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Vietnam receives no official statement of China's contract ban
  • | mot the gioi, dtinews.vn | June 11, 2014 03:09 PM
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Vietnamese ministries have stated that they have not received any official policy documents from China regarding a ban on state companies to bid for new projects in Vietnam.

 
 Minister of Transport Dinh La Thang

Do Thang Hai, deputy head of the Ministry of Industry and Trade, said there has been no official announcement from the Chinese government on the matter. Le Van Tang, head of Ministry of Planning and Investment's Bidding Management Department, showed surprise at the rumours of such a ban, saying, "I don't know if the information is true or not. We'll inform the public as soon as we receive information from China."

Meanwhile, Dinh La Thang, Minister of Transport, said previously that if Chinese contractors stopped investing in transport projects in Vietnam it would not be of great concern. "We'll open bidding to other foreign contractors. Also, Vietnamese contractors have improved in recent years and can take on some of the projects themselves," he said.

Thang went on to say that, even if the Chinese government did not apply the ban, Vietnam would still replace Chinese contractors who have proven to be inefficient. Speaking about cheap bidding prices, Thang said the Chinese government must have been prioritising profits before giving out loans. Moreover, Japan is currently the top investor in Vietnam, while ODA from China does not account for much.

On June 9, a Hong Kong-based newspaper, is cited the South China Morning Post as saying that China temporarily banned state companies from bidding on new contracts in Vietnam. The leader of a state-owned firm confirmed that China's Ministry of Commerce delivered a directive ordering such a ban. Other news sources have also reported that at least three Chinese contractors received the directive.

Some staff of China's Ministry of Commerce confirmed the news, saying that it is a indefinite suspension. An expert from Chinese Academy of Social Sciences said that the Chinese government has started trying to use its economic leverage agains Vietnam, and everyone will just have to wait and see how effective it is.

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