b) Projects on development investment of state-owned enterprises;

c) Projects on development investment other than those defined at point a and point b of this Clause financed by state, in which capital of state-owned enterprises accounts for at least 30% or less than 30% but greater than VND 500 billion of total investment;

d) Procurement financed by state aiming to maintain regular activities of regulatory agencies, political organizations, socio-political organizations, socio-political-occupational organizations, social organizations, socio-occupational organizations and units of the People’s armed forces, and public non-business units;

dd) Procurement financed by state aiming to supply products and services in serve of public purpose;

e) Procurement of national reserve goods financed by state;

g) Procurement of drugs, medical supplies financed state; medical insurance fund, revenues from services of medical examination and treatment and other lawful revenues of public medical establishments.

2. Selection of providers of consulting services, non-consulting services, goods on Vietnam’s territory for implementation of overseas direct-investment projects of Vietnamese enterprises financed by state, in which state-owned capital accounts for at least 30% or less than 30% but greater than VND 500 billion of total investment.

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4. Selection of providers in oil and gas field, except for selection of providers of oil and gas services related directly to activities of search, exploration and development of mines and extraction as prescribed by law on oil and gas.

Article 2. Regulated entities

1. Organizations and individuals that involve bidding activities defined in Article 1 of this Law.

2. Organizations and individuals that engage in bidding activities not within the governing scope of this Law may choose to apply this Law. In case of choosing to apply, organizations and individuals must observe the concerned provisions of this law and ensure fairness, transparency and economic efficiency.

Article 3. Application of Law on bidding, international treaties and international agreements

1. Bidding activities, within governing scope of this Law, must comply with the provisions of this Law and other related laws.

2. In case of selecting providers of raw materials, fuel, materials, supplies, consulting services, non-consulting services in order to ensure the continuity for business and procurement with the aim to maintain regular activities of state-owned enterprises; or selecting contractors to carry out contract packages of in the form of public-private partnership, investment projects with land use of the selected investors, enterprises must promulgate regulations on selection of bidders for consistent application in enterprises on the basis of ensuring objective of fairness, transparency, and economic efficiency.

3. For selection of contractors/investors for projects financed by official development assistance (ODA) capital, concessional loans arising from international treaties, international agreements between Vietnam and donors, international treaties and international agreements shall prevail.

4. If international treaties to which the Socialist Republic of Vietnam is a contracting party have provisions on selection of contractors/investors if different from this Law, such international treaties shall prevail.

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For the purposes of this Law, these terms below shall be construed as follows:

1. Bid Security means that the bidder or investor provides security by one of the security methods of paying a deposit, escrow or providing a letter of guarantee of credit institutions or foreign banks’ branches which are established under Vietnamese law in order to secure the liability in the bid participation of bidder or investor for a definite term as stipulated in the bidding documents, requests for proposals.

2. Performance Security means the bidder or investor provides security by one of the security methods of paying a deposit, escrow or providing a letter of guarantee of credit institutions or foreign banks’ branches which are established under Vietnamese law in order to secure the liability of the contract performance by bidder or investor.

3. Procuring Entity means a professional agency or organization with sufficient capability to perform bidding activities, including:

a) Employer or organization which is decided for establishment or selected by the Employer;

b) Budget estimate unit directly using capital source for regular procurement;

c) Centralized procurement units;

d) Competent regulatory agencies or the affiliated organizations which are selected by the competent regulatory agencies.

4. Employer means the entity owning the financing capital or the entity assigned responsibility to represent such owner, or the borrower directly managing and implementing project.

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6. Competent regulatory agencies mean agencies signing contracts with investors.

7. Short list means list of bidders, investors winning pre-qualification for open bidding with pre-qualification; list of bidders invited for bid participation for limited bidding; list of bidders with expression of interest responses (hereinafter referred to as EOI responses) meeting requirements of expression of interest requests (hereinafter referred to as EOI requests).

8. Consulting service refers to one or a number of activities including: preparation, assessment of the planning report, overall development diagram, architecture; survey and making of pre-feasibility study report, feasibility study report, environmental impact assessment report; survey and making of engineering, estimate; preparation of EOI requests, Pre-qualification Document, Bidding Documents, Requests for Proposals; assessment of EOI responses, Pre-qualification Application, Bids, Proposals; verification, appraisal; supervision; management of project; arranging finance; audit, training, transfer of technologies; other consulting services.

