Tham dự đấu thầu gói thầu cung cấp thiết bị tại công ty cổ phần đầu tư thương mại và phát triển nam việte

LUẬN VĂN THẠC SĨ THAM DỰ ĐẤU THẦU GÓI THẦU CUNG CẤP THIẾT BỊ TẠI CÔNG TY CỔ PHẦN ĐẦU TƯ THƯƠNG MẠI VÀ PHÁT TRIỂN NAM VIỆT TABLE OF CONTENTS INTRODUCTION Urgency of the research .2 Purpose of the research .2 Subject and scope of the research Research methodology .3 Contribution of the research .3 Structure of the thesis .4 CHAPTER 1: GENERAL ARGUMENT ABOUT BIDDING AND SOME BASIC PROBLEMS OF PARTICIPATING IN BIDDING FOR EQUIPMENT SUPPLY .5 Some concepts of bidding .5 1.1.1 Some basic concepts 1.1.2 The necessity of bidding in the market economy .6 1.1.3 Forms of bidding .9 1.1.4 Requirements to participate in bidding .10 1.1.5 Order and procedure of bidding 10 1.2.1 Overview of participating in bidding for equipment supply .16 1.2.2 Contents of participating in bidding for equipment supply 21 1.2.3 Factors affecting the participation in bidding for equipment supply 23 CHAPTER 2: THE CURRENT SITUATION TO PARTICIPATE IN TENDER PACKAGE TO PROVIDE EQUIPMENT IN NAMVIET TRADING INVESTMENT AND DEVELOPMENTJOINT STOCK COMPANY 28 2.1 Preview of Nam Viet trading Investment and development joint stock company 28 2.1.1 The process to form and developNam Viet trading investment and development JSC 28 2.1.2 Organizational structure, functions and duties of the management apparatus of Nam Viet Trading Investment and development Joint stock company .29 2.1.3 The basic characteristics of the company’s business operation 32 2.1.4 The performance of the company in the recent years .35 2.2 Current situation of activities to participate in bids for the supply of machinery equipment in Nam Viet trading investment and development company…………………………………………………………………36 2.2.1 Characteristics participate in bids for the supply of equipment 36 2.2.2 The company’s bid for the supply of equipment 39 2.2.3 Results to participate in bids for the supply of equipment over the years 51 2.3 The assessment of the participation in bids for the supply of equipment at Nam Viet Trading Investment and development company 56 2.3.1 Overall assessment analysis based on the analyses of the SWOT matrix model in the company’s bidding activities for the supply of equipment 56 2.3.2 Existing issues in the bidding process for the supply of the equipment and the causes 61 Chapter 3: MEASURES AND SUGGESTIONS TO IMPROVE THE CAPACITY TO WIN BID PACKAGE TO SUPPLY EQUIPMENT IN NAM VIET TRADING INVESTMENT AND DEVELOPMENT COMPANY 64 3.1 Ways to develop the company 64 3.1.1 Ways to consume the company’s products 64 3.1.2 Ways to participate in the bidding activities for the supply of equipment of the Company .64 3.2 Some measures to improve the chance of success of the Company 65 3.2.1 Solution capacity to participate in the bidding .65 3.2.2 Measures to complete the bidding work .68 3.3 Some suggestions 73 3.3.1 Suggestions to the state agencies .73 3.2.2 Suggestions to Viet Nam Coal and mineral mining corporation .74 CONCLUSION……………………………………………………………… LIST OF REFERENCES…………………………………………………… LIST OF ABBREVIATIONS ADB : Asian Development Bank APEC : Asia-Pacific Economic Cooperation SR : Socialist Republic BOD : Board of Directors FA : Fixed assets WTO : World Trade Organization WB : World Bank LIST OF TABLES AND CHARTS Table Page 2.1- Chart of Organizational and Management structure 32 2.2- Structure of the company’s human resources 36 2.3- Company Fixed asset structure 37 2.4- The performance of the company in the recent years 37 2.5- Revenue from activities to provide machinery equipment 38 2.6- Table of products and revenue in 2011-2013 40 2.7- Import value of machines from the main markets of the Company 42 2.8- The bidding process among divisions of the compan 43 2.9- Table of prices for imported equipment 53 2.10- Results of the bidding activities in the 2010-2013 period in Nam Viet Trading Investment and development joint stock company 55 2.11- The probability of winning the bid package in the 2010-2013 period 57 2.12- Lists of some won bid packages in the 2010- 2013 period 58 2.13- Table of the implementation ofthe results from the won Contracts 60 2.14- Indicators of assets and capital 62 INTRODUCTION Urgency of the research Vietnam joining the WTO has created many opportunities for economic development However, the competition in the economy is getting fierce and impartial With an open economy, more and more manufacturers supply the same kind of product, while growing customers’ demands require manufacturers to come up with new and more appropriate sales methods One of the effective modern sales methods widely used in many businesses today is bidding Bidding is a sales method based on the principle of competition - a crucial principle of the market economy Competition in bidding is not only beneficial for buyers and bidders but also for the society Thanks to competition among bidders, buyers always have the opportunity to find the goods or services that meet their requirements with the most reasonable cost On the other hand, because of the competition, bidders must improve themselves in order to survive and develop, enhance their position and reputation in the market Bidding is an essential business activity gaining main profit for companies By participating in bidding, the company might obtain valuable economic contracts Considering all points mentioned above, the topic “Nam Viet Trading Investment and Development Joint Stock Company: Participating in the Equipment Supply Bid” is selected for my business and management master thesis Purpose of the research The research aims at the following issue: - Organize theoretical arguments about bidding, processes and procedures of participation in bidding in general and bids for equipment supply in particular and some factors affecting the bidding process for equipment supply - Analyze the current state of bidding for equipment supply at Nam Viet Trading Investment and Development Joint Stock Company in recent years and factors affecting the bidding activities of the company The author then addresses some solutions to enhance the company’s chance to win