MINISTRY OF PLANNING & INVESTMENT SOCIALIST REPUBLIC OF VIETNAM

No.: 760/BKHĐT-QLĐT Independence – Liberty - Happiness

Re: Instruct PVGas to select contractors Ha Noi, Date 6 Month 02 Year 2018
to supply products for PVGas-owned projects

To: PetroVietnam Gas Joint Stock Corporation

Regarding to petition of 2 members of PetroVietnam Gas Joint Stock Corporation

(PVGas): Petrovietnam Steel Pipe Manufacturing Joint Stock Company (PV PIPE) and
PetroVietnam Coating Joint Stock Company (PV COATING) on bidding to provide the
unique products on the market for the tender packages invested by PVGas, and to
implement the direction of Deputy Prime Ministry Trinh Dinh Dung in Document No.
385/VPCP–VN dated June 14/1/2018 of the Government Office, the Ministry of Planning
and Investment has the following opinions:
1. Regarding to the participation of PVGas members in tender packages
under the project invested by PVGas
In this matter, the Ministry of Planning and Investment has issued Document No.
8438/BKHDT-QLĐT dated 13/10/2017 sent to Corporation with specific guidance.
According to the provisions of Clause 5, Article 2 of Decree No. 63/2014/ NĐ-CP,
PetroVietnam (PVN) shall apply as follows:
a) Where the products and services belonging in the tender package are the
Group's main business and are one company output and concurrently the input of other
company in the Group, the companies of the Group are allowed to participate in the
selection process of each other. Groups and Corporations need to base on the
organization and operation charters of the Vietnam Oil and Gas Group issued together
with Decree No. 149/2013/NĐ-CP to apply this Regulation.
b) Where the products and services belonging to the tender package are outputs
of this company and concurrently the input of other company in the Group and are unique
in the market, then they will be done by the provisions of the Prime Minister
In this case, Corporation needs to ensure the following four conditions as the basis
of proposal for the Prime Minister to consider and decide:
- Provide the Ministry of Industry and Trade's confirmation in written that the
products and services proposed by Corporation are the unique ones on the market at the
time of selection of contractors of the projects owned by Corporation.
- Have evaluation and appraisal of the Ministry of Industry and Trade on the quality
of products and services proposed to meet the requirements in Vietnam petroleum
projects;
 - Have confirmation of PVN that the proposed products and services are the output
of PV PIPE and PV COATING and also the input of PVGas. In addition, it should be
ensured that the prices of these products are competitive and more effective when
compared with import option from abroad.
- In order to ensure price competition, it is necessary to do research by the Ministry
of Industry and Trade on market information for similar steel pipes in the world to compare
and determine the purchasing price of these unique products, ensuring the capital
efficiency of State-owned enterprise.
2. The procedures for contractor selection
a) For the cases specified at Point a, Part 1 of this document, the participation of
Vietnam Oil and Gas Group, its subsidiaries in the process of contractor selection shall
be considered as the role of a contractor in accordance with the law of tender. Therefore,
we suggest you to select the contractor in accordance with the Law No. 43/2013/QH13,
Decree No. 63/2014/NĐ-CP, the circular in details of the bidding and related legal
documents.
b) For eligible cases for application specified at Point b, Part 1 of this document,
the Corporation is requested to propose the Prime Minister to consider and decide on the
application of Clause 5, Article 2 of the Decree No. 63/2014/NĐ-CP. Proposed contents
to the Prime Minister for considering and deciding needs to show on the specified plan
for each proposed case, specifically: the products and services to be applied, the member
companies to be applied, the applicable time, guarantee of this duration, the products or
services must meet all of conditions specified at Point b, Part 1 of this document.
At the same time, when the tenders and projects of the Corporation appear typical
and specific conditions, but cannot apply the forms of selection of contractors specified in
Articles 20, 21, 22, 23, 24 and 25 of the Law on Tendering No. 43/2013/ QH13, the
authorized person shall submit to the Prime Minister for consideration and decision the
plan for selection of contractor as stipulated in Article 26 of this Law. In this case, the
authorized persons need the following contents:
- Reason of proposal for selection of contractor in special case: typical and specific
conditions which cannot be applied in the forms of selection of contractor stipulated in
articles 20, 21, 22, 23, 24 and 25 of the Law on Tendering No. 43/2013/ QH13;
- Plan for selection of contractor in special cases: Propose detailed steps in the
plan for selection of contractor in connection with specific milestones/time in the process
of contractor selection and contract performance; Necessary measures and solutions in
the proposed plan to ensure the selection of qualified and experienced contractors and
satisfy the price, technique, quality and tineline of bidding packages and projects.
 To request the Corporation to study, strictly comply with the law on bidding and
other relevant law provisions.

Recipients:

- As above; ON BEHALF OF MINISTER

- The Government Office (for reporting to DIRECTOR OF DEPARTMENT OF PUBLIC PROCUREMENT
the Prime Minister and Deputy Prime
Minister Trinh Dinh Dung);
- Ministry of Industry and Trade;
- PVN;
- KTCN Department;
- Save: VT, Department of QLĐT (HT7.). Nguyễn Đăng Trương