Important notes about the cost of using online bidding services in Vietnam

Important notes about the cost of using online bidding services in Vietnam (Artwork)

Additional 02 costs from 2023

In Article 5 of Circular 06/2021 of Vietnam, 02 new costs have been added to the cost of selecting contractors and investors on the national bidding network system (hereinafter referred to as the System), including:

- The cost of the winning contractor is calculated at 0.022% of the winning bid but the maximum is VND 2,200,000 (VAT included). For a bidding package divided into several parts or separate lots, the cost of the winning contractor shall be calculated according to the winning value of each separate part or lot;

- The cost of using the e-contract is calculated at 0.022% of the contract price, but the maximum is VND 2,200,000 (VAT included).

These two types of expenses are applied from January 1, 2023 and are based on the Decision of the Minister of Planning and Investment.

Along with that, the costs of using other services still apply to current regulations, specifically:

- The cost of registering to join the System (only paid once when registering) is VND 550,000 (VAT included);

- The cost of maintaining the name and capacity profile of contractors and investors on the System is VND 550,000 for one (01) year (VAT included). Contractors and investors pay this cost from the second year onwards after the year of registration to participate in the System;

- The cost of bid submission is 330,000 VND for one (01) bidding package (VAT included); the cost of submitting the proposal is 220,000 VND for one (01) bidding package (VAT included);

- The cost of posting notice of invitation for bids, notice of invitation for expression of interest, notice of invitation for pre-qualification is 330,000 VND for one (01) bidding package or one (01) project in one (01) language (inclusive VAT tax);

- The cost of posting notices of invitation to offer, the short list is 165,000 VND for one (01) bidding package in one (01) language (VAT included).

Who pays Service fees and deadlines?

** The bid solicitor pays the cost of posting information about the bidding, including:

- Expenses for posting notices of invitation for bids, notices of invitation for expression of interest, notices of invitation for prequalification;

- Expenses for posting notices of invitations to offer, short lists.

The maximum time limit for the submission is 14 days from the date on which the information is duly posted by the bid solicitor on the System.

** Contractors pay the cost of selecting contractors and investors on the System, including:

- Registration fee to join the System (only paid once when registering;

- The cost of maintaining the name and capacity profile of contractors and investors on the System;

- Expenses for submission of bids; the cost of submitting the proposal;

- Cost of the winning contractor;

- The cost of using the E-Contract.

Deadline for submission:

- For the registration fee to join the System, the maximum payment time is 14 days from the date of approval for registration on the System;

For the cost of maintaining the contractor's name and capacity profile on the System, the deadline for submission is before April 1 of each year (except for the year of registration on the System); The contractor does not have to pay the cost of maintaining the name and profile on the System for the years when the contractor's account status is officially announced to be suspended for the whole year (from January 1 to the end of December 31 of that year) ;

In case the contractor pays the cost of maintaining the name and capacity profile on the System for many years (up to 5 years), the amount will be deducted accordingly each year; during that time, if the contractor registers to suspend the account on the System for the whole year (from January 1 to the end of December 31 of the year of registration), the remaining paid amount will be reserved and automatically deducted for the following years after the contractor registers to restore the account on the System;

- For expenses for submission of bids and proposals, the maximum time limit for submission is 14 days from the date of bid opening;

- For expenses of the winning contractor, the maximum payment time limit is 14 days from the date of signing the contract;

- For the cost of using the E-Contract, the maximum payment time is 14 days from the date the E-Contract is digitally signed by the parties on the System. In case the contractor does not choose to use the e-contract service, this fee is not required.

** Investors pay the cost to join the System including:

- The cost of registering to join the System (only paid once when registering) is VND 550,000;

- Cost of maintaining the name and capacity profile of contractors and investors on the System.

Deadline for submission:

- For the registration fee to join the System, the maximum payment time is 14 days from the date of approval for registration on the System;

- For the cost of maintaining the investor's name and profile on the System, the deadline for submission is before April 1 every year (except for the year of registration on the System); Investors do not have to pay the cost of maintaining their name and capacity profile on the System for the years when the investor's account status is officially announced to be suspended for the whole year (from January 1 to the end of December 31 of that year) ;

In case the investor pays the cost of maintaining the name and capacity profile on the System for many years (up to 05 years), the amount will be deducted accordingly each year; During that time, if the investor registers to suspend the account on the System for the whole year (from January 1 to the end of December 31 of the registration year), the remaining paid amount will be reserved and automatically deducted for the following years after the investor registers to restore the account on the System.

Bao Ngoc

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