Entreprenuer Phan Van Quy: From the marketplace to the National Assembly

Deputy Phan van Quy (Nghe An) contributed ideas at the Parliamentary Session 6, National Assembly XIII

From the marketplace to the National Assembly

For the first time as a member of the Legal Committee of the National Assembly XIII, Mr. Phan Van Quy contributed some comments which have been recorded in the written law. However, referring to this, he said that those ideas have been drawn from practical work that he deemed to share to contribute to the business community and society.

At 6th session of the National Assembly XIII, the comment of Deputy Phan Van Quy on the Draft Procurement Law (as amended) was widely recognized.

In Procurement Law (as amended), in Clause 2, Article 14 of the draft, item b defined incentives for contractors in partnerships in which the local contractors perform from 30% or more of the package value, he suggested to adjust the rate from 30% to 25%.

This proposal arises from the fact that in order to implement the project, the majority of investors’ reciprocal capital of about 15% and the remaining 85% are commercial loans of foreign credit institutions.

Meanwhile, according to the provisions of Article 10 of the OECD in order to borrow a maximum of 85% of the capital, the rate of localization of the package is approximately 26%. Therefore, the above ratio adjustment is consistent with reality and international practices.

Earlier, Deputy Phan Van Quy proposed and commented on the Deposit Insurance Law, the development of national defense industry, the marine economy ...

"The Congressional forum gathered representatives of many components, positions in various areas ranging from management, researchers, activists, social, cultural, educational, business ... therefore, each delegate should speak out relating to their industry and position. This will contribute to narrow the gap between the practical life with mechanisms and policies, as well as in accordance with the aspirations of the people", Deputy Phan Van Quy shared.

Doing little things for each Vietnamese enterprises

As always keep in mind to understand the work well before beginning it hence the ideas of Deputy Phan Van Quy at the National Assembly are very convincing.

With that way, Chairman of Pacific Corporation is always relieved when his company has always been highly rated by domestic and international partners.

Recently, the consortium includes Pacific Corporation, Power Engineering Consulting JSC 2,  Doosan Heavy Industries Corporation (South Korea) and Mitsubishi Corporation (Japan) signed the EPC contract "engineering, procurement and construction for Vinh Tan 4 thermal power plant" with the Owner - Power Generation Corporation 3 (EVN). The contract worth up to USD 1.36 billion.

The signing of the EPC contract will open up many opportunities for Vietnam business to develop in the field of general contractors, encourage domestic contractors to joint ventures with international contractors to learn more and create more jobs for local workers.

"The Prime Minister issued a Directive 494/CT-TTg dated 20/10/2010 on the use of materials, goods produced in the country in tendering for projects using state capital, undertakings the campaign 'Vietnamese use Vietnam’s products ', these projects are the most practical examples. "

The practical business that comes from Mr. Phan Van Quy is not something entirely vague, it is actually visible and measurable.

According to an official calculation of the power industry, the technical design of the EPC package is highly valued and PECC2 takes more than half of this value. This is also the first time a design company of Vietnam's power sector participates as a member of the EPC contractor.

Not only PECC2 engages in design and supervision of the project, a mechanical parts and auxiliary equipment for Vinh Tan Power Plant 4 project will also be made in Vietnam. Pacific Corporation undertakes to arrange support from foreign capital and carry out the procurement of ancillary equipment for the plant. From this perspective, a number of manufacturing plants in the country will be able to provide products to the project.

Deputy Prime Minister Hoang Trung Hai, at the signing ceremony of the EPC of Vinh Tan 4 thermal power plant project, expressed a confidence that this is the basis for expecting Vietnam’s businesses to grow in the fierce competition in the market place and get good quality products at reasonable cost.

Taking on more works of the EPC package of large industrial projects like Vinh Tan 4 project is an opportunity for Vietnam enterprises to improve their competitiveness instead of depending too much on foreign contractors.

However, according to Mr.Phan Van Quy, in order for Vietnamese businesses to be confident to gain a larger ‘piece of the pie’ in such projects, those enterprises cannot act alone. The State should also take measures to support enterprises in the fields of investment and technology, product manufacturing.

"In my opinion, it would be a good idea to establish the Localization Association to create the link between manufacturers in the country to gradually be competitive in the foreign market and create more jobs for local workers" he said.

The thoughts of entrepreneur Phan Van Quy remind us of the unity in the business community as in Japan, Israel ... The success of these countries has a major part of community solidarity in business before external competitiveness. When every Vietnamese entrepreneur has the hands to do the smallest thing for Vietnam’s businesses, then in a very near future, Vietnam’s business community will also clutch hands together to move forwards and contribute to the development of the country.