In Vietnam: Where will the bid security money of a bidder who violates the bidding be paid to?

What is the validity period of bid security in Vietnam?

Pursuant to Clause 5 Article 14 of the Law on Bidding in 2023 (effective from 01/01/2024) stipulating the validity period of bid security in Vietnam as follows:

Bid security

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5. The validity period of bid security is specified in the bidding documents and equals the bid validity period plus 30 days.

6. In case the validity period of a bid is extended after the deadline for submission of bids, the procuring entity shall request the bidder or investor whose bid is extended to extend the validity period of their bid security for a corresponding additional period. In this case, the bidder or investor shall follow procedures for extending the validity period of their bid security for a corresponding additional period and shall not be permitted to modify their bid. If the bidder or investor refuses to extend the validity period of their bid security, their bid shall be considered invalid and rejected. The procuring entity shall return or release the bid security to the bidder or investor within 14 days from the day on which the procuring entity receives the bidder or investor’s written refusal.

7. In case of a consortium, each consortium member may furnish a separate bid security or reach an agreement to appoint a member to provide bid securities for that member and all other members of the consortium. Total value of bid securities shall not be lower than the amount of bid security specified in the bidding documents. If any member of the consortium commits violations as prescribed in Clause 9 of this Article, the bid securities of all consortium members shall not be returned.

As regulations above, the validity period of bid security is specified in the bidding documents and equals the bid validity period plus 30 days.

In Vietnam: Where will the bid security money of a bidder who violates the bidding be paid to? - Source: Internet

In Vietnam: Where will the bid security money of a bidder who violates the bidding be paid to?

Pursuant to Clause 10 Article 14 of the Law on Bidding in 2023 (effective from 01/01/2024), amounts of bid securities and/or performance securities forfeited shall be used according to the following provisions:

- Regarding projects or packages funded by state budget, these amounts shall be paid to state budget in accordance with regulations of the Law on state budget;

- Regarding projects or packages not funded by state budget, or investment projects, these amounts shall be used according to financial regulations adopted by employers or competent authorities;

- If the procuring entity is a bidding consultant selected by the employer, these amounts shall be paid to the employer.

The employer shall manage and use this income in the same way as for projects, packages with state budget capital and without state budget capital, and business investment projects.

What are cases in which the submission of bid security is required in Vietnam?

Pursuant to Clause 2 Article 14 of the Law on Bidding in 2023 (effective from 01/01/2024) stipulating bid security as follows:

Bid security

1. Bidders or investors shall furnish bid securities in one of the following forms in order to ensure their fulfillment of responsibilities for a period specified in the bidding documents:

a) Pay a deposit;

b) Submit a letter of guarantee issued by a domestic credit institution or foreign bank branch lawfully established under the law of Vietnam; or

c) Submit a certificate of surety bond insurance issued by a domestic non-life insurer or branch of a foreign non-life insurer duly established under the law of Vietnam.

2. The submission of bid security is required in the following cases:

a) Competitive bidding, limited bidding or shopping for a consulting service, procurement, construction or mixed package;

b) Competitive bidding or limited bidding for investor selection.

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As regulations above, the submission of bid security is required in the following cases:

- Case 1: Competitive bidding, limited bidding or shopping for a consulting service, procurement, construction or mixed package;

- Case 2: Competitive bidding or limited bidding for investor selection.

Best regards!