| Abstract | New phase of low price on crude oil, starting from 2014 and may continue for an entirely decade, brought heavy impact to producers over the world. The oil industry is in its deepest downturn since the 1990s. Suffered from revenue slump, oil producers sharply cut investments in exploration (and production), leading to enormous shrink on procurement budget. Vietsovpetro is not an exception. Now the main challenge for our Company is to keep production going on by much smaller budget.
For many years, Vietsovpetro has applying Law on Bidding for selecting suppliers of goods (material, equipment, spare parts…) and services for investment and maintaining production activities. Vietnam’s Law on Bidding was designed for public and government procurements, which focus on ensuring objective of fairness, transparency, and economic efficiency. By applying this Law, Vietsovpetro is relatively safe in relation to corruption concerns, thanks to complicate system of monitoring and control. To instruct employees to implement this Law in details, and to define responsibilities of each employee and department/ division in specific task for purchasing goods or services, Vietsovpetro has issued Rules on purchasing goods and services (actually this is the guidelines for Vietsovpetro supply activities).
The bad side is that it takes months to get invitation to Bid’s documents to be approved by many departments and divisions, 20-40 days waiting for bidders to prepare and submit proposals, another month for approving the bidding results,... So, normally the enquiries for supplying goods and services are issued at the beginning of the year and Vietsovpetro receives the goods (or services) at the second half of year, at the best!
In consideration of all above problems, at the moment Vietsovpetro needs new Rules on purchasing goods and services which would allow reducing the time and costs of procurement activities to meet demand on keeping production afloat in low budget period. First steps to create new Rules on purchasing goods and services are to define concepts, which would be based on reality of Company structure and supply market. |