Methods of selection of bidders/investors in Vietnam

Methods of selection of bidders/investors in Vietnam (Internet image)

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

1. Methods of selection of bidders/investors in Vietnam

Specifically, Section 2 of the Law on Bidding 2013 stipulates the methods of selection of bidders/investors, including:

(1) The single-stage one-envelope bidding procedure

- The single-stage one-envelope bidding procedure shall apply in the following cases:

+ Competitive bidding, limited bidding for procurement of non-consulting service provision; procurement of procurement of goods, works, mixed packages with small scale;

+ Shopping Method for procurement of non-consulting service provision, goods procurement, works;

+ Direct Contracting for procurement of the consulting service provision, non-consulting service provision, goods procurement, construction, mixed packages;

+ Direct Procurement for procurement of goods procurement;

+ Direct Contracting for selection of investor.

- Bidders/investors may submit Bids, Proposals including Technical Proposal and Financial Proposal at the request of Bidding Documents, Requests for Proposals.

- The bid opening shall be conducted once for all Bids, Proposals.

(2) The single-stage two-envelope bidding procedure

- The single-stage two-envelope bidding procedure shall apply in the following cases:

+ Competitive bidding, limited bidding for procurement of consulting services, non-consulting services, goods procurement, works, mixed packages;

+ Competitive bidding for selection of investor.

- Bidder or investor may submit concurrently both envelopes of Technical Proposal and Financial Proposal in a separate form at the request of Bid.

- Bid opening shall be conducted twice. Technical Proposal shall be opened as soon as deadline for submisison of bids. Bidders or investors satisfying the technical requirements shall have the envelope of Financial Proposal opened for assessment.

(3) The two-stage one-envelope bidding procedure

- The two-stage one-envelope bidding procedure shall apply in cases of competitive bidding, limited bidding for package of procurement of goods, works, mixed packages with big scale and complex nature.

- In the first stage, bidders may submit Technical Proposal and Financial Proposal at the request of Bidding Documents but not yet had Bid Price. On the basis of exchange with each contractor participating in this stage, the envelope shall be determined for bid invitation in second stage.

- In second stage, bidders participated in first stage shall be invited for submission of Bids. Bids include Technical Proposal and Financial Proposal at the request of Bid for second stage, in which included Bid Price and Bid Security.

(4) The two-stage two-envelope bidding procedure

- The two-stage two-envelope bidding procedure shall apply in cases of competitive bidding, limited bidding for procurement of goods, works, mixed packages with new, complex and particular techniques and technologies;

- In first stage, bidders shall submit concurrently both envelopes of Technical Proposal and Financial Proposal in a separate form at the request of Bid. Technical Proposal shall be opened as soon as deadline for submisison of bids.

On the basis of assessment on Technical Proposal of bidders in this stage, to determine contents corrected in techniques in comparison with Bid and list of bidders satisfying requirements and being invited for bidding in second stage. Financial Proposal shall be opened in second stage.

- In second stage, bidders satisfying requirements in first stage shall be invited for submission of Bids. Bids include Technical Proposal and Financial Proposal at the request of Bid for second stage corresponding to content corrected in techniques. In this stage, the envelope of Financial Proposal submitted in first stage shall be opened concurrently with Bids in second stage for assessment.

2. Bases to formulate plan on bidder selection for project in Vietnam

Pursuant to Clause 1, Article 34 of the Law on Bidding 2013 stipulates the bases to formulate plan on bidder selection for project:

- Decision on approving project or certificate of investment and relevant documents. For packages which must be performed prior to a decision on approving project, based on decision of head of investor or head of unit assigned to perform task of preparation of project, in case the investor has not yet been identified;

- Capital sources for project;

- International treaties, international agreements for projects used official development assistance capital, concessional loans;

- Relevant legal documents.

3. Bases to formulate plan on bidder selection for recurrent procurement in Vietnam

According to Clause 2, Article 34 of the Law on Bidding 2013 stipulates the bases to formulate plan on bidder selection for recurrent procurement:

- Standards, norms of equipment, means of working of agencies, organizations, units and cadres, civil servants, public employees; equipment, means of working existing which need to be replaced, purchased for supplementation, procured new ones to serve for work;

- The approved decision on procurement;

- The approved capital sources and estimate for recurrent procurement;

- Scheme on procurement, equipping for entire branch which has been approved by the Prime Minister (if any);

- Result of price evaluation of agencies and organizations with function providing service of price or quotation evaluation (if any).

Ho Quoc Tuan

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