Contractor selection process according to each method in Vietnam

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

1. What is bidding? Current contractor selection methods in Vietnam

Pursuant to the provisions of Clause 8, Article 4 of the Law on Bidding 2023, “bidding” means the process by which a qualified bidder will be selected to sign and execute a consulting service contract, non-consulting service contract, contract for supply of goods or construction contract or by which a qualified investor will be selected to sign and execute a project contract in a manner that ensures competitiveness, fairness, transparency, economic efficiency and accountability.

Currently, according to Clause 1, Article 20 of the Law on Bidding 2023, contractor selection methods in Vietnam include:

(1) Competitive bidding;

(2) Limited bidding;

(3) Direct contracting;

(4) Shopping;

(5) Direct procurement;

(6) Self-execution;

(7) Community participation;

(8) Price negotiation;

(9) Contractor selection in special circumstances.

2. Contractor selection process according to each method in Vietnam

Based on the provisions in Article 43 of the Law on Bidding 2023, depending on each form of bidding, the corresponding contractor selection process and procedures in Vietnam will be different. To be specific: 

(1) For competitive bidding or limited bidding method

The contractor selection process in case of competitive bidding or limited bidding includes the following steps:

Step 1: Preparation for contractor selection;

Step 2: Organization of contractor selection;

Step 3: Bid evaluation;

Step 4: Contract negotiation for a consulting service package.

With regard to procurement, construction or non-consulting service package to be executed adopting the international bidding method or a package with high technical requirements, the procuring entity may conduct contract negotiation with the first-ranked bidder if it is deemed necessary;

Step 5: Submission, appraisal, approval and disclosure of contractor selection result and provision of explanations for bidders as to why they were not successful (if any);

Step 6: Completion, signing and management of execution of contract.

(Clause 1, Article 43 of the Law on Bidding 2023)

(2) For direct contracting method

The contractor selection process in case of direct contracting includes the following steps:

Step 1: Preparation for contractor selection;

Step 2: Organization of contractor selection;

Step 3: Evaluation of proposals and negotiation on one or some proposals (if any);

Step 4: Submission, appraisal, approval and disclosure of contract selection result;

Step 5: Completion, signing and management of execution of contract;

Note: In the certain cases, the competent person may decide to adopt the simplified process, consisting of the following steps: (1) preparing and sending the draft contract to the successful bidder; (2) completing the contract; (3) submitting for approval, approving and disclosing the contractor selection result; (4) signing the contract and managing the contract execution.

- 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.

(Clause 2, Article 43 of the Law on Bidding 2023)

(3) For shopping method

The contractor selection process in case of shopping includes the following steps:

Step 1: Preparation for contractor selection;

Step 2: Organization of contractor selection;

Step 3: Bid evaluation;

Step 4: Submission, appraisal, approval and disclosure of contractor selection result and provision of explanations for bidders as to why they were not successful (if any);

Step 5: Completion, signing and management of execution of contract.

(Clause 3, Article 43 of the Law on Bidding 2023)

(4) For direct procurement method

The contractor selection process in case of direct procurement includes the following steps:

Step 1: Preparation for contractor selection;

Step 2: Organization of contractor selection;

Step 3: Evaluation of proposals and negotiation on the proposal of the selected bidder;

Step 4: Submission, appraisal, approval and disclosure of contract selection result;

Step 5: Completion, signing and management of execution of contract.

(Clause 4, Article 43 of the Law on Bidding 2023)

(5) For self-implementation

The contractor selection process in case of self-execution includes the following steps:

Step 1: Preparation of the self-execution plan, including drafting of the written assignment of tasks;

Step 2: Completion of the self-execution plan;

Step 3: Approval and disclosure of contractor selection result;

Step 4: Signing of the written assignment of tasks; management of the package execution.

(Clause 5, Article 43 of the Law on Bidding 2023)

(6) For self-execution method

The contractor selection process in case of self-execution includes the following steps:

Step 1: Preparation of the self-execution plan, including drafting of the written assignment of tasks;

Step 2: Completion of the self-execution plan;

Step 3: Approval and disclosure of contractor selection result;

Step 4: Signing of the written assignment of tasks; management of the package execution.

(Clause 6, Article 43 of the Law on Bidding 2023)

(7) Process of individual consultant selection

Individual consultants may be employed in case the tasks of a package can be performed by one or some capable and experienced experts without the participation of any organizations and without imposing execution conditions as those imposed on institutional contractors. Process of individual consultant selection includes the following steps:

Step 1: Preparation for contractor selection;

Step 2: Organization of contractor selection;

Step 3: Evaluation of scientific CVs of bidders that are individual consultants;

Step 4: Contract negotiation;

Step 5: Submission, approval and disclosure of contract selection result;

Step 6: Signing and management of execution of contract.

(Clause 7, Article 43 of the Law on Bidding 2023)

Best regards!

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