Decree 95: Bid security for Procurement under the CPTPP in Vietnam

Decree 95: Bid security for Procurement under the CPTPP in Vietnam (Illustrative Image)

In Article 12 of Decree 95/2020/ND-CP, regulations on Bid security for procurement under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in Vietnam are as follows:

1. Bid security applies in the case of open bidding for non-consulting service packages, construction services, goods procurement, and mixed packages.

2. The bidder must implement a measure to ensure bid security before the bid closing time; in the case of a two-stage bidding process, the bidder shall implement bid security in the second stage. Bid security is implemented in one of the following measures: deposit, escrow, or submission of a letter of guarantee from a domestic credit institution or foreign bank branch established under Vietnamese law or submission of an insurance guarantee certificate from domestic non-life insurers or the branch of foreign non-life insurers established under Vietnamese law.

3. The value of bid security is specified in the bid invitation documents at a defined level ranging from 1% to 3% of the bid package value, based on the scale and nature of each specific package.

4. The requirement for the minimum validity period of bid security shall be stipulated in the bid invitation documents, equal to the bid validity period plus an additional 30 days.

5. In the case of extension of the bid validity period after the bid closing time, the bid solicitor must request the bidder to extend the corresponding bid security validity period. In this case, the bidder must extend the bid security validity period accordingly and must not change the contents of the submitted bid dossier. If the bidder refuses to extend, the bid dossier will no longer be valid and will be excluded; the bid solicitor must return or release the bid security to the bidder within 20 days from the date the bid solicitor receives the extension refusal document.

6. In the event of a consortium participating in the bid, each member of the consortium may implement separate bid security or agree for one member to be responsible for implementing bid security for itself and other members of the consortium. The total value of the bid security shall not be less than the required value in the bid invitation documents. If any member of the consortium violates the provisions of Clause 8 of this Article, the bid security of all consortium members shall not be returned.

7. The bid solicitor is responsible for returning or releasing the bid security for the unsuccessful bidder within the timeframe stipulated in the bid invitation documents but not more than 20 days from the date the bid selection result is approved. For the selected bidder, the bid security shall be returned or released after the bidder implements measures to ensure contract performance as stipulated in Article 84 of this Decree.

More details can be found in Decree 95/2020/ND-CP which takes effect in Vietnam on August 24, 2020.

Ty Na

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