bids Subject and scope of the research a Subject of the research: The process and activities to participate in bidding for equipment supply at Nam Viet Trading Investment and Development Joint Stock Company in the field of providing and installing machinery and equipment for the coal industry b Scope of the research: The thesis focuses on researching the company’s current state of participating in equipment supply bids Research methodology - First, use the methodology and perspectives of dialectical materialism, historical materialism and critical thinking to analyze the theoretical and practical issues about the need to improve the efficiency of participating in supply equipment bids - Second, meta-analysis method, SWOT analysis, bid price calculating method, comparative method on the basis of investigation, analysis, statistics, forecasting and actual observation - Third, the method of collecting data from financial statements, published data and actual equipment purchases at the company, including the officially published data and researching information as well as legal documents related to participating in bid package to sum up, analyze and evaluate the current state of participating in bid package at the company Contribution of the research a Theoretical basis: Categorize common issues of bidding and participating in bidding for equipment supply b Factual basis: Analyze and evaluate the current state of participating in bidding for equipment supply at Nam Viet Trading Investment and Development Joint Stock Company By applying scientific theories, the thesis will provide oriented and direct solutions to Nam Viet Trading Investment and Development Joint Stock Company in order to improve the bidding process and increase the chance to win bids Structure of the thesis Besides the introduction, conclusion, table of contents, index of acronyms, index of references and appendices, the thesis is presented in three chapters: Chapter 1: General argument about bidding and some problems of participating in bidding for equipment supply of Nam Viet Trading Investment and Development Joint Stock Company Chapter 2: The current state of participating in bidding for equipment supply of Nam Viet Trading Investment and Development Joint Stock Company Chapter 3: Solutions and recommendations to improve the chance to win the bid for equipment supply of Nam Viet Trading Investment and Development Joint Stock Company CHAPTER 1: GENERAL ARGUMENT ABOUT BIDDING AND SOME BASIC PROBLEMS OF PARTICIPATING IN BIDDING FOR EQUIPMENT SUPPLY 1.1 Some concepts of bidding 1.1.1 Some basic concepts In the market economy, monopolistic supply of goods and services barely exists (except for certain types of goods and services used in public services or controlled by the state) There is an abundance of manufacturers supplying the same type of goods and services Meanwhile, consumers always want to choose the goods and services with the best quality and the lowest price Therefore, when supplies outnumber demands, the consumers have the right to choose They usually call for tenders so contractors (including suppliers of goods and services) can compete for quality, price, technology and techniques In these tenders, contractors who bring the most appropriate sample of products and services with the lowest price at the request of the buyer will be contracted Depending on their demand, buyers will offer basic information about requirements for goods and services regarding quality, payment conditions, delivery and other requirements of the contract Based on the requirements in the bid request, contractors submit bidding proposals to the buyer for approval In cases there are two or more proposals offering the quality that meets the requirements of buyers, the supplier with the lower bid price will be selected Therefore, by calling for bids, buyers will get goods and services that satisfy their requirements regarding quality and technology with the lowest price, while contractors will gain the right to supply goods and services with the price fair enough to make up for their costs and obtain the possible highest profit The Law on Bidding of our country was approved on 29.11.2005 , in the th working session of the 11th National Assembly of the Socialist Republic of Vietnam, and put into effect on 04/01/2006 This document is of higher legal significance and more complete than the previous Decree No 14/2000 / ND-CP and Decree No 66/2003 / ND-CP on the topic of bidding Under the regulations of this law, bidding means a process to select a contractor that meets the requirements of the bidder to implement the bid package, on the basis of ensuring competition, fairness, transparency and economic efficiency Article of the Law on Bidding explains the following terms: - “Bidding activities are activities of related parties in the process of selecting contractors” - “The bidders are investors or competent and experienced professional organizations that investors hire to organize tenders under the regulations of the Law on Bidding” - “Contractors are organizations and individuals that are legally eligible” Contractors that are organizations must have a certificate of business registration, an investment certificate issued under the provisions of law or a establishment decision if they are domestic bidders without business registration certificates, an activity registration certificate issued by the authority of the contractors’ country of nationality if they are foreign contractors The contractors must have independent economic accounting, not accused of unhealthy financial situation, not suffering from bankrupt, not in debt with no capacity of paying or in the process of dissolution The contractors that are individuals will be eligible if they have complete capacity for civil acts under the regulations of the country of their citizenship They must register their business activities legally or have professional certificate issued by the authority - “The bid package is a part of the project Under some special circumstances; a bid package is the whole project A bid package can include the same procurement from