Issuance of the Circular on procurement of Medicines at Public medical establishments in Vietnam

Issuance of the Circular on procurement of Medicines at Public medical establishments in Vietnam

On May 17, 2024, the Minister of Health issued Circular 07/2024/TT-BYT, which regulates the procurement of medicines at public medical establishments.

The Circular 07/2024/TT-BYT will come into effect on May 17, 2024.

Circular 07/2024/TT-BYT provides regulations on the procurement of medicines using state budget funds, health insurance funds, and other legitimate sources of state administrative agencies for health and public medical establishments (hereinafter referred to as public medical establishments). The circular includes the following provisions:

- Division of contract packages and drug groups.

- Procedures for selecting drug suppliers.

- Centralized drug procurement.

Issuance of the Circular on procurement of Medicines at Public medical establishments in Vietnam - image from the internet

What is the maximum duration for implementing a contract package in Vietnam?

According to Clause 7, Article 12 of Circular 07/2024/TT-BYT, the regulations regarding contractor selection method and procedure are as follows:

Contractor selection plan

6. Contractor selection method and procedure:

a) Contractor selection methods: Based on the contract package prices and the nature of each package, the selection of contractors can be made using one of the following forms: Competitive bidding, Limited bidding, Direct contracting, Shopping, and Direct procurement.

b) Contractor selection procedures: Single-stage one-envelope procedure shall be adopted as stipulated in Article 30 of the Law on Bidding. Single-stage two-envelope procedure shall be adopted by public medical establishments when there are legal guidelines on science and technology.

7. Contractor selection duration: The contractor selection plan must clearly indicate the duration and the time of initiating contractor selection as stipulated in Clause 5, Article 39 of the Law on Bidding.

8. Type of contract: The specific type of contract must be determined as prescribed in Article 64 of this Law and used as the basis for the preparation of the EOI request, prequalification document, bidding documents, and RFP, and signing of the contract

9. Package execution duration: The package execution duration of a contract package is carried out according to the regulations in Clause 7, Article 39 of the Law on Bidding, with a period at most 36 months.

10. Additional purchase option (if any)

a) The contractor selection plan for a package with an additional purchase option must clearly indicate the volume, quantity, and estimated value of the additional purchase;

b) The additional purchase option may be applied if: the bidding has won the bid through competitive bidding or price negotiation; the volume of additional purchase does not exceed 30% of that of the corresponding item specified in the contract; there is an approved cost estimate for the additional purchase; the unit price of goods or services additionally purchased shall not be higher than that of corresponding goods or services specified in the contract; the additional purchase option is exercised during the validity period of the contract.

11. Supervision of bidding activities (if any).

Therefore, package execution duration is carried out with a period of at most 36 months.

The package execution duration starts on the effective date of the contract till the date of acceptance of completed works, goods (including related services, if any), consulting, or non-consulting services. The package execution duration is expressed as a number of days, weeks, months, or years, excluding the warranty period and the designer's supervision period in respect of a consulting service package (if any).

What procedures and methods are used to select contractors in the procurement of medicines at public medical establishments in Vietnam?

According to Clause 6, Article 12 of Circular 07/2024/TT-BYT, the regulations regarding the procedures and methods of contractor selection in the procurement of medicines at public healthcare facilities are as follows:

Contractor selection plan

…

6. Contractor selection method and procedure:

a) Contractor selection methods: Based on the contract package prices and the nature of each package, the contractor selections can be made using one of the following forms: Competitive bidding, Limited bidding, Direct contracting, Shopping, and Direct procurement.

b) Contractor selection procedures: Single-stage one-envelope procedure shall be adopted as stipulated in Article 30 of the Law on Bidding. Single-stage two-envelope procedure shall be adopted by public medical establishments when there are legal guidelines on science and technology.

Therefore, the contractor selection in the procurement of medicines at public medical establishments is carried out through the Single-stage one-envelope procedure.

Best regards!