Vietnam: What is the international bidding? What are the regulations on currencies of bid using in international bidding?
- Vietnam: What is the international bidding? What are the regulations on currencies of bid using in international bidding?
- Will the international bidding for procurement package be organized if the good to be procured cannot be manufactured in Vietnam?
- What are the cases where the international bidding shall not be organized for selecting qualified investors in Vietnam?
Vietnam: What is the international bidding? What are the regulations on currencies of bid using in international bidding?
Pursuant to Clause 10, Article 4 of the Law on Bidding 2023 as follows:
“international bidding” means the bidding process with the participation of both domestic and foreign bidders or investors.
Pursuant to Article 13 of the Law on Bidding 2023, currencies of bid are as follows:
Currencies of bid
1. In case of domestic bidding, bidders or investors shall be allowed to quote their bids in VND only.
2. In case of international bidding:
a) The bidding documents or RFP shall indicate the specific currencies to be used in the bids or proposals but no more than 03 currencies shall be allowed;
b) If bidders or investors are allowed to quote their bids in 02 or 03 various currencies as prescribed in bidding documents, conversion into a single currency shall be required when conducting the bid evaluation. If such currencies include VND, conversion into VND is required. The currency of conversion, time and basis for determining the exchange rate must be included in the bidding documents;
c) Costs incurred in Vietnam in association with the execution of a package, project or investment project shall be quoted in VND;
d) Costs incurred in a foreign country in association with the execution of a package, project or investment project shall be quoted in the local currency of that country, VND.
Thus, in case of international bidding, the regulation on currencies of bid is as follows:
- The bidding documents or RFP shall indicate the specific currencies to be used in the bids or proposals but no more than 03 currencies shall be allowed;
- If bidders or investors are allowed to quote their bids in 02 or 03 various currencies as prescribed in bidding documents, conversion into a single currency shall be required when conducting the bid evaluation. If such currencies include VND, conversion into VND is required. The currency of conversion, time and basis for determining the exchange rate must be included in the bidding documents;
- Costs incurred in Vietnam in association with the execution of a package, project or investment project shall be quoted in VND;
- Costs incurred in a foreign country in association with the execution of a package, project or investment project shall be quoted in the local currency of that country, VND.
Vietnam: What is the international bidding? What are the regulations on currencies of bid using in international bidding? (Image from the Internet)
Will the international bidding for procurement package be organized if the good to be procured cannot be manufactured in Vietnam?
Pursuant to Article 11 of the Law on Bidding 2023 as follows:
International bidding
1. International bidding may be organized if one of the following conditions is satisfied:
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d) In case of a procurement package, the good to be procured cannot be domestically manufactured or none of domestic manufacturers of such a good satisfies all technical, quality and price requirements. If the good to be procured is a common good which has been imported and sold in Vietnam, the organization of international bidding is not allowed.
...
Thus, In case of a procurement package, the good to be procured cannot be domestically manufactured or none of domestic manufacturers of such a good satisfies all technical, quality and price requirements.
What are the cases where the international bidding shall not be organized for selecting qualified investors in Vietnam?
Pursuant to Article 11 of the Law on Bidding 2023, regulations on international bidding as follows:
International bidding
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2. International bidding shall be organized for selecting qualified investors for the investment projects specified in Clause 3 Article 2 of this Law, except the following cases:
a) Projects involving business lines from which foreign investors are prohibited as prescribed by the Law on investment;
b) Projects for which the domestic bidding is compulsory for the purposes of national defense and security, social order and security;
c) Projects located in land areas or sea areas the use of which is restricted to foreign investors and foreign-invested business organizations as prescribed by the Law on land and relevant laws;
d) Projects with a total investment of less than VND 800 billion;
dd) Projects other than those specified in Points a, b, c and d of this Clause for which the invitation for EOI under international bidding has been sent but no EOIs are received from foreign bidders.
International bidding shall be organized for selecting qualified investors for the investment projects specified in Clause 3 Article 2 of the Law on Bidding 2023, except the following cases:
- Projects involving business lines from which foreign investors are prohibited as prescribed by the Law on investment;
- Projects for which the domestic bidding is compulsory for the purposes of national defense and security, social order and security;
- Projects located in land areas or sea areas the use of which is restricted to foreign investors and foreign-invested business organizations as prescribed by the Law on land and relevant laws;
- Projects with a total investment of less than VND 800 billion;
- Projects other than those specified in Points a, b, c and d of this Clause for which the invitation for EOI under international bidding has been sent but no EOIs are received from foreign bidders.
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