Expenditures for resolving investor complaints regarding investor selection results in Vietnam in 2024

Expenditures for resolving investor complaints regarding investor selection results in Vietnam in 2024 (Image from the Internet)

1. Expenditures for resolving investor complaints regarding investor selection results in Vietnam in 2024

Article 8 of Decree 115/2024/ND-CP stipulates the expenditures for resolving investor complaints about investor selection results in Vietnam as follows:

- In cases where there are complaints about investor selection results resolved by the authorized person, the investor is responsible for paying the expenditures for resolving the complaints to the standing unit assisting the Advisory Council for complaint resolution (hereinafter referred to as the Advisory Council) as stipulated in point dd clause 2 Article 90 of the Bidding Law 2023.

- The cost level paid by the investor to the Advisory Council specified in clause 1 Article 8 of Decree 115/2024/ND-CP is calculated at 0.02% of the project's total investment by the investor having the complaint but not exceeding 200,000,000 (two hundred million) VND. During the complaint process, if the investor withdraws the complaint, only 50% of the paid cost is returned if the Advisory Council is not yet established or has been established but has not yet organized a council meeting; if the Advisory Council has organized a council meeting, the investor will not be refunded the cost of resolving the complaint.

For the remaining expenditures paid by the investor, the standing unit assisting the Advisory Council submits it to the state budget within 07 working days from the time the investor withdraws the complaint.

- The standing unit assisting the Advisory Council drafts and submits the draft budget for resolving investor complaints for each case to the Chairman of the Advisory Council for approval.

- The budget draft approved by the Chairman of the Advisory Council as stipulated in clause 3 Article 8 of Decree 115/2024/ND-CP shall not exceed the cost submitted by the investor in accordance with clause 2 Article 8 of Decree 115/2024/ND-CP.

- The Chairman of the Advisory Council decides the fixed expenditures according to the approved budget for members of the Advisory Council, the standing unit assisting the Advisory Council, and other expenses to resolve the complaint. The remuneration for members of the Advisory Council resolving the complaint who are officials and public employees is implemented according to legal regulations.

- The standing unit assisting the Advisory Council is responsible for expending expenditures to resolve the complaint according to the budget approved by the Chairman of the Advisory Council.

- At the conclusion of the complaint resolution, the Chairman of the Advisory Council is responsible for confirming the funds actually spent. If the funds actually spent are less than what the investor paid to the Advisory Council, the standing unit assisting the Advisory Council is responsible for refunding the investor the difference within 07 days from the day the Chairman of the Advisory Council confirms the funds actually spent.

- If the investor's complaint is concluded to be valid, the resolution document must state explicitly that the investor gets refunded the expenditures paid for resolving the complaint. The standing unit assisting the Advisory Council must request the procuring entity to refund the investor the full amount paid by the complaining investor, minus any amount already refunded by the standing unit assisting the Advisory Council as per clause 7 Article 8 of Decree 115/2024/ND-CP (if any).

- The funding source for refunding the investor as mentioned in the complaint resolution about investor selection results is regulated as follows:

+ If the procuring entity is an administrative unit, public service provider, the funding source for refunding the investor is arranged from the unit's regular expenses budget;

+ If the procuring entity is not an administrative unit, public service provider, the funding source for refunding the investor is arranged from the operational funds of the unit.

- Organizations and individuals violating as per the complaint resolution decision on investor selection results of the authorized level shall compensate the procuring entity in accordance with the law.

2. Regulations on Management of expenditures for Investor Selection in Vietnam

- The management, usage, and settlement of expenditures for investor selection are conducted according to the state budget laws. If the inviting organizations, procuring entities, or appraisal teams are public service providers, the management, usage, and settlement of expenditures for investor selection are performed according to financial autonomy mechanisms of public service providers.

- In cases where consultancy is hired to perform part or all of the tasks mentioned in clause 1 Article 7 of Decree 115/2024/ND-CP, the total cost for investor selection, including taxes, does not exceed the approved budget for the consultancy contract. Payment to the consultancy unit is carried out according to the contract between the competent authority, procuring entity, inviting organization, and the consultancy unit. Management, usage, payment, and settlement of funds paid to the consultancy unit are conducted pursuant to current state budget laws.

(According to clause 8 Article 7 of Decree 115/2024/ND-CP)

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