Guidelines for selection of project developers for apartment renovation and reconstruction projects via bidding in Vietnam

Guidelines for selection of project developers for apartment renovation and reconstruction projects via bidding in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Selection of project developers for apartment renovation and reconstruction projects via bidding in Vietnam

Selection of project developers for apartment renovation and reconstruction projects via bidding according to Article 15 of Decree 69/2021/ND-CP are as follows:

- Bidding for selection of project developers for apartment renovation and reconstruction projects under this Article shall be implemented in case of failure to select project developers according to Article 14 and in case of Clause 1 Article 5 of Decree 69/2021/ND-CP.

In case of failure to select project developers according to Article 14 of Decree 69/2021/ND-CP for cases under Clause 3 Article 110 of Law on Housing, do not continue to select project developers according to Article 15 of Decree 69/2021/ND-CP.

- On the basis of list of projects in approved apartment renovation and reconstruction plans or in case of immediate deconstruction according to Clause 1 Article 5 of Decree 69/2021/ND-CP, provincial housing authority of provinces are responsible for producing list of apartment renovation and reconstruction projects for bidding for selection of project developers and reporting to People’s Committees of provinces for approval and post on website of People’s Committees of provinces.

- Prior to organizing bidding, competent authority must adopt procedures for approving investment guidelines of the projects according to regulations and law on investment, housing and this Decree. People’s Committees of provinces shall assign provincial housing authority to act as bid solicitors and assume responsibilities for organizing bidding for selection of project developers according to this Article.

- Details relating to bidding dossiers, methods and standards of assessing dossiers, determining bidding score, and criteria for selecting project developers are regulated as follows:

+ Methods and standards of bid evaluation, preparation of bidding documents and other details relating to bidding for selection of project developers shall conform to regulations and law on bidding, where assessment regarding investment effectiveness for land area specified under Clause 2 Article 25 of Decree 69/2021/ND-CP is not required, except for cases under Clause 5 of Article 15 of Decree 69/2021/ND-CP;

+ Bidding scores are determined with total scores of 100 for criteria for project implementation, including the following criteria: financial capacity, implementation experience, project progress, time of transferring houses and constructions, technical infrastructure investment, social infrastructure investment, relocation and temporary residence solutions, financial solutions for project implementation, business and commercial solutions of the projects.   

Bid solicitors shall determine specific score range of each criteria under Clause 4 of Article 15 of Decree 69/2021/ND-CP to apply on a case-by-case basis;

+ Notice forms relating to bidding shall be applied similar to forms required by bidding laws.

- In case project scope is expanded beyond land area of current apartment building or apartment complex, when determining conditions and criteria for soliciting bid for the projects, provincial housing authority must specify use quota of approved land planning for expanded area to serve as the basis for determining floor price for submission to state budget in a manner similar to construction project for commercial houses.

- Bidding procedures for selecting project developers for apartment renovation and reconstruction projects shall be similar to bidding procedures for selecting investors according to bidding laws; expenditure on organizing bidding is determined under total investment of the projects; expenditure on bid security shall conform to bidding laws.

- Investors awarded with bidding contracts according to decisions approving results of bidder selection specified under this Article shall be project developers for apartment renovation and reconstruction projects.

Project developer are responsible for preparing compensation solutions according to bidding results and send to provincial housing authority in order to take charge and cooperate with local authorities in appraising and reporting to People’s Committees of provinces;

Once compensation solutions have been approved, project developers are responsible for adopting subsequent procedures for project investment and construction according to Decree 69/2021/ND-CP and relevant law provisions.

2. Regulations on implementation of land clearance and apartment building deconstruction in Vietnam

Regulations on implementation of land clearance and apartment building deconstructiongs in Vietnam under Article 17 of Decree 69/2021/ND-CP are as follows:

- Implementation of land clearance for apartment renovation and reconstruction projects is regulated as follows:

+ For projects under Article 14 of Decree 69/2021/ND-CP, project developers shall cooperate with People’s Committees of districts where projects take place to organize compensation and land clearance for project implementation;

+ For projects under Article 15 or Article 16 of Decree 69/2021/ND-CP, implement land clearance according to land laws.

- Deconstruction of apartment buildings is regulated as follows:

+ Prior to deconstruction, project developers must prepare and approve deconstruction solutions according to construction laws;

+ Project developers shall perform deconstruction if fully capable according to construction laws or hire competent organizations to perform deconstruction according to approved solutions;

+ In case of immediate deconstruction due to incidents, natural disasters or fire, entities assigned to perform deconstruction are responsible for performing deconstruction according to construction laws.

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