The Ministry of Finance recently asked People’s committees of provinces and central cities to implement a new system of purchasing properties through one designated agency. How does that benefit the State?

The new method has some advantages compared to the current rule.

Under the new rule, a designated agency will issue tenders for the purchase of large amounts of the same product or service for different State entities. The best product and service provider with reasonable prices and better post-sale services will win the bid.

The designated agency will then sign framework agreements with bid winners so that the users can sign purchasing contracts with them. This will save time, human resources and money as compared to open, separate tenders.

Besides, the purchase and bidding process will be transparent, making it easier for the State to prevent corruption and waste.

So, if the new rule is properly implemented, it will contribute to saving public spending as well as improving  public asset management and use.

How did the capital city implement public asset purchasing and management before the new rule?

The city has closely monitored the public asset management and purchase for many years.

Investment, construction, and purchase and use of public assets allocated by the central government have been conducted according to the Law on National Budget.

The activities have conformed to the regulations on bidding and annual reporting.

In terms of transparency, the municipal authority asked organisations to report their activities periodically.

How is the city’s Finance Department preparing to implement the Finance Ministry’s regulation?

Successful implementation will require the active participation of all related agencies and sectors.

At present, the Ministry of Finance has co-ordinated with related ministries and provincial People’s Committees to review the current rule of public asset purchasing so as to effectively carry out the new regulation in accordance with specific situation of each locality.

The Hà Nội Finance Department is completing sub-regulations to help organisations’ purchasing activity as transparently as possible. -- VNS