9. Non-consulting service means one or a number of activities including: logistics, insurance, advertisement, erection not defined Clause 45 of this Article, testing and commissioning, holding of training, maintenance, drawing maps and other activities other than consulting services defined at clause 8 of this article.

10. Project management enterprise means enterprise which is established by investor for performance of investment project in form of private-public partnership or investment project with land use.

11. Projects on development investment (hereinafter collectively referred to as projects) include: new programs or construction projects; projects on renovation, upgrading, expansion of projects that have been invested; projects on procurement of assets, including equipment, machinery ready for immediate use; projects on repairing, upgrading of assets, equipment; projects, schemes on planning; projects, subjects on scientific research, technology development, application of technologies, technical support, basic survey; other programs, projects, or schemes on development investment.

12. Bidding means the process of selecting a bidder to sign and execute contract for procurement of consulting services, non-consulting services, goods, and works; selecting an investor to sign and execute contract of investment project in form of public-private partnership, investment project with land use in consideration of the principles of competitiveness, fairness, transparency and economic efficiency.

13. Online bidding means bidding which is performed by using the national bidding network system.

14. International bidding means bidding in which both foreign and national bidders and investors may participate.

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16. Package price means the value of a contract package approved in the plan on selecting bidders.

17. Bid Price means the price stated by a bidder in the Letter of Bid, quotation, including all costs associated with the performance of the contract package as required by Bidding Documents, Request for Proposals.

18. Evaluated price means Bid Price obtained after error correction and adjustment of deviation as required in Bidding Documents, minus the discount (if any), plus elements to convert on a same ground for whole use life cycle of goods and works. Evaluated price is used to rank Bids of procurement of goods, works and mixed packages applying form of public bidding or limited bidding.

19. Proposed successful bid means Bid Price of the bidder who are proposed to win bid after error correction and adjustment of deviation as required by the Bidding Documents, Requests for Proposals, minus the discount (if any).

20. Successful bid means the price stated in an written approval for the results of bidder selection.

21. Contract Price refers to the price stated in written contract as the basis for advance payment, payment, liquidation and finalization of contract.

22. Package means a part or the whole of project or procurement estimate; a package may comprise items for the procurement of similar goods for multiple projects or a one-off procurement, procurement for a period in recurrent procurement, centralized procurement.

23. Mixed package refers to a package comprising of engineering and procurement (EP); engineering, construction (EC); procurement and construction (PC); engineering, procurement, construction (EPC); making project, engineering, procurement, construction (turnkey).

24. Small-scale package means a package whose price is within the limit prescribed by the Government.

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26. National bidding network means an information technology system which is set up and managed by the regulatory bodies in terms of bidding activities with the aim to perform consistent management of information on bidding and online bidding.

27. EOI requests, Pre-qualification Documents mean all documents including requirements pertaining to qualifications of bidders, investors as the basis for the Procuring Entity to select list of bidders, investors winning pre-qualification, list of bidders with EOI responses meeting requirements of EOI requests.

28. EOI responses, Prequalification Applications mean all documents which are made by bidders/investors and submitted to the Procuring Entity at the requirements of EOI requests, Prequalification Applications.

29. Bid Documents mean all of the documents used for open or limited bidding stipulating the requirements for a project, procurement and providing the legal basis for bidders, investors to prepare their Bidding Documents and for the Procuring Entity to assess Bidding Documents aimed at selection of a winning bidder/investor.

30. Request for Proposals refers to all of the documents used for Direct Contracting, Direct Procurement, and Shopping Method, including the requirements for a project/package and providing the basis for bidders/investors to prepare their Proposals and for the Procuring Entity to assess Proposals aimed at selection of a successful bidder/investor.

31. Bids, Proposals refer to all documents which are made by bidders/investors and submitted to the Procuring Entity at the requirements of EOI requests, Request for Proposals.

32. Contract means the document signed between the Employer and the selected bidder in performance of package under project; between Procuring Entity and the selected bidder in recurrent procurement; between the centralized-procurement units or between unit with procurement need with the selected bidder in the centralized procurement; between competent regulatory body with the selected investor, or between the competent regulatory body and the selected investor and project enterprise in the investor selection.

