What are contractor selection methods in Vietnam? Which subjects are eligible for incentives in contractor selection in Vietnam?

What are contractor selection methods in Vietnam?

Pursuant to Article 20 of the Law on Bidding in 2023 stipulating contractor selection methods as follows:

Contractor selection methods

1. Contractor selection methods include:

a) Competitive bidding;

b) Limited bidding;

c) Direct contracting;

d) Shopping;

d) Direct procurement;

e) Self-execution;

g) Community participation;

h) Price negotiation;

i) Contractor selection in special circumstances.

2. The Government shall adopt specific regulations on contractor selection methods other than those specified in Clause 1 of this Article which are preeminent and use advanced and modern electronic equipment and facilities, procedures and subjects of such methods in conformity with new features of VNEPS and in a manner that ensures competitiveness, fairness, transparency and economic efficiency in bidding.

As regulations above, there are 09 contractor selection methods in Vietnam, including:

(1) Competitive bidding is a contractor selection method whereby there is no limit on the number of bidders.

(2) Limited bidding is a contractor selection method whereby only bidders meeting the requirements of the package are invited to submit bids.

(3) Direct contracting applies to emergency packages which need to be executed to defend national sovereignty and national security; packages which need to be executed to protect state secrets,...

(4) The shopping method applies to the following packages whose price does not exceed VND 05 billion:

- Common and uncomplicated non-consulting service packages;

- Packages for procurement of normal goods which are available on the market, have standardized technical properties and equivalent quality;

- Simple construction packages for which approved building drawing designs are available;

- PC packages of which construction tasks meet the requirements laid down in Clause 3 of this Article.

(5) Direct procurement applies to packages for purchase of similar goods of projects or procurement cost estimates of the same employer or another employer provided that the requirements must be satisfied;

(6) Self-execution: An employer that directly manages and uses goods/services of a package of a project or procurement cost estimate may themself execute that package;

(7) Community participation: Residential communities, teams or groups of adequate skilled workers in the local area where a package of a national target program or public investment program that is executed by both the State and the people is to be executed shall be assigned to take charge of the entire or part of that package provided its price does not exceed VND 05 billion.;

(8) Price negotiation applies to the following packages:

- Purchase of original brand-name drugs or reference biologicals;

- Purchase of drugs, medical devices or test equipment of a type which can only be manufactured by 01 or 02 manufacturers.

(9) Contractor selection in special circumstances shall apply to the following packages which cannot be executed adopting any of the above contractor selection methods.

What are contractor selection methods in Vietnam? Which subjects are eligible for incentives in contractor selection in Vietnam? - image from internet

What does the information on contractor selection in Vietnam include?

Pursuant to Article 7 of the Law on Bidding in 2023, information on contractor selection includes:

- Information on the contractor selection plan or project;

- Invitation for EOIs or invitation for prequalification applications;

- Invitation for bid;

- Shortlist;

- EOI request, prequalification document, bidding documents, and any addenda or responses to requests for clarification thereof;

- Bid opening results in case of online bidding;

- Contractor selection result;

- Main contents of the contract;

- Actions against violations of the bidding law;

- Information on the contractor’s performance;

- Other relevant information.

Pursuant to Clause 1 Article 10 of the Law on Bidding in 2023, subjects eligible for incentives in contractor selection are:

- Originating goods of Vietnam;

- Eco-friendly products and services as prescribed by the Law on environmental protection;

- Domestic bidders that produce originating goods of Vietnam meeting the requirements laid down in bidding documents;

- Foreign bidders and domestic bidders coming together under a consortium agreement in which the domestic bidders take charge of at least 25% of total value of tasks of the package;

- A domestic bidder that submits a bid as an independent bidder or forms a consortium with other domestic bidders to participate in an international bidding;

- Bidders that are microenterprises or small enterprises as prescribed in the Law on assistance for small and medium-sized enterprises;

- Bidders that are startups as prescribed by laws;

What are regulations on contractor selection method and procedure in Vietnam?

Pursuant to Clause 4 Article 39 of the Law on Bidding in 2023 stipulating contents of contractor selection plan:

Contents of contractor selection plan

...

4. Contractor selection method and procedure:

a) Specific contractor selection method and procedure must be determined for each package: domestic or international contractor selection; whether or not online contractor selection is employed;

b) If a project is to be executed under a contractor selection master plan, contractor selection method and procedure must be specified in conformity with the contractor selection master plan.

...

As regulations above, contractor selection method and procedure in Vietnam are as follows:

- Specific contractor selection method and procedure must be determined for each package: domestic or international contractor selection; whether or not online contractor selection is employed;

- If a project is to be executed under a contractor selection master plan, contractor selection method and procedure must be specified in conformity with the contractor selection master plan.

Best regards!