What are contents of the bidding documents for investment projects involving land use in Vietnam?

What are contents of the bidding documents for investment projects involving land use in Vietnam? - image from internet

Pursuant to Clause 2 Article 47 of the Decree 25/2020/ND-CP (effective from 20/04/2020) stipulating contents of the bidding documents for investment projects involving land use in Vietnam:

- Overall information about the project, including the project’s name, purposes, location, scale; initial execution schedule; status of the land area; planning criteria;

- Instructions for investors, including bidding procedures and the bid data sheet;

- Project execution, architecture, environment, safety requirements and other contents of the project (if any);

- Bid evaluation criteria, including criteria for evaluating investors’ capacity and experience, technical criteria, financial criteria and evaluation methods;

- Bid forms, including the letter of bid, technical proposal, financial - commercial proposal, bid security, commitment of finance organization (if any) and other forms;

- Land allocation or land lease duration; land use purposes and proportions;

- Land levy or land rent estimated by the procuring entity using the most appropriate land pricing method and input parameters.

The land levy or land rent shall be paid by the successful investor (the selected investor) when a decision on land allocation or land lease is issued by a state authority in accordance with land laws;

- Total cost of project execution (excluding the cost of compensation, assistance and relocation land levy or land rent (m1)) estimated by the procuring entity in accordance with construction laws, ensuring efficient use of the land area.

- Plan and cost of compensation, assistance and relocation. The cost of compensation, assistance and relocation (m2) is calculated according to:

+ Land compensation;

+ Remaining value of investment in the land area upon land expropriation by the State (if any);

+ Compensation for housing, construction, property on land and business loss upon land expropriation by the State;

+ Assistance amount upon land expropriation by the State (if any), including: assistance in life stabilization; training, career change and job finding; assistance in relocation; other assistance;

+ Cost of organization of land clearance and compensation.

- Minimum state budget contribution (m3) calculated by the procuring entity as follows:

m3 = s x ΔG x k, where:

+ S: area of levied land or leased land;

+ ΔG: average increase in value after land use right auction per unit of area of land with the same uses in the same area. In case such a land area is not available, land data of administrative divisions with similar socio-economic conditions may be used;

+ k: coefficient of average increase in value after land use right auction, with account taken of the similarity of the land area of the project and other factors (if any).

This value is relative, is the basis for investors to propose state budget contribution, and independent from the land levy or land rent payable the investor according to land laws.

- The draft contract, including project execution requirements, land allocation or land lease duration; land area; estimated land levy or land rent and method for determination thereof; input parameters or how to determine input parameters according to the applied pricing method; applicable regulations; bonuses and penalties; force majeure events; reconsideration of contract during project operation and other contents.

Best regards!