33. Protest means a request from any bidder/investor participating in bidding for reconsideration of the results of selection of bidder, results of selection of investor and regarding any other relevant matter during the process or selecting bidder/investor when such bidder or investor considers his rights and interests have been adversely affected.

34. Competent person means person who decides the approval of project or person who decides procurement as prescribed by law. In case of selection of investor, the competent person refers to the head of competent regulatory body as prescribed by law.

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36. Sub-contractor means a contractor performing the package on the basis of a contract signed with the Prime Contractor. The Special Subcontractor means a Subcontractor performing special Works of a package proposed by the Prime Contractor in the Bid, Proposals on the basis of requirements stated in Bidding Document, Request for Proposals.

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

38. Domestic contractor means an organization established under Vietnamese law or individual holding Vietnamese nationality making a bid.

39. Public products and services refer to essential products and services for economic-social life of country, population communities or assurance of national defense and security which the State must provide in the fields of: health, education - training, culture, information, communications, science – technology, natural resources - environment, transport and other fields as prescribed by Government. Public products and services include the public utility products and services, and public administration services.

40. Appraisal in selection of bidders/investors means check and assessment plan on selecting bidders/investors, EOI requests, Prequalification Documents, Bidding Documents, Request for Proposals and results of EOI requests, results of pre-qualification, results of selection of bidders/investor as the basis for the authorized person to consider and make a decision on approval in accordance with this Law.

41. Deadline for the submission of bids means the expiry time of receiving EOI responses, Prequalification Applications, Bids, or Proposals.

42. Validity period of Bidding Documents, Proposals means number of days stipulated in Bidding Document, Request for Proposals and beginning from the deadline for submission of bids to the end of validity period as prescribed in Bidding Document or Request for Proposals. From the deadline for submission of bids until ending of 24 hours of bid closing date is expressed as 01 day.

43. Expert group includes individuals with qualifications set up by the Procuring Entity or the bid consulting unit in order to assess EOI responses, Prequalification Applications, Bids, Proposals and perform other tasks during selection of bidders/investors.

44. State capital refers to State Budget funds; national bonds, Governmental bonds, bonds of local authorities; official development assistance capital, concessional loans from donors; fund for development of non-business activities; credit facilities for investment and development of the State; credit facilities guaranteed by the Government, loans guaranteed by assets of state; investment and development funds of State-owned enterprises, and value of land-use right.

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Article 5. Eligibility of bidders/investors

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

a) Having registration for establishment and operation approved by the competent authority of country where it is operating;

b) Keeping independent accounting records;

c) It has not undergone dissolution process, has not been thrown into bankruptcy, or has not incurred bad debts as prescribed by law;

d) It has registered on national bidding network;

d) It has ensured competitiveness in bidding as prescribed Article 6 hereof;

e) It has incurred no prohibitions against making a bid;

g) It has been named in a short list for case where the short list has been selected;

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

a) He/she has full legal capacity as per the law of the country of which he/she is a citizen;

b) He/she has obtained a professional certificate as per the law;

c) He/she has obtained lawful registration as per the law;

d) He/she has not being faced a criminal prosecution;

dd) He/she has incurred no prohibitions against making a bid.

3. Bidders/investors with eligibility as prescribed in Clause 1 and Clause 2 of this Article may make a bid with an independent status or joint venture; in case of joint venture, it must have written agreement among Parties, in which clearly stating responsibilities of JV’s Head and general responsibilities, separate responsibilities of each JV’s Party.

Article 6. Ensuring competitiveness in bidding

1. Bidders submitting EOI responses, Prequalification Applications must be legally and financially independent from consulting bidders for making EOI requests, Prequalification Documents; assessment of EOI responses, Prequalification Applications; appraisal for EOI results or prequalification results.

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a) Investors, Procuring Entity;

b) The consulting bidders for the making, verification, and appraisal of design documents and estimates; the making, verification of Bidding Documents, Request for Proposals; assessment of Bids, Proposals; appraisal of results of bidder selection of such package;

c) Other bidders making a bid in same package in case of limited bidding.

3. A supervision consultant who supervises execution of a contract must be legally and financially independent from bidders who execute the contract, the consulting bidder who inspects such package.

4. Investors making a bid must be legally and financially independent from the following parties:

a) The consulting bidders for investment projects in form of public-private partnership (PPP), investment projects with land use, until day of signing the project contract;

b) The consulting bidders that appraise investment projects in form of public-private partnership (PPP), investment projects with land use, until day of signing the project contract;

c) Competent regulatory agencies, and the Procuring Entity.

