What is the language of bid under the law in Vietnam?

What is the language of bid under the law in Vietnam? (Internet image)

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

1. What is international bidding?

According to Clause 14, Article 4 of the Law on Bidding 2013, international bidding means bidding in which both foreign and domestic bidders and investors may participate.

In there:

- Foreign Contractor means an organization established under foreign law or an individual of foreign nationality making a bid in Vietnam.

- Domestic Contractor means an organization established under Vietnamese law or individual of Vietnamese nationality making a bid.

(Clause 37, 38, Article 4 of Law on Bidding 2013)

2. What is the language of bid?

Specifically, Article 9 of the Law on Bidding 2013 stipulates the language of bid as follows:

Language to be used in bidding shall be Vietnamese in the case of domestic bidding, and English or Vietnamese and English in the case of international bidding.

Thus, English language is the language of bid.

3. Conditions for holding international bidding for bidder selection in Vietnam

International bidding shall be held to select bidder only when it meets one of the following conditions:

- The donor of package requests for holding international bidding;

- Packages for procurement of goods where the goods are not yet able to be manufactured domestically or able to be manufactured but fail to meet technical, quality or price requirements.

In case of common goods, already been imported and offered for sale in Vietnam, do not organize international bidding;

- Packages of providing consulting service, non-consulting service, works, mixture provision which domestic bidders are not able to satisfy requirements of package performance.

(Clause 1, Article 15 of Law on Bidding 2013)

4. What currency is used in international bidding?

 For international bidding in Vietnam, depending on the case, the currencies of bid will be specified as follows:

- Bidding Documents, Request for Proposals must state the currency for bidding in Bids, Proposals but not exceeding three currencies; for a specific work item, only give bid quotation in a currency kind;

- In case where Bidding Documents, Request for Proposals stipulate that bidders may have bid quotation in two or three currencies when assessing Bids, Proposals, quotation must be converted into a currency kind; if having Vietnam dong used in such currencies, quotation must be converted into Vietnam dong.

Bidding Documents, Request for Proposals must stipulate the convertible currency, time and bases to determine the exchange rate for converting;

- For domestic costs involving performance of package, bidders must have a bid quotation in Vietnam dong;

- For overseas costs involving performance of package, bidders may have a bid quotation in foreign currency.

(Clause 2, Article 10 of Law on Bidding 2013)

5. How to determine the eligibility of bidders/investors?

According to Clauses 1 and 2, Article 5 of the Law on Bidding 2013, the eligibility of bidders/investors is determined as follows:

(1) A bidder or investor being an organization shall be deemed to be eligible when it satisfies the following conditions:

- Having registration for establishment and operation issued by the competent authority of country where it is operating;

- Keeping independent accounting records;

- Not undergoing dissolution process, are not thrown into bankruptcy, and do not incur bad debts as prescribed by law.

- Having registered on National E-procurement System;

- Ensuring the competitiveness in bidding as prescribed in Article 6 hereof;

- Not being banned from bidding;

- Its name is stated in short list for case where the short list has been selected;

- Being in a joint venture with domestic contractors or employment of domestic subcontractors in case of a foreign contractor making an international bidding in Vietnam, unless the domestic contractor cannot acquire the competencies necessary to perform any portion of the package.

(2) A bidder or investor being an individual shall be deemed to be eligible when it satisfies the following conditions:

- Having full legal capacity as per the law of the country of which such individual is a citizen;

- Having an appropriate professional certificate as prescribed by law;

- Having lawful registration for operation as prescribed by law;

- Not facing a criminal prosecution;

- Not being banned from bidding.

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