Vietnam firm yet to sign controversial contract with Chinese pipe supplier
Vietnam firm yet to sign controversial contract with Chinese pipe supplier
The developer of a major water supply project for Hanoi residents said on Monday it had yet to sign the official contract with a Chinese pipe supplier, following public concern over the quality of the Chinese products.
Viwasupco and Xinxing Ductile Iron Pipes Co. Ltd., are “still in talks” over the supply of pipelines for the Song Da Water Project - Phase II, Nguyen Van Ton, general director of the Vietnamese company, said on Monday.
The company is now focusing on reporting its project implementation to authorities, including the contract bidding and selection, according to the executive.
Viwasupco announced last week that it had awarded the VND588 billion (US$26.25 million) contract to supply ductile iron pipes for the 21-km Song Da pipeline to Xinxing.
The move immediately raised public concern over a crucial water project being contracted to a Chinese firm.
The Hanoi Department of Construction had to hold a meeting on Monday to have Viwasupco report on how it had sought and chosen the Chinese contractor for a project that would “ensure livelihood security and social stability” for the entire capital.
Ton, the Viwasupco leader, assured members of the public that the company had taken all steps to implement the project in accordance with the law. He did however admit that people “have reason to worry” whenever it is revealed that a Chinese firm will supply pipes for a large project.
In Vietnam, quality concerns always arise whenever a Chinese firm wins any contract to complete work on large-scale infrastructure projects.
Chinese contractors are known for bidding low to win contracts, then later asking for more money, citing unexpected cost overruns. Most Chinese-contracted projects are likely to reach completion behind schedule, adding costs.
Xinxing bid nearly 12 percent below the asking price, fueling concern over its product quality.
On March 23, Viwasupco held a media meeting in Hanoi to defend their choice of contractor, with deputy general director Truong Quoc Duong saying that not all Chinese products are of poor quality.
“We have confidence in the contractor. They are a major ductile iron pipe manufacturer with a very modern plant,” Duong told reporters. “People should not think a product is outdated if it is made in China.”
Viwasupco said it had reported on all of the concerns and worries of experts and members of the public to authorities.
The Hanoi construction department will also report the case to the capital city’s administration, department director Le Van Duc said after the Monday’s meeting.
