What is the contractor selection duration in case of competitive bidding in Vietnam?

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 are 09 contractor selection methods in Vietnam, including:

- Competitive bidding;

- Limited bidding;

- Direct contracting;

- Shopping;

- Direct procurement;

- Self-execution;

- Community participation;

- Price negotiation;

- Contractor selection in special circumstances.

What is the contractor selection duration in case of competitive bidding in Vietnam? - image from internet

What is the contractor selection duration in case of competitive bidding in Vietnam?

Pursuant to Clause 1 Article 45 of the Law on Bidding in 2023 stipulating contractor selection duration:

Contractor selection duration

1. The contractor selection duration shall be subject to the following provisions:

a) The minimum period between the first date on which the EOI request or prequalification document is issued and the deadline for submission of bids which is given for bidders to prepare their EOIs or prequalification applications shall be 09 days for domestic bidding or 18 days for international bidding;

b) In case of competitive bidding or limited bidding, the minimum period between the first date on which the bidding documents are issued and the deadline for submission of bids which is given for bidders to prepare their bids shall be 18 days for domestic bidding or 35 days for international bidding. In case of a construction or mixed package whose price does not exceed VND 20 billion or a procurement or non-consulting service package whose price does not exceed VND 10 billion, this period shall be 09 days for domestic bidding or 18 days for international bidding;

c) In case of shopping, the minimum period between the first date on which the bidding documents are issued and the deadline for submission of bids which is given for bidders to prepare their bids shall be 05 days;

d) Where a competent person decides to apply the competitive bidding method to the selection of contractor for a package which satisfies the direct contracting requirements laid down in Points a, b and c Clause 1 Article 23 of this Law, the minimum period between the first date on which the bidding documents are issued and the deadline for submission of bids which is given for bidders to prepare their bids shall be 09 days;

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As regulated above, the contractor selection duration in case of competitive bidding in Vietnam is stipulated as follows:

- 18 days for domestic bidding between the first date on which the bidding documents are issued and the deadline for submission of bids;

- 35 days for international bidding between the first date on which the bidding documents are issued and the deadline for submission of bids;

- In case of a construction or mixed package whose price does not exceed VND 20 billion or a procurement or non-consulting service package whose price does not exceed VND 10 billion, this period shall be 09 days for domestic bidding or 18 days for international bidding.

Is competitive bidding in Vietnam required submission of bid security?

Pursuant to Clause 2 Article 14 of the Law on Bidding in 2023:

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.

3. Bid securities must be furnished prior to the deadline for submission of bids specified in the bidding documents. In case of two-stage bidding procedure, bidders or investors shall furnish bid securities in the second stage.

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As regulated above, the submission of bid security is required for competitive bidding, shopping for a consulting service, procurement, construction, mixed package or investor selection.