several projects or one-time purchase for regular purchase” - “The request for tenders is all documents used in open or restricted bidding including requirement for a bid package as the legal foundation for contractors to prepare bidding proposals for the buyer to evaluate in order to select the winning bidder It serves as a basis for negotiating; completing and signing the contract.” - “The bidding proposal is all documents prepared by contractors at the request of the tenderer and submitted to the tenderer under the regulations of the request for tenders” - “Bid package price is the value of the bid package identified in bidding plan based on approved total investment or total estimated cost and the current regulations” - “Bid price is the price offered by the contractors in the bidding proposals Where contractors have discount letter, the bid price is the price after discount 1.1.2 The necessity of bidding in the market economy By bidding, buyers (tenderers) have many opportunities to choose the suppliers that suit them best, to bring the highest possible efficiency At the same time sellers (contractor) have many opportunities to compete in order to get the contracts to provide the goods they produce, the knowledge or services they are capable of offering in order to maximize profits 1.1.2.1 The role of bidding  For investors: + Bidding provide investors with the best choices regarding contractors engaged in consulting, designing, installing, constructing and providing equipment It helps investors find the goods and services with enough conditions and ability to create products with quality satisfying the expectation of investors + In terms of economic benefit: The bid price offered by bidders will help investors reduce the cost of construction, installation and equipment purchase to the max + By bidding, investors will have the complete control over conditions required in the request for tenders Therefore, only contractors who have the ability to meet those conditions are eligible to participate in the bidding and must take legal responsibility for their bidding proposals when taking part in tenders This is a condition to ensure the implementation of the contract after the contractor wins the tender and starts carrying out the contract It also limits problems arising in the process of implemeting the contract to the fullest There is codependence between the investor and the contractor, which is beneficial for investors during the process of implementing the contract  For contractors: + Bidding creates a market for fair competition between all enterprises active in the field of investing, constructing, designing, installing and supplying equipment To participate in the market, it takes enterprises vitality, qualification, professional competence, excellent staff, active approaches to the market, skilled and experienced 10 Besides, the country’s coal and mining sector is of great potential and importance, which can bring business opportunities for other support industries so the competition in this field is increasing more severely + The state’slaws Along with the strong integration of the country, our legal system has been revised, supplemented in accordance with the international laws and norms Therefore, at this stage, the legal system of our country has changed, laws such as the Law and the bidding guidelines issued amendments slowly and overlap, this not only cause the difficulties for businesses but also creates the negative activities + Negative activities in the bidding In the developing economies like Vietnam, in an economy, the bidding work is quite new so it is difficult to avoid the negative issues Due to the way of thinking from many past years, and unfinished system of the law so there are some negative issues in the bidding process including the negotiations and proposal for specifications with the monopoly, the leakage of information about the tender and the inequity in the selection of contractors 2.3.2 Existing issues in the bidding process for the supply of the equipment and the causes 2.3.2.1 Existing issues in the bidding operation In the bid process, the company has made many efforts to achieve, but there are some existing issues that affect the possible winning in the bid of the company  A process to seek and solve the information is slow - The sources of information are diverse and most information about the tender that the staff of the sales department have comes from newspapers, magazines of bidding or information provided by the Vietnam coal and mineral groupand the tender invitation, reports from the tenderers The company has not fully and effectively exploited other sources of information from current customers and potential customers, or the information from the Internet is not paid due attention - The process to analyze the initial information is slow and the scale of some bid packages, investors and competitors have not beenthoroughly studied so it is difficult for the company to participate in the tender due to the lack of information that can 62 affect the decision making For example, when studying the information of the biddings, officials of the sales department found a notice to invite to attend the tender package No 5: "Supply the body of the centrifugal pump" for the Coc Sau coal joint stock company-Vinacomin (5/2013) It is a bid package which the company is capable of participating in but the information was slowly analyzed the company could not prepare the bidding record to participate in  Limitations in the preparation for the bid record - In many bid packages, the process to fix the price lacks the flexibility and sometimes the bid makers not update the changes of the prices so they offer higher prices than that expected by investors and competitors, sometimes the price is lower that is not effective Many bid dossiers are still sketchy, lacking the precision, especially in the bid price so the probability of winning is not very high - The implementation for making the bid dossier has not been carried out systematically and there was not the close coordination, support among divisions, departments And