When will the bid security be forfeited according to the latest provisions? To shorten the time limit to return bid security in Vietnam?
Vietnam: When will the bid security be forfeited according to the provisions of the Law on Bidding 2023?
Pursuant to Article 14 of the Law on Bidding 2023, from January 1, 2024, the bid security may be forfeited in the following cases:
- After the deadline for submission of bids and during the validity period of the bid, the bidder or investor withdraws their bid or gives a written refusal to perform one or some tasks proposed in their bid in accordance with the requirements laid down in the bidding documents;
- The bidder or investor performs any of the prohibited acts specified in Article 16 of this Law or commits violations of the bidding law resulting in bid cancellation as prescribed in Points d, dd Clause 1, Points d, dd Clause 2 Article 17 of the Law on Bidding 2023;
- The successful bidder or investor fails to furnish the required performance security as prescribed in Article 68 and Article 75 of Law on Bidding 2023;
- The successful bidder fails or refuses to negotiate the contract (if any) within 05 working days in case of domestic bidding, or within 10 working days in case of international bidding, from the receipt of the invitation for contract negotiation, or, after the contract negotiation has been carried out, refuses to complete the contract and sign the contract negotiation record, except force majeure events;
- The successful bidder fails or refuses to carry out the completion of contract or framework agreement within 10 days, in case of domestic bidding, or within 20 days in case of international bidding, from the receipt of the notice of acceptance from the procuring entity, except force majeure events;
- The successful bidder fails or refuses to sign the contract or framework agreement within 10 days, in case of domestic bidding, or within 20 days in case of international bidding, from the date of completion of that contract or framework agreement, except force majeure events;
- The successful investor fails or refuses to carry out the completion of contract within 15 days, in case of domestic bidding, or within 30 days in case of international bidding, from the receipt of the notice of acceptance from the procuring entity, except force majeure events;
- The successful investor fails or refuses to sign the contract within 15 days, in case of domestic bidding, or within 30 days in case of international bidding, from the date of completion of that contract, except force majeure events.
When will the bid security be forfeited according to the latest provisions? To shorten the time limit to return bid security in Vietnam?
Vietnam: To shorten the time limit to return bid security?
The deadline for returning bid guarantees in Clause 7, Article 11 of the Law on Bidding 2013 is that the Procuring Entity shall return or release Bid Security to bidders or investors who are not selected under the duration specified in Bid, Request for Proposals but not exceeding 20 days, after the day of approving result of selection of bidder/ investor.
The time limit to return bid security in Clause 8, Article 14 of the Law on Bidding 2023:
Bid security
...
8. The procuring entity shall return or release bid securities to unsuccessful bidders or investors within the time limit specified in the bidding documents which shall not exceed 14 days from the date of approval of the contractor or investor selection result. The bid security shall be returned or released to the successful bidder or investor after the contract becomes effective.
Thus, the procuring entity shall return or release bid securities to unsuccessful bidders or investors within the time limit specified in the bidding documents which shall not exceed 14 days from the date of approval of the contractor or investor selection result.
What are the cases of the submission of bid security in Vietnam?
Pursuant to Clause 2, Article 14 of the Law on Bidding 2023, the bid security apply in the following cases:
Bid security
1. Bidders or investors shall furnish bid securities in one of the following forms in order to ensure their fulfillment of responsibilities for a period specified in the bidding documents:
a) Pay a deposit;
b) Submit a letter of guarantee issued by a domestic credit institution or foreign bank branch lawfully established under the law of Vietnam; or
c) Submit a certificate of surety bond insurance issued by a domestic non-life insurer or branch of a foreign non-life insurer duly established under the law of Vietnam.
2. The submission of bid security is required in the following cases:
a) Competitive bidding, limited bidding or shopping for a consulting service, procurement, construction or mixed package;
b) Competitive bidding or limited bidding for investor selection.
Accordingly, the submission of bid security is required in the following cases:
- Competitive bidding, limited bidding or shopping for a consulting service, procurement, construction or mixed package;
- Competitive bidding or limited bidding for investor selection
The Law on Bidding 2023 will take effect from July 1, 2024
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