Regulations on incentives for international bidding in Vietnam under Decree 24/2024

Regulations on incentives for international bidding in Vietnam under Decree 24/2024 (Image from the Internet)

1. Regulations on incentives for international bidding in Vietnam under Decree 24/2024

The regulations on incentives for international bidding in Vietnam according to Article 6 of Decree 24/2024/ND-CP are as follows:

* For consultancy service packages:

- In the case of applying the lowest price method, the bidder not eligible for incentives must add an amount equivalent to 7.5% of the bid price after correcting errors and discrepancies, subtracting discounts (if any) to the bid price after correcting errors and discrepancies, subtracting discounts (if any) of that bidder to compare and rank;

- In the case of applying a method based on technical criteria, the bidder eligible for incentives will have an additional 7.5% of their technical score added to their technical score for comparison and ranking;

- In the case of applying a combined method of technical criteria and price, the bidder eligible for incentives will have an additional 7.5% of their total score added to their total score for comparison and ranking.

* For non-consulting service, construction, and mixed packages:

- In the case of applying the lowest price method, the bidder not eligible for incentives must add an amount equivalent to 7.5% of the bid price after correcting errors and discrepancies, subtracting discounts (if any) to the bid price after correcting errors and discrepancies, subtracting discounts (if any) of that bidder to compare and rank;

- In the case of applying the evaluated price method, the bidder not eligible for incentives must add an amount equivalent to 7.5% of the bid price after correcting errors and discrepancies, subtracting discounts (if any) to the evaluated price of that bidder to compare and rank;

- In the case of applying a combined method of technical criteria and price, the bidder eligible for incentives will have an additional 7.5% of their total score added to their total score for comparison and ranking.

* For goods procurement packages, the application of incentives for goods of Vietnamese origin is implemented according to the provisions of Article 5 of Decree 24/2024/ND-CP.

* Incentives for domestic innovative startup enterprises are implemented according to the provisions of Article 8 of Decree 24/2024/ND-CP.

* Incentives for domestic bidders manufacturing goods of Vietnamese origin are implemented according to the provisions of Article 9 of Decree 24/2024/ND-CP.

* Incentives for information technology services are implemented according to the law on information technology.

2. Regulations on Incentives for domestic bidders that produce Vietnamese-origin goods

According to Article 9 of Decree 24/2024/ND-CP, the regulations on Incentives for domestic bidders that produce Vietnamese-origin goods are as follows:

- For domestic bidders who are transferred technology to produce Vietnamese-origin goods in accordance with the bidding documents:

+ They are exempt from the revenue and same-industry operational history requirements (within 5 years of qualified product launch);

+ Transferred technologies on the lists for investment incentives and technology transfer are exempt from the requirements of demonstrating successful operation and user confirmation of quality, in addition to the incentives in point a of clause 1 of Article 9 of Decree 24/2024/ND-CP.

If the technology transferor guarantees the quality of products produced by the bidder at the employer's request, the technology transferee (bidder) can use the transferor's data and test results to demonstrate the transferred technology's effectiveness and suitability for the produced goods. This evidence can be based on the technology transfer contract or technology transfer certificate issued by a competent authority.

+ All participating bidders will be evaluated on the same basis for capacity, experience, goods quality, technical requirements, and other package requirements, except for those specified in points a and b of this clause. Where necessary, the employer can make additional requests to bidders receiving incentives, including:  extended warranty period, stricter production quality control, factory testing, and comprehensive operation and maintenance services, and other services to ensure reliable product operation.

- For domestic bidders who produce Vietnamese-origin goods in accordance with the bidding documents:

+ They are exempt from the revenue and same-industry operational history requirements (within 5 years of qualified product launch before the bid submission deadline). Bidders are entitled to this incentive from the time the bidder is established but not more than 7 years from the bid submission deadline;

+ They receive incentives as prescribed in Point b, Clause 1 of Article 9 of Decree 24/2024/ND-CP for the technology transfer component from other entities (if any).

- Individuals and groups of individuals that produce innovative products specified in Clause 4, Article 5 of Decree 24/2024/ND-CP are exempt from the financial situation and same-industry operational history requirements (within 6 years of qualified product launch) when offering their own innovative products for bidding.

- Domestic bidders can demonstrate their eligibility to transfer technologies or encouraged technologies for production of Vietnamese-origin goods using either a technology transfer registration certificate or an encouraged technology transfer certificate, as defined by the technology and investment laws.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE