Principles and beneficiaries of incentives for goods and domestic bidders in Vietnam

Principles and beneficiaries of incentives for goods and domestic bidders in Vietnam (Illustrative Image)

Decree 95/2020/ND-CP stipulates the principles and beneficiaries of incentives regarding goods and domestic bidders in procurement bidding according to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as follows:

Beneficiaries of incentives:

- For goods procurement packages, bidders are eligible for incentives when participating in intra-region and international bidding for packages applying domestic preference measures as prescribed in Article 15 of this Decree to provide goods whose domestic production costs account for 25% or more;- For consulting service packages, non-consulting services, construction services, and mixed packages, beneficiaries of incentives when participating in intra-region and international bidding, applying domestic preference measures as prescribed in Article 15 of this Decree, include: domestic bidders participating as independent bidders or in joint ventures with other domestic bidders; foreign bidders in joint ventures with domestic bidders or using domestic subbidders where the domestic contractor undertakes 25% or more of the package's value.

Preference principles:

- In the case that a contractor is subject to more than one type of preference, only one highest preference type will be applied as per the bid invitation documents or request for proposals;- For mixed packages, preference calculation is based on all proposals of the contractor in the consulting, goods supply, and construction service parts. bidders are eligible for incentives when the proposed domestic cost (consulting, goods, and construction services costs) accounts for 25% or more of the package's value;

- If after calculating incentives, the bid proposals or proposal submissions are equally ranked, preference is given to bidders with higher domestic cost proposals or those employing more local labor (calculated based on the value of wages and salaries paid).

Details can be found at Decree 95/2020/ND-CP effective from August 24, 2020.

Ty Na

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