3. Procurement Procedures
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3. Procurement Procedures Start Comparison
a. What procurement procedures can be followed?

Depending on the specific forms and methods of bidding and specific contents of a bidding package, the process may vary. Under the bidding regulations, the bidding process may be generalized as follows:

  • Approval of contractor selection plan. The plan will itemize the names of the bidding packages in a certain project, and information about price, financing source, bidding method, schedule, form of contract and schedule for contract performance of each bidding package. Such a bidding plan must be approved by the competent person. The plan submitted by the project owner and approved by the competent person within 05 days, from the date of receipt of an appraisal report.[1]
  • Issuance of dossier for expression of interest (EOI), dossier of invitation to pre-qualification, bidding dossier or dossier of requirement. Such dossiers must be issued within 03 working days by the project owner after the first date of publication of notice of invitation expression of interest, notice of pre-qualification invitation, notice of bid invitation, notice of invitation for offers, or sending of letters inviting submission of bidding before time of bid closing.[2]
  • Preparation of (i) dossier for EOI is at least 10 days (for domestic bidding) or 20 days (for international bidding) by the contractor from the first date of issuance of invitation for EOI dossier prior to the date of bid closing. The contractor must submit the dossier before the date of bid closing;[3] (ii) dossier for participation in pre-qualification is at least 10 days (for domestic bidding) or 20 days (for international bidding) by the contractor from the first date of issuance of invitation for pre-qualification dossier prior to the date of bid closing. The contractor must submit dossier before the date of bid closing;[4] (iii) dossier of proposal is at least 5 days by the contractor from the first date of issuance of dossier of requirement prior to the date of bid closing. The contractor must submit dossier before the date of bid closing;[5] and (iv) bidding dossier is at least 20 days (for domestic bidding) or 40 days (for international bidding) by the contractor from the first date of issuance of inviting bidding dossier to the date of bid closing. The contractor must submit dossier before the date of bid closing.[6]
  • Bid security. Bid security applies for (i) open bidding, limited bidding, competitive offer for bidding packages to provide non-consultancy services, procure goods or for construction and installation and mixed bidding packages, and (ii) open bidding and contractor appointment for selection of investors.

Contractors or investors shall provide bid security before the time of bid closing for bid dossiers or dossiers of proposals. If the method of two-stage bidding is applied, contractors shall provide bid security in the second stage.

The value of bid security are 1% to 3% of the bidding package price for the selection of contractors and 0.5% to 1.5% of the total investment for the selection of investors. The validity duration of bid security prescribed in bidding dossiers or dossiers of requirements is equivalent to the validity duration of bid dossiers or dossiers of proposals plus 30 days.[7]

  • Bid opening. The submitted bids must be opened immediately after the bid closing time, on the date and at the location stated in the bid invitation documents. In this step, the main information about each of the bids will be disclosed.
  • Bid evaluation. The party calling for bids will review and evaluate the opened bids on the basis of the requirements of the bid invitation documents and evaluation criteria.
    • The methods of evaluation of bid dossiers for bidding packages to provide non-consultancy services, procure goods, or for construction and installation, or mixed bidding include (i) lowest bid method or (ii) evaluation bid method or (iii) method of combined techniques and bid.[8]
    • Methods of evaluation for bidding packages to provide consultancy services include (i) lowest bid methods or (ii) fixed bid method or (iii) method of combined techniques and bid or (iv) technique-based method.[9]
    • The maximum time limit for evaluation of EOI dossiers and dossiers for participation in prequalification is 20 days (for domestic bidding) or 30 days (for international bidding), for dossiers of proposals is 30 days (for domestic bidding) or 40 days (for international bidding), for bid dossiers is 45 days (for domestic bidding) or 60 days (for international bidding) from the date of bid closing to the date of submission of contractor selection results by the bid solicitor to the project owner for approval. If necessary, the time limit for the evaluation of bid dossiers or dossiers of proposals might be extended for another 20 days (maximum).[10]
  • Bid appraisal. The time limit for appraisal is 20 days from the date of receipt of a complete dossier for each content subject to appraisal including: contractor selection plan, dossier of invitation for EOI, dossiers of invitation to prequalification, dossiers of requirements or contractor selection results.[11]
  • Bid approval. The maximum time limit for approval of dossiers of invitation for EOI, dossiers of invitation to prequalification, dossiers of requirements or bidding dossiers is 10 days from the date of receipt of the written request of the bid solicitor for approval of such dossiers, or of the appraisal report where appraisal is requested.[12] The time limit for approval or giving opinions on handling of contractor selection results is 10 days from the date of receipt of the written request of the bid solicitor for approval of contractor selection results, or of the appraisal report in cases of appraisal of proposals is 180 days from the date of bid closing.[13]
  • Bid results. The bid result must be approved and then announced by the project owner.[14] The time limit to send the notices of contractor selection results to contractors who have participated in the bidding is 5 working days after the results have been approved.[15]
  • For the selection of investors for PPP projects, while the general procedures are identical to Bidding Law, the timeline procedures of PPP investors are longer.[16]
  • Contract negotiation. Having successfully won the bid, the contractors/investors shall be called for contract negotiation. Before the contract takes effect, contractors/investors may be required to provide contract performance security ranging from 2% - 10% of the winning bid.[17]

