revised from the Bidding Law 2005.

 

The law takes effect on July 1, 2014 and replaces the Bidding Law 2005 from that time. This law will also remove the Item 1, Chapter 6 of the Law on Construction 16/2003/NQ-QH11 and Article 2 of the Law on Amendments and Supplements to a Number of Articles of Laws on Basic Construction No.38/2009/QH12.

 

Le Vang Tang, Director of the Procurement Management Department, said the Bidding Law 2013 was built on the basis of objective requirements in the process of developing and perfecting the legal bidding system and State capital use, thus contributing to improve the efficiency of State capital use.

 

The law specifies in more detail the process of selecting contractors and investors for specific cases. Bidding document assessing method is also defined for specific fields like contractor selection (consulting services, non-consulting services, merchandise, construction, installation and miscellany) and investor selection. In addition, the law adds a number of new methods for assessing bidding documents to diversify assessing methods, suit the type and size of tender packages, and eradicate improper bidding.

 

The law gives priority to human resource development, creates opportunities for domestic bidders to win tenders and create jobs for domestic labourers, and prioritises domestic contractors and locally made goods.

 

Regulations on bidding and procurement forms are based on international practices and pilot results in Vietnam for widespread bidding application. According to this method, instead of making procurement in hundreds of different agencies, the centralised procurement agency will be responsible for organising one professional procurement event.

 

The law stipulates procurement of medications and medical supplies using State funds, health insurance funds, incomes from medical treatment services and other lawful sources of income of public health units. As regards medicine tender, the law adds price negotiation forms for bids with one or two manufacturers, original brand-name medicines, rare drugs, copyrighted medicines and special cases specified by the government.

 

Bidding Law 2013 modifies some regulations on signing, enforcement and management of contracts to strengthen the responsibility of contractors and investors in the process of executing contracts, avoid applying contracts inconsistent with the nature of bidding packages, adjusting contract prices, changing contract forms, and changing the validity duration. According to this law, full-package contract is a basic contract. When deciding to apply contracts with fixed price or adjustable price, persons in charge of approving contractor selection plans must ensure that such contracts are consistent with full-package contracts.

 

The law also provides tender decentralisation. It also stipulates accountability of competent persons and investors in the process of selecting contractors and investors to avoid self-contained bidding process.

 

Bidding Law 2013 is said to have great progress in monitoring and handling bidding violations. It also adds a number of prohibited acts in bidding.

 

Director Le Van Tang added that the department is drafting two decrees with connection with this law and is preparing to draft circulars with connection with this law to create the best legal foundation when it comes into force.

 

“However, to achieve the objectives of the law, more than ever, we need the unified direction from the highest level, the consensus and unanimity of ministries and localities prevent local interests rather than universal interests and public interests," he stressed.