Trade union: Guidelines for direct procurement from recurrent expenditures in Vietnam

On September 12, 2022, the Vietnam General Confederation of Labor issued an Official Dispatch 4941/TLD-TC on guidelines for the implementation of decentralization of decision-making authority in the procurement, maintenance and repair of assets from recurrent expenditures.

Specifically, the cases in which direct procurement in Vietnam is applied must satisfy the following conditions:

- There is a document approving the procurement estimate of the head of the unit;

- The contractor has won the bid through open bidding or limited bidding and has signed a contract to perform the previous bidding package;

- Bidding packages with similar contents and characteristics and a 130% smaller scale than the previously signed bidding packages;

- The unit price of the parts of the bidding package applying direct procurement must not exceed the unit price of the corresponding parts of the similar bidding package signed with the previous contract;

- The time limit from signing the contract for the previous bidding package to the date of approving direct procurement results does not exceed 12 months.

In case the contractor performing the previous contract is unable to continue performing the direct procurement bidding package, the direct procurement shall be applied to other contractors (if all the conditions as prescribed are satisfied). 

The process of direct procurement shall comply with the provisions of Article 60 of Vietnam's Decree 63/2014/ND-CP.

More details can be found in Vietnam's Official Dispatch 4941/TLD-TC dated September 12, 2022.


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