Save thousands of billions VND from public bidding

	In May: mobilizing over 11,000 billion VND through bidding
	Decree No. 06/2017/ND-CP deployed: Enterprises can register the Bidding
	Mobilization of 6,500 billion vnd of government bonds

Only from the mechanism of order, appointment of contractors ... to public bidding, transparency in specific fields, programs and projects, the Hanoi government has saved the budget. state books up to a trillion. Ha Noi Department of Education and Training recently selected a dairy business for the school milk program to save more than 350 billion, has heated up the old lesson.

Signing the minutes after the closing of the tender package.

Achieve immediate effectiveness when bidding

Three years ago, the Chairman of Ha Noi Nguyen Duc Chung stopped all pruning, maintenance of grass in some flower gardens, and the road separator in a month. Ha Noi has shown an example of waste that causes budget losses from the public service order mechanism, that everyone sees as absurd. For pruning trees and cutting grass along Thang Long Avenue, each year 53 billion VND was spent from the budget. Just by stopping lawn mowing, pruning and ornamental plantation, the Ha Noi government’s dialogue reduced maintenance and pruning expenses for flowers and lawns from 886 billion VND to 178 billion VND since 2016, saving 708 billion VND.

In order to cut costs for the tasks of grass-cutting and tree-planting, Ha Noi has divided many packages into a wide range of costs, and the cost to the city budget has been reduced. Specifically, the project of grass care and tree pruning on Thang Long Boulevard with the name "Maintenance of grass and trees on Thang Long Avenue" was launched for bidding.

The announced price of this package was more than 106 billion VND. After bidding, the Union of Ha Noi Zoo Co., - Truong Son Construction Joint Stock Company, and Service and Trade Construction Joint Stock Company 68, won the contract with close to 95.3 billion VND. The form of the contract is the package. The duration of the package is 45 months. In addition, a series of tenders for maintaining grass cover, green trees at many roads and urban areas have also been widely tendered.

Along with the bidding, Ha Noi has requested enterprises to provide public services, recalculate the unit price and norms towards the target for ensuring the planting of trees, flowers and ornamental trees during the 4 seasons. Following the pressure of public demand for the launch of more work items and increased investment in equipment for this area, the face of the city is now different with a better proportion of taller green trees, area coverage and increased number of diverse species than before, and Ha Noi is implementing a program to plant 1 million trees from 2017 to 2020.

After cutting down the trees, bringing the trees to tender, many other fields "followed" for areas or projects under consideration, and public tenders for bypasses in Ha Noi, such as the Rapid Bus Project. A bidding mistake for the Long Bien District Road Construction Project caused a loss of 1 billion VND to the State. The Government Inspectorate and the Ha Noi Inspectorate have been inspecting and pointing out many errors, losses and waste during the implementation of the project. Clearly though, open bidding and strict adherence to procurement regulations always bring real benefit not only to the budget, but also to the beneficiary as well as to the implementing agency.

School milk project saves more than 350 billion VND

With speedy implementation, it did not take much time for the bidding to select suppliers for the Ha Noi school milk program in 2018-2020, worth more than 4,000 billion VND, that has brought great economic benefits for both State, business and parents.

According to the Ha Noi Education and Training Department, at the end of November, the Vietnam Dairy Products Joint Stock Co., (Vinamilk) surpassed TH Milk Joint Stock Company (TH True Milk) to become the milk supplier for this big program. The total budget of the program is 4,180 billion VND, state budget supports 1,290 billion VND, enterprises contribute 890 billion VND and pupil’s parents contribute more than 2,000 billion VND. It is expected that more than 1.3 million preschool children and elementary school children will benefit from this program.

Right from the middle of October, 2018, technical specifications of the two dairy enterprises participating in the tender according to the tender documents have been publicized in the press. Specifically, Vinamilk was established in August 1976 with turnover (in 2017) that reached 51,041 billion VND; over 57% market share in Vietnam with 240,000 retail outlets and direct sales at 575 stores. TH True Milk was established in February 2009; Turnover (2016) reached 2,804 billion VND; distributes through 200 stores in True Mart’s distribution system... Along with the prices, these public figures put up a "weighing scale" for responsible leaders of Ha Noi to select.

Vinamilk won the bid with a unit price of 6,286 VND/carton, lower than 514 VND/carton compared to the ceiling price. Contract value is over 3,828 billion VND. Compared to TH True Milk, Vinamilk offered a contract price lower by 130 billion VND.

Vinamilk is committed to supporting 23% instead of 20% as the offering of the school milk program. The remaining 77%, the State and parents contribute. Thus, parents will only have to contribute 47% of the value of milk instead of 50% according to the program previously approved, spending less than 3,000 VND to have a 180 ml milk carton, which is perfectly suited to the low-middle income people.

According to representatives of Vinamilk, with children in kindergartens and primary school pupils who belong to poor and near poor households (based on poor household standards, near poor households issued by Ha Noi People's Committee), and ethnic minorities and pupils under the State policy when participating in the program, they will be 50% supported by the State and 50% by the dairy business for the cost of milk.

Through open and transparent bidding, Ha Noi has selected not only the capacity of its enterprises but also the supply of international quality milk (as it has done in the markets of the US and New Zealand), the Ha Noi Department of Education and Training has saved 350 billion VND more than the previous figure. The financial benefits of the bid can be counted immediately, and with Ha Noi’s experience, more programs can be implemented for human well-being and children in the future.

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Currently, not only in Ha Noi but in all provinces, order placement and non-transparent bidding is still taking place when choosing a service provider. This in turn causes losses to the State budget and affects the quality of products supplied to the beneficiaries. If transparent bidding is not promoted publicly, society will lose the opportunity for cost reductions and for using the best product by not selecting qualified businesses, as well as the State can lose significant amounts of money. Replication of the procurement model with separate school milk programs in many locations as well as with the state budget spending areas is recommended. Only through the bidding system with new people to supervise, checking the money is used effectively, the benefits of goods and services will be respected.