Are packages for construction in Vietnam eligible to apply direct contracting?

Regarding this matter, LawNet would like to answer as follows:

Are packages for construction in Vietnam eligible to apply direct contracting?

Pursuant to Point b, Point c, Point m, Clause 1, Article 23 of the Bidding Law 2023:

Article 23. Direct contracting

1. Direct contracting applies to:

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b) Packages for consulting services, non-consulting services, supply of goods or construction which need to be executed immediately to prevent direct harm to the life and property of local communities or serious impacts on adjacent works;

c) Packages for supply of consulting services, non-consulting services, drugs, chemicals, test equipment, medical devices, spare parts, accessories, facilities, or construction, which need to be executed immediately to serve epidemic and disease prevention and combat or maintain operation of health facilities in urgent cases so as to avoid causing harm to the life and health of people; packages for procurement of drugs, chemicals, test equipment, medical devices, spare parts, accessories used in giving emergency aid to patients as prescribed in the Law on Medical Examination and Treatment in case health facilities lack such drugs, chemicals, test equipment, medical devices, spare parts, accessories; packages for procurement of drugs or medical devices which can be manufactured by the only one manufacturer in the market;

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m) Packages of procurement cost estimates whose price ranges from VND 50 million to VND 100 million; packages of investment projects of state-owned enterprises or wholly state-owned enterprises and investment projects defined in the Law on public investment, including: consulting service packages whose price does not exceed VND 500 million, and packages for non-consulting services, procurement of goods, construction, or mixed packages whose price does not exceed VND 01 billion.

Thus, packages for construction shall apply direct contracting if they fall into the following cases:

- Packages for construction which need to be executed immediately to prevent direct harm to the life and property of local communities or serious impacts on adjacent works.

- Packages for construction, which need to be executed immediately to serve epidemic and disease prevention and combat or maintain operation of health facilities in urgent cases so as to avoid causing harm to the life and health of people.

- Packages for construction whose price does not exceed VND 01 billion of investment projects of state-owned enterprises or wholly state-owned enterprises and investment projects defined in the Law on public investment 2019.

Which packages for construction in Vietnam apply single-stage one-envelope procedure?

Pursuant to Clause 1, Article 30 of the Bidding Law 2023:

Article 30. Single-stage one-envelope procedure

1. Single-stage one-envelope procedure shall be adopted in the following cases:

a) Competitive bidding or limited bidding for non-consulting service, procurement, construction or mixed packages, except the cases specified in Point b Clause 1 Article 31 of this Law;

b) Shopping for non-consulting service, procurement, construction or PC packages;

c) Direct contracting for consulting service, non-consulting service, procurement, construction, or mixed packages;

d) Direct procurement for procurement packages.

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Thus, the single-stage one-envelope procedure applies to packages for construction in Vietnam in the following cases:

- Packages for construction that apply the forms of competitive bidding or limited bidding, except in cases where packages for construction require high technology according to the provisions of the law on science and technology.

- Packages for construction that apply the form of shopping.

- Packages for construction that apply the form of direct contracting.

What criteria for evaluating bids submitted by investors in Vietnam?

Pursuant to Clause 2, Article 62 of the Bidding Law 2023 stipulates as follows:

Article 62. Bid evaluation methods

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2. Bids submitted by investors shall be evaluated according to the following criteria:

a) Criteria for evaluation of the investor’s capacity, including financial and funding arrangement capacity, and experience in executing similar investment projects;

b) Criteria for evaluation of the investor’s investment plan, including technical, social and environmental criteria;

c) Criteria for evaluation of efficiency in land use and investments in sectoral or local development.

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Therefore, bids submitted by investors shall be evaluated according to the following criteria:

- Criteria for evaluation of the investor’s capacity, including financial and funding arrangement capacity, and experience in executing similar investment projects;

- Criteria for evaluation of the investor’s investment plan, including technical, social and environmental criteria;

- Criteria for evaluation of efficiency in land use and investments in sectoral or local development.

Best regards!

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