Vietnam: Contract applied to the procurement of goods according to CPTPP

According to Article 7 of the Circular No. 09/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, contract applied to the procurement of goods is as follows:

1. The contract primarily applied to the procurement of goods is a lump sum contract. If the good is particular or complex and large-scale and the time for performance of the contract is more than 18 months, the adjustable unit price contract may apply. In a case where an adjustable unit price contract applies, the bidding documents must specify the price escalation formula; during the performance of the contract, if there is a change in unit price which needs an adjustment, the bidder must prove factors which lead to such change.

2. The bidding documents shall consist of contract agreement form and terms and conditions of the contract as the basis for bid proposal and negotiation, finalization, conclusion and execution of contract.

3. The arbitrary termination of contract specified in Section 29.3 General Conditions of Contract in the form of bidding documents issued herewith may be done with the authorization of the competent person with good reasons.

4. The contract concluded between the investor and the contractor must be made in accordance with contract agreement form and conditions of contract in the bidding documents, contract amendments proposed by the investor and approved by the investor in the progress of negotiation and finalization of contract in accordance with law on bidding, CPTPP and relevant law provisions.

View more details at the Circular No. 09/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, effective from January 15, 2021.

Thuy Tram

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