5. The Government shall provide guidelines for this Article.

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1. The Bidding Documents, Request for Proposals of a package may be issued for selecting bidders if they meet all of the following conditions:

a) The plan for selection of bidders has been approved;

b) The approved Bidding Documents, Request for Proposals include contents of requirements on bidding procedures for bidding, Bid Data Sheet; criteria for evaluation, Bidding Forms, Bill of Quantities; Requirements for progress, techniques, quality; General Conditions, Special Conditions of Contract, contract template and other necessary contents;

c) Invitation to Bid, Notice of Proposed Procurement or the short list has been posted as prescribed in this Law;

d) Sources of funds for package are allocated under the schedule of package;

dd) Content, list of goods, services and estimates have been approved by competent person in case of recurrent procurement and centralized procurement;

e) Ensuring the handing over of construction ground on schedule of package.

2. Bidding Documents, Request for Proposals of a project may be issued for selecting bidders only if they meet all of the following conditions:

a) The project has been named in a list of projects published by Ministries, Ministerial agencies, Governmental agencies, the People’s Committees of provinces and central-affiliated cities as prescribed by law or projects proposed by investors;

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c) Bidding Documents or Request for Proposals has been approved;

d) Invitation to Bid or the short list has been posted as prescribed in this Law.

Article 8. Bidding information

1. All information must be published on national bidding network, the Vietnam Public Procurement Review Journal, including:

a) The plan on selection of bidders/investors;

b) EOI requests, Prequalification Documents;

c) Notice of Proposed Procurement, Invitation to Bid;

d) Short list;

dd) Results of selection of bidders/investors;

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g) Actions against violations of law on bidding;

h) Legal documents on bidding;

i) List of investment projects in the form of public-private partnership, projects with land use;

k) The database of bidders/investors, bidding experts, lecturers of bidding, and establishments of training on bidding;

l) Other relevant information.

2. The information defined at Clause 1 this Article is encouraged to publish on websites of Ministries and local governments or on other means of mass media.

3. The Government shall provide guidelines for this Article.

Article 9. Language to be used in bidding

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

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1. For national bidding, only VND shall be quoted.

2. For international bidding:

a) Bidding Documents, Request for Proposals must indicate Currencies of Bid to be used in the Bids or Proposals up to three currencies; or only one foreign currency in case of a specific Section;

b) In case where Bidding Documents, Request for Proposals define that bidders may indicate in their Bids two or three currencies of their choice, when assessing Bids, Proposals, they must be converted into a currency; if VND exists in those currencies, it shall prevail to be converted. Bidding Documents, Request for Proposals shall define the convertible currency, time and bases to determine the exchange rate for converting;

c) Domestic costs associated with the performance of package shall be quoted in VND;

d) Costs incurred outside the Procuring Entity’s country related to the performance of package shall be quoted in foreign currency(ies).

Article 11. Bid Security

1. Bid Security is used in one of the following cases:

a) Competitive bidding, limited bidding, shopping method in case of procurement of non-consulting services, procurement of goods, construction and mixed package;

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2. The bidder/investor shall furnish a Bid Security before the deadline for submission of Bids or Proposals; in case of two-stage bidding procedures, the bidder/investor shall furnish a Bid Security in the second stage.

3. Value of the Bid Security is defined as follows:

a) In case of selection of bidders, value of the Bid Security is defined in the Bidding Documents or Request for Proposals between 1% and 3% of the package price according to scope and nature of each particular package;

b) In case of selection of investors, value of the Bid Security is defined in the Bidding Documents or Request for Proposals between 0.5% and 1.5% of total investment according to scope and nature of each particular package.

4. Period of validity of Bid Security is defined in the Bidding Documents or Request for Proposals is equal to the period of validity of the Bid or Proposal plus (+) 30 days.

5. In case of extension of Bid/Proposal validity period after the deadline for submission of Bid/Proposal, the Procuring Entity shall request the bidders/investors to extend for a corresponding period equivalent to the extended validity period. The Bidder/Investor accepting the request shall extend for a corresponding period equivalent to the extended validity period and may not change any content of the submitted Bid/Proposal. If the Bidder/Investor refuse the request, its Bid/Proposal shall be no longer valid and be rejected. The Procuring Entity must return or release the Bid Security within 20 days from the date on which a written refusal of extension is received.

