Domestic enterprises seek to participate in key national projects

Removing "bottlenecks and bottlenecks" for Vietnamese businesses

Speaking to PLVN Newspaper, Mr. Nguyen Quoc Hiep - Chairman of the Vietnam Association of Construction Contractors (VACC) commented: “The core spirit of Resolution 68 is to place private enterprises in the role of strategic partners of the State - together creating social development. The new policy does not see enterprises as objects of management, but as subjects accompanying, sharing responsibilities and together building the future”.

Resolution 68 clearly states that enterprises are “service objects” instead of “management objects”. Changing those four words is truly a revolution in thinking and awareness. From awareness to action is a process that requires the government system at all levels to participate. Mr. Hiep said that currently, the Ministry of Construction is asking units to implement the Prime Minister's direction, review to drastically reduce and simplify administrative procedures in the construction sector. These are very positive signals serving Vietnamese enterprises, helping Vietnamese enterprises to have more confidence to “compete” with foreign enterprises.

In the context that the whole country is preparing to implement key national projects and works such as the 67 billion USD North-South high-speed railway project; the 8 billion USD Lao Cai - Hanoi - Hai Phong railway..., VACC has proposed to the Ministry of Construction on a number of specific mechanisms for domestic contractors to participate in key national projects. Specifically, the first recommendation is to remove the criterion that contractors must have experience in 1-2 similar projects to be eligible to participate, because the high-speed railway project is unprecedented in Vietnam.

Regarding financial capacity, VACC recommends considering the financial consolidation of member enterprises in the consortium of contractors registered to participate, because most Vietnamese construction enterprises have small capital. At the same time, bidding packages need to be separated into separate infrastructure construction and installation parts and separate equipment parts with reasonable scale. Regarding bidding mechanism, we recommend that the Government allow conditional bidding to save time; develop a system of general unit price standards for timely application. Regarding contract form, we recommend allowing the use of lump-sum contracts, with a post-audit mechanism to reduce difficulties for contractors. Contracts can be used as credit guarantees for project loan packages and preferential loan interest rates can be applied.

The Chairman of VACC also proposed dividing the component projects and infrastructure into bidding packages for Vietnamese contractors. At the same time, establishing a consortium of contractors, each consortium consisting of 5-6 contractors, focusing on both large and medium-sized enterprises, to maximize the strength of the enterprises. This is a golden opportunity to help enterprises develop.

Should Vietnamese contractors be independent or form a joint venture?

In implementing Resolution 66 and Resolution 68 of the Politburo, Mr. Le Quyet Tien - Director of the Department of Construction Investment Management Economics (Ministry of Construction) informed: "The construction industry always listens to positive feedback from associations, enterprises, and organizations from central to local levels to remove difficulties and obstacles. Along with the arrangement of the decentralized and decentralized apparatus, the 2-level local government will come into operation on July 1, 2025, the Ministry of Construction will comprehensively review the construction law and guiding documents related to the industry".

Regarding amendments and removal of existing problems and obstacles, creating opportunities for businesses to develop, Mr. Tien said that it is necessary to harmoniously share benefits between the State and businesses, with the goal of developing the country's economy.

Director Tien added that in amending the regulations on decentralization and delegation of authority, the Ministry of Construction has made additions and amendments to cost management, and localities are allowed to issue norms without having to negotiate with the Ministry of Construction. In addition, the contractor consortium model, although not yet specifically defined in the law, has essentially been adjusted through the form of independent contractors or joint ventures.

“In the coming time, the Ministry of Construction will continue to urge localities to publish unit prices close to reality, will review and check statistics, if incorrect, will “blow the whistle”, if correct, will be put into the system”, said Mr. Tien. At the same time, he emphasized the role of training a team of highly skilled workers to meet the requirements of constructing large-scale projects in the coming period.

Mr. Nguyen Huu Thang - Chairman of the Board of Directors of HJC Investment - Construction Group commented: Resolution 68 of the Politburo is a test for the State's policy creation and management capacity in the new period. For small and medium enterprises that want to "reach the big sea", they need to unite to avoid dispersion and lack of connection.

In addition, there needs to be an open mechanism to compete and maximize the capabilities of contractors. “We hope that the Party, the National Assembly, and the Government will have a mechanism that harmonizes and rationalizes the interests of the State, enterprises, and society so that the mechanism can bring about overall efficiency for the country and enterprises,” Mr. Thang emphasized.

Agreeing with the above viewpoint, Mr. Nguyen Thai Lan - Hai Pha Vietnam Co., Ltd. said that the joint venture and association model, reducing or eliminating criteria on similar and equivalent contracts... in the Bidding Law will help businesses confidently enter the upcoming playground in many industries and fields. In addition, combining capacity, shortening time, sharing risks, and harmonizing benefits.

Mr. Lan wishes to have a specific legal regulation to regulate the operating mechanism, divide responsibilities and benefits among the parties. Specify and develop a model contract for a consortium of contractors; Clearly define the joint and separate responsibilities of each member; Guide the joint venture management process in actual construction...

Gia Hong

Source: https://baophapluat.vn/doanh-nghiep-noi-tim-huong-tham-gia-cac-du-an-trong-diem-quoc-gia-post553651.html