Decision No. 169/2006/QD-TTg dated July 17, 2006 of the Prime Minister providing for investment in and procurement of information technology products by agencies and organizations using state budget capital

DECISION

PROVIDING FOR INVESTMENT IN AND PROCUREMENT OF INFORMATION TECHNOLOGY PRODUCTS BY AGENCIES AND ORGANIZATIONS USING STATE BUDGET CAPITAL

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to November 29, 2005 Law No. 48/2005/QH11  on Thrift Practice and Waste Combat;

Pursuant to the Political Bureau's Directive No. 58/CT- TW of October 17, 2000, on stepping up information technology (IT) application and development in service of industrialization and modernization;

At the proposal of the Minister of Post and Telematics,

DECIDES:

Article 1.- Scope and subjects of regulation

This Decision provides for the investment in and procurement of IT products by agencies, organizations and units using state budget capital.

This Decision shall apply to all agencies, organizations, units and state enterprises (hereinafter referred to as agencies and organizations for short) that use state budget capital or capital originating from the state budget for investment in or procurement of IT products.

Article 2.- Provisions on investment in and procurement of IT products

1. Agencies and organizations that use state budget capital, capital originating from the state budget or preferential loans of state investment and development credit (hereinafter referred to as state budget capital for short) for investment in, procurement or execution of IT application and development projects (hereinafter referred to as IT projects for short) must prioritize the procurement and use of home-made IT products (hereinafter referred to as IT products) defined in Article 3 of this Decision.

2. Where to be-purchased products are those which can be made at home but only imported products can satisfy specific technical requirements of projects, the project-managing agencies shall make dossiers explaining in detail such requirements and send them to relevant professional agencies for comment. Such dossiers must be appraised and approved by managing ministerial-level agencies, ministerial-level agencies, government-attached agencies or provincial/municipal People's Committees. The heads of these agencies or presidents of People's Committees shall take personal responsibility for their decisions to allow the procurement of the above-said imported products.

3. Agencies and units, when formulating and executing IT application projects, must ensure balance, rationality and coordination between the software and hardware procurement; prioritize the procurement of, and investment in developing, solutions, software products and digital information contents to ensure efficient and economical investment in IT application.

4. To strictly observe the provisions of law on intellectual property in the procurement and use of IT products, especially software products and digital information contents.

5. To prioritize investment in, procurement and use of open-source software products, especially products exploited and supplied by domestic enterprises.

6. The Ministry of Post and Telematics shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in, expeditiously formulating regulations and norms concerning investment in and procurement of IT products to suit the charaCteristics of IT application and development projects in Vietnam, especially software projects.

Article 3.- Criteria for priority IT products

1. In this Decision, IT products include:

- Software products;

- Digital information content products;

- Computer hardware products;

- Special-use and civil electronic products;

- IT service products (IT consultancy, design, training, technology transfer, warranty and maintenance as well as other relevant services)

2. IT products to be prioritized for procurement under this Decision should satisfy the following criteria:

al Meeting at least one of the following requirements:

- Being researched, designed and produced wholly in the Vietnamese territory;

- Being assembled, modified, upgraded or localized in the Vietnamese territory, thus having a high added value or generating practical socio-political benefits;

- IT services are provided by Vietnamese or foreign organizations or enterprises which have investment licenses and operate in the Vietnamese territory;

- Open-source software products are exploited and supplied by Vietnamese organizations or enterprises or foreign enterprises which have investment licenses and operate within the Vietnamese territory.

bl Being of high quality, meeting IT application and development requirements of agencies, organizations and state enterprises as well as other relevant requirements set by the Ministry of Post and Telematics.

3. The Ministry of Post and Telematics shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and concerned ministries and branches in, setting specific criteria in accordance with the provisions of this Article; and at the same time, draw up, issue and regularly update lists of priority IT products to serve as a basis for the implementation of this Decision.

Article 4.- Selection of contractors for performance of bid packages of IT projects

1. International bidding may be held for bid packages of IT projects of budget-funded state agencies and units only in cases where domestic IT enterprises cannot yet perform them or can perform them but at costs far higher than those set by foreign contractors or where it is impossible to select domestic contractors that satisfy the requirements of bidding dossiers. Domestic IT agencies and enterprises may  enter into partnership or joint venture with one another to bid for IT projects.

2. For IT projects put up for international bidding, foreign contractors must enter into partnership with Vietnamese contractors and commit to reserve for the Vietnamese contractors a work volume accounting for at least 30% of the value of the whole bid package. Priority shall be given to foreign contractors that reserve for Vietnamese partners work of higher value.

3. In assessing bid packages of IT projects funded with budget capital, priority shall be given to contractors that have plans on the use of more local IT products. To encourage the procurement of IT products in large quantities, limiting the procurement in minute quantities.

4. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics in, detailing the implementation of the provisions of this Article.

Article 5.- Financial mechanisms to promote IT application and development

1. IT application projects funded with state budget capital shall, in the course of their execution, be considered and prioritized for advance of investment capital, depending on the urgency of each project; the capital advance shall comply with the provisions of the State Budget Law.

2. The Ministry of Post and Telematics shall coordinate with the Ministry of Planning and Investment, the Ministry of Finance and concerned ministries and branches in elaborating a regulation on investment and construction management of IT projects; and at the same time, study the reduction of the depreciation duration for IT products to suit the rapid technological change of these products.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics in, detailing the implementation of the provisions of this Article.

Article 6.- Organization of implementation

1. The Ministry of Post and Telematics shall assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Planning and Investment and concerned ministries and branches in, formulating and promulgating a circular detailing the implementation of this Decision.

2. Ministries, ministerial-level agencies, government-attached agencies and provincial! municipal People's Committees shall, according to their competence, promulgate specific regulations on prioritizing the procurement of home-made IT products under IT projects which are funded with foreign loan, aid capital or capital of other sources.

3. Ministries, branches and localities shall, in the fourth quarter every year, send reports on the implementation of this Decision to the Ministry of Post and Telematics for sum-up and report to the Prime Minister.

Article 7.- Implementation provisions

This Decision shall take effect 15 days after its publication in "CONG BAO"

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and subjects defined in Article 1 shall have to implement this Decision.