Bidding package with international standards
Recently, the Hanoi Traffic Construction Investment Project Management Board has issued Decision No. 997/QD-BQLCTGT, officially approving the results of contractor selection for package EQ-01: Buses and maintenance equipment systems, repairs and charging stations - part of the Project to enhance sustainable urban traffic for Hanoi railway line No. 3 (Toi - Nhon - Hanoi Railway Station - Hoang Mai).
The package worth 259.7 billion VND is funded by loans from ADB. The selection form is an international competitive bidding, with the goal of promoting the development of environmentally friendly public transport, through a multi-medium transportation model - in which bus routes play a role in connecting and supporting the operation of metro line No. 3.
The package includes the supply of 53 mid-size electric buses with integrated intelligent transportation systems (ITS), 27 charging stations and accompanying equipment with a completion time of 8 months.
To pass the selection round, participating bidders must meet a series of strict criteria from ADB on capacity such as: Having experience in implementing contracts worth 8 million USD; having an average annual revenue of at least 20 million USD... Participating bidders must have stable cash flow to access mobile assets, credit limits and other financial sources.
The results of the announcement show that the consortium of 3 Vietnamese private enterprises has surpassed a foreign enterprise to officially win the bid. Of which, VinFast's package alone is worth nearly 248 billion VND, the rest belongs to 2 companies specializing in the production and distribution of domestic equipment and software.
International standard capacity of Vietnamese enterprises
The news that VinFast won a bid package sponsored by ADB under a long-time expert in the transportation sector is a positive signal for Vietnamese enterprises. According to a transport expert, in the past, with international packages, the advantage often leaning towards foreign contractors or large state-owned enterprises.
The fact that a domestic private contractor consortium led by VinFast won the ODA package sponsored by a foreign organization shows that the capacity of Vietnamese private enterprises is capable of participating in complex, high-standard projects, he said.
Agreeing with this assessment, Mr. Tran Dang Anh Minh, an expert with more than 20 years in the international investment sector, affirmed that the lending conditions of financial institutions such as ADB are extremely strict. Not only stopping at a healthy financial profile and production capacity, ADB also requires experience in implementing in priority areas such as environmental protection, digital transformation, green transformation, in line with the 2030 Strategy and their priority portfolio, said Mr. Minh.
According to him, that means that businesses that want to access ADB-funded projects cannot only "do business effectively" in the usual sense, but must show a business model associated with sustainable development goals, have an environmental - social governance system that meets international standards and the ability to implement large-scale, wide-reaching projects at the national level.
"Therefore, VinFast's winning bid not only demonstrates its ability to supply electric vehicles for a package, but also its international standard capacity, which can compete, even surpass many foreign enterprises of Vietnamese brands," said the expert.
From another perspective, the expert also highly appreciated the spirit of green transformation of Hanoi as well as international organizations in the context of Vietnam moving towards strong solutions to protect the environment. According to him, in that process, Vietnam has a significant advantage with the emergence of capable and large enterprises like VinFast.
Enterprises like VinFast will be an important factor in motivating the green transformation process, not only in Vietnam but also in many places where VinFast is present, the expert said.