6. If a JV submits a bid, each JV’s Party may perform separate Bid Security or one JV’s Party, subject to an agreement concluded by Parties, shall be responsible for its Bid Security and for Bid Security of other JV’s Parties. Total amount of Bid Security may not be less than the required amount prescribed in Bidding Documents or Request for Proposals. If any JV’s Party violates regulations in Clause 8 of this Article, the Bid Security of all JV’s Parties shall not be returned.

7. The Procuring Entity shall return or release Bid Security to unsuccessful bidders/investors within the time limit prescribed in Bidding Documents or Request for Proposals, but not exceeding 20 days from the date on which the results of bidder/investor selection has been approved. Bid Security of the successful Bidder/Investor shall be returned or released after it furnishes a Performance Security as prescribed in Article 66 and Article 72 of this Law.

8. The Bid Security shall not be returned in one of the following cases:

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b) The Bidder/Investor violates law on bidding which leads to be cancelled bid as prescribed in Clause 4 Article 17 of this Law;

c) The Bidder/Investor fails to conduct the Performance Security as prescribed in Article 66 and Article 72 of this Law;

d) The Bidder fails or refuses to negotiate and finalize the contract, within a period of 20 days from the date on which the notice of bid acceptance is received or the Bidder has finalized the contract but refused to sign the contract, except for force majeure events;

dd) The Investor fails or refuses to negotiate and finalize the contract, within a period of 30 days from the date on which the notice of bid acceptance is received or the Bidder has finalized the contract but refused to sign the contract, except for force majeure events.

Article 12. Time limits applicable during selection of bidders/investors

1. Time limits applicable during selection of bidders:

a) The time limit for approval of plan on bidder selection shall be 05 working days after receiving report on appraisal;

b) EOI requests, Prequalification Documents, Bidding Documents, Request for Proposals shall be issued after 03 working days from the first day of publishing notices of EOI responses, Prequalification Documents, Invitation to Bid, Notice of Proposed Procurement, Invitation to Bid before deadline for submission of bids;

e) Duration for preparing the Bids shall be at least 10 days for national bidding and 20 days for international bidding, from the first day when Bidding Documents are issued until deadline for submission of bids. Bidders must submit EOI responses before deadline for submission of bids;

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dd) Duration for preparing Proposals shall be at least 05 working days, from the first day when Requests for Proposals are issued until the deadline for submission of bids. Bidders must submit Proposals before deadline for submission of bids;

e) Duration for preparing the Bids shall be at least 20 days for national bidding and 40 days for international bidding, from the first day when Bidding Documents are issued until deadline for submission of bids. Bidders must submit the Bids before deadline for submission of bids;

g) The time limit for assessment of EOI responses, Prequalification Applications shall be 20 days, for Proposals shall be 30 days, for Bids shall be 45 days in the case of national bidding, as from the deadline for submission of bids until the date on which the Procuring Entity requests Employer to approve the results of bidder selection. The time limit for assessment of EOI responses, Prequalification Applications shall be 30 days, for Proposals shall be 40 days, for Bids shall be 60 days in the case of national bidding, as from the deadline for submission of bids until the date on which the Procuring Entity requests Employer to approve the results of bidder selection. In necessary case, time for bid/proposal evaluation period may be prolonged but not exceed 20 days and must ensure that project is executed on schedule;

h) The time limit for appraisal shall be 20 days for each item of appraisal: plan on selection of bidder, EOI requests, Prequalification Documents, Bidding Documents, Request for Proposals, result of selection of bidder from the date on which sufficient documents are received;

i) The time limit for approving EOI requests, Prequalification Documents, Request for Proposals, Bidding Documents shall be 10 days, as from the date of receiving the written request for approving EOI requests, Prequalification Documents, Request for Proposals, Bidding Documents of the Procuring Entity or the appraisal report in case the appraisal is requested;

k) The time limit for approving or giving the handling opinion on result of bidder selection shall be 10 days, as from the date of receiving the written request for approving the result of bidder selection of the Procuring Entity or the appraisal report if the appraisal is requested;

