This document discusses sustainable public health procurement (SPHP) in Vietnam. It provides background on Vietnam's annual public procurement expenditure, which represents 14% of GDP. SPHP aims to meet health-related needs in a cost-effective way while minimizing environmental impact and promoting local suppliers. The document outlines various national and international policies that support SPHP in Vietnam, including commitments to green growth and reducing greenhouse gas emissions. It analyzes strengths of Vietnam's draft public procurement law in incorporating sustainability. Recommendations are provided to strengthen the draft law's consideration of economic, social and environmental factors. An example of actions a hospital can take to limit medical plastic waste is also given.

1. Jellie Molino, PhD
Public Procurement Law for sustainable
health procurement :
The Case of Viet Nam

2. Public Procurement in Viet Nam
$39B
(Government
funds)
$15B
(Private
sector funds)
$39B*
annual
expenditure
14% of Viet Nam’s GDP
(may be compared to OECD average of 12%)
*Represents 51% of the total government expenditure in 2020
Viet Nam can leverage on its “large
buying power” to minimize
environmental impact and incorporate
economic and social sustainability in
the procurement health-related
products and services
(Sustainable Public Health
Procurement).
INTRODUCTION

3. Sustainable Public Health Procurement (SPHP) is
… the process whereby organizations meet their
needs for healthcare supplies, products, equipment
and other such services along with commissioning
construction of health facilities in a way that
achieves “value for money on a whole life basis”
whilst minimizing their impact on the environment
and focusing on the growth of localization, i.e.,
accessibility to local and reliable suppliers of better
healthcare product quality and security.
,
It becomes Sustainable Public
Health Procurement when:
• the procuring organization is a
public institution or any of its
instrumentalities, or
• the funds used in the
procurement are government
funds or a combination of
government funds and private
funds.

4. Policy frameworks supporting SPHP in Viet Nam
N.B. Assessments were based on the results of the recently completed 2022 Country Procurement Assessment Report (CPAR)
of the World Bank Group, and the 2022 Report of the UNDP on Sustainable Public Procurement.
Multilateral Environmental
Agreements
•Stockholm Convention
on Persistent Organic
Pollutants
•Minamata Convention
on Mercury
•2015 Paris Agreement
Multilateral Agreements on
International Labor Rights
•Member of International
Labor Organizations
•Ratified 7 of the 8
fundamental
conventions (excluding
freedom of association)
Multilateral/Bilateral Trade
Agreements
•Member of the World
Trade Organization,
South Asian Nations,
ASEAN Economic
Community
•Party to 17 bilateral and
multilateral trade
agreements
•EU-Vietnam free trade
agreement (EVFTA) (with
public procurement
commitments)

5. National policy commitments supporting SPP in Viet Nam
Policy on Sustainable
Development
•National Green Growth Strategy for
2021-2030 period, with a vision by 2050
Environmental Policy
•National Strategy for Green
Development Period 2021-2030
•National Action Plan on Marine Plastic
Debris Management
•Environmental law and other sub law
policies on harmful waste management
Eco-label Policy
•Viet Nam Eco-label/Green Label
•Energy Label
•Green Lotus Label
Energy Policy
•List of energy-savings devices and
equipment for agencies and units using
state budget
Policy on Climate Change
Mitigation and Adaptation
•Commitment to cut 8% of its GHG
emissions by 2030
Investment Policy (including
public investment
•Incentives for clean energy including
energy-saving products with at least 30%
energy savings

6. National policy commitments supporting SPP in Viet Nam
Policy on Sustainable
Development
• National Green Growth
Strategy for 2021-2030 period,
with a vision by 2050
Policy on Climate Change
Mitigation and Adaptation
• Commitment to cut 8% of
its GHG emissions by
2030
National Policy Goal of achieving
35% green procurement in its total
public procurement volume by
2030 and 50% by 2050
Scheme setting out tasks and solutions in
response to COP26 : Develop a legal framework
by 2022-2023 for green public procurement,
integrate green procurement criteria into the
contractor selection process...with the Ministry
of Planning and Investment as the lead
executing agency and all ministries as
coordinating bodies

7. Strengths of the 2022 Draft PPL of Viet Nam
The 3 sustainability considerations – economic, social and environmental are
incorporated in the draft PPL, i.e., definition of the evaluated bid price
considers environmentally friendly factors, among others.
There are incentives for sustainability products, i.e., preferential treatment to
local and SMEs, including additional points to environmentally friendly
products.
The evaluation of bids permits the use of entire life cycle of goods, works and
consulting services.

8. •Source: UNEP, 2022 SPP Global Review, upcoming
Art 8 should add incentives for sustainable
bidders.
Art. 3 should include sustainability
principles.
Art. 19, should add par 48 on the
definition of sustainable procurement
Art. 31 should include sustainable
considerations in the contractor
selection plan..
Art. 5 should include exclusion
provision for bidders with final
judgment on violation of law on social
protection and environmental
protection.
Art. 33, 39 should include the potential
use of eco-labels
Art. 4, par. 19 and 20 should include
non-priced criteria
Art. 62 should include the
environmental protection
and social conditions in the
contract documents,
including provision for
sanctions in case of non-
compliance in Art. 63.
Chapter VII should highlight the responsibilities of key parties in promoting SPP, while inserting a provision in Art. 54 on the importance
of taking cognizance of existing legislation on green procurement, energy efficiency and other legislation that requires the use of state
funds.
Recommendations in
the draft PPL

9. Actionable element to show on top of signature from National lung hospital
Example: Changes in consumption of the
National Lung Hospital that limits release of
medical plastic waste by measures below:
❖Procurement of environment friendly waste bag (in
green, white, yellow, and black). Using electronic
thermometers in substitution of Mercury
❖No plastic cups are purchased. Glasses and china
cups are used in meetings and events.
❖Use of Inox food tray to replace plastic/plastic
foarm ones to serve food for patients in the hospital’s
canteen
❖Use of IT management modality for administrative
procedure to reduce printing and paperwork.
❖Use of IT technology in X-Ray diagnosis without
film printing to reduce plastic waste released from
this service
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