07 measures during the transition period for procurement under CPTPP Agreement in Vietnam  (Illustrative image)

As stipulated in Article 15 of Decree 95/2020/ND-CP which regulates the measures during the transition period for procurement under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Specifically, as follows:

- From January 14, 2019, to January 13, 2026, the procurement agency must stipulate a minimum bid preparation period of 25 days, starting from the date of announcement of the invitation for bid on the National Procurement Network System (for wide-open bidding without a shortlist) or from the date of sending the invitation to bid to contractors on the shortlist (for wide-open bidding with a shortlist) until the bid closing time.

- From January 14, 2019, to January 13, 2029, the procurement agency shall apply domestic preference measures as prescribed in Clause 6 of this Article. The competent authority is responsible for determining the total value of domestic preferences within a year, not exceeding 40% of the total contract value of the bid packages under the scope of this Decree managed by them.

- From January 14, 2029, to January 13, 2044, the procurement agency shall apply domestic preference measures as prescribed in Clause 6 of this Article. The competent authority is responsible for determining the total value of domestic preferences within a year, not exceeding 30% of the total contract value of the bid packages under the scope of this Decree managed by them.

- From January 14, 2044, onward, the procurement agency is not allowed to apply domestic preference measures to the bid packages under the scope of this Decree.

- For bid packages applying domestic preference measures, the procurement agency may apply one or more of the following preference measures:

- Require contractors to bid and supply domestically produced goods for those goods that can be produced domestically and meet technical, quality, and price requirements;

- Require foreign contractors participating in bids to form a joint venture with domestic contractors or use domestic subcontractors, except in cases where domestic contractors are not capable of participating in any part of the bid package or are only capable of participating with less than 3% of the total work volume. In the case of using subcontractors, foreign contractors must submit a commitment accompanying the bid dossier, proposal dossier, indicating that upon winning the bid, they will use domestic subcontractors to execute the part of the work proposed in the bid dossier, proposal dossier;

- Require foreign contractors to transfer technology, support research and development, and other preference measures upon winning the bid in Vietnam;

- Apply preferences for goods and domestic contractors as prescribed.

Details can be found at Decree 95/2020/ND-CP which took effect on August 24, 2020.

Ty Na

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