What is a contractor and investor? What is the eligibility of contractors and investors in Vietnam?
What is a contractor and investor in Vietnam?
(1) Contractor:
Pursuant to Clause 35, Clause 36, Clause 37, Clause 38, Article 4 of the 2013 Law on Procurement in Vietnam providing for contractors as follows:
- Contractor means a contractor liable for its participation in bidding which gives its name to a tender, and which directly signs in and implements a contract if selected.
Contractor may be an individual contractor or JV’s Party.
- Subcontractor means a contractor performing part of the work of a package on the basis of a contract signed with the Contractor. The special Subcontractor means a Subcontractor performing special works of a package proposed by the Contractor in Bid, Proposal on the basis of requirements stated in Bid, Request for Proposals.
- Foreign Contractor means an organization established under foreign law or an individual of foreign nationality making a bid in Vietnam.
- Domestic Contractor means an organization established under Vietnamese law or individual of Vietnamese nationality making a bid.
(2) Investor:
Pursuant to Clauses 18, 19 and 20, Article 3 of the 2020 Law on Investment in Vietnam providing for investors as follows:
- “investor” means an organization or individual that carries out business investment activities. Investors include domestic investors, foreign investors and foreign-invested business organizations.
- “foreign investor” means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.
- “domestic investor” means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors.
What is a contractor and investor in Vietnam? What is the eligibility of contractors and investors in Vietnam? (Image from the internet)
What is the eligibility of contractors and investors in Vietnam?
Pursuant to Clause 1, Article 5 of the 2013 Law on Procurement in Vietnam stipulating that a contractor or investor being an organization shall be deemed to be eligible when it satisfies the following conditions:
- Having registration for establishment and operation issued by the competent authority of country where it is operating;
- Keeping independent accounting records;
- Not undergoing a dissolution process, are not thrown into bankruptcy, and do not incur bad debts as prescribed by law.
- Having registered on National E-procurement System;
- Ensuring the competitiveness in bidding as prescribed in Article 6 hereof;
- Not being banned from bidding;
- Its name is stated in short list for case where the short list has been selected;
- Being in a joint venture with domestic contractors or employment of domestic subcontractors in case of a foreign contractor making an international bidding in Vietnam, unless the domestic contractor cannot acquire the competencies necessary to perform any portion of the package.
What is the eligibility of contractors and investors being individuals?
Pursuant to Clause 2, Article 5 of the 2013 Law on Procurement in Vietnam stipulating as follows:
Eligibility of contractors, investors
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2. A contractor or investor being an individual shall be deemed to be eligible when it satisfies the following conditions:
a) Having full legal capacity as per the law of the country of which such individual is a citizen;
b) Having an appropriate professional certificate as prescribed by law;
c) Having lawful registration for operation as prescribed by law;
d) Not facing a criminal prosecution;
d) Not being banned from bidding.
Thus, a contractor or investor being an individual shall be deemed to be eligible when it satisfies the following conditions:
- Having full legal capacity as per the law of the country of which such individual is a citizen;
- Having an appropriate professional certificate as prescribed by law;
- Having lawful registration for operation as prescribed by law;
- Not facing a criminal prosecution;
- Not being banned from bidding.
Note:
Contractors and investors with valid status as prescribed in Clauses 1 and 2, Article 5 of the 2013 Law on Procurement in Vietnam may participate in bidding as an independent or a joint venture;
In the case of a partnership, there must be a written agreement between the members, which clearly defines the responsibilities of the leading member of the partnership and the general and separate responsibilities of each member in the partnership.
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