This situation has caused losses of billions of dong to the State and undercut the faith of people in the integrity of the process.

The tendering process has been governed by regulations contained in Government Decree No 88/1999/ND-CP, dated September 19,1999; Decree No 66/2003/ND-CP of June 12, 2003, which amended Decree No 88; and Circular No 04/2000/TT-BKH, dated May 26, 2000, of the Ministry of Planning and Investment, guiding implementation of the tendering regulations.

These documents sometimes overlap and conflict, with the result that both managers and participants have taken advantage of loopholes in the law. In this context, a new Law on Tendering was promulgated on November 29 of last year and took effect on April 1 of this year.

The new law strengthens and standardises bidding processes, improve the competitiveness and transparency of bidding processes and addressing negative aspects. Its provisions are intended to guarantee competitiveness and fairness in bidding on State contracts.

For Instance, the law requires that bidders be independent of agencies controlling the bidding process and also requires that there are no financial ties between parties submitting bids and parties evaluating submitted bids; between bidders and organisations that will monitor implementation of the contract; or between the bidder and the party soliciting tenders.

The Tendering Law also stipulates that bid information must be announced in the newsletters and websites of State administrative agencies governing bidding process in order to give potential bidders equal access to information on the contract and bid process. The law also limits instances in which appointed or restricted bidding may be conducted.

To standardise bidding processes, it is necessary to have more professional staff overseeing the process. The law sets minimum qualifications for individuals participating in bid solicitation and evaluation teams, including certification that they have completed a training course on tendering, have professional awareness of the particular contract being tendered and specific contents of the tender, and have at least three years experience in related fields.

To open tendering processes to global competition and thereby limit the problem of "closeness", Article 30 of the law also provides for online bidding.

Another practical measure in the law to ensure fairness is its provisions on the content and procedure for resolving petitions or appeals regarding bidding processes, provisions which will help ensure the rights and benefits of parties participating in tenders.

The law also regulates 17 classes of forbidden acts in tendering processes and sets penalties ranging from warnings, fines or being barred from future participation in bidding processes. All violators must have their names published.

Source: Viet Nam News 24/05/2006