Vietnam: What are the responsibilities of contractors and investors in bidding activities? Who are the contractors and investors in bidding activities?
Who are the contractors and investors in bidding activities in Vietnam?
Pursuant to Clause 26 Article 4 of the Law on Bidding 2023, a contractor means an organization or individual or a group of organizations or individuals coming together under a consortium agreement that acts as a bidder, has their name specified in the letter of bid, and will directly sign and execute the contract if winning the bid.
For investors, according to Clause 25 Article 4 of the Law on Bidding 2023, investor means an organization or individual that acts as a bidder, has their name specified in the letter of bid, and will directly sign and execute the contract, if winning the bid.
Accordingly, an investor may participate in the bidding as an independent investor or a consortium member.
What are the eligibility requirements satisfied by bidders or investors in Vietnam?
Pursuant to the provisions of Article 5 of the Law on Bidding 2023 as follows:
Eligibility of bidders or investors
1. A bidder or investor that is an organization shall be deemed to be eligible if meeting the following requirements:
a) A domestic bidder or investor must be an enterprise, cooperative, cooperative union, artel, public sector entity or foreign-invested business organization that is duly established and operating under the law of Vietnam. A foreign bidder or investor must be duly established and operating under the law of a foreign country;
b) It must keep independent accounting records;
c) It is not undergoing dissolution process or subject to revocation of enterprise registration certificate, cooperative/cooperative union/ artel registration certificate; is not facing insolvency as prescribed by the law on bankruptcy;
c) Its name is registered on VNEPS before the grant of approval for contractor or investor selection result;
dd) It must ensure competitiveness in bidding as prescribed in Article 6 of this Law;
e) It is not being prohibited from participating in bidding according to a decision issued by a competent person, Minister, head of ministerial agency, Governmental agency or another central-government agency, or Chairperson of the provincial-level People’s Committee as prescribed in Clause 3 Article 87 of this Law;
g) It is not liable to criminal prosecution;
h) Its name is included in the shortlist in case the shortlist has been made available;
i) A foreign bidder is requested to enter into a consortium with a domestic bidder or will subcontract domestic bidders, unless domestic bidders are incapable of performing any tasks of the package.
2. A bidder that is a household business shall be deemed to be eligible if meeting the following requirements:
a) It has a valid certificate of household business registration issued in accordance with regulations of law;
b) It is not undergoing the process of operation termination or subject to revocation of certificate of household business registration; the owner of the household business is not liable to criminal prosecution;
c) It meets the requirements laid down in Points d, dd, e and h Clause 1 of this Article.
3. A bidder or investor that is an individual shall be deemed to be eligible if meeting the following requirements:
a) He/she has full capacity for civil acts in accordance with regulations of the law of the country whose citizenship he/she is holding;
b) He/she possesses appropriate professional certificate(s) if required by laws;
c) He/she meets the requirements laid down in Points e and g Clause 1 of this Article.
4. A bidder or investor that meets the eligibility requirements laid down in Clause 1, 2 or 3 of this Article may participate in the bidding as an independent bidder or consortium bidder.
Thus, the eligibility requirements satisfied by bidders or investors in Vietnam shall comply with the above contents.
What are the responsibilities of contractors and investors in bidding activities in Vietnam?
Pursuant to the provisions of Article 82 of the Law on Bidding 2023 as follows:
Responsibilities of contractors, investors
1. Request the procuring entity to clarify their EOI request, prequalification document, bidding documents or RFP.
2. Provide relevant information and documents and explanations about the fulfillment of responsibilities specified in this Article at the request of the competent person, employer, procuring entity, inspecting authorities and bidding authorities.
3. In addition to the responsibilities specified in Clauses 1 and 2 of this Article, when participating in bidding through VNEPS, bidder or investor shall also:
a) Have information technology infrastructure facilities when participating in online bidding;
b) Assume legal responsibility for the accuracy and truthfulness of information which is registered and published on VNEPS.
4. Comply with terms and conditions of the signed contract.
5. Discharge other responsibilities as prescribed by this Law and relevant laws.
Thus, in bidding activities, contractors and investors have responsibilities according to the above-mentioned contents.
The Law on Bidding 2023 will take effect from January 1, 2024.
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