What are contractor selection procedures according to the Law on Bidding in 2023 in Vietnam?

What are contractor selection procedures according to the Law on Bidding in 2023 in Vietnam?

Pursuant to the Law on Bidding in 2023, there 04 contractor selection procedures in Vietnam:

[1] Single-stage one-envelope procedure (According to Article 30 of the Law on Bidding in 2023):

Single-stage one-envelope procedure shall be adopted in the following cases:

- Competitive bidding or limited bidding for non-consulting service, procurement, construction or mixed packages, except the cases specified in Point b Clause 1 Article 31 of this Law;

- Shopping for non-consulting service, procurement, construction or PC packages;

- Direct contracting for consulting service, non-consulting service, procurement, construction, or mixed packages;

- Direct procurement for procurement packages.

[2] Single-stage two-envelope procedure (According to Article 31 of the Law on Bidding in 2023):

Single-stage two-envelope procedure shall be adopted in the following cases:

- Competitive bidding or limited bidding for consulting service packages;

- Competitive bidding or limited bidding for non-consulting service, procurement, construction, or mixed packages with high technical requirements as prescribed by the law on science and technology.

[3] Two-stage one-envelope procedure (According to Article 32 of the Law on Bidding in 2023):

Two-stage one-envelope procedure shall be adopted in the competitive bidding or limited bidding for procurement, construction, or mixed packages of which specific and adequate technical requirements are not yet imposed when the bidding is conducted.

[4] Two-stage two-envelope procedure (According to Article 32 of the Law on Bidding in 2023):

Two-stage two-envelope procedure shall be adopted in the competitive bidding or limited bidding for procurement, construction, or mixed packages which employ new, complicated and/or special techniques or technologies but of which specific and adequate technical requirements are not yet imposed when the bidding is conducted.

What are contractor selection procedures according to the Law on Bidding in 2023 in Vietnam? - image from internet

What obstructive practices are prohibited in bidding in Vietnam?

Pursuant to Clause 5 Article 16 of the Law on Bidding in 2023 (effective from 01/01/2024) stipulating prohibited acts in bidding at public health establishments:

Prohibited acts in bidding

...

5. Obstructive practice, including:

a) Destroying, deceiving, altering or concealing of evidence or making false statements; threatening, harassing or intimidating any party to prevent the verification or investigation into a corrupt, fraudulent or collusive practice made with a supervision, inspection or audit authority;

b) Obstructing the competent person, employer, procuring entity, bidders (or investors) in the course of contractor (or investor) selection;

c) Impeding competent authorities’ rights of supervision, inspection or audit of bidding activities;

d) Deliberately making false complaints, denunciations or petitions with the aim of impeding bidding process;

dd) Acts of violation against laws and regulations on cybersecurity and safety intended to intervene or impede the online bidding process.

...

As regulated above, following obstructive practices are prohibited in bidding in Vietnam:

- Destroying, deceiving, altering or concealing of evidence or making false statements; threatening, harassing or intimidating any party to prevent the verification or investigation into a corrupt, fraudulent or collusive practice made with a supervision, inspection or audit authority;

- Obstructing the competent person, employer, procuring entity, bidders (or investors) in the course of contractor (or investor) selection;

- Impeding competent authorities’ rights of supervision, inspection or audit of bidding activities;

- Deliberately making false complaints, denunciations or petitions with the aim of impeding bidding process;

- Acts of violation against laws and regulations on cybersecurity and safety intended to intervene or impede the online bidding process.

What are contractor selection methods in Vietnam?

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

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 regulated above, there 09 contractor selection methods in Vietnam, including:

[1] Competitive bidding: a contractor selection method whereby there is no limit on the number of bidders;

[2] Limited bidding: a contractor selection method whereby only bidders meeting the requirements of the package are invited to submit bids;

[3] Direct contracting: this method is conducted when there is only one contractor who meets the requirements of the investor.;

[4] Shopping: 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;

[5] Direct procurement: 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 if meeting all of the requirements prescribed by law;

[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: Price negotiation applies to the following packages:

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

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

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