What are regulations on advance payment for procurement contracts under the CPTPP agreement in Vietnam?

What are regulations on advance payment for procurement contracts under the CPTPP agreement in Vietnam?

Based on Article 90 of Decree 95/2020/ND-CP, the regulations on advance payment for procurement contracts under the CPTPP agreement in Vietnam are as follows:

1. Advance payment is a payment made to a contractor before the work is completed.

2. The amount of the advance payment is determined based on the scale and nature of the contract. The contract should specify the amount of the advance payment, the timing of the advance payment, the performance bond, the drawdown schedule, the responsibility of the parties in managing and using the advance payment, and the recovery of the advance payment in the event that the advance payment is not used for the intended purpose.

3. The contractor is responsible for managing the use of the advance payment for the intended purpose, the right recipient, and efficiently. It is strictly prohibited to make advance payments that are not used or used for the wrong purpose.

4. For the production of large-value components and semi-finished products, and some seasonal materials, the contract should specify the advance payment plan and the amount of advance payment to ensure the progress of the contract.

What are regulations on advance payment for procurement contracts under the CPTPP agreement in Vietnam? - Source: Internet

What are regulations on payment for procurement contracts under the CPTPP agreement in Vietnam?

Based on Article 91 of Decree 95/2020/ND-CP, the regulations on payment for procurement contracts under the CPTPP agreement in Vietnam are as follows:

1. The contract price and the specific payment terms stated in the contract are the basis for payment to the contractor. In the event that the owner fails to make payment on time as stipulated in the contract, it shall be responsible for paying interest on the delayed payment amount to the contractor as stipulated in the contract.

2. Payment is not based on the estimate or the current regulations and guidelines of the State on norms and unit prices; it is not based on the unit price in the financial invoice for the contractor's input factors such as materials, machinery, equipment, and other input factors.

3. In a contract with multiple types of contracts, the payment principle corresponding to each type of contract is applied.

What are regulations on payment for the type of procurement contracts by lump sum under the CPTPP agreement in Vietnam?

Based on Article 92 of Decree 95/2020/ND-CP, the regulations on payment for the type of procurement contracts by lump sum under the CPTPP agreement in Vietnam are as follows:

1. Principles of payment:

Payment for a lump-sum contract is made in installments after each acceptance with a value corresponding to the completed work or once after the contractor completes its obligations under the contract with a value equal to the contract price minus the advance payment value (if any). In cases where it is not possible to determine the detailed value of completion corresponding to each work item or completion acceptance phase, payment can be made according to the percentage (%) of the contract value.

2. Payment documents for a lump-sum contract include:

a) A certificate of acceptance of the quantity of work completed in the payment period with the confirmation of the contractor, the owner, and the supervising consultant (if any). This quantity confirmation certificate is a confirmation of the completion of the project, the project item, and the project work in accordance with the design without the need to confirm the detailed quantity of completion;

b) For goods procurement: Depending on the nature of the goods, the payment documents are specified accordingly, such as the contractor's invoice, a list of packaged goods, transportation documents, insurance policy, quality certificate, goods acceptance certificate, certificate of origin, and other relevant documents and certificates.

Best regards!