What are conditions for contract award for procurement of goods in Vietnam?

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

What are conditions for contract award for procurement of goods in Vietnam?

Pursuant to Clause 1, Article 61 of the Bidding Law 2023 stipulates as follows:

Article 61. Contract award for non-consulting service, procurement, construction or mixed packages

1. A bidder shall be considered successful and awarded the contract for non-consulting services, procurement of goods, construction or mixed package if the bidder:

a) has a substantially responsive bid or proposal;

b) meets capacity and experience requirements laid down in the bidding documents or RFP;

c) has a technical proposal meeting the requirements of the bidding documents or RFP;

d) has the negative value of deviations not exceeding 10% of the bid price;

dd) has the lowest bid price after error correction and deviation adjustment, and deducting the value of discounts (if any), if the least-cost method applies; or has the lowest evaluated price, if the evaluated-price method applies; or has the highest combined score, if the combined technique and price-based method applies; and

e) has a proposed successful bid price not exceeding the approved package price.

2. The notice of contractor selection result sent to an unsuccessful bidder must provide the reason(s) their bid was unsuccessful.

A bidder shall be considered successful and awarded the contract for procurement of goods if the bidder:

- has a substantially responsive bid or proposal;

- meets capacity and experience requirements laid down in the bidding documents or RFP;

- has a technical proposal meeting the requirements of the bidding documents or RFP;

- has the negative value of deviations not exceeding 10% of the bid price;

- has the lowest bid price after error correction and deviation adjustment, and deducting the value of discounts (if any), if the least-cost method applies; or has the lowest evaluated price, if the evaluated-price method applies; or has the highest combined score, if the combined technique and price-based method applies; and

- has a proposed successful bid price not exceeding the approved package price.

Are packages for procurement of goods in Vietnam eligible to apply shopping?

Pursuant to Clause 2, Article 24 of the Bidding Law 2023 stipulates as follows:

Article 24. Shopping

The shopping method applies to the following packages whose price does not exceed VND 05 billion:

1. Common and uncomplicated non-consulting service packages;

2. Packages for procurement of normal goods which are available on the market, have standardized technical properties and equivalent quality;

3. Simple construction packages for which approved building drawing designs are available;

4. PC packages of which construction tasks meet the requirements laid down in Clause 3 of this Article.

Thus, packages for procurement of goods in Vietnam shall apply shopping if they meets the following two conditions:

- Packages for procurement of goods have a price of no more than 05 billion VND.

- Goods procurement packages are normal goods which are available on the market, have standardized technical properties and equivalent quality.

Are contractors in Vietnam allowed to submit a bid for a procurement package for which the bidder is also acting as a consultant?

Pursuant to Point dd, Clause 6, Article 16 of the Bidding Law 2023:

Article 16. Prohibited acts in bidding

...

6. Inequality and non-transparency, including:

...

b) A person or entity concurrently engages in the preparation and appraisal of EOI request, prequalification document, bidding documents, or RFP of the same package or investment project;

c) A person or entity concurrently engages in the evaluation of bids or proposals and the appraisal of the contractor or investor selection result of the same package or investment project;

d) A person who is working for the procuring entity/employer directly engages in the contractor/investor selection, or acts as a member of the expert team or appraising team in charge of appraising the contractor/investor selection result, or is a competent person or head of the procuring entity/employer, for a package or investment project for which his/her family relative, as defined in the Law on enterprises, directly submits a bid or acts as the legal representative of a bidder or investor;

dd) A bidder submits a bid for a procurement, construction or non-consulting service package for which the bidder is also acting as a consultant on preparation, verification and appraisal of cost estimate, technical design, building drawings and designs, front-end engineering design (FEED); preparation and appraisal of prequalification document or bidding documents; evaluation of prequalification applications or bids; inspection of goods; appraisal of contractor selection result; supervision of contract execution;

...

According to this regulation, if contractors in Vietnam submit a bid for a procurement package for which the bidder is also acting as a consultant, it is considered an act that does not ensure fairness and transparency and is one of the prohibited acts in bidding activities.

Therefore, contractors are not allowed to submit a bid for a procurement package for which the bidder is also acting as a consultant.

Best regards!

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Key word: procurement package | consultant | procurement of goods | packages for procurement of goods | in Vietnam | Vietnam |

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