Has the Decree 24/2024/ND-CP on guidance on the Bidding Law regarding the selection of contractors in Vietnam been issued yet?

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Question date: 08/03/2024

Has the Decree 24/2024/ND-CP on guidance on the Bidding Law regarding the selection of contractors in Vietnam been issued yet? - Mr. Chien (Ha Noi)

    • Has the Decree on guidance on the Bidding Law regarding the selection of contractors in Vietnam been issued yet?

      On February 27, 2024, the Government issued Decree 24/2024/ND-CP providing guidance on the Bidding Law regarding the selection of contractors.

      According to this Decree, it stipulates certain provisions of the Bidding Law regarding the selection of contractors, including:

      - Clause 6 Article 6 on ensuring competition in bidding.

      - Clause 6 Article 10 on preferential treatment in selecting contractors.

      - Clause 3 Article 15 on costs in selecting contractors.

      - Clause 4 Article 19 on the capacity and experience of members of expert teams and appraisal teams.

      - Clause 2 Article 20 on other forms of selecting contractors.

      - Clause 7 Article 23 on direct appointment of contractors.

      - Clause 4 Article 29 on selecting contractors in exceptional cases.

      - Clause 4 Article 36 on the overall plan for selecting contractors for projects.

      - Clause 2 Article 39 on the content of the contractor selection plan.

      - Clause 8 Article 43 on the procedures and process of selecting contractors.

      - Clause 1 and Clause 5, Article 50 on selecting contractors through the internet.

      - Clause 7 Article 53 on centralized procurement.

      - Clause 3 and Clause 4, Article 55 on selecting contractors for the supply of drugs, chemicals, medical equipment, and testing materials.

      - Clause 4 Article 67 on contract signing with selected contractors.

      - Clause 6 Article 70 on contract modifications.

      - Clause 2, Article 84 on the state management responsibility for bidding.

      - Clause 4, Article 86 on inspection, examination, and monitoring of bidding activities.

      - Clause 5, Article 87 on handling violations.

      - Clause 4, Article 88 on handling situations in bidding.

      Measures for implementing the Bidding Law regarding the selection of contractors include:

      - Registration on the National Bidding Network System.

      - Timeframe for organizing the selection of contractors.

      - Decision-making authority for procurement in the procurement plan.

      - Transparency of information in bidding activities.

      - Contractor management.

      Note: The selection of contractors for the provision of products and public services through ordering and task assignment follows separate regulations of the Government.

      Has the Decree 24/2024/ND-CP on guidance on the Bidding Law regarding the selection of contractors in Vietnam been issued yet? - image from internet

      Do contractors in Vietnam receive multiple types of benefits in terms of capacity and experience evaluation?

      According to Article 4 of Decree 24/2024/ND-CP, the principle of preferential treatment is defined as follows:

      Principle of preferential treatment:

      1. Contractors participating in the bidding process who are eligible for multiple types of benefits in terms of capacity and experience evaluation or financial evaluation will only receive the most advantageous benefit for each corresponding evaluation category. The calculation of benefits will be based on the most favorable benefit for each aspect of capacity and experience evaluation or financial evaluation

      2. In cases where all participating contractors are eligible for equal benefits or none of the contractors are eligible for any benefits, there is no need to calculate or compare the benefits and rankings.

      3. For mixed contracts, the calculation of benefits is based on all proposals submitted by contractors for consultancy services, goods supply, and construction. Contractors are eligible for benefits when their proposed domestic costs (consultancy fees, non-consultancy fees, goods of Vietnamese origin, construction) account for 25% or more of the total value of the contract work.

      4. Contractors must provide evidence that they, the goods, and services they offer are eligible for the benefits as stipulated in Article 10, Clause 1 of the Bidding Law.

      Therefore, if contractors are eligible for multiple types of benefits in terms of capacity and experience evaluation, they will only receive the most advantageous benefit for each corresponding evaluation category when calculating the benefits.

      What information is included in the national database on contractors and the quality of used goods in Vietnam?

      According to Article 17 of Decree 24/2024/ND-CP, the provisions regarding the national database on contractors and the quality of used goods in Vietnam are as follows:

      (1) The national database on contractors includes:

      - Information on the legal status of contractors.

      - Information on contractor violations.

      - Information on the capacity and experience of contractors, including:

      + Financial reports or documents on revenue, net assets; compliance with tax declaration and tax payment obligations.

      + Financial resources; key personnel; major machinery and equipment.

      + Contracts already implemented and ongoing, production capacity, including the disclosure of key contents of contracts within the scope regulated by the Bidding Law.

      - Information on the reputation of contractors in participating in bidding, including information on any violations during the bidding process.

      - Information on the performance results of contracts by contractors, including the information specified in Clause 3 Article 18 of Decree 24/2024/ND-CP and information on the contract implementation process.

      - Other information about the contractors.

      (2) The national database on the quality of used goods includes the following information:

      - Name of goods.

      - Origin, manufacturer, code, label.

      - Key technical characteristics.

      - Investor, unit using the goods.

      - Quality of goods as regulated in Clauses 5, 6, and 7, Article 18 of Decree 24/2024/ND-CP.

      - Other information.

      Best regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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