New regulations on bid cancellation in Vietnam

New regulations on bid cancellation in Vietnam (Internet image)

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

New regulations on bid cancellation in Vietnam

According to Article 17 of the Law on Bidding 2023, regulations on bid cancellation in Vietnam are as follows:

- In case of contractor selection, bid cancellation shall occur when:

+ all EOIs, prequalification applications, bids or proposals are considered substantially nonresponsive to the EOI request, prequalification document, bidding documents or RFP;

+ there are changes in the objectives and scope of investment specified in the investment decision resulting in changes in volume of tasks and evaluation criteria specified in the EOI request, prequalification document, bidding documents or RFP;

+ the EOI request, prequalification document, bidding documents or RFP does not comply with regulations laid down in this Law or other relevant laws to the extent that the selected bidder fails to meet the requirements of the package;

+ the successful bidder commits any of the prohibited acts in Article 16 of the Law on Bidding 2023; or

+ another organization or individual that is not the successful bidder commits any of the prohibited acts in Article 16 of this Law resulting in inaccurate contractor selection result.

- In case of investor selection, bid cancellation shall occur when:

+ all bids are considered substantially nonresponsive to the bidding documents;

+ there are changes in the objectives, scale, location, investment capital or duration of investment project execution due to force majeure events resulting in changes in evaluation criteria specified in the issued bidding documents;

+ one or some contents of the bidding documents does not comply with regulations laid down in this Law or other relevant laws resulting in inaccurate investor selection result or to the extent that the selected investor fails to meet the requirements of the investment project;

+ the successful investor commits any of the prohibited acts in Article 16 of the Law on Bidding 2023; or

+ another organization or individual that is not the successful investor commits any of the prohibited acts in Article 16 of the Law on Bidding 2023 resulting in inaccurate investor selection result.

- Bid cancellation may occur within the period from the issuance of the EOI request, prequalification document, bidding documents or RFP to the signing date of the contract or framework agreement in case of centralized procurement.

- Organizations and individuals that commit violations to the extent of bid cancellation as prescribed in Points c, d, dd Clause 1 and Points c, d, dd Clause 2 of Article 17 of the Law on Bidding 2023 shall pay compensation to related parties.

According to Law on Bidding 2013, in case of bidding cancellation:

- All Bids, Proposals failed to satisfy the requirements of the Bid Documents, Request for Proposals.

- Alteration of the objectives or scope of the investment stated in the Bid Documents, Request for Proposals.

- The Bid Documents, Request for Proposals failed to comply with legislation on bidding or other relevant legislation that lead to the failure of the selected bidder or investor to meet requirements to perform package, project.

- There is evidence showing the handing, taking, brokerage of bribes, conclusion with each other in bidding, fraud, taking advantage of positions, powers aiming to interfere illegally in bidding activities that lead to the falsified result of selecting the bidder/investor.

Thus, cases of bid cancellation specified in the Law on Bidding 2023 are clearly divided between contractors and investment selection.

Nguyen Ngoc Que Anh

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