​What are the regulations on the costs associated with contractor/investor selection in Vietnam?

What are the regulations on the costs associated with contractor/investor selection in Vietnam? (Internet image) 

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

1. What are the regulations on the costs associated with contractor/investor selection in Vietnam?

Pursuant to Article 15 of the Law on Bidding 2023, costs associated with contractor/investor selection in Vietnam are specified as follows:

- Expression of interest documents and bidding documents for domestic bidding are released for free on the National Bidding Network System;

- Bidding documents for international bidding are published on the National Bidding Network System; Investors pay to buy electronic copies of bidding documents when submitting bids;

- The bidding party shall bear the cost of posting information on investor selection and costs related to the organization of investor selection;

- Investors bear costs related to preparing project registration documents, bidding documents, bidding participation, and costs of resolving complaints (if any).

2. What are the fees for contractor selection on Vietnam National E-Procurement System?

According to Clause 11, Article 12 of Decree 24/2024/ND-CP, fees for contractor selection on Vietnam National E-Procurement System include:

- The fee for maintaining the name and capacity profile of the bidder on VNEPS is 330,000 VND for 1 year (including value added tax). Bidders pay this fee from the second year onwards after the year of registration to participate in VNEPS;

- The fee for submission of bids on VNEPS is: 330,000 VND for 1 package (including value added tax) for competitive bidding, limited bidding, online quotation under ordinary procedures; 220,000 VND for 1 package (including value added tax) for shopping method;

- The winning bidder fee for a package under competitive bidding, limited bidding, shopping method, or online bidding under ordinary procedures, applying online bidding:

For undivided packages: 0.022% of the successful bid but not greater than 2,200,000 VND (including value added tax).

For packages divided into multiple parts, total winning bidder fee for all winning bidders must not exceed 2,200,000 VND (value added tax included).  In case the value of 0.022% multiplied by the total successful bid of the package is lower or equal to 2,200,000 VND, the winning bidder fee of each bidder is 0.022% of the total successful bid for the package part that the bidder wins. In case the value of 0.022% multiplied by the total successful bid of the package exceeds 2,200,000 VND, the winning bidder fee of each bidder is calculated according to the following formula:

The winning bidder fee (including value added tax) = 2,200,000 VND x (total successful bid for the package part that the bidder wins/total successful bid of the package);

- The connection fees for electronic bid security between VNEPS and various institutions are determined by agreements between the VNEPS operator/supervisor and these entities, which include domestic credit institutions, branches of foreign banks established under Vietnamese law, domestic non-life insurers, and branches of foreign non-life insurers established under Vietnamese law.

Nguyen Ngoc Que Anh

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