l) The maximum period of validity of a Bid/Proposal shall be 180 days as from the deadline for submission of bids; in case of a package with large scale and complex nature or package under two-stage procedures, the maximum period of validity of a bid shall be 210 days, as from the deadline for submission of bids. In necessary cases a bidder may request extension of the period of validity of its Bid/Proposal, and must ensure that the project is executed on schedule;

m) Duration for sending a revision of Bidding Documents to bidders who have acquired the Bidding Documents shall be at least 10 days for national bidding and at least 15 days for international bidding before the deadline for submission of bids; for revision of EOI request, Pre-qualification Document, Request for Proposals, it shall be at least 3 working days before the deadline for submission of bids. If the revision of Bidding Documents is not sent properly as prescribed in abovementioned provision, the Procuring Entity shall extend deadline for submission of bids respectively to comply with provision of duration for sending revisions of EOI request, Pre-qualification Document, Bidding Documents or Request for Proposals;

n) Time limit for sending notice of bidder selection result to bidders bidding via post, facsimile shall be 05 working days, as from the date on which the result of bidder selection is approved.

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Article 13. Expenses associated with bidding

1. Expenses associated with the process of selection of bidder include:

a) Expenses associated with preparation of EOI responses, Prequalification Applications, Bids, Proposals and participation in bidding shall be borne by bidders.

b) Expenses associated with process of bidder selection shall be included in total invested capital or estimated budget of procurement;

c) EOI requests, Prequalification Documents shall be distributed free of charge to bidders;

d) Bidding Documents, Requests for Proposals shall be sold or distributed free of charge to bidders.

2. Expenses associated with the process of selection of investor include:

a) Expenses associated with preparation of Prequalification Applications, Bids, Proposals and participation in bidding shall be borne by investors.

b) Expenses associated with process of investor selection shall be financed by state funds, other lawful sources of funds and included in total investment;

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d) Prequalification Documents, Bidding Documents, Requests for Proposals shall be sold to investors.

3. Expenses associated with the process of online bidding include:

a) Expenses associated with participation in national bidding network, expenses associated with publishing information of bidding and other expenses;

b) Expenses associated with submission of a bid, organization of bid as prescribed at Clause 1 and Clause 2 of this Article.

4. The Government shall provide guidelines for this Article.

Article 14. Preferential treatment in selection of bidders

1. Bidders shall be eligible for preferential treatment when submitting a bid in domestic or international bidding to supply goods of which domestically produced costs accounts for at least 25%.

2. Entities entitled to preferential treatment in international bidding to procure consulting services, non-consulting services, and works include:

a) A national bidder submitting a bid independently or on behalf of a joint venture;

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3. Entities entitled to preferential treatment in international bidding to procure consulting services, non-consulting services, and works include:

a) Bidders employing female workers accounting for at least 25 % of worker quantity;

b) Bidders employing workers being invalids or disabled people accounting for at least 25 % of worker quantity;

c) Bidders being small-size enterprises.

4. Preferential treatment is determined to apply during assessing the Bids/Proposals in order to compare, rank the Bids/Proposals according to one of the following methods:

a) Add extra score to the evaluation score of bidders entitled to preferential treatment;

b) Add extra amount to the Bid Price or evaluated price of bidders not eligible for preferential treatment.

5. Entities and content of preferential treatment in selection of bidder specified in this Article shall not apply in case where an International treaty in which the Socialist Republic of Vietnam is a contracting party or international agreements between Vietnam and donors otherwise provides for preferential treatment in selection of bidder.

6. The Government shall provide guidelines for this Article.

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

a) The donor of package requests international bidding to be held;

b) Procurement of goods where the goods are incapable to be manufactured domestically or capable to be manufactured but fail to meet technical, quality or price requirements. In case of common goods which have been imported and offered for sale in Vietnam, international bidding shall not be held;

c) Procurement of consulting service, non-consulting service, works, mixed procurement which national bidders are not able to satisfy requirements of package performance.

2. Investment projects in form of public-private partnership (PPP), investment projects with land use, except for cases limited investment as prescribed by law on investment.

3. The Government shall provide guidelines for this Article.

Article 16. Conditions for individuals to participate in bidding activities

1. Individuals participating in bidding activities must possess certificates of training in bidding and have professional expertise, capability, experiences, language(s) appropriate to the requirements of the procurement, project, except for individuals under bidders/investors.