it can affect the participation in bidding process of the company  Limitations at the time of opening the bid In a process to open the bid, a difficulty that company often faces is that it does not understand clearly requests, questions of the tenderer In fact,in many tenders to supply the equipment for the coal industry that the company decided to participate in the bidding, the staff in the opening of the bid does not fully understand many technical characteristics of the machines, equipment because the expertise of some officials and technicians is limited  Limitations in signing and implementing the contract This limitation comes from the lack of distributors of the company With a head quarter in Ha Noi, there are difficulties in the negotiation and signing of contracts because the official of the company must travel from the head quarter to the tenderer’s required venue far from the area Moreover, in the process to perform the contract the company has faced some limitations in the number of imported goods because the company had to depend on the suppliers In a package that the company won the bid, the supplier shipped 63 products more slowly than planned, leading to the slow progress to perform the contract with the tenderer, which has reduced the company’s prestige 2.3.2.2 Causes that led to losing the bid packagefor the supply of the equipment for the coal industry When considering taking part in a bid package, it means that the Company has prepared the capital, as well as a specific working plan But, the results have not been gained as the desired goal Here are some causes leading to the failure of the company in the bid package: Objective reasons leading to the failure of the company in the bidding comes from the investors when they make the higher requirements compared with the capacity of a majority of the bidders, evenbig bidders of good prestige and experiences from foreign countries who can not meet their requirements Another reason is that the tenderers usually set a lower ceiling price for the package than estimated and they don’t estimate the changes of the price in the market or they predicted the changes less than the real changes in the currency market, raw materials so, the price for the bid package of the company and other tenderers is often higher than the price set by the investor so the contract can not be signed Subjective causes of the failure for the bid package come from the tenderers because the company can not meet the requirements of the bidder’s capacity given by the investor (requirement of finance, technology, technique, experience) Limitations in human resources: In addition to the failure to win the contract because the bid dossiers not meet the requirements of the contractor’s capacity (technology, technique, experience), some reasons can affect the possible winning of the project are that the company doesn’t have a group of experts company in the field of bidding Chapter 3: MEASURES AND SUGGESTIONS TO IMPROVE THE CAPACITY TO WIN BID PACKAGE TO SUPPLY EQUIPMENT IN NAM VIET TRADING INVESTMENT AND DEVELOPMENT COMPANY 3.1 Ways to develop the company 64 In the future, the company will focus on promoting the field of providing equipment for the coal industry, as this is the key area and importantly, delivers the highest efficiency 3.1.1 Ways to consume the company’s products The demand for coal industry products and equipment depends primarily on the demand for coal, the coal demand of the people as well as a growing market, the coal resources are limited, so equipment for the coal industry have a stable income to consumption of coal mining and reasonably stable However, in the context of economic integration and market opening, the company faced many difficulties from having to compete with rivals in the country and abroad In this situation, the company has set out some specific directions for the procurement activities of coal machinery industry are increasing: + In the future, the business will continues to existing products and continuously improve product quality and increase labor efficiency + Promote consumption in the domestic market continue to improve sales channels, product sales, price adjustments logical device suitable for the domestic market demand advantage compared with the competitors + Implement good management, quality assurance according to ISO-9001-style as a backdrop for the consumer and market expansion + Promote the marketing through advertising, focusing on relations with partners and customers, improve sales by the method of competitive bidding to gain superiority in the domestic market and areas in need of industrial equipment and machinery + Expand and strengthen partnerships with customers and expand the business market 3.1.2 Ways to participate in the bidding activities for the supply of equipment of the Company After more than years of having experiences in the bidding packages to get the supply for the equipment, the company is consolidating its reputation with customers In the future, the company will strive to maintain the trust from the market with the traditional customers and expand potential customers to become one of the leading equipment providers in the country 65 The company constantly improves, enhances its capacity to participate in the bids for the supply of equipment to increase the number of signed contracts and contract value, thereby creating favorable conditions for expanding the scale of operation and construction infrastructure, capacity building and increasing technical capacity and having more experiences to participate and win the bid package whose value is large Through these bids, the company will establish strong relations with partners, take all advantages of in the bidding opportunities and receive the customers’ trust and confidence then, they themselves will find the company next time The company must invest in capacity building in finance, raising capital for expansion, increase the skills and qualifications of the staff in the company, especially, the staff in the departments related to the preparation of bid documents: Send the officials to attend the