Forms and methods of selecting investors in Vietnam according to the Law on Bidding 2023

Forms and methods of selecting investors in Vietnam according to the Law on Bidding 2023​ (Image from Internet)

1. Forms of selecting investors in Vietnam according to the Law on Bidding 2023​

According to Article 34 of the Law on Bidding 2023​, the forms of selecting investors in Vietnam are as follows:

- Open Bidding:

Open bidding is applied to business investment projects without limiting the number of participating investors.

- Restricted Bidding:

Restricted bidding is applied to business investment projects with high technical or technological requirements, or that have specific characteristics according to the legal provisions of managing the sector or field where only certain investors meet the project's requirements are invited to bid.

2. Methods of selecting investors in Vietnam according to the Law on Bidding 2023​

According to Article 35 of the Law on Bidding 2023​, the methods of selecting investors in Vietnam include:

- Single-stage, one-envelop process:

+ The single-stage, one-envelop process is applied in cases of open bidding, restricted bidding to select investors;

+ Investors submit bid documents including technical proposals and financial proposals according to the requirements of the bidding invitation documents;

+ Bid opening is conducted once for the entire bid documents.

- Single-Stage, two-envelope process:

+ The single-Stage, two-envelope process is applied in cases of open bidding to select investors for business investment projects requiring architectural works with value according to architectural law;

+ Investors simultaneously submit separate technical and financial proposals according to the requirements of the bidding invitation documents;

+ Bid opening is conducted twice. The technical proposal is opened immediately after the bid closing. Investors meeting the technical requirements will have their financial proposal opened for evaluation.

- Two-stage, one-envelope process:

The two-stage, one-envelope process is applied in cases of open bidding to select investors for implementing business investment projects with unique economic, social development requirements of the sector, region, or locality where specific technical, economic, social, or environmental criteria have not been determined.

3. Procedures for selecting investors in Vietnam

The procedures for selecting investors according to Article 46 of the Law on Bidding 2023​ are as follows:

- The investor selection process includes the following steps:

+ Announce business investment projects;

+ Prepare bidding for selecting investors, including drafting, appraising, and approving bidding invitation documents;

+ Organize bidding to select investors, including inviting bids; issuing, amending, clarifying bidding invitation documents; preparing, submitting, receiving, managing, amending, withdrawing, replacing bid documents;

+ Evaluate bid documents, including opening bids; checking and evaluating the validity of bid documents; detailed evaluation of bid documents;

+ Submit, appraise, approve, and publicize the results of investor selection; explain reasons for investors not winning the bid upon request (if any);

+ Negotiate, finalize, and sign contracts.

- In cases where the law on land, the law on sector management, and fields requires bidding to select investors when there are two or more interested investors, in addition to the steps specified in clause 1 of Article 46 of the Law on Bidding 2023​, the competent authority shall prepare documents for expressing interest, announce the invitation for interest, organize the evaluation of registration dossiers for project implementation, and approve the results of invitation for interest before conducting the bidding preparation step to select investors specified at point b of clause 1 of Article 46 of the Law on Bidding 2023​.

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