Directive No. 494/CT-TTg 2010 on use of domestically produced supplies and commodities in bidding for state-funded investment projects

DIRECTIVE

ON THE USE OF DOMESTICALLY PRODUCED SUPPLIES AND COMMODITIES IN BIDDING FOR STATE-FUNDED INVESTMENT PROJECTS

THE PRIME MINISTER

In furtherance of the provisions of Points b and c, Clause 1, Article 13 of the Bidding Law regarding conditions on holding international bidding, and pursuant to the Government's Resolution No. 30/2008/NQ-CP of December 11, 2008, on urgent measures to curb the economic decline, maintain economic growth and assure social security, the Prime Minister requests ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of People's Committees of provinces and centrally run cities, chairpersons of boards of directors of state economic groups and corporations, investors of state-funded projects, agencies and units that select contractors to perform state-funded bid packages under the bidding law, to perform the following tasks:

1. For organization of the selection of contractors

a/ The division of bid packages under state-funded projects, schemes, programs or cost estimates for regular procurements (below collectively referred to as projects) should, apart from being based on technical characteristics and implementation process and assuring the integrity of projects, assure that bid packages are of a rational size and suitable to the capacity of domestic contractors and ensure maximum competitive conditions for domestic enterprises to win contracts and create jobs for domestic laborers.

b/ For bidding for commodity procurement, international bidding will be held only when commodities, supplies and equipment which are domestically available fail to meet requirements of bid packages or cannot be domestically produced15r when it is so requested by donors with regard to bid packages under official development assistance (ODA)-funded projects.

c/ Fat construction and installation bid packages* international bidding will be held only when domestic contractors are unable to meet requirements or when domestic bidding has been held but no contractor is qualified, or it is so requested by donors with regard to bid packages under ODA-funded projects. In this case, there should be a mechanism to encourage domestic contractors to enter into partnerships with international contractors to learn more experience and create more jobs for laborers.

d/ To select contractors, bidding dossiers and requirement dossiers must indicate the requirement that bids are offered in Vietnam dong for domestic expenditures; contractors may offer bids in foreign currencies for expenditure items (for commodities and services) of foreign origin only when domestic commodities and services fail to meet requirements and contractors must import them.

e/ Investors and bid solicitors are prohibited from compiling bidding dossiers and requirement dossiers that allow employment of foreign laborers when domestic laborers are capable of meeting the requirements of bid package implementation.

f/ It is prohibited to hold international bidding for EPC bid packages of projects involving many jobs for which Vietnamese contractors are able to provide services, supply commodities or perform construction and installation.

2. Organization of implementation

a/ Ministers, heads of ministerial-level agencies, chairpersons of People's Committees of provinces and centrally run cities and chairpersons of boards of directors of state economic groups and corporations shall, within the scope of their management, direct investors and bid solicitors to seriously and thoroughly study and comply with this Directive.

b/ The Ministry of Planning and Investment shall guide, urge, examine and inspect investors and bid solicitors in the implementation of this Directive, and propose the Prime Minister to severely handle violators of this Directive.-

PRIME MINISTER

NGUYEN TAN DUNG