Which state-owned enterprises will be allowed to trade in military weapons?
The Prime Minister will allow state-owned enterprises to trade in military uniforms and equipment serving national defense and security tasks.
The Ministry of Justice's website recently posted all documents related to a draft Decree of the Ministry of National Defense in preparation for the organization of appraisal of the Proposal to promulgate this Draft Decree.
That is the Draft Decree regulating the conditions for trading in military uniforms and equipment; military weapons, equipment, techniques, military and police specialized vehicles; components, parts, spare parts, supplies and specialized equipment, and specialized technology for manufacturing them to serve national defense and security tasks.
The above draft Decree of the Ministry of National Defense clearly states that the Prime Minister will assign tasks and approve the trading of military uniforms, military equipment, military weapons, technical equipment and specialized technology serving defense and security tasks to state-owned enterprises established by decision of the Prime Minister.
 Vietnam develops self-propelled artillery on a tight budget and is likely to trade in military equipment. Illustrative photo |
Regarding authority, Article 6 of the draft clearly states that the Prime Minister assigns tasks and approves the trading of military uniforms, military equipment, military weapons, technical equipment and specialized technology serving national defense and security tasks to state-owned enterprises established by decision of the Prime Minister.
The Minister of National Defense and the Minister of Public Security assign tasks and approve business operations serving national defense and security tasks for state-owned enterprises managed by the Ministry of National Defense and the Ministry of Public Security.
Decision to approve contracts, orders, production plans, procurement bidding plans or documents approving the production of military uniforms and equipment for national defense and security tasks.
The draft also sets out a series of conditions for purchasing, selling, exporting, and importing military weapons and specialized technical equipment for defense and security tasks, such as: Having a plan to purchase, sell, export, and import military weapons and specialized technical equipment approved by the Prime Minister.
Or the purchase, sale, and import of military weapons and specialized technical equipment must be based on the needs and purposes of use to serve national defense and security.
This also ensures compliance with international treaties to which Vietnam is a member or signatory, and international agreements between Vietnam and foreign parties.
Notably, Article 9 of this Draft Decree stipulates the conditions for an enterprise wishing to acquire weapons: The enterprise must have a charter capital of at least VND 100 billion in the previous year or a revenue of at least VND 300 billion in the previous year or "a healthy financial situation, with no tax debt to the State in the last 3 consecutive years".
The company also has a production workshop, warehouse and auxiliary areas that must be designed and built with enough space to arrange production line equipment, storage and means, equipment for preserving military uniforms, etc.
In addition to meeting the above conditions, enterprises wishing to trade in military equipment must have a minimum charter capital of VND 45 billion; have contracts between the enterprise and agencies and units under the Ministry of National Defense and the Ministry of Public Security and be approved by competent authorities and ensure information confidentiality according to regulations.
Regarding the "bidding" method, the Ministry of National Defense proposed the form of contractor selection as limited bidding and designated bidding because the research, manufacture, and production of military uniforms, military weapons, and specialized equipment for the military and police are within the scope of State secrets (quantity, technical features, and tactics).
"The proposal for designated bidding and limited bidding is in accordance with the provisions of Articles 21 and 22 of the Law on Bidding," the Ministry of National Defense emphasized.
According to Baodatviet