On the morning of May 24, at the discussion session on the Law on Bidding (amended), the issue of whether to expand the scope of application of the Law on Bidding to subsidiaries of state-owned enterprises (SOEs) continued to be debated by many National Assembly deputies.
The Government proposes to apply bidding only to select investors and projects with state-owned enterprises. Subsidiaries of state-owned enterprises with 30% or more state capital, or less than 30% but the total state capital in the project is over 500 billion VND, will not have to bid.
From here, there are two types of opinions. Opinions agree with the Government's proposal because they believe that this is to ensure the autonomy and self-determination of businesses.
The second type of opinion believes that if the regulations are as in the draft, it will significantly narrow down the scope of projects using state capital that must be bid, creating a legal gap in state capital management.
Discussing this content, National Assembly Deputy Phan Duc Hieu (Thai Binh) agreed with the first opinion, suggesting not to expand the scope of application of the Bidding Law to subsidiaries of state-owned enterprises. Because the expansion means adding 4 groups of subjects to which the Bidding Law applies, this is a very broad scope.
Mr. Hieu said that the Law on Bidding is not the only tool to manage state-owned enterprises because there are other monitoring mechanisms. Therefore, the scope of application of the Law on Bidding should not be expanded to subsidiaries of state-owned enterprises.
According to the delegate, if the expansion of the scope of application of the Law on Bidding to subsidiaries of state-owned enterprises is rigidly applied, it may affect the production activities of enterprises, the interests of investors, and the interests of the State.
Mr. Hieu is concerned about the impact of applying the Law on Bidding to subsidiaries of state-owned enterprises on both the stock market and the process of enterprise equitization.
Debate with Deputy Phan Duc Hieu "about the plan to exclude subsidiaries of state-owned enterprises", Deputy Le Hoang Anh (Gia Lai) said: "We have bidding regulations to ensure fair competition, transparency, and economic efficiency. These are very good things, why do we exclude these businesses that do such good things?".
Delegate Le Hoang Anh analyzed that companies and enterprises with State investment capital must implement and lead other enterprises nationwide to implement. Along with that, private enterprises and enterprises with less than 50% State investment capital are still implementing according to the provisions of the Bidding Law. Therefore, the Delegate proposed not to exclude enterprises and subsidiaries with State investment in the implementation of bidding.
Continuing the debate, Deputy Truong Trong Nghia (HCMC) supported the viewpoint of Deputy Phan Duc Hieu. He said: "We should not be extreme in this matter and as Deputy Phan Duc Hieu said, it is not true that you just make the Law on Bidding, you make some golden hoops like that and you think everything will be good. The final factor is still people and businesses".
When a state-owned enterprise invests in another enterprise, it may only sign 5-10% of the enterprise's capital, so being subject to the Law on Bidding is unnecessary.
Mr. Nghia said: "Enterprises are responsible for their final results. For businesses, when bidding, there is not only money but also many other factors such as time and opportunity. In particular, if there is no negativity, acquaintance is also a beneficial factor in bidding activities because businesses are familiar with each other. We should not think in an extreme way that we think that the more loops we wrap around the wire, the better it is. Sometimes it is better if we slow down and tighten the efficiency."
The State only manages state-owned enterprises. If that state-owned enterprise invests in another enterprise, there are many other laws to manage it, such as the Enterprise Law.
Therefore, the delegate agrees with opinion 1 and believes that: "Anyone who is corrupt or negative has an inspection, examination, and investigation agency to handle it, not just using the Bidding Law to overcome corruption and negative behavior".
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