Which entities are entitled to preferences in contractor selection in Vietnam?

1. Which entities are entitled to preferences in contractor selection in Vietnam?

Based on Clause 1, Article 10 of the Vietnam Bidding Law 2023, the following entities will be eligible for preferences in contractor selection:

(1) Goods originating from Vietnam;

(2) Environmentally friendly products and services as stipulated by environmental protection laws;

(3) Domestic contractors producing goods originating from Vietnam in accordance with the bidding documents;

(4) Foreign contractors partnering with domestic contractors, where the domestic contractor undertakes 25% or more of the contract value of the package;

(5) Domestic contractors participating independently or in partnership with other domestic contractors when participating in international bidding;

(6) Contractors that are micro-enterprises or small enterprises as prescribed by laws on supporting small and medium-sized enterprises;

(7) Contractors that are innovative start-up enterprises as stipulated by law;

(8) Contractors employing 25% or more female labor; 25% or more disabled persons or veterans; 25% or more ethnic minority labor.

In total, there are 08 entities eligible for preferences in contractor selection which include: goods originating from Vietnam; environmentally friendly products; domestic contractors producing Vietnamese goods; foreign contractors partnering with domestic contractors undertaking 25% or more of the contract package; domestic contractors participating in international bidding; micro & small enterprises; innovative start-up enterprises; contractors employing significant numbers of female workers, veterans, disabled persons, and ethnic minorities.

2. What preferences are available in contractor selection in 2024 in Vietnam?

According to Clause 2, Article 10 of the Vietnam Bidding Law 2023, there are 05 preferences in contractor selection available in 2024, including the following preferences:

- Higher ranking for contractors eligible for preferences when both eligible and non-eligible contractors are evaluated equally;

- Additional points added to the evaluation score of eligible contractors in cases applying the fixed-price method, technical method, or the combination of technical and price method for comparison and ranking;

- Additional amount added to the bid price or evaluation price of non-eligible contractors in cases applying the lowest-price method or the evaluation price method for comparison and ranking;

- Priority in evaluation on capacity, experience, and other criteria during the bid evaluation process;

- Construction packages with a package price not exceeding 05 billion VND are reserved for micro-enterprises or small enterprises to bid. If no micro-enterprise or small enterprise meets the requirements, re-bidding is allowed and other enterprises can participate in bidding.

In addition, preferences in investor selection are guided by Clause 1, Article 5 of the Decree 23/2024/ND-CP as follows:

- Investors proposing solutions applying advanced technology, high technology, or environmentally friendly technology, with the best available techniques to minimize environmental pollution for projects in high-risk environmental impact groups as prescribed by environmental protection laws, will receive a 5% preference when evaluating bid proposals;

- Investors committing to transfer technology in the list of technologies prioritized for investment development as stipulated by high technology laws or the list of technologies encouraged for transfer as per technology transfer laws will receive a 2% preference when evaluating bid proposals.

Sincerely!

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