Newest regulations on cases where authorities, organizations and enterprises may decide the contractor selection of their own free in Vietnam

Newest regulations on cases where authorities, organizations and enterprises may decide the contractor selection of their own free in Vietnam (Internet image)

1. Cases where authorities, organizations and enterprises may decide the contractor selection of their own free in Vietnam

Agencies, organizations, and enterprises are authorized to independently decide on contractor selection based on ensuring publicity, transparency, economic efficiency, and accountability in the following cases:

- Selecting contractors to carry out packages funded by domestic organizations or individuals where the sponsor requires not following the contractor selection regulations of the Law on Bidding 2023; packages of public service providers using loan capital, except for state investment credit loans, re-borrowed ODA funds, and preferential loans from foreign donors;

- Organizing contractor selection abroad by state agencies, public service providers, state enterprises, and enterprises 100% owned by state enterprises, except as stipulated in Clause 4, Article 3 of the Law on Bidding 2023;

- Leasing, purchasing, or leasing properties, headquarters, and assets attached to land;

- Selecting contractors for the supply of goods, consulting services, and non-consulting services to ensure continuity for the production and business activities, and procurement to maintain the regular operations using production and business capital of state enterprises 100% owned by state enterprises; selecting contractors to implement packages under investment business projects stipulated in Clause 3, Article 2 of the Law on Bidding 2023; selecting contractors for consulting services, raw materials, fuel, materials, supplies, and non-consulting services serving directly for the package won by the public service providers;

- Determining mediators, members of the dispute arbitration board, and arbitration councils to handle disputes arising during contract execution as mutually agreed by the parties according to the contract provisions;

- Purchasing goods and services with prices set by the State according to the laws on pricing;

- Selecting contractors for oil and gas services, and goods serving oil and gas activities in compliance with the oil and gas contract approved by the competent authority as per the regulations of the Law on Petroleum 2022.

(As per Clause 7, Article 3 of the Law on Bidding 2023)

2. Eligibility of bidders or investors in Vietnam in 2024

Article 5 of the Law on Bidding 2023 stipulates the eligibility of bidders and investors as follows:

* A bidder or investor is considered eligible when meeting the following conditions:

- For domestic bidders and investors: be a business, cooperative, union of cooperatives, cooperative group, public service provider, economic organization with foreign investment capital established and operating according to Vietnamese laws. For foreign bidders and investors: be established and operate under foreign laws;

- Maintain independent financial accounting;

- Not currently undergoing dissolution procedures or have their business registration certificate, cooperative registration certificate, union of cooperatives registration certificate, or cooperative group registration certificate revoked; not considered insolvent under bankruptcy laws;

- Having a name on the national bidding network system before the approval of the contractor or investor selection results;

- Ensuring competition in bidding as stipulated in Article 6 of the Law on Bidding 2023;

- Not currently under a contract ban by the authority, Minister, Head of a central ministry, an agency under the Government of Vietnam, or other Central agency, Chairman of the Provincial People’s Committee as stipulated in Clause 3, Article 87 of the Law on Bidding 2023;

- Not under criminal investigation;

- Listed in the shortlist when a shortlist has been selected;

- For foreign bidders, must associate with domestic bidders or use domestic subcontractors, except when domestic bidders are not competent to participate in any part of the package.

* A business household is considered eligible when meeting the following conditions:

- Having a business household registration certificate according to the law;

- Not currently terminating operations or having their business household registration certificate revoked; the business household owner is not under criminal investigation;

- Meeting conditions stipulated in points d, dd, e, and h of Clause 1, Article 5 of the Law on Bidding 2023.

* An individual is considered eligible when meeting the following conditions:

- Having full civil act capacity as per the law of the country in which they are a citizen;

- Holding relevant professional certificates when stipulated by law;

- Meeting conditions stipulated in points e and g of Clause 1, Article 5 of the Law on Bidding 2023.

* Bidders or investors eligible under clauses 1, 2, and 3, Article 5 of the Law on Bidding 2023 are allowed to participate independently or as a joint venture.

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