Regulations on incentives for domestic bidders that produce Vietnamese-origin goods

Regulations on incentives for domestic bidders that produce Vietnamese-origin goods (Image from Internet)

1. Regulations on incentives for domestic bidders that produce Vietnamese-origin goods

According to Article 9 of Decree 24/2024/ND-CP on the incentives for domestic bidders that produce Vietnamese-origin goods:

- For domestic contractors who have received technology transfers to produce goods originating in Vietnam in line with the bidding documents:

+ They are not required to meet criteria regarding revenue, number of years operating in the same industry for a period of 05 years from when the product is first produced and is qualified to enter the market;

+ For technology transfers that belong to the list of investment incentives or the list of technologies encouraged for transfer as regulated by law, in addition to preferences as mentioned at point a of this section, they are not required to meet criteria regarding confirmation of successful operation, duration for which the product has been used ensuring quality standards as confirmed by the user.

In cases where the technology transferor commits to the investor concerning the quality of the products manufactured by the contractor as per the investor's requirements, the contractor receiving the technology transfer is allowed to use the documents, test results from the technology transferor regarding the transferred technology subject to demonstrate the testability and appropriateness of the manufactured goods in accordance to the contents transferred under the technology transfer contract or according to the technology transfer certificate issued by the competent authority;

+ The criteria on capacity, experience, product quality, technical specifications, and other package requirements aside from those mentioned in point a and point b of Clause 1 Article 9 of Decree 24/2024/ND-CP are stipulated on a uniform evaluation basis for all participating contractors.

In necessary cases, the investor may require additional commitments from contractors receiving preferential treatment, including extending warranty periods, enhancing quality control measures during production and testing phases, providing operational, maintenance services, and other contents to ensure the reliability of goods during operation.

- For domestic contractors producing goods originating in Vietnam in compliance with the bidding documents:

+ They are not required to meet criteria regarding revenue, number of years operating in the same industry as the project being evaluated when the contractor bids for goods that are being manufactured by the contractor for the first time and are qualified to be marketed within 05 years before the bid closing date. The contractor enjoys this preference from the time of establishment, but not exceeding 07 years from the bid closing date;

+ They receive preferential treatment according to the regulation at point b of Clause 1 Article 9 of Decree 24/2024/ND-CP for portions of technology transferred from other entities (if any).

- When tendering for innovative products, individuals or groups of individuals producing innovative products as specified in Clause 4 Article 5 of Decree 24/2024/ND-CP are not required to meet financial capacity requirements or operate in the same industry for a period of 06 years from the first production and market readiness of the product.

- The basis for determining domestic contractors receiving technology transfer or those encouraged to transfer technologies to produce goods originating in Vietnam is the Technology Transfer Registration Certificate, the Technology Transfer Encouragement Certificate as prescribed by law on technology and investment law.

2. Regulations on incentives for products and services certified with ecology labels, energy labels and equivalent in Vietnam

The incentives for products and services certified with ecology labels, energy labels and equivalent in Vietnam are stipulated in Article 10 of Decree 24/2024/ND-CP as follows:

- Products and services certified with eco-labels, energy labels, and equivalent according to legal provisions enjoy preferential treatment as prescribed in Clause 3, Article 10 of the Procurement Law 2023.

- Based on the nature of the bidding package and usage requirements, the investor specifies in the requirement documents and bidding documents technical requirements to purchase products and services certified with eco-labels, energy labels, and equivalent on the basis of adhering to the provisions at point k Clause 6 Article 16 and Clause 3 Article 44 of the Procurement Law 2023; regulated in the price evaluation formula to prioritize products and services with eco-labels, energy labels, and equivalent certification.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE