Latest guidelines for formulation of supplier selection plan applying price negotiation method in Vietnam

Latest guidelines for formulation of supplier selection plan applying price negotiation method in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows: 

On May 14, 2024, the Minister of Health of Vietnam issued Circular 05/2024/TT-BYT on lists of drugs, medical devices and test equipment procured through price negotiation and supplier selection procedures for packages applying price negotiation method.

Latest guidelines for formulation of supplier selection plan applying price negotiation method in Vietnam

According to Article 8 of Circular 05/2024/TT-BYT regulating the formulation of supplier selection plan applying price negotiation method in Vietnam:

- Based on lists of drugs, medical devices and test equipment to be procured through price negotiation announced by the Minister of Health of Vietnam and the plan for organization of price negotiation, the price negotiation unit shall formulate an annual plan for supplier selection through price negotiation.

- In addition to the provisions of Article 39 of the Law on Bidding 2023, a plan for supplier selection through price negotiation shall also meet the following requirements:

=Name of the package:

A drug, medical device or test equipment package applying price procurement method may contain one or several drugs, medical devices or test equipment. Each drug, medical device or test equipment is considered a part of the package. If a package is divided into smaller parts, each of them must have a suitable name;

== Specific information on a drug included in the supplier selection plan includes name of the drug (for original brand-name drug or reference biological), name of active ingredient, content or concentration, dosage form, unit, quantity, unit price and total value;

== Specific information on a medical device or test equipment included in the supplier selection plan includes name of the medical device or test equipment, category, unit, quantity, unit price and total value.

=Value of the package:

The value of the package shall comply with provisions of clause 1 Article 16 of Decree 24/2024/ND-CP dated February 27, 2024 elaborating and providing guidelines for implementation of the Law on Bidding 2023 regarding contractor selection (hereinafter referred to as Decree 24/2024/ND-CP). If a package is divided into smaller parts, in addition to total value of the package, the unit price and value of each part must also be specified.

The value of the package shall be determined according to provisions of Clause 2 Article 16 of the Decree 24/2024/ND-CP. The price negotiation unit shall propose the unit price of the drug, medical device or test equipment in the supplier selection plan, and assume responsibility for its proposal.

= Specifications of the drug or configurations/technical features of the medical device or test equipment, delivery schedule requirement, and specific purchase conditions of each drug, medical device or test equipment procured through price negotiation;

= Supplier selection procedure: single-stage one-envelope procedure shall apply.

= Supplier selection schedule: the price negotiation unit shall set up the supplier selection schedule and submit it to a competent person for approval.

= Type of contract: The type of contract must be specified in the supplier selection plan as prescribed in Article 64 of the Law on Bidding 2023 and as the basis for preparation of RFPs; conclusion of the framework agreement or contract in case the price negotiation unit directly purchases drugs, medical devices or test equipment.

= Duration of the framework agreement or package: The duration of the framework agreement or package specified in the supplier selection plan is approved by a competent person and shall not exceed 36 months.

= Additional purchase option (if any): The price procurement unit shall clearly define the quantity to be purchased by executing the additional purchase option as prescribed in clause 8 Article 39 of the Law on Bidding 2023 as the basis for preparation of RFP, and conclusion of framework agreement or contract.

More details can be found in Circular 05/2024/TT-BYT which comes into force from May 15, 2024.

To Quoc Trinh

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