training courses, technical training, knowledge and commercial experience, draw lessons from the previous mistakes 3.2 Some measures to improve the chance of success of the Company 3.2.1 Solution capacity to participate in the bidding 3.2.1.1 Improving financial capability An ample financial resource will create a strong mission to increase the success rate of the company Because the company has large capital expenditure it will increase its reliability with its partners for the payment ability of the company, on the other hand, the company can participate in many packages at the same time time in the hope of earning higher returns Besides, with abundant financial resources, the company may offer financial incentives such as payment method, payment term for customers, it is also one of the benefits that customers will consider when deciding whether or not to choose the company Especially, in the bidding work, financial capability has also an equally important role because it is a decisive factor in the ability of the winning bidder A contractor having ample financial resources shows that he is always able to ensure good performance of the contract To increase the financial resources, the company should take some measures as follows: + Use capital properly and effectively If you want to have a large capital, firstly you must use capital efficiently, If you don’t knowing how to use and waste the capital, it 66 will quickly reduce or disappear To use capital efficiently, you must first make plans to use capital, allocate it in a reasonable manner In addition, you should enhance the capital management and monitoring or solve the cases to use the capital for the wrong purposes to avoid capital losses - Increase capital recovery: In commercial activities, the businesses often use or borrow the capital of others Because, if he wants to sell more goods, goods should to be sold in a offered payment However, the company must maintain a reasonable rate debt, if the debt is too much the company’s capital will be stagnant, it will not have money to carry out other business activities The should enhance the recovery of capital to accelerate the rotation of capital As a result, the company can increase its sales revenue - Strengthen capital mobilization: in many cases that require a large number of capital but the company's ability is limited, the company can raise capital from various sources - Develop and further expand the relationship with the credit institutions to get the help of these organizations in loans, participation in the bid, performance of the contract to fully exploit credit sources the most effectively 3.2.1.2 Improve the Technical Capacity - Human Resources First, the technical capability: Overall, the facilities of the company are limited, although the office equipment is installed quite adequately but rooms are small At the same time, in the future, companies need measures to expand and upgrade the storage system in case of goods that are not shipped to investors, and it will purchase additional modern vehicles for transportation, ensure the lowest freight cost that can not affect the with the exact amount Investment in machinery and equipmentmust be made at the right time to avoid wasting capital For other types of high-tech equipment, the company has limited financial capacity so it can not meet the new demand, it can repurchase from other sources, while ensuring to use effectively in its business condition Improving the quality of supplied goods: a measures to further enhance the technical capacity of the bidders is to improve the quality of goods Because, in the evaluation 67 process in the bidding , the investors always consider the company’s capacity in the bidding based on the company's origin, specifications, product quality and adaptability to the environment of use, thus , a supplier with his reputed names in the market partly brings trust for investors, whereby the winning ability of the company also increases One of the factors is the basis to assessthe contractor in the supply field: financial capacity, transport, credit, payment and especially, the bid price Reasonable price bid will increase the competitiveness and the winning chances for the company Second, the human resources: Improving the quality of human resources for the field to provide equipment is an important, indispensable measure so it requires the company to pay more attention If the human resources are qualified, both in quantity and quality, the bid operation can get more favorable conditions In the future, the company needs to have specific measures as follows: + Regularly organize training courses, professional skills in the commercial area and create favourable conditions for the staff to increase the expertise on the bidding in particular, with the necessary skills so that they can capture and analyze information flexibly and promptly with the assistance of the methods of modern information processing + Train and retrain employees who are involved in the bidding package to suit the practical situation of the company Limitation of the company at the current timeis to lack the workforce and their qualification is still weak.The company should recruit more staff having both commercial and technical expertise to analyze market information, understand tender laws for tthecontract implementation + Technical staff should have chances to take part in more practical package to increase the capacity and accumulate experiences With the aim of attracting more workers with professional qualifications, knowledge of various fields in order to improve the quality of human resources to participate in bidding for the supply of equipment in many different fields + Improving the skills of the management officials, the application of modern methods A good manager will help the company with identifying, analyzing the 68 overall situation of the company and the market for which he can find ways of organizing, assigning tasks that suit circumstances and develop an ability of each member, making the procurement process into a smooth, close and effective coordination + To encourage