Which acts are considered as acts of collusive practice in Vietnam? In which cases is the bid canceled in Vietnam?

Which acts are considered as acts of collusive practice in Vietnam?

Pursuant to Clause 3, Article 16 of the 2023 Bidding Law, regulations on collusive practice are as follows:

Article 16. Prohibited acts in bidding

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3. Collusive practice, including:

a) Reaching, with or without undue influence, an arrangement or agreement which is designed to let one or more parties to prepare bids for all bidders or to withdraw submitted bids so that one of them will win the bid;

b) Reaching an arrangement or agreement on refusal to supply goods or services, or subcontract, or reaching other agreements to limit competition so that one party will win the bid;

c) A bidder or investor with appropriate qualifications and experience has submitted a bid and meets the requirements laid down in the bidding documents but deliberately refuses to provide additional documents proving their capacity and experience at the procuring entity’s request for clarification of the bid or verification of their submitted documents with the aim of facilitating one party’s winning of the bid.

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Thus, collusive practice is a prohibited act in bidding activities, including the following acts:

- Reaching, with or without undue influence, an arrangement or agreement which is designed to let one or more parties to prepare bids for all bidders or to withdraw submitted bids so that one of them will win the bid;

- Reaching an arrangement or agreement on refusal to supply goods or services, or subcontract, or reaching other agreements to limit competition so that one party will win the bid;

- A bidder or investor with appropriate qualifications and experience has submitted a bid and meets the requirements laid down in the bidding documents but deliberately refuses to provide additional documents proving their capacity and experience at the procuring entity’s request for clarification of the bid or verification of their submitted documents with the aim of facilitating one party’s winning of the bid.

Which acts are considered as acts of collusive practice in Vietnam? In which cases is the bid canceled in Vietnam? (Image from the Internet)

In what cases can a bid be canceled for contractor selection in Vietnam?

Pursuant to Clause 1, Article 17 of the 2023 Bidding Law, the regulations on bid cancellation are as follows:

Bid cancellation

1. In case of contractor selection, bid cancellation shall occur when:

a) all EOIs, prequalification applications, bids or proposals are considered substantially nonresponsive to the EOI request, prequalification document, bidding documents or RFP;

b) there are changes in the objectives and scope of investment specified in the investment decision resulting in changes in volume of tasks and evaluation criteria specified in the EOI request, prequalification document, bidding documents or RFP;

c) the EOI request, prequalification document, bidding documents or RFP does not comply with regulations laid down in this Law or other relevant laws to the extent that the selected bidder fails to meet the requirements of the package;

d) the successful bidder commits any of the prohibited acts in Article 16 of this Law; or

dd) another organization or individual that is not the successful bidder commits any of the prohibited acts in Article 16 of this Law resulting in inaccurate contractor selection result.

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Thus, bid cancellation for contractor selection in the following cases:

- All EOIs, prequalification applications, bids or proposals are considered substantially nonresponsive to the EOI request, prequalification document, bidding documents or RFP;

- There are changes in the objectives and scope of investment specified in the investment decision resulting in changes in volume of tasks and evaluation criteria specified in the EOI request, prequalification document, bidding documents or RFP;

- The EOI request, prequalification document, bidding documents or RFP does not comply with regulations laid down in this Law or other relevant laws to the extent that the selected bidder fails to meet the requirements of the package;

- The successful bidder commits any of the prohibited acts in bidding activities;

- Another organization or individual that is not the successful bidder commits any of the prohibited acts in bidding activities resulting in inaccurate contractor selection result

In what cases can a bid be canceled for investor selection in Vietnam?

Pursuant to Clause 2, Article 17 of the 2023 Bidding Law stipulating the cancellation of bids for the investor selection:

- All bids are considered substantially nonresponsive to the bidding documents;

- There are changes in the objectives, scale, location, investment capital or duration of investment project execution due to force majeure events resulting in changes in evaluation criteria specified in the issued bidding documents;

- One or some contents of the bidding documents does not comply with regulations laid down in this Law or other relevant laws resulting in inaccurate investor selection result or to the extent that the selected investor fails to meet the requirements of the investment project;

- The successful investor commits any of the prohibited acts in bidding activities; or

- Another organization or individual that is not the successful investor commits any of the prohibited acts in bidding activities resulting in inaccurate investor selection result.

Best regards!