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E-procurement in Vietnam progressing slowly
By Van Ly
Friday,  Aug 10, 2018,15:26 (GMT+7)

E-procurement in Vietnam progressing slowly

By Van Ly

HANOI - With only 18% of bidding packages being conducted online so far compared to the target ratio of 70% in 2025, the Government is working to boost e-bidding, heard the Vietnam E-government Procurement Forum 2018, held in Hanoi on August 8.

Addressing the forum, Deputy Minister of Planning and Investment Vu Dai Thang noted that nearly 23,000 bidding packages have been put on the e-procurement system. In the January-July period alone, almost 9,000 bidding packages were registered, doubling figures from the same period last year.

According to Thang, the savings ratio of e-bidding is 9% on average, whereas that of traditional bidding is 7%. E-procurement has helped increase the effectiveness of bidding; create a competitive, healthy, transparent environment; save time and cost; and reduce administrative procedures.

The 11th National Assembly in 2005 passed the Law on Bidding, with Article 30 addressing online bidding, providing a legal framework for e-bidding in Vietnam.

With the support of South Korea, the Ministry of Planning and Investment, in 2009, built an e-procurement system and ran it on a trial basis at the Hanoi People’s Committee, Vietnam Electricity Group and Vietnam Post and Telecommunications Group.

The Prime Minister in 2016 issued Decision 1402/QD-TTg on the e-bidding plan and road map for 2016-2025, which targets 100% of information concerning the selection of contractors and the execution of contracts being made public on the national e-procurement system, while at least 70% of bidding packages and all regular purchases are made via the system.

Though the preliminary results are positive, it is challenging to realize those targets, Thang said.

To achieve the e-procurement targets set for 2025, Nguyen Dang Truong, head of the ministry’s Bidding Management Department, noted that there are currently no specific sanctions against ministries, agencies and localities that have not followed the e-procurement road map. However, a list of units that are reluctant or late in executing the plan has been presented to the Prime Minister and may be made public.

Alexander Fox, principal procurement specialist at the Asian Development Bank (ADB), stated that the ADB and the World Bank (WB) strongly support Vietnam in promoting e-procurement over the national e-procurement system. After the successful testing of some packages on the system, the ADB and WB will expand e-procurement to procurement and construction packages in projects using capital from the two banks.

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