LookAtVietnam – Experts spoke to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about measures to improve transparency in construction, a sector that has experienced several corruption scandals.

Improving inspection, supervision and audit competence, building co-operation between related agencies and paying attention to human resources training.

This should include building a system of State management institutions on construction investment such as investment law, bidding law and construction law. However, it is necessary to increase management and simplify administrative procedures in construction investment.

During the building and implementation of construction projects, as well as researching the entire legal system and current regulations regarding construction investment activities, State management agencies also need to check the legal basis concerning these projects, such as the legal status of project owners, legal documents on capital mobilisation capacity and business competence of investors.

Strictly controlling all processes from planning, building investment strategy to managing capital sources.

Improving inspection, supervision and audit competence, building co-operation between related agencies and paying attention to human resources training.

* Chairman of the Viet Nam Association of Construction Contractors Vu Khoa.

Many contractors do not abide by current regulations, and reduce bidding price to win the tender and find ways to reduce the quality of the project to make profits. Therefore, the most effective method to ensure quality of the projects is bidding, particularly for State-invested projects. Bidding criteria for projects must be made clear.

In order to improve the transparency in bidding, we need to take measures such as organising the bidding only when land clearance tasks are completed, contractors have mobilised enough capital, and an estimate has been made for the project. Bidding must be made in line with the bidding law. Investors must take full responsibility in case of prolonged bidding time and lack of transparency.

Mapping out investment plans, land clearance compensation and building projects are steps that could cause wastefulness. Therefore, it is necessary to choose an appropriate place to avoid displacement and reconstruction of the project.

A construction project must abide by basic construction steps and all steps must be carried out transparently.

* Deputy head of the Construction Ministry’s Department for Construction Management Hoang Tho Vinh.

A construction project has specific characteristics that are different from other kinds of projects. Implementation time can take a while, because all entities involved have to be co-ordinated so corruption can take place at all stages.

In order to prevent and curb corruption in construction, the State and Government have issued many laws, including the anti-corruption law, bidding law, construction law and related inspection and supervision regulations. They have proved effective in partly preventing and curbing wrongdoings in construction projects.

However, wastefulness and corruption still exist in some construction projects as contractors did not abide by regulations or do not take full advantage of the supervision role of the community.

* Vice President of the Viet Nam General Construction Association Pham Si Liem.

The market mechanism must be operated transparently. It is an important part of the market institution, which includes price mechanism, supply and demand mechanism and competition mechanism. In making the construction market operation transparent, we must ensure the transparency of the market mechanism. Ensuring transparency of construction price and factors creating construction is important. Market price often fluctuates, which means regular information updates and solutions to handle its influence are important.

Construction price is varied, including estimate price, bidding joining price, bidding winning price and contract signing price. It is essential to ensure transparency not only in bidding but also other prices because not only contractors but consultants, management agencies and even official development assistant providers need these data. These data must be saved and be provided whenever necessary.

Bidding to choose consultants, contractors and suppliers are applied widely in public construction investment to put into practice the market competition mechanism. Bidding activities were made more transparent but it needs to be improved.

The Government should regulate public construction investment projects that have investment capital higher than regulated to ensure transparency in construction bidding. For example, bidding for a project with capital investment of VND50 billion (US$2.8 million) must be organised by the construction investment transaction centre of the Ministry of Planning and Investment. This measure is expected to help increase supervision capacity over transparency in bidding organisation.

* Chairman of the Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex) Nguyen Van Tuan.

In order to boost the efficiency in construction investment activities, it is essential to build an appropriate infrastructure and real estate development strategy. Based on that strategy, businesses will map out appropriate operation plans to mitigate wastefulness of the human resources and promote the efficiency of the capital sources.

Apart from abiding by legal regulations, businesses should create favourable conditions for local residents to join supervision tasks through transparently publicising information. Consumers have the right to know the products they plan to buy are suitable with their price or not as well as information about who made the products. This will help not only ensure transparency in construction but also create healthy competition among businesses.

Administrative reform in investment procedure is important. It helps to implement the projects quickly, reduce invisible cost and product cost, Therefore, the State should simplify administrative procedures.

VietNamNet/Viet Nam News