Regulations on centralized procurement, supply of public products and services in Vietnam

Vietnam law has regulations on centralized procurement, supply of public products and services. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are general provisions on centralized procurement in Vietnam? What are regulations on recurrent procurement? What are regulations on purchase of drugs and medical supplies? What are forms of selection of bidders for provision of public products and service? Thanks for answering my questions!”

Legal grounds

• 2013 Vietnam Law on Bidding

General provisions on centralized procurement

– Centralized procurement means a way to organize an competitive bidding in order to select contractor through a centralized procurement unit with the aim to reduce expenses, time, and focal units of bidding organization, strengthen the professionalism in bidding, and contribute in increasing economic efficiency.

– Centralized procurement shall apply in case where goods and services need to be procured with big quantity, similar categories at one or many agencies, organizations, enterprises or investors.

– Centralized procurement may be performed in one of the following ways:

+ The centralized procurement unit gathers needs of procurement, conduct the selection of bidder, directly sign contract with the selected bidder for goods or service provision;

+ The centralized procurement unit gathers needs of procurement, conduct the selection of bidder, sign a written framework agreement with one or many selected bidders as basis for units which have need of Direct Procurement to sign contract with the selected bidders for goods or service provision.

– The centralized procurement unit shall conduct the selection of bidder on the basis of assigned tasks, or sign contract with units which have need for procurement.

– The Government shall elaborate this Article.

– Framework agreement in the centralized procurement means a long-term agreement between the centralized procurement unit with one or many selected bidders, in which include standards and conditions as basis for procurement according to each specific contract.

– Duration for use of framework agreements shall be stipulated in plan on bidder selection but not exceed 03 years.

General regulations on recurrent procurement

*Conditions for application

Regulatory agencies, political organizations, socio-political organizations, socio-political-occupational organizations, social organizations, socio-occupational organizations and units of the People’s armed forces, and public non-business units may apply the recurrent procurement of goods and services upon satisfying all the following conditions:

– Use the capital sources for recurrent procurement;

– Goods and services under list of goods and services allowed applying recurrent procurement to maintain regular activities of agencies, organizations and units.

* Organizing selection of bidder

– Selection of bidder in recurrent procurement shall comply with Articles 38, 39, 40, 41, 42 and 43 of 2013 Vietnam Law on Bidding.

– The Government shall elaborate regulations on on recurrent procurement.

General regulations on purchase of drugs and medical supplies

* The selection of bidder for drugs and medical supplies provision

– Form, method, plan and process of selection of bidder and method of assessment of Bid, Proposal for selection of bidder for drugs and medical supplies provision shall comply with provisions at chapter II, III and IV of 2013 Vietnam Law on Bidding.

– Selection of bidder for drugs provision shall also be performed under form of price negotiation. Form of negotiation shall be applied to packages for purchase of drugs which there are only one to two producers; original proprietary medicines, rare drugs, drugs still in time protected copyright and other particular cases.

– A bidder shall be considered for the consulting bidder being organization shall be considered for recommendation as the winning bidder upon satisfying the following conditions:

+ Conditions specified at points a, b, d, dd and e Clause 1 Article 43 of 2013 Vietnam Law on Bidding;

+ Bidder has Technical Proposal which are assessed to satisfy requirements on quality, provision, preservation and time limit for drugs use.

– The Government shall elaborate this Article.

*Centralized purchase of drugs

– The centralized purchase of drugs shall be performed at national level and local level.

– The Government shall provide for the centralized purchase of drugs and roadmap to perform the centralized purchase of drugs.

*Preferential treatment in purchase of drugs

The preferential treatment in purchase of drugs shall comply with Article 14 of 2013 Vietnam Law on Bidding. For drugs produced domestically, and the Ministry of Health has announced as satisfaction of such drugs for the requirements on medical treatment, price of drugs and ability of provision, in Bidding Documents, Request for Proposals shall stipulate that bidders are not permitted to offer the import drugs.

*Responsibilities of regulatory bodies in bidding of drugs and medical supplies

– The Ministry of Health shall promulgate list of drugs involving bidding; list of drugs involving centralized bidding; and list of drugs allowed applying form of price negotiation.

– Government shall provide for responsibilities of Ministries and sectors in bidding of drugs and medical supplies, and the disclosure of prices of drugs and medical supplies according to results of contractor selection.

* Payment of expenses associated with purchase of drugs and medical supplies

If non-public health facilities do not select to apply provisions of 2013 Vietnam Law on Biddingfor purchase of drugs, medical supplies, such health facilities shall only be paid from medical insurance fund according to the drugs items and unit prices of drugs and medical supplies already won bidding of the public health facilities at provincial level in the same localities.

General regulations on provision of public products and services

*Forms of selection of bidders

The selection of bidders for provision of public products and service shall perform under forms of competitive bidding, limited bidding, and Direct Contracting, Shopping Method, Direct Procurement and Force Account.

*The process of bidder selection

– The process of bidder selection for provision of public products and services shall be performed as follows:

+ Prepare for selection of bidder;

+ Organize selection of bidder;

+ Assess the Bids, Proposals and negotiate contract;

+ Submit, evaluate, approve and publish result of bidder selection;

+ Finalize and sign contract.

– The Government shall elaborate this Article.

Please see more:

• Instructions for exclusive registration of company logos in Vietnam
• Service of changing the legal representative of Vietnamese enterprises

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Conclusion: So the above is Regulations on centralized procurement, supply of public products and services in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com