MOF to simplify contractor selection procedures

Public procurement procedures are expected to become more flexible and efficient under a draft decree prepared by the Ministry of Finance, which proposes broader application of contractor appointment, higher procurement thresholds, and enhanced transparency requirements for contractor selection and contract performance.

o enhance flexibility in organising procurement and shorten project implementation duration while still ensuring transparency, openness, and efficient use of investment capital of projects, the Ministry of Finance (MOF) has drafted a decree amending and supplementing a number of articles of Decree 214/2025/ND-CP on contractor selection (the draft), introducing several new regulations regarding the assignment of tasks, placement of orders, or bidding for the provision of the state budget-funded public products and services

Expanded scope of contractor appointment and raised procurement thresholds

One of the notable points in the draft is the proposal on addition of cases where contractor appointment can be applied.

Accordingly, MOF proposes addition of packages to be executed under the direction of resolutions, conclusions and directive documents of the Party Central Committee, the Political Bureau, the Secretariat, key leaders of the Party and the State, as well as decisions of competent local authorities.

Procurement packages under public investment projects that need to be deployed rapidly to ensure progress, quality and efficiency are also proposed to be added to the category considered for contractor appointment.

For the fields of science and technology, innovation, and digital transformation, the draft expands the scope of packages related to building, expansion and upgrading of databases. This scope comprises not only construction and installation packages but also extends to procurement, consultancy and mixed packages to suit the specific characteristics of the technology sector.

MOF also proposes raising the thresholds for applying contractor appointment. Specifically, for packages under non-project procurement estimates, the threshold is proposed to increase from the current VND 500 million to VND 1 billion. For packages under projects, the threshold is raised from current VND 2 billion to VND 3 billion.

Furthermore, the draft adds a requirement for contractors to provide information on expected import prices of imported goods and commit to providing supporting documents when the goods are imported into Vietnam. This regulation aims to increase transparency in the price determination and effective control of the contract performance.

For regular procurement activities, MOF proposes raising the procurement value threshold that agencies and units can decide on their own from no more than VND 50 million to no more than VND 100 million, thereby reducing administrative procedures and saving time for small-value procurement packages.



Improved procurement management and transparency in contract performance

The draft introduces many new provisions aimed at simplifying the contractor selection process and enhancing management efficiency.

As per the proposal, requirement dossiers, draft contracts, contents to be clarified or modified in requirement dossiers, proposal dossiers, and bid opening minutes will be made publicly available on the Vietnam National Electronic Procurement System. This aims to enhance supervision and limit shortcomings during the contractor selection process.

Members of expert teams and appraisal teams are no longer required to possess professional procurement qualifications certificates and three years’ working experience for packages with a value not exceeding VND 5 billion.

In cases where opinions of specialised experts are required during the preparation, evaluation or appraisal of dossiers or contractor selection results, these experts are not required to possess professional procurement qualifications certificates. This regulation is proposed to apply to all packages instead of being limited to the fields of science, technology and innovation.

Regarding the method of summary online quotation, MOF proposes raising the applicable threshold to VND 3 billion for procurement packages and VND 7 billion for projects, thereby expanding the applicability of electronic contractor selection methods. In subcontractor management, the draft adds a provision requiring investors to update information on the list, scope of work, and utilisation rate of subcontractors during the contract performance.

Under the new provisions, investors do not have to evaluate the capacity and experience of standard subcontractors, as this responsibility lies with the main contractor. The main contractor remains fully responsible for the progress, quality, and related obligations regarding the part of the work performed by subcontractors.

The draft also details cases that are not regarded as using subcontractors, such as the purchase of raw materials, materials, fuels, equipment, semi-finished components, or the hiring of equipment and personnel from suppliers to serve the execution of packages.

For ordering public products and services, ordering prices can be determined based on prices executed in the most recent year or prices at the time of cost estimation. After the competent authority issues official unit prices, implementing units will adjust contracts to serve as a basis for payment.

The draft also adds responsibilities of provincial-level People’s Committees to issue economic-technical norms, criteria and quality standards for public products and services, and formulate mechanisms for monitoring, evaluation, and quality inspection.

- (VLLF) 

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