2. Individuals who directly participate in making EOI requests, Prequalification Documents, Bidding Documents, Requests for Proposals; assessment of EOI responses, Prequalification Applications, Bids, Proposals of professional bidding organizations, enterprises, units operating in bid consulting, professional management board of projects must have practicing certificates to practice in bidding profession.

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1. All Bids, Proposals failed to satisfy the requirements of the Bid Documents, Request for Proposals.

2. Changes to the objectives or scope of the investment stated in the Bid Documents, Request for Proposals.

3. The Bid Documents, Request for Proposals failed to comply with legislation on bidding or other relevant legislation that lead to the failure of the contractor or investor to meet requirements to perform package and/or project.

4. There is evidence showing the giving, taking, or brokerage of bribes, collusive practice/bid rigging, fraud, taking advantage of positions, powers aiming to interfere illegally in bidding activities resulting in falsifying results of selecting the bidder/investor.

Article 18. Responsibilities upon bidding cancellation

Organizations and individuals committing violations against law on bidding that lead to bidding cancellation as prescribed in Clause 3 and Clause 4 Article 17 of this Law must cover certain expenses for related parties and incur penalties as prescribed by law.

Article 19. Training in bidding

1.(annulled)

2. Bidding-related training institutions shall have following responsibilities:

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b) Perform activities of training and capacity building on the basis of framework programs on training in bidding and grant the certificates of bidding to learners in accordance with regulations;

c) Store all dossiers of courses of training in bidding that have been held in accordance with regulations;

d) Conduct annual reports and reports at the request of bidding authorities about progress of training in bidding.

3. The Government shall provide guidelines for this Article.

Chapter II

FORMS AND METHODS OF SELECTION OF BIDDERS/INVESTORS AND PROFESSIONAL BIDDING ORGANIZATIONS

Section 1. FORMS OF SELECTION OF BIDDERS/INVESTORS

Article 20. Competitive bidding

1. Competitive bidding is form of selection of bidders/investors in which the number of participating bidders, investors shall be unrestricted.

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Article 21. Limited bidding

Limited bidding shall apply in case where a package has highly technical requirements or technical peculiarities for which only certain number of bidders that are capable of satisfying the requirements of the package.

Article 22. Direct contracting

1. Direct Contracting for contractor shall apply in the following cases:

a) Packages need to be performed to immediately overcome or timely handle consequences caused by force majeure event; packages need to be performed to ensure national secret; packages need to be carried out immediately to not cause damages directly to life, health and assets of population communities on geographical areas or to not severely affect to adjacent projects; procurement of purchasing drugs, chemicals, supplies, and health equipment in order to carry out the work of prevention and fighting of epidemics in urgent cases;

b) Urgent packages need to be carried out aiming to protect national sovereignty, national borders, and islands;

c) Procurement of consulting services, non-consulting services, and goods which must be purchased from contractors performed previously due to ensuring the compatibility of technologies, copyright which not able to buy from other contractors; packages with nature of research, test; purchase of intellectual property copyright;

d) Procurement of consulting service for making feasible study reports, construction designs which have been appointed for authors of designs of works architectures who won in selection or are selected when authors have full conditions and capability in accordance with regulations; packages of construction of statues, reliefs, monumental paintings, art works in association with author right from the creation stage to stage of construction of the works;

dd) Packages of relocation of technical infrastructure works managed directly by a specialized unit in order to serve the work of ground clearance; procurements of detection and disposal of bombs, mines, explosives in order to prepare ground for executing the Works;

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2. Implementation of Direct Contracting for packages defined at points b, c, d, dd and e Clause 1 this Article must satisfy all the following conditions:

a) Obtaining an approved decision on investment, except for procurements of consulting services for project preparation;

b) Obtaining an approved plan on selection of bidders;

c) Obtaining capital allocated at the request of the package schedule;

d) Obtaining an approved estimate in accordance with regulation, except for case of EP, EC, EPC, turnkey packages;

dd) Using up to 45 days for Direct Contracting procedures as from the day of approving Request for Proposals to day of signing contract; or using up to 90 days in case of large-scale and/or complex packages;

e) Contractor who is recommended for Direct Contracting must be named in the database on contractors of bidding authorities.

