What are the regulations on costs associated with contractor or investor selection in Vietnam?
What are the regulations on costs associated with contractor selection in Vietnam?
Pursuant to Article 15 of the Law on Bidding 2023, costs in selecting contractors and investors are specified as follows:
Costs associated with contractor/investor selection
1. Costs associated with the contractor selection:
a) RFP, bidding documents used in domestic bidding, EOI request and prequalification document are issued free of charge on VNEPS;
b) Bidding documents used in international bidding shall be issued on VNEPS; bidders shall make payment for purchase of electronic forms of the bidding documents when submitting their bids;
c) Employers/procuring entities shall incur costs of publishing bidding information and other costs associated with the contractor selection;
d) Bidders shall incur costs of preparing their EOIs, prequalification applications, bids, proposals, and participating in bidding, and settling bidding-related petitions (if any).
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Accordingly, costs in contractor selection are specified as follows:
- Request documents, bidding documents for domestic bidding, invitation documents, and prequalification documents are released for free on the National Bidding Network System;
- Bidding documents for international bidding are published on the National Bidding Network System; Contractors pay to purchase electronic copies of bidding documents when submitting bids;
- The investor and the party calling for bids shall bear the costs of posting bidding information and costs related to organizing contractor selection;
- Contractors bear costs related to preparing documents of interest, prequalification documents, bidding documents, proposal documents, bidding participation, and costs of resolving complaints (if any).
What are the regulations on costs associated with contractor or investor selection in Vietnam?
How to calculate costs associated with investor selection in Vietnam?
Pursuant to Article 15 of the Law on Bidding 2023, costs in selecting contractors and investors are specified as follows:
Costs associated with contractor/investor selection
...
2. Costs associated with the investor selection:
a) EOI request and bidding documents used in domestic bidding are issued free of charge on VNEPS;
b) Bidding documents used in international bidding shall be issued on VNEPS; investors shall make payment for purchase of electronic forms of the bidding documents when submitting their bids;
c) Procuring entities shall incur costs of publishing information on investor selection and other costs associated with the investor selection;
d) Investors shall incur costs of preparing their applications for project execution and bids, and participating in bidding, and settling bidding-related petitions (if any).
Accordingly, costs associated with the investor selection:
- EOI request and bidding documents used in domestic bidding are issued free of charge on VNEPS;
- Bidding documents used in international bidding shall be issued on VNEPS; investors shall make payment for purchase of electronic forms of the bidding documents when submitting their bids;
- Procuring entities shall incur costs of publishing information on investor selection and other costs associated with the investor selection;
- Investors shall incur costs of preparing their applications for project execution and bids, and participating in bidding, and settling bidding-related petitions (if any).
The Law on Bidding 2023: To amend the scope of regulation?
In Article 1 and Article 2, the Law on Bidding 2023 has expanded the scope of regulation compared to the Law on Bidding 2013 in the direction of adding activities of selecting investors to implement business investment projects.
Specifically includes:
- Investment projects involving land use which require bidding as prescribed by the Law on land;
- Investment projects which require bidding as prescribed by specialized laws;
Including the scope of the law on bidding will create a basis for local organizations to more conveniently organize and select investors with good capacity to carry out business investment projects.
In addition, the Law on Bidding 2023 distinguishes capital sources subject to regulation of the Law, including:
- State budget capital according to the provisions of the State Budget Law,
- Capital from legal revenue sources of state agencies and public service units to implement investment projects or specific procurement estimates for bidding packages of investment projects of state-owned enterprises according to regulations of the Law on Enterprises and enterprises with 100% charter capital held by state-owned enterprises.
The Law on Bidding 2023 will take effect from January 1, 2024
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