List of goods and services for national centralized procurement in Vietnam

On October 1^st, 2024, the Ministry of Finance issued Circular No. 69/2024/TT-BTC, which regulates the list of goods and services for national centralized procurement. The Circular will take effect from November 15^th, 2024. Circular 69/2024/TT-BTC introduces significant changes in public procurement regulations. This list aims to ensure transparency, efficiency, and cost savings in the procurement process of products and services for the activities of state agencies and organizations. The following article by Viet An Law will analyze these new points in the Circular and clarify the importance of a list of goods and services for national centralized procurement in Vietnam for the economy.

Scope of adjustment and subjects of application of Circular No. 69/2024/TT-BTC

This Circular regulates the list of goods and services for national centralized procurement as stipulated in Article 53.2.b of Law on Bidding 2023.

The subjects of application are specified in Article 1.2 of this Circular, including:

• Centralized procurement units of ministries, central agencies, and provinces and cities under central authority;
• State agencies, public non-business units, units of the People’s Armed Forces, the Communist Party of Vietnam, the Vietnam Fatherland Front, and socio-political organizations (hereinafter referred to as agencies, organizations, units).

The list of goods and services for national centralized procurement is Automobiles for general business purposes

According to Article 2.1 of Circular No. 69/2024/TT-BTC, the list includes automobiles for general business purposes for agencies, organizations, and units, which comprise:

• Automobiles for general business purposes with 4 – 5 seats;
• Automobiles for general business purposes with 7 – 9 seats;
• Automobiles for general business purposes with 12 – 16 seats;
• Pickup trucks for general business purpose use.

The list specified above does not apply to general purpose cars outlined as follows:

• General purpose cars for Vietnamese agencies abroad;
• High-capacity 4WD vehicles defined in Clause 2, Article 15 of Decree No. 72/2023/ND-CP regulating standards and norms for vehicle usage.

Notes on the list of goods and services for national centralized procurement

In cases that need certain high-capacity 4WD vehicles among automobiles for general business purposes of ministries, central agencies, provinces, and municipal cities under central authority for the performance of specific tasks, including:

• Disaster prevention and controlling, searching and rescuing, epidemic controlling;
• Smuggling and trade fraud prevention;
• Monitoring and supervising the implementation of economic, cultural, and social sectors;
• Monitoring delegations, voter connections;
• Serving external affairs, welcoming international guests, transporting, and accompanying delegations both domestically and abroad;
• Directing management activities, marking borders, and other specific tasks, the purchase price for vehicles is regulated as follows:
  • Each ministry, central agency, province, and municipal city under central authority is allowed to equip 01 vehicle with a maximum price of 4.5 billion VND and 01 vehicle with a maximum price of 2.8 billion VND;
  • For ministries, central agencies, provinces, and municipal cities under central authority with positions specified in Articles 4 and 5 of Decree No. 72/2023/NĐ-CP, in addition to the number of vehicles equipped as specified in Point a of this Clause, they are allowed to equip vehicles for performing specific tasks of the positions according to Articles 4 and 5 of Decree No. 72/2023/NĐ-CP with a maximum price of 5 billion VND per vehicle.

The specific number of vehicles applicable to this price is determined by the Chief of the Central Party Office after obtaining the consensus of the Standing Committee of the Party Central Committee (for positions within the Party agencies at the central level), and the Prime Minister decides based on the proposal from the Minister or Head of the relevant central agency or provincial People’s Committee (for other cases).

In cases where the number of vehicles serving specific tasks as stipulated in Article 15.2.b of Decree No. 72/2023/NĐ-CP has been approved by the Prime Minister according to the provisions of Decree No. 04/2019/NĐ-CP, it will be implemented according to the content approved by the Prime Minister without report again to the competent authority as stipulated in this point, except for cases requiring adjustments to the approved number of vehicles.

Conditions to apply centralized procurement

Specifically in Article 53 of Law on Bidding 2023, guided by Decree No. 24/2024/NĐ-CP and Circular No. 04/2024/TT-BYT, the regulations on centralized procurement are as follows:

Centralized procurement is applicable when all the following conditions are met:

• The goods and services procured are in large quantities and similar types across one or multiple agencies, organizations, or units;
  • In the case of procuring rare medicines or medicines needed in small quantities, centralized procurement may be applied to ensure an adequate supply for medical examination and treatment needs.
• The items are included in the list of goods and services applicable to centralized procurement as stipulated.

The list of goods and services subject to centralized procurement according to Clause 2, Article 52 of Law on Bidding 2023 includes:

• The list of centralized procurements at the national level for medicines issued by the Minister of Health;
• The list of centralized procurement at the national level for medical equipment and testing supplies when necessary;
• The list of goods and services for national centralized procurement issued by the Minister of Finance, except for the list issued by the Minister of Health as specified in the points above;
• The list of goods and services applicable to centralized procurement (including medicines, medical equipment, and testing supplies) issued by the Minister, heads of ministerial-level agencies, agencies under the Government, other central agencies, Chairpersons of provincial People’s Committees, and heads of state-owned enterprises, enterprises where state-owned enterprises hold 100% of the charter capital within their management scope, excluding goods and services from the list of national centralized procurement issued by the Minister of Health and the Minister of Finance as per regulations.

Forms of Implementation of Centralized Procurement

Centralized procurement must be carried out through open bidding.

• According to Article 23.1.c of Law on Bidding 2023: In cases where goods belong to the list of centralized procurement but need to be purchased for epidemic prevention and control, the direct bidding method may be applied;
• According to Article 28.1 of Law on Bidding 2023: In cases where goods in the list of centralized procurement meet the price negotiation conditions, the price negotiation method may be applied.

Methods of Implementing Centralized Procurement

Centralized procurement is implemented at the national level, at ministries, central agencies, localities, and enterprises, and can be carried out in one of the following two ways:

• The centralized procurement units select contractors and directly sign contracts with the chosen contractors;
• The centralized procurement units select contractors and sign a framework agreement with one or more selected contractors as the basis for the unit demand to procure and sign contracts with the chosen contractors.

The above are some notable points regarding the List of goods and services for national centralized procurement in Vietnam (updated under Circular No. 69/2024/TT-BTC). If you have any questions, please contact Viet An Law for the best consultation and support!a