Vietnam aims to boost online bidding

Vietnam always regards online bidding as one of the particularly important public services in the e-commerce development plan and in national programme for information technology application at State-funded agencies, Deputy Minister of Planning and Investment (MPI) Dao Quang Thu said in a recent review on its pilot online bidding project for 2012-2013 period.
Vietnam always regards online bidding as one of the particularlyimportant public services in the e-commerce development plan and innational programme for information technology application atState-funded agencies, Deputy Minister of Planning and Investment (MPI)Dao Quang Thu said in a recent review on its pilot online biddingproject for 2012-2013 period.

Deputy Minister Dao Quang Thuwas quoted saying by Vietnam Investment Review newspaper that ifcleverly applied, this form of tender would improve the publicity andtransparency in bidding events. This has partly reflected the resolutionof the Party and the Government in the fight against bureaucracy andcorruption. And, this has shown the clearest commitment of Vietnam tointernational donors, Deputy Minister Thu said.

Nguyen Son,Deputy Director of Procurement Management Department under the MPI saidin the coming time, the MPI is quickly compiling decrees and circularson the enforcement of Bidding Law 2013, which specifies online bidding.In the 2012 - 2013 period, the ministry actively publicised informationon this type of bidding and trained personnel for this area.Specifically, it organised more than 60 training courses on onlinebidding for investors, bid solicitors and bidders at ministries,branches and localities across the country. More than 4,000 staffs from30 ministries, localities, economic groups and corporations weretrained.

Le Van Tang, Director of the Public Procurement Agencysaid units nationwide successfully carried out over 1,000 online bids bythe end of 2013. All activities related to these events like bid planannouncements, bid invitation announcements, bidding document filing,bid opening and bid result announcement were made on the system. Morethan 9,200 bid plans and over 57,000 bid invitation announcements werepublished. More than 7,400 tenderers and over 2,600 bidders registeredto use the system.

He said, to further improve this new"institution," the Ministry of Planning and Investment introducedsolutions to perfect this apparatus like ensuring smooth and stablesystem operation round the clock, providing supports to users viavarious channels like telephone, e-mail and especially intuitive remoteinstruments to instruct and reply investors, tenderers and bidders topublish bid information and host online bidding.

Remarkably, thenumber of users (auctioneers, bidders and registrants) in the 2012 -2013 period increased sharply over the 2009 - 2011 phase. Specifically,the number of registered users soared 500 percent, the number of biddersjumped 650 percent and the number of auctioneers surged 460 percent.Online bids increased nearly 20 folds. The number of bid invitationannouncements and bid plan announcements increased almost 3 times and 11times, respectively.

Nguyen Son said online bidding is a growingdevelopment trend in the world, particularly in developed countries.The European Union (EU) has long adopted electronic bidding and all EUmembers are obliged to apply this method from 2015.

In Vietnam,online bidding, if applied broadly, will help cut State budgets, reducetravel and printing costs as well as diminish bad deeds. It will alsohelp approach international practices and standards - an extremelyimportant condition for Vietnam to finalise TPP negotiations.

InSingapore and the Republic of Korea, online bidding is reported to save3-20 percent of bid value. In Vietnam, the total value of auctionpackages bid every year is over 20 billion USD. Therefore, expandingonline auctions will contribute billions of US dollars to the StateBudget annually.

However, according to Le Van Tang, the biggestobstacles to online bidding is enterprises dislike explaining too muchto authorities about their online bidding processes. Another barrier isour limited information technology level and technical infrastructure.Notably, legal validity and digital signatures in online bidding havenot been fully recognised.

An official from the Hanoi Departmentof Planning and Investment said the department planned to launch 10tender packages online in 2013 but eventually finished just threepackages with this method because of low IT level.

Inprofessional aspect, the Vietnam Posts and Telecommunications Group(VNPT) easily pointed out these inadequacies. Bidding online is a formof advanced information technology application. The current systemsupports only Internet Explorer (IE), the web browser developed byMicrosoft, versions 6.0-10.0 while the latest version, IE 11, is notsupported.

A representative from the World Bank Group (WB) saidthat online bidding is really becoming a major trend of the world. Inthe Plan to 2025, it pledged to support Vietnam to invite leadingspecialists of this field as well as provide more support for Vietnam inthis field.

Director Le Van Tang said the wide-scaleapplication of online bidding is very feasible, with an estimated budgetof 300 billion VND (14.4 million USD), the second phase of the projectwill be launched in May 2014 and expected to be continued in 2015 ifapproved. And, difficulties and obstacles in online bidding will becollected and addressed. Driven by information measures, this form ofbidding is expected to account for higher proportion.-VNA

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