Newest guidance on inspection of bidding activities in investor selection in Vietnam

Newest guidance on inspection of bidding activities in investor selection in Vietnam (Image from the Internet)

On September 16, 2024, the Government of Vietnam issued Decree 115/2024/ND-CP guiding the Bidding Law 2023 on the selection of investors to implement land-use investment projects.

1. Newest guidance on inspection of bidding activities in investor selection in Vietnam

As stipulated in Article 60 of Decree 115/2024/ND-CP, the inspection of bidding activities in investor selection in Vietnam is carried out as follows:

- Authority to inspect bidding activities in investor selection:

+ The Ministry of Planning and Investment presides over and organizes periodic inspections of bidding activities in investor selection nationwide;

+ Ministers, heads of ministerial-level agencies, and heads of economic zone management boards preside over and organize inspections of bidding activities in investor selection for projects under their authority;

+ The Chairperson of the provincial People's Committee presides over and organizes inspections of bidding activities in investor selection for projects under their authority. The provincial Departments of Planning and Investment are responsible for assisting the Chairperson in organizing these inspections locally.

- Contents of inspection of bidding activities in investor selection:

+ Issuance of guiding and directing documents for investor selection processes;

+ Announcement of investment projects using land (for projects requiring investment policy approval); preparation, approval, and disclosure of information for investment projects using land (for projects not requiring investment policy approval);

+ Preparation and approval of investment interest solicitation documents; evaluation of project registration dossiers, and approval of investment interest solicitation results;

+ Preparation, appraisal, and approval of tender documents; evaluation of tender dossiers, appraisal, and approval of investor selection results;

+ Content of the signed contracts and compliance with legal grounds in contract signing and execution;

+ Other necessary contents.

- Responsibilities of the inspection team, inspection team members, inspected organizations and individuals, principles of organization, forms, methods, time, finance, procedures, and inspection procedures are implemented according to corresponding regulations in Articles 115, 116, 117, 118, 119, 120, 121, and 122 of Decree 24/2024/ND-CP of the Government of Vietnam, detailing some articles and enforcement measures of the Bidding Law 2023 on contractor selection.

2. Regulations on the duration and cost of inspection of bidding activities in Vietnam

- Duration of conducting inspection of bidding activities:

+ The maximum period for direct inspection at the premises is 07 working days from the date of the inspection decision announcement, except for the case stipulated at Point b, Clause 1, Article 120 of Decree 24/2024/ND-CP. Within a maximum of 30 days from the end of the direct inspection, the inspection team must submit an inspection report. The head of the competent authority must approve the inspection conclusions within 20 days from the date the inspection team presents the draft inspection conclusions;

+ For inspections involving complex matters and multiple entities, the maximum period for direct inspection at the premises is 15 days from the date of the inspection decision announcement. Within a maximum of 40 days from the end of the direct inspection, the inspection team must submit an inspection report. The head of the competent authority must approve the inspection conclusions within 30 days from the date the inspection team presents the draft inspection conclusions.

- Costs for conducting inspections:

+ Funds for conducting inspections are allocated in the annual regular expenditure estimates of the agency presiding over the inspection activities within ministries, ministerial-level agencies, agencies under the Government of Vietnam, other central agencies, and provincial Departments of Planning and Investment according to the provisions of the State Budget Law 2015 and guiding documents;

+ State-owned enterprises arrange their own funds for conducting inspections.

(According to Article 120 of Decree 24/2024/ND-CP)

More details can be found in Decree 115/2024/ND-CP which comes into force in Vietnam from September 16, 2024.

From the effective date of Decree 115/2024/ND-CP, the following decrees cease to be effective:

- Decree 25/2020/ND-CP detailing and guiding the implementation of several articles of the Bidding Law 2023 on investor selection;

- Article 89 of Decree 35/2021/ND-CP detailing and guiding the implementation of the Public-Private Partnership Investment Law 2020.

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