The Ministry of Planning and Investment (MPI) has proposed tightening control over choosing contractors following the public concerns over slow pace of projects carried out by Chinese firms in Vietnam.

Recently, many voters in the central city of Danang complained that many projects conducted by Chinese contractors have seen sluggish implementation or bad quality.

The MPI admitted this problem, explaining why the Chinese could win so many projects in Vietnam. 

According to the MPI, Vietnam has received Chinese loans for lots of projects, so Chinese firms often become these project’s contractors as it is considered as among major articles for the two countries’ loan agreements.

In addition, project approved total investment capital is quite low, meaning companies offering advanced technology usually fail to win contracts.

Meanwhile, many Vietnamese investors have not yet implemented technical barriers which are strong enough to select qualified contractors.

The MPI suggested that Vietnam needs to use capital better to reduce dependence on China.

Investors should improve their capacity in choosing contractors in line with laws, the MPI said.

The ministry specified that foreign contractors have to co-operate with Vietnamese sub-contractors for project implementation in the country, instead of using their own workers for work which could be done by Vietnamese, except for areas which require specialised skills.

It was also necessary to issue regulations on assessing contractor capacity during project implementation in Vietnam. Those which failed to ensure project pace as regulated or faced complaints about project quality would not be eligible to compete in future tenders.

Chinese contractors are known for bidding low to win contracts, then asking for more, citing unexpected cost overruns. Many Chinese-contracted projects are likely to reach completion behind schedule, amassing further costs.

The Cat Linh-Ha Dong urban railway project in Hanoi with China Railway Sixth Group as the engineering, procurement and construction contractor is a typical example. Project costs have risen to USD868 million from an initial USD553 million.

Thai Nguyen Iron and Steel Plant - Phase 2 won by the China Metallurgical Group Corporation (MCC) was kicked off in 2007 with an estimated cost of VND3.8 trillion (US$170.4 million), this later increased to VND8 trillion (USD361.4 million).

‪VietNamNet/Dtinews