Conditions for recognition of the eligibility of bidder or investor in Vietnam

Conditions for recognition of the eligibility of bidder or investor in Vietnam (Internet image)

1. What is contractor?

Pursuant to Clause 35,36,37,38, Article 4 of the Law on Bidding 2013 stipulating contractors as follows:

- Contractor means a bidder liable for its participation in bidding which gives its name to a tender, and which directly signs in and implements a contract if selected. Contractor may be an individual contractor or JV’s Party.

- Subcontractor means a contractor performing part of the work of a package on the basis of a contract signed with the Contractor. The special Subcontractor means a Subcontractor performing special works of a package proposed by the Contractor in Bid, Proposal on the basis of requirements stated in Bid, Request for Proposals.

- Foreign Contractor means an organization established under foreign law or an individual of foreign nationality making a bid in Vietnam.

- Domestic Contractor means an organization established under Vietnamese law or individual of Vietnamese nationality making a bid.

2. What is investor?

In Clauses 18,19,20, Article 3 of the Law on Investment 2020, investors are prescribed as follows:

- Investor means an organization or individual that carries out business investment activities. Investors include domestic investors, foreign investors and foreign-invested business organizations.

- Foreign investor means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.

- Domestic investor means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors.

3. Conditions for recognition of the eligibility of bidder or investor being an organization in Vietnam

Clause 1, Article 5 of the Law on Bidding 2013 stipulates that a bidder or investor being an organization shall be deemed to be eligible when it satisfies the following conditions:

- Having registration for establishment and operation issued by the competent authority of country where it is operating;

- Keeping independent accounting records;

- Not undergoing dissolution process, are not thrown into bankruptcy, and do not incur bad debts as prescribed by law.

- Having registered on National E-procurement System;

- Ensuring the competitiveness in bidding as prescribed in Article 6 hereof;

- Not being banned from bidding;

- Its name is stated in short list for case where the short list has been selected;

- Being in a joint venture with domestic contractors or employment of domestic subcontractors in case of a foreign contractor making an international bidding in Vietnam, unless the domestic contractor cannot acquire the competencies necessary to perform any portion of the package.

4. Conditions for recognizing the eligibility of a bidder or investor being an individual in Vietnam

Clause 2, Article 5 of the Law on Bidding 2013 stipulates that a bidder or investor being an individual shall be deemed to be eligible when it satisfies the following conditions:

- Having full legal capacity as per the law of the country of which such individual is a citizen;

- Having an appropriate professional certificate as prescribed by law;

- Having lawful registration for operation as prescribed by law;

- Not facing a criminal prosecution;

- Not being banned from bidding.

Note:

Bidders and investors with eligibility as prescribed in Clause 1 and Clause 2 of Article 5 of the Law on Bidding 2013 may make a bid as an independent bidder/investor or in a joint venture;

In case of joint venture, it must have written agreement among members, in which clearly stating responsibilities of the leading JV's Party and general responsibilities, particular responsibilities of each JV’s Party.

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