New regulations on bid cancellation in Vietnam according to the Law on Bidding 2023

New regulations on bid cancellation in Vietnam according to the Law on Bidding 2023 (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. New regulations on bid cancellation according to the Law on Bidding 2023

New regulations on bid cancellation according to Article 17 of the Law on Bidding 2023 are as follows:

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

- 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 the Law on Bidding 2023 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 Article 16 of the Law on Bidding 2023; or

- another organization or individual that is not the successful bidder commits any of the prohibited acts in Article 16 of the Law on Bidding 2023 resulting in inaccurate contractor selection result.

* In case of investor selection, bid cancellation shall occur when:

- 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 Article 16 of the Law on Bidding 2023; or

- another organization or individual that is not the successful investor commits any of the prohibited acts in Article 16 of the Law on Bidding 2023 resulting in inaccurate investor selection result.

* Bid cancellation may occur within the period from the issuance of the EOI request, prequalification document, bidding documents or RFP to the signing date of the contract or framework agreement in case of centralized procurement.

* Organizations and individuals that commit violations to the extent of bid cancellation as prescribed in Points c, d, dd Clause 1 and Points c, d, dd Clause 2 of Article 17 of the Law on Bidding 2023 shall pay compensation to related parties.

2. Contractor selection methods in Vietnam

Contractor selection methods in Vietnam according to Article 20 of the Law on Bidding 2023 are as follows:

- Contractor selection methods include:

+ Competitive bidding;

+ Limited bidding;

+ Direct contracting;

+ Shopping;

+ Direct procurement;

+ Self-execution;

+ Community participation;

+ Price negotiation;

+ Contractor selection in special circumstances.

- The Government shall adopt specific regulations on contractor selection methods other than those specified in Clause 1 of Article 20 of the Law on Bidding 2023 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.

More details can be found in the Law on Bidding 2023 taking effect on January 1, 2024, replacing the Law on Bidding 2013.

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