What is the summary of packages and contractors receiving incentives for domestic bidding in Vietnam in 2024?
What is the summary of packages and contractors receiving incentives for domestic bidding in Vietnam in 2024?
Pursuant to Article 7 of Decree 24/2024/ND-CP, incentives for domestic bidding in 2024 include:
- For goods procurement packages, the application of incentives for Vietnamese-origin goods shall comply with Article 5 of Decree 24/2024/ND-CP.
Packages with a fixed budget under 500 million VND seeking bidders with at least 50% of their workforce being disabled, war invalids, or ethnic minorities under valid 3-month contracts or longer at the bid submission deadline, can only be authorized by the competent persons. If no bidders or no qualified bidders participate in the authorized procurement, it will be re-organized to allow participation from a wider pool of bidders.
- For construction packages with a fixed budget of up to 5 billion VND, incentives for micro and small enterprises shall comply with Point dd, Clause 2, Article 10 of the Law on Bidding 2023.
- Incentives for domestic IDEs are implemented according to Article 8 of Decree 24/2024/ND-CP.
- Incentives for domestic bidders that produce Vietnamese-origin goods are implemented according to Article 9 of Decree 24/2024/ND-CP.
- Incentives for information technology services comply with the law on information technology.
What is the summary of packages and contractors receiving incentives for domestic bidding in Vietnam in 2024? (Image from the Internet)
What are the principles of incentives for bidding in Vietnam?
Pursuant to Article 4 of Decree 24/2024/ND-CP, principles of incentives include:
- Bidders eligible for multiple incentives in the capacity and experience or financial assessments will receive only the most advantageous incentive per evaluation item.
- If all bidders receive the same incentives or none qualify, incentive calculations for comparison and ranking are not necessary.
- For mixed packages, the calculation of incentives is based on all proposals of the bidders in the consulting work, supply of goods, construction. Bidders qualify for incentives if they propose domestic costs (costs of consulting, non-consulting, Vietnamese-origin goods, construction, and installation) of at least 25% of the work value of the package.
- The bidder must prove that they, goods and services offered by the bidder are eligible for incentives as prescribed in Clause 1, Article 10 of the Law on Bidding 2023.
What is the eligibility of bidders or investors in Vietnam in 2024?
Pursuant to Article 5 of Law on Bidding 2023, eligibility of bidders or investors is as follows:
(1) A bidder or investor that is an organization shall be deemed to be eligible if meeting the following requirements:
- 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;
- It must keep independent accounting records;
- 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;
- Its name is registered on VNEPS before the grant of approval for contractor or investor selection result;
- It must ensure competitiveness in bidding as prescribed in Article 6 of Law on Bidding 2023;
- 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 Law on Bidding 2023;
- It is not liable to criminal prosecution;
- Its name is included in the shortlist in case the shortlist has been made available;
- 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:
- It has a valid certificate of household business registration issued in accordance with regulations of law;
- 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;
- It meets the requirements laid down in Points d, dd, e and h Clause 1 of Article 5 of Law on Bidding 2023.
(3) A bidder or investor that is an individual shall be deemed to be eligible if meeting the following requirements:
- He/she has full capacity for civil acts in accordance with regulations of the law of the country whose citizenship he/she is holding;
- He/she possesses appropriate professional certificate(s) if required by laws;
- He/she meets the requirements laid down in Points e and g Clause 1 of Article 5 of Law on Bidding 2023.
(4) A bidder or investor that meets the eligibility requirements laid down in (1), (2) or (3) may participate in the bidding as an independent bidder or consortium bidder.
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