Can currencies of bid in international bidding be used in Vietnam dong?
Can currencies of bid in international bidding be used in Vietnam dong?
My business has been operating in the field of project investment and construction and bidding for 3 years, due to its reputation, there is a foreign company that signs a bidding contract with us and I have a question. Can I use my own currency in an international bidding project? What are penalties for signing a contract before the bidder selection result is approved in Vietnam?
Please advise. Thankyou.
Can currencies of bid in international bidding be used in Vietnam dong?
Pursuant to Clause 2, Article 10 of the Law on Bidding 2013 stipulates the currencies of bid as follows:
2. For international bidding:
a) Bidding Documents, Request for Proposals must state the currency for bidding in Bids, Proposals but not exceeding three currencies; for a specific work item, only give bid quotation in a currency kind;
b) In case where Bidding Documents, Request for Proposals stipulate that bidders may have bid quotation in two or three currencies when assessing Bids, Proposals, quotation must be converted into a currency kind; if having Vietnam dong used in such currencies, quotation must be converted into Vietnam dong. Bidding Documents, Request for Proposals must stipulate the convertible currency, time and bases to determine the exchange rate for converting;
c) For domestic costs involving performance of package, bidders must have a bid quotation in Vietnam dong;
d) For overseas costs involving performance of package, bidders may have a bid quotation in foreign currency.
Thus, in the bidding documents, there must be a stipulation on the bidding currency, but no more than three currencies for specific work items, only one currency may be offered. If it is a domestic costs involving performance of package, bidders must have a bid quotation in Vietnam dong, if it is related to overseas costs involving performance of package, bidders may have a bid quotation in foreign currency.
What are penalties for signing a contract before the bidder selection result is approved in Vietnam?
In Clause 3, Article 35 of Decree 122/2021/ND-CP on violations against contract negotiation and notification of bidder and contract selection results:
3. A fine ranging from VND 50,000,000 to VND 70,000,000 shall be imposed for any of the following violations:
a) Signing a contract before the bidder selection result is approved;
b) Performing the contract package before a contract is signed;
According to this Article, when signing a contract before the bidder selection result is approved, a fine of between VND 50,000,000 and 70,000,000 may be imposed in Vietnam.
Best Regards!
