What are the prohibited acts in bidding in Vietnam? How long is the minimum time to impose prohibitions of participation in selection of contractors in Vietnam?
What are the prohibited acts in bidding in Vietnam?
Pursuant to the provisions of Article 89 of the 2013 Law on Procurement of Vietnam, the prohibited acts in bidding are as follows:
- Corrupt practice.
- Take advantage of positions, powers aiming to interfere illegally in a bidding process.
- Collusive practice, including the following acts:
+ Agreeing on bidding withdrawal or withdrawal of Letter of Bid already been submitted so that one party or parties in agreement win bid;
+ Agreeing to let one or many parties to prepare Bid for parties of bidding so that one party may win bid;
+ Agreeing on refusal for goods provision, refusal for signing contract of Subcontractor, or forms which cause other difficulties to parties which refuse to participate in agreement.
- Fraudulent practice, including the following acts:
+ Providing a wrong presentation intentionally or falsifying information, dossier or documents of a party in bidding with the aim to obtain financial benefits or other benefits or with the aim to avoid any obligation;
+ Individuals who personally assess EOI responses, Applications, Bids, Proposals, evaluate result of selection of short list, result of selection of investor, bidder, intentionally providing wrong report or untrue information falsifying the result of selection of bidders/investors.
+ Bidders/investors intentionally provide dishonest information in EOI responses, Prequalification Application, Bids, Proposals falsifying the result of selection of bidders/investors.
- Interference practice
- Inequality and intransparency
- Disclosure, receipt of the following data and information regarding selection of bidder/ investor, except for cases defined at point b clause 7 and point e clause 8 article 73, clause 12 Article 74, point i Clause 1 Article 75, Clause 7 Article 76, Clause 7 Article 78, point d Clause 2 and point d clause 4 Article 92 of the 2013 Law on Procurement of Vietnam.
- Contractor transfer to other contractor a part of work under procurement at value of 10% or more (after deducting part of work under responsibilities of Subcontractors) calculated on the signed Contract Price;
- The investor or supervision consulting accepts for contractor to transfer work under duty of contractor, deducted part of work under duty of Subcontractors as stated in contract.
- Holding selection of bidder when the financing source for the package has not yet been determined, resulting in insolvency of the contractor.
For details of all prohibited acts in bidding, see Article 89 of the 2013 Law on Procurement of Vietnam.
What are the prohibited acts in bidding in Vietnam? How long is the minimum time to impose prohibitions of participation in selection of contractors in Vietnam?
What are the penalties for violations against regulations on bidding?
Pursuant to the provisions of Article 121 of Decree No. 63/2014/ND-CP, the penalties for violations against regulations on bidding are specified as follows:
- Any entity committing any violation against the law on bidding shall be given a warning or a fine under the regulations of the law on imposition of penalties for administrative violations in the field of planning and investment.
- Any entity committing any violation prescribed in Article 89 of the Law on Procurement and Clause 8 Article 12 of Decree No. 63/2014/ND-CP shall be prohibited from participating in the bidding.
- Any individual committing any violation against the law on bidding which constitutes crimes under the regulations of the Criminal law shall be liable to criminal prosecution.
- Any official committing any violation against the law on bidding shall be penalized under the regulation of the law on officials.
How long is the minimum time to impose prohibitions of participation in selection of contractors in Vietnam?
Pursuant to the provisions of Article 122 of Decree No. 63/2014/ND-CP on prohibitions of participation in selection of contractors as follows:
Prohibition of participation in selection of contractors
Depending on the degree of the violation, an entity shall be:
1. Prohibited from participating in the bidding for 03 year to 05 years when committing any violation against the regulations in Clauses 1, 2, 3, 4 and 5 Article 89 of the Law on Bidding;
2. Prohibited from participating in the bidding for 01 year to 03 years when committing any violation against the regulations in Clauses 8 and 9 Article 89 of the Law on Bidding;
3. Prohibited from participating in the bidding for 06 months to 01 year when committing any violation against the regulations in Clauses 6 and 7 Article 89 of the Law on Bidding;
4. Prohibited from participating in the bidding for 01 year to 05 years when committing any violation against the regulations on use of employees prescribed in Clause 8 Article 12 of this Decree.
Thus, depending on the degree of the violation, the entity violating the regulations on bidding may be prohibited from participating in the selection of contractors for at least 06 months.
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