3. For packages which are under cases of Direct Contracting specified at Clause 1 this Article and satisfy conditions for Direct Contracting specified at Clause 2 this Article but able to apply other forms of selection of bidder defined at Articles 20, 21, 23 and 24 of this Law, encouraging to apply other forms of selection of bidder.

4. Direct Contracting for investor shall apply in the following cases:

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b) There is one single investor able to perform due to concerning intellectual property, commercial secret, technologies or capital arrangement;

c) Investor proposing project satisfies requirements of project execution with feasibility and highest efficiency in accordance with regulations of Government.

Article 23. Shopping Method

1. Shopping Method shall apply to packages with value in limitation as prescribed by Government and belonging to one of the following cases:

a) Procurement of common and simple non-consulting services;

b) Procurement of goods which are commonly used goods, readily available on the market, have standardized technical features and are similar to each other in quality;

c) Procurement of simple Works of which construction drawing design has been approved.

2. Shopping Method is performed when all following conditions are satisfied:

a) The plan for selection of bidders has been approved;

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c) Capital has been allocated at the request of the package schedule.

Article 24. Direct Procurement

1. Direct Procurement shall apply to procurement of similar goods of a same project, estimated budget of procurement or of other project, estimate of procurement.

2. Direct Procurement shall be performed when all following conditions are satisfied:

a) The contractor has won bidding through competitive or limited bidding and has signed performance contract of previous procurement;

b) Procurement has similar content, nature, and scale less than 130% of procurement signed contract previously;

c) The unit price of the items of a procurement for which the form of Direct Procurement is applied shall not exceed the unit price of the corresponding items of the previous similar procurement for which a contract was signed;

d) Time-limit from the date on which the contract of previous procurement has been signed to day of approving result of Direct Procurement does not exceed 12 months.

3. If contractor performed the previous contract is unable to continue performance of package of Direct Procurement, the form of Direct Procurement shall apply to other contractor if such contractor satisfies requirements on experiences, techniques and price according to the previous Bid and result of selection of bidder.

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Force Account shall apply to packages of projects and estimates of procurement in case organizations directly managing and using such packages have technical and financial capability, and experiences satisfying requirements of packages.

Article 26. Selection of bidders/investors in special cases

In the case of a package, project with particular requirements for which the forms of selection of bidder, investor stipulated in articles 20, 21, 22, 23, 24 and 25 of this Law cannot apply, the competent person shall prepare a plan for selection of bidder, investor and submit it to the Prime Minister for consideration and decision.

Article 27. Community’s participation in execution

Communities, organizations, teams, groups of workers in administrative divisions where packages are executed may be assigned to execute wholly or pay of such package in the following cases:

1. Packages are under the national objective programs, assistance programs of poverty reduction for districts, communes in mountainous, remote and isolated areas, islands, severely disadvantaged areas;

2. Small-scale packages that communities, organizations, teams, groups of workers in administrative divisions may undertake.

Section 2. METHODS OF SELECTION OF BIDDERS/INVESTORS

Article 28. Single-stage and one-envelope bidding procedure

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a) Competitive bidding, limited bidding, shopping method in case of procurement of non-consulting services, goods, works and mixed procurement with small scale;

b) Shopping Method for procurement of non-consulting service provision, goods procurement, and construction;

c) Direct Contracting for procurement of consulting service, non-consulting service, goods, works and mixed procurement;

d) Direct Procurement for procurement of goods;

dd) Direct Contracting in case of selection of investors.

2. Bidders/investors may submit Bids, Proposals including technical proposals and financial proposals at the request of Bidding Documents, Requests for Proposals.

3. The bid opening shall be conducted once for all Bids, Proposals.

Article 29. Single-stage and two-envelope bidding procedure

1. Single-stage and two-envelope bidding procedure shall apply in any of the following cases:

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b) Competitive bidding in case of selection of investors;

2. Bidders/investors shall submit technical proposals and financial proposals separately at the request of Bidding Documents.

3. Bid opening shall be conducted twice. Technical proposals shall be opened after deadline for submission of bids as soon as practical. Bidders or investors satisfying the technical requirements shall have their financial proposals opened for assessment.

Article 30. Two-stage and one-envelope bidding procedure

1. Two-stage and one-envelope bidding procedure shall apply in cases of competitive bidding, limited bidding for procurement of goods, construction, and mixed packages with large scale and complex nature.

2. In the first stage, bidders may submit technical proposals and financial plans without Bid