Incentives for Vietnamese-origin goods with a domestic production cost ratio of 50% or more in bidding in Vietnam

Incentives for Vietnamese-origin goods with a domestic production cost ratio of 50% or more in bidding in Vietnam (Image from Internet)

Incentives for Vietnamese-origin goods with a domestic production cost ratio of 50% or more in bidding in Vietnam

According to the provisions in Clause 2, Article 5 of Decree 24/2024/ND-CP, incentives for Vietnamese-origin goods with a domestic production cost ratio of 50% or more in bidding in Vietnam are determined as follows:

- When applying the lowest price method, goods not entitled to Incentives must add an amount equal to 10% of the bid price after error correction and adjustment, minus any discounts (if any), to the bid price for comparison and ranking;

Goods eligible for Incentives with a domestic production cost ratio below 50% must add an amount equal to 2.5% of the bid price after error correction and adjustment, minus any discounts (if any), for comparison and ranking;

Vietnamese-origin goods with a domestic production cost ratio below 50%, where the production facility has at least 50% of its labor force comprised of disabled persons, war invalids, or ethnic minorities under a labor contract valid for at least 3 months up to the bidding closing time, are not required to add any amount to the bid price for comparison and ranking;

- When applying the evaluated price method, goods not entitled to Incentives must add an amount equal to 10% of the bid price after error correction and adjustment, minus any discounts (if any), to the evaluation price for comparison and ranking;

Goods eligible for Incentives with a domestic production cost ratio below 50% must add an amount equal to 2.5% of the bid price after error correction and adjustment, minus any discounts (if any), to the evaluation price for comparison and ranking;

Vietnamese-origin goods with a domestic production cost ratio below 50%, where the production facility has at least 50% of its labor force comprised of disabled persons, war invalids, or ethnic minorities under a labor contract valid for at least 3 months up to the bidding closing time, are not required to add any amount to the evaluation price for comparison and ranking;

- When applying the combined technique and price method, goods entitled to Incentives with a domestic production cost ratio of 50% or more are awarded Incentive points to the combined score according to the following formula:

Incentive Points = 10% x (incentive Goods Price/Bid Price after Error Correction, Adjustment minus any discounts (if any)) x Combined Score

Where: incentive Goods Price is the bid price after error correction and adjustment, minus any discounts (if any), of goods with a domestic production cost ratio of 50% or more.

For goods entitled to Incentives with a domestic production cost ratio below 50%, apply the formula stipulated in Point c, Clause 1, Article 5 of Decree 24/2024/ND-CP; Vietnamese-origin goods with a domestic production cost ratio below 50%, where the production facility has at least 50% of its labor force comprised of disabled persons, war invalids, or ethnic minorities under a labor contract valid for at least 3 months up to the bidding closing time, the Incentive coefficient is 10%;

- For cases stipulated in points a, b, and c of Clause 2, Article 5 of Decree 24/2024/ND-CP, contractors submitting Vietnamese origin goods with a domestic production cost ratio of 50% or more, where the production facility has at least 50% of its labor force comprised of disabled persons, war invalids, or ethnic minorities under a labor contract valid for at least 3 months up to the bidding closing time, enjoy a Incentive coefficient of 12% instead of 10%.

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