employees to increase their enthusiasm and commitment to the company, leaders need to have a plan to build and implement both physical and spiritual preferential policies: paying salary based on his capacity and qualifications, clear reward, discipline benefits, recreations, tours 3.2.2 Measures to complete the bidding work 3.2.2.1 To promote the process of collecting and processing information In the tender work, it is necessary to have sensitiveand exact information In the current open economy, the contractor may have information from many different sources: the press, the media, from the tenderer, even from other contractor A company working in the field of import and export business like Nam Viet can not ignore this process And the more anddiversified information it has, the better conditions the company takes Therefore, the company not only accelerates the process of gathering information from the tenders, but also information about the tenderers, the competitive situation in the market and its competitors The lack of information analyzed in the example above shows that, seeking and processing information have great significance in deciding whether or not to attend the bid and how results of the tender will be Therefore, the staff working in the bidding activities should: - Proactively seek, access and exploit information from many sources to ensure adequate and timely information - Select and sort out the information of the tender suitable in the real situation of the company from all fields, areas and levels the economy - Continuously update legal information, the provisions on the tender in general and the tender for the supply of goods in particular, the market volatility: pricing, commodity , the market share of the company to have proactive, suitable bidding plans in compliance with the laws 69 After searching for information, information processing must be paid attention to The first content that should be considered in the information processing is the analysis of bidding documents It has a direct impact on the quality of the bids, affecting the project schedule The information in the bidding documents is usually very easy to identify, but there are some confusions leading to errors in the bidding dossiers, such as the terms of trade The provisions on payment conditions: the tenderer can have some regulations that they will only pay money to the contractor when the contractor is making the installation; when instructing how to use the equipment or test the machinery and equipment the tenderer can payment part of the value of equipment after signing the contract, while the suppliers of the goods require the immediate payment, so,the officials in charge of analyzing the bidding documents must carefully study the situation to propose leaders to make plans to raise the capital Another important part is the technical requirements of the goods In fact, the company involves in bidding for many different types of goods, so the analysts can not have indepth knowledge in every field to capture all requirements Therefore, to avoid errors in the preparation of their later bids, officials must process and study information carefully, understand the features and specifications required by the tenderer to find the best suppliers of the products and offer perfect technical proposals At the same time, studying technical requirements can also help the company to understand the complexity of the bid package, the necessary costs to build the appropriate tables of the bid price 3.2.2.2 Improving the quality of the tender documents  Perfect skills to prepare bids Having skills to prepare bids is also a factor affecting the quality of the bid dossier In fact, when Nam Viet companyparticipates in different tender package, possibly due to the urgency of time in preparing the bid dossier, the company sometime uses the legal from the previous record into the new documents to shorten the preparation time, but if the performance is careless and reckless it can make profiles lack the accuracy and consistency To avoid this type of error, the staff in charge of filing procedures should has a specific meticulous and careful ways of workingin each package of bid In one 70 hand, the draft of content of finance andtechnique must show that the company can meet the requirements of the tenderer, on the other hand, it must show both unique, outstanding features of the supplied goods and the superiority of the goods and the bidding documents must be written and illustrated clearly, coherently  Flexibility in ways to calculate the price of the bid package In the bidding activity, when evaluating, selecting the bidding record, the tenderer are particularly interested in the quality, schedule, cost of equipment Some customers want a product with the best quality and at acceptable high price, but other customers prefer to buy a quality product, but at a relatively low price Therefore, understanding the behavior of customers and meet their needs is very complex, but it is necessary The bid record can guarantee the quality and progress, but the price for the bid is too high, or too low bid price without ensuring the quality of goods will not yield results and even the financial effectiveness for the investor So it will not be accepted and will be rejected from the bid opening Therefore, the company should consider and have the flexibility in the choice of the bid price that can both satisfy the tenderer and make the highest profit for the company 3.2.2.3 Completing the bid process To complete the bidding work, the company’s participation in the bidding process should be systematized This process must be cohered and have a consensus on the basis of the works of the officials and staff, the departments involved In fact, the bidding process of the company has been conducted based on the experience gained from the package joined by the company Therefore, in the future, the leaders and involved employees should complete the bidding process for bidding participation increase the quality of the bid records while shortening time to file the bid to ensure timely the progress given by the