Vietnam: Procedures for procuring low-value assets within state agencies

Đoan Trinh

10:15, 16/05/2018

Circular No. 58/2016/TT-BTC of the Ministry of Finance of Vietnam provides for the use of state funding for making purchases for the purpose of maintaining regular operations of state agencies and organizations. This Circular stipulates that direct contracting shall be applied in case the procurement of purchase of asset/good/service which are in the regular purchase estimate or plan, and the value of such value do exceed VND 100 million.

In reality, there are many procurement items such as document photocopying, purchasing air tickets for business trips, equipment maintenance, etc., which fall under the category of frequent purchases with low value (below VND 100 million).

So, how shall the procurement of regularly purchased assets with low value be carried out?

As mentioned, according to Clause 2 Article 15 of Circular No. 58/2016/TT-BTC of the Ministry of Finance of Vietnam, the procurement of regularly purchased items below VND 100 million still needs to follow the direct contracting procedures. Specifically, the following requirements must be satisfied if the direct contracting is applied:

- The approved contractor selection plan is available;

- The time limit for performing the direct contracting from the approving date of request for proposals to the date of signing contract shall not exceed 45 days or 90 days if the procurement has large and complicated scale.

Moreover, in the case of procurement below VND 100 million, shortened procedures for direct contracting as specified in Article 17 of Circular No. 58/2016/TT-BTC may also be applied.

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