What are regulations on bid security regarding the procurement of goods in Vietnam?

What are regulations on bid security regarding the procurement of goods in Vietnam? - image from internet

Pursuant to Section 19 Chapter I of the Circular 05/2015/TT-BKHDT on provisions on preparing the invitation for bid on the procurement of goods issued by the Minister of Planning and Investment, the regulations on bid security regarding the procurement of goods in Vietnam are stipulated as follows:

- When submitting a bid, the Bidder shall furnish a Bid Security before the bid closing time in the form of either a letter of credit or a bank guarantee from a bank or credit institution lawfully operating in Vietnam or a deposit in cheque as prescribed in ITB Section 19.2. The bank guarantee shall comply with form No. 04(a) and 04 (b) of Chapter VI – Bidding Forms or in another form provided that it contains essential contents. In the event that the validity period of the bid is extended as prescribed in ITB Section 18.2, the Bid Security is also extended with the same validity period.

If a joint venture make a bid, it may perform the Bid Security following one of two methods below:

+ Every member in joint venture may perform separate Bid Security provided that total value of the Bid Security is not lower than that mentioned in ITB Section 19.2; if the Bid Security is not valid, the Bid of the joint venture shall be rejected as non-responsive. If any member in joint venture violates law on bidding leading its Bid Security is not returned as prescribed in ITB Section 19.5, and the Bid Security of all members in joint venture shall not be returned.

+ If all joint venture members conclude an agreement in which one member will be responsible for its Bid Security or for Bid Security of other members in joint venture. The Bid Security shall be in the name of the joint venture or the joint venture member in charge provided that the total value is not lower than that mentioned in ITB Section 19.2. If any member in joint venture violates law on bidding leading its Bid Security is not returned as prescribed in ITB Section 19.5, and the Bid Security shall not be returned.

- Value, currency and validity period of the Bid Security shall be specified in the BDS.

- A Bid Security shall be not considered valid if it have lower value, shorter validity period as required in ITB Section 19.2, inaccurate the Purchaser’s name (beneficiary), non-original paper and invalid signature and accompanying of disadvantaged conditions to the Purchaser.

- The unsuccessful Bidder shall be either returned or released the Bid Security within the deadline as prescribed in the BDS, from the date on which the notification of the Bidder selection is sent. With regard to the successful Bidder, the Bid Security shall be returned or released after the Bidder performs Performance Security.

- The Bid Security shall not be returned in one of the following cases:

+ The Bidder withdraws its bid after the bid closing time and during the period of bid validity;

+ The Bidder violates law on bidding which leads to be cancelled bid as prescribed in ITB Section 36.1 (d);

+ The Bidder fails to conduct the Performance Security as prescribed in ITB Section 41;

+ The Bidder fails or refuses to negotiate and finalize the contract, within a period of 5 days from the date of receipt of notification of contract negotiation except for force majeure cases;

+ The Bidder fails or refuses to negotiate and finalize the contract, within a period as mentioned in the notification of contract award sent by the Purchaser except for force majeure cases.

Above are regulations on bid security regarding the procurement of goods in Vietnam. Please refer to the Circular 05/2015/TT-BKHDT for more details.

Best regards!