EVFTA commitments on Government Procurement of goods?
Question: EVFTA commitments on Government Procurement of goods?
Answer:
In the EVFTA, Vietnam has commitments to open its government procurement market for the EU. Therefore, German companies will be able to access public procurement (goods, services, construction) of Vietnam’s entities at central level, and of Hanoi and Ho Chi Minh City.
As of January 2022, Vietnam has only allowed contractors from the EU (including Germany), the UK and CPTPP member countries to access its government procurement packages under the EVFTA, UKVFTA and CPTPP Agreements without depending on the source of capital, only based on the threshold value and the procuring entities.
Regarding the goods procurement, Vietnam committed to allowing German contractors to participate in almost all goods procurement, except for a few sensitive goods that are clearly listed.
In addition, the procurements that are opened to German contractors must also meet many high-level commitments on transparency in bidding procedures and handling complaints, if any. These commitments will create many opportunities for German contractors to be able to access Vietnam's commodity procurement market.
Table: Summary of goods procurements that Vietnam opens to German contractors in the EVFTA*
|
Procuring entities |
Procurement type |
Minimum procuring value threshold |
|
Listed agencies of 20 central ministries of Vietnam |
All goods except for some listed ones (such as rice, oil, books, maps, transceivers, etc.) Pharmaceutical products have specific commitments*** |
Until July 31, 2025: 1.5 million SDR (about 48.1 billion VND**) Until July 31, 2030: 1 million SDR (about 32.1 billion VND) Until July 31, 2035: 500,000 SDR (about 16 billion VND) From August 1, 2036: 130,000 SDR (about 4.2 billion VND) |
|
Listed agencies of Hanoi and Ho Chi Minh City 34 Hospitals 02 Corporations 05 Schools, Research Institutes Vietnam News Agency |
All goods except for some listed ones (such as rice, oil, books, maps, transceivers, etc.) Pharmaceutical products have specific commitments |
Until July 31, 2025: 3 million SDR (about 96.2 billion VND) Until July 31, 2030: SDR 2 million (about VND 64.1 billion) Until July 31, 2035: 1.5 million SDR (about 48.1 VND) From August 1, 2036: 1 million SDR (about 32.1 billion VND) |
* This table does not include exceptions
** The conversion value from SDR to VND was calculated according to the exchange rate as of October 2021
EVFTA full text for more information: https://wtocenter.vn/chuyen-de/12778-eu-vietnam-trade-and-investment-agreements
Source: The Center for WTO and International Trade
- Where can businesses find support on the EVFTA and German and Vietnamese markets?
- Where can information and data about the German and Vietnamese markets be found?
- How to take advantage of the EVFTA to effectively import goods from Germany?
- Opportunities from the EVFTA for importing goods from Germany into Vietnam?
- What are the advantages and disadvantages of German goods in Vietnam?
