Government boosts ‘buy local’ efforts

VINACOMIN coal has become the first choice of many domestic businesses

Promoting the use of each other’s goods and services

Vietnamese firms signed an agreement in 2012 to use each other’s goods and services as part of the Buy Vietnamese Goods campaign, which has significantly benefited domestic businesses.

Seven years after the campaign was launched, there are now 209 agreements worth hundreds of trillions of dong signed and implemented by domestic businesses to use and buy each other’s goods and services.

The Vietnam Cement Industry Corporation has purchased 1.5-1.8 million tonnes of coal from the Vietnam National Coal-Mineral Industries Holding Corporation Limited (VINACOMIN). The Vietnam National Textile and Garment Group (VINATEX) has provided products and labor protection services for eight domestic companies. The Vietnam National Coffee Corporation (VINACAFE) used fertilizers made by the PetroVietnam Ca Mau Fertilizer Joint Stock Company. Vietnam Railways signed transportation contracts worth more than VND25 billion per year with 10 centrally governed corporations.

Enterprises in different localities are prioritizing the use of domestically made goods. The Ho Chi Minh City Department of Industry and Trade’s data show that the Ho Chi Minh City Power Corporation satisfied 60 percent of its demand for equipment and materials by buying domestically made goods; the city Department of Health increased the number of drugstores offering stable prices to 4,016 with 563 items, including 21 groups of domestically made medicines; and 80 percent of equipment and materials used by the city fire prevention and treatment police are domestic goods.

Further promoting the useof domestic goods

Prime Minister Nguyen Xuan Phuc issued Instruction 13/CT-TTg on enhancing the use of domestically made materials and goods for development investment projects and state-financed regular procurements.

The Prime Minister said regular state-financed procurement must be implemented in accordance with the law on bidding as well as conditions and capabilities of domestic contractors to ensure maximum competitive conditions for domestic enterprises and contribute to creating jobs.

International bidding is permitted only when the required equipment and materials cannot be produced domestically or domestic production of the required equipment and materials doesn’t satisfy project requirements on quality, quantity and prices, or when it is requested by official development assistance (ODA) project donors.