 

[1] Articles 12.1(a), 37, Bidding Law.

[2] Article 12.1(b), Bidding Law.

[3] Article 12.1(c), Bidding Law.

[4] Article 12.1(d), Bidding Law.

[5] Article 12.1(dd), Bidding Law.

[6] Article 12.1(e), Bidding Law.

[7] Article 11, Bidding Law.

[8] Article 39, Bidding Law.

[9] Article 40, Bidding Law.

[10] Article 12.1(g), Bidding Law.

[11] Article 12.1(h), Bidding Law.

[12] Article 12.1(i), Bidding Law.

[13] Article 12.1(k), Bidding Law.

[14] Article 74.1(dd), Bidding Law.

[15] Article 12.1(n), Bidding Law.

[16] Article 6, Decree No. 30.

[17] Article 66.2, 66.3, Bidding Law.

b. What status do electronic means/procedures have?

Online bidding means bidding conducted via the national bidding network.[1] Online selection of contractors shall apply to bidding packages for consultancy services, non-consultancy services, goods procurement, construction, installation, and mixed contracts that are awarded through open bidding, limited bidding, competitive offer, direct procurement, and direct appointment of contractor.[2]

The following information must be published on national bidding network and bidding newspaper:[3]

  • contractor or investor selection plans;
  • notice of invitation for EOI and notices of invitation to prequalification;
  • notices of invitation for offers, notices of invitation for bids;
  • shortlists;
  • contractor or investor selection results;
  • bid opening results;
  • information on the handling of violations of the Bidding Law;
  • legal documents on bidding;
  • lists of investment projects in PPP's form and land-using projects;
  • database on contractors, investors, experts, lectures and bidding training institutions; and
  • other relevant information.

 

[1] Article 4.13, Bidding Law.

[2] Article 84.1, Decree No. 63.

[3] Article 8.1, Bidding Law.

c. Where are contract notices, i.e. calls for bid, published?

The link can be accessed at:

c. Can certain prospective bidders be excluded from the competition?

Yes, certain prospective bidders can be excluded from the competition if they do not meet certain provisions on their eligibility as organizations or individuals as well as bidding conditions.

Specifically, bidding organizations can be excluded from the competition if they do not meet the following eligibility requirements:[1]

  • possess an establishment and operation registration granted by competent agency of the country in which it is operating;
  • it is an independent financial accounting entity;
  • not in the course of dissolution or bankruptcy or insolvency as prescribed by the law;
  • having registered on the national bidding network;
  • follows competitiveness requirements under bidding regulations;
  • not banned from participating in bidding;
  • named in the short list if such list has been selected; and
  • for foreign contractors participating in international bidding in Vietnam, these foreign contractors must either enter into a partnership with a domestic contractors or use a domestic sub-contractor , unless there is no qualified domestic contractor for the bidding package's works.

Individual bidders can be excluded from the competition if they do not meet the eligibility requirements below:[2]

  • have full capacity for civil acts pursuant to the law of the country of which such individual is a citizen;
  • have lawful registration for operation or an appropriate professional certificate issued by the competent authority;
  • the individual is not subject to investigation for a criminal offence; and
  • not banned from participating in bidding.

Moreover, bidders (whether organizations or individuals) may even be excluded from competition if they do not satisfy bidding conditions for one bidding package, which are:

  • in the case of a partnership, there must be a written agreement between the partners specifying the person heading the partnership and the general and specific responsibilities of each partner with respect to the bidding package works.[3]

 

[1] Article 5.1, Bidding Law.

[2] Article 5.2, Bidding Law.

[3] Article 5.3, Bidding Law.