tenderer 3.2.2.4 Improving the quality in the time to implement the bid and after the bid Along with the increasing development of the economy, the needs of the people are also extremely complex and diverse Customers not only want to buy goods with high quality they also need the after-sale services As a company specializing in the field of trade, Nam Viet company should implement two above requirement, so that it 71 can meet the highest demands of customers and build its reputation It is the same in the bidding activities to provide goods for customers, when the investors evaluates and selects contractors they will consider the commercial terms of the contract, including after sale services, the preferential credit or shipmen, warranty Therefore, to improve the chance of success in supplying goods, Nam Viet, on the one hand, needs to improve the competitiveness in bidding, both in terms of financial, technical capacity and human resources, on the other hand,it must have synchronized measures to increase the quantity and improve the quality of post-tender services In the future, Nam Viet company should implement and improve the quality of support services specifically as follows: + Improve the quality of transport services + Enhance the warranty work, regular maintenance or repair of machinery and equipment provided to customers + Improve the quality of services in the installationand operation instructions 3.2.2.5 Improving the efficiency of marketing activities Currently, the company does not have a specialized marketing department to make the market research, search for information, as well as develop policies to promote the image and brand for the company Thus, although the company has been working in the field of bidding to supply equipment for the coal industry for a long time, the company does not focus on building its brand and searching, analyzing the markets, the products, competitors has not brought good results for the bidding activities To serve the bid well, the first step is to seriously study new and revised bidding regulations and circulars, decrees, amendments related to the bidding, because the bidding activities are taken in compliance with strict regulations by the tenderer as well as capital sponsors, which is called the tender regulations Market researching also involves understanding the customers’ information, capture, collect information from investors, the tender notice, projects, bids which are about to be conducted in order not to miss any opportunity; making psychological research, hobbies, shopping habits of investors, the technical conditions as well as the quality of equipment that the tenderer may be required to make appropriate conditions, meet the demand best increase the probability of winning 72 Market researching also involves studying competitors, analyzing the strengths and weaknesses of the rivals, collecting information about financial capability, technology, engineering, bid price of competitors, and then building an appropriate, competitive strategy to promptly deal with any situation, contributing to improve the efficiency of the bid In addition, the company must explore the trend of fluctuations in market prices, collect information related to the bank, the interest rate changes, the form of loans to choose effective loans with low interest rate, repayment period suitable for the business cycle and capital needs of the company Based on the collected information, the company can build and develop the proper policies, strategies to join the bidding to contribute to improving the effectiveness of the bid, the chance for winning the bid when participating in Therefore, the company should implement the following measures: + Setting up a marketing division in charge of marketing activities related to the marketing of the company The marketing division can many works from the making and implementation of the marketing policy of the company to searching and analyzing information to help the bidding operation, customer care and strengthening relations with partners + Searching new partnering, generating sources of high quality products with reasonable prices, improving the competitiveness of the company + Creating the company’s reputation, trust with customers, ensuring the ability to raise capital and financial capacity of the company 3.2.2.6 Improving the capacity of technology, technique and the product’s quality In fact, most of the failed bid packages of the company are resulted from the reason that company could not meet the investor’s requirements of technology, techniques and experience Therefore, the company’s long-term development strategy is to invest in chains of machinery, modern equipment, good- quality products, suitable designs and models that fit the needs of the market The company should focus on the strategy to diversify products The demand in the market is rich and diverse so as to optimally exploit market demands, increase sales revenues and profits for the company, the company should carefully study equipment, 73 machinery in order to increase the quality of the product Thus, the company can participate in the bid tender to supply more equipment to meet the requirements of demanding customers 3.2.2.7 Consolidate and enhance the economic relationship The companycan not alone businessin the market, and it must suffer interactions with other economic actors in the economy: the competitors, suppliers, credit institutions, the law enforcement agencies, customers So, the company should continuously strengthen and expanded its economic relations to makethe business operation more convenient The economic cooperation is essential and is one of the factors that make a business successful 3.3 Some suggestions 3.3.1 Suggestions to the state agencies The Investment Law has come to effect for many years and it has contributed to creating certain achievements such as enhancing the openness and transparency in bidding activities, strengthening the decentralization of implementation, simplifying the administrative procedures, remedying the present existence in abuse of state funds in investment activities as well as overcoming the overlapped regulations on procurement However, in the process of implementing, many problems still exist in the bidding that the government should support and solve + The capacity of management agencies and investors is still weak because they not really grasp the rules of law, lack of expertise and experience + Taking advantages of the bidding limit or making requests to limit the participation of contractors are still taking place in many localities due to the lack of close supervision In addition, there are many shortcomings in checking the performance of the contract after bidding To enhance the efficiency in the tender to better manage the state’s investment capital for development investment, some following measures should be taken: + Continue to improve the legal documents for the bidding + Strengthen the instructions and guidelines for implementing the tender law and decrees + Supervise and inspect the bidding activities to timely detect and prevent the negative 74 behaviors, violations of the law and take appropriate remedial measures + Enhanced the publicity and transparency in the bidding work: publicize information about bidding activities + Enhance the direction and instruction of the competent authorities to ensure that activities will take place in accordance with the provisions of law + It is necessary to check and monitor professional competence, financial independence of the contractors to ensure the implementation of the bidding package 3.2.2 Suggestions to Viet Nam Coal and mineral mining corporation Viet Nam coal and mineral mining corporation is a specialized management agency It is also one of the main customers of Nam Viet tradinginvestment and development company so it has great influence to the company In addition, the unit members of the corporation are also its partners, customers so the relations between the company and the units also have the certain influence on the business activities of the company Therefore, Viet Nam coal and mineral mining corporation should have policies to pay more attention to the development of Nam Viet company: - The corporation should have a mechanism to manage the specialized imports and exports in the whole corporation, determine the company's role in providing the specialized machinery and equipment but it also ensure the fair competition in the bidding work and in the production and business activities among the units of the Viet Nam coal and mineral mining corporation - The company’s capital is not currently sufficient to meet the contract on supplying the machinery and equipment so the Corporation should have a policy to help or allocate more capital or facilitate Nam Viet to borrow the capital of the corporation or capital sponsored from internationalinvestment and financial organizations - To create conditions for the company in the payment, the Corporation should have specific provisions on payment activitiesamong the corporation’s units to help the companyquickly resolve the outstanding debt - With the prestige and power in the operation, the corporation can facilitate the company to find sources of products to further develop the bidding activities to supply the goods of Nam Viet trading investment and development company CONCLUSION 75 Based on the above analysis, it can be seen that the international economic integration process has brought about many business opportunities and it also poses many difficulties and challenges for Vietnam enterprises To create the firm position and advantages, the enterprises have only one way to take part in the market, cooperate and integrate into the investment and businessenvironment – business including participating in the bidding form The bidding activity, especially bidding for the supply of goods has recorded strong growth in recent years and it has made many positive impacts, creating a fair, healthy competitive environment for contractors and has contributed significantly to the increase of the investment and development and trade activities.Because of its great role and significance, bidding for the supply of goods has drawn the attention of the State-run agencies and enterprises Therefore, the question given to the enterprises is to constantly improve their competitiveness to increase the chance to win contracts and meet the increasing demands of customers and they must consider it as a motive for the enterprises’ development Every business itself should devise specific regulations measures inits business strategy, as well as the specific orientation for the bidding operation Nam Viet trading and investment and development of company is taking part in the bidding activities as a contractor or bidder In addition to the current capacity to participate in the bidding work and great achievements obtained by the company, There have still remained some limitations Moreover, the market to supply goods is widening and Nam Viet is facing challenges and harsh competitiveness but, it also has many new business opportunities Therefore, it is very important for Nam Viet to give measures and implement to enhance the chance of success in the bidding activity in the future My thesis stillremains inevitable shortcomings, I would like to receive comments, advices from teachers that help me further fulfill my thesis and my study in the future Once again, I would like to express my sincere thanks to Dr Tran Van Hung for his enthusiastic guidance and the officials and employees of the company, all who help me finish this thesis LIST OF REFERENCES 76 ... and Investment on December 2nd, 2006 + Company’s name 30 - In Vietnamese: Cong ty co phan dau tu thuong mai va phat trien Nam Viet - In English: NamViet Trading Investment and Development Joint... are not allowed to request); ability to meet the requirements in terms of quantity, quality and technical features of the goods specified in the proposals ; ability to install equipment, competence... capacity and experience of the contractors: business and productive capacity, financial capacity, technical infrastructure, qualification of staff, experience in performing contracts in Vietnam