Does a package for consulting services in Vietnam that does not exceed VND 50 million require the signing of a contract?

Does a package for consulting services in Vietnam that does not exceed VND 50 million require the signing of a contract?

Based on Article 23 of the Law on Bidding 2023 regarding direct contracting in Vietnam:

Article 23. Direct contracting

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4. Regarding packages or biddings whose price does not exceed VND 50 million, heads of relevant authorities/units shall decide the bidding in an economic and efficient manner, and assume responsibility for their decision; preparation, appraisal and approval for the contractor selection plan, the package cost estimate, and the signing of contracts with suppliers shall not be required but invoices, vouchers and receipts must be sufficiently provided in accordance with regulations of law.

5. The Direct contracting must be carried out within a period not exceeding 45 days from the date of approval of the request dossier to the contract signing date; in the case of a large and complex package, not exceeding 90 days.

6. In the case of packages specified in Clause 1 of this Article that meet the conditions for Direct contracting as defined in Clause 3 of this Article but still can apply other forms of contractor selection as stipulated in Articles 21, 22, 24, and 25 of this Law, it is encouraged for the competent person to decide to apply other forms to select the contractor.

7. the Government of Vietnam details point c, clause 1 of this Article.

According to the above regulations, for package for consulting servicess under 50 million VND, the head of the purchasing agency or unit is responsible for making bidding decisions to ensure savings and efficiency and is personally responsible for their decision without needing to sign a contract with suppliers but must ensure full invoicing and documentation in accordance with legal regulations.

Does a package for consulting services in Vietnam that does not exceed VND 50 million require the signing of a contract? (Internet image)

How many types of contracts are there in bidding?

Based on Article 64 of the Law on Bidding 2023 regarding types of contracts:

Article 64. Types of contracts

1. Lump sum contract:

a) A lump sum contract is applied to bidding packages where at the time of contractor selection, the scope of work, technical requirements, and implementation time of the package are clearly defined, with little possibility of change in volume, technical requirements, or unforeseen conditions; the package cannot clearly determine volume, unit price but the parties involved in the contract can determine the possibility of risk management, manage changes arising, or determine the nature, characteristics of the output, including EPC contracts and turnkey contracts;

b) When applying a lump sum contract, the package price used as the basis for bid selection includes contingency costs for risks involving work volume and price escalation that may occur during the contract implementation corresponding to the risk management responsibilities assigned to the contractor in the package. The bid price must include all costs for risks in work volume and price escalation that may arise during the contract implementation corresponding to the contractor's responsibility in performing the package;

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Thus, there are 08 types of contracts in bidding, including:

- Lump sum contract

- Fixed unit price contract

- Adjustable unit price contract

- Time-based contract

- Cost-plus-fee contract

- Output-based contract

- Percentage contract

- Mixed contract

Which entities are eligible for Incentives in contractor selection in Vietnam?

Based on Article 10 of the Law on Bidding 2023 regarding entities eligible for incentives in contractor selection in Vietnam, include:

- Goods originating from Vietnam

- Environmentally friendly products and services as per environmental protection laws

- Domestic contractors manufacturing goods originating from Vietnam in line with bidding documents

- Foreign contractors partnering with domestic contractors where domestic contractors handle 25% or more of the package value

- Domestic contractors participating independently or jointly with other domestic contractors in international bids

- Contractors being micro-enterprises or small enterprises according to laws supporting small and medium enterprises

- Contractors being innovative start-up enterprises as per legal regulations

- Contractors employing 25% or more female labor; 25% or more labor being war invalids, people with disabilities; 25% or more labor being ethnic minorities