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Mechanical enterprises want privileges in bidding
Vietnamese mechanical enterprises want privileges in bidding for industrial construction projects because domestic contractors cannot compete with foreign colleagues.
The Vietnam Association of Mechanical Industry (VAMI) has sent a document to the Prime Minister, expressing its willingness to receive preferences in bidding for industrial construction projects.
Stiff competition
Under the current regulations, the bidding process must be carried out in two stages. In the first stage, contractors have to show their capability and experience, while the second stage proves to be a stiff competition in prices.
VAMI said that nearly all Vietnamese enterprises can go through to the first stage. It is because contractors, including incapable ones, can hire experienced consultants, or join other contractors to become experienced enough when bidding.
Meanwhile, the second stage proves to be a major barrier for all Vietnamese enterprises. VAMI said that with the current mechanism, no domestic contractor will be able to compete with foreign contractors, especially the ones from China.
From now until 2025, the investments in industries like thermopower, hydropower, cement, chemicals and aluminium will be very big. The industries are expected to consume $107 billion worth of investment capital.
It is expected that 800 coal-run thermopower plants, with a capacity of 100-1,200MW each, will be built, which will need approximately $83 billion, and 75 hydropower plants with a capacity of 30-1,200MW each will be built, which will need $10 billion. Besides, there will also be approximately 30 cement plants with a total investment capital of $13.6 billion.
These figures mean that there will be a lot of jobs for contractors. However, it is expected that the general contractors of the projects will be foreign contractors. VAMI said that with the current bidding mechanism, a huge sum of investment capital will fall into the pocket of foreign contractors.
VAMI has asked for a new mechanism for bidding for industrial construction projects. As for state-funded projects, VAMI believes that the State should be allowed to either directly select contractors or organize bids among domestic contractors.
Capability the priority
VAMI also thinks that the State needs to have a long-term strategy on building up big industrial groups into ones capable as acting as general contractors in major domestic and international projects.
If Vietnamese enterprises receive 50% of the total investment capital of the three said industries, or $53.5 billion, this will help enterprises ease the current difficulties and crate more jobs.
Nguyen Van Thu, Chairman of VAMI, said that Vietnam needs to build a lot of new thermopower plants, while only one project has been assigned to a domestic contractor, Lilama.
However, Deputy Minister of Industry and Trade Bui Xuan Khu has reminded that bidding needs to be carried out in a transparent way in accordance with WTO commitments, and that Vietnam must not restrict joining with foreign contractors.
Meanwhile, Thu has been insisting that the ‘dogmatic’ application of the foreign bidding laws will put domestic enterprises at a disadvantage, and that Vietnam should not ‘sacrifice’ all the national interests in the global integration.
Dang Huy Dong, Director of the Bid Management Department under the Ministry of Industry and Trade, does not think that Vietnam should focus on selecting contractors directly. He said that mechanical enterprises only demand state’s support, while they do not think that they need to prove their capability to undertake big projects.
Diep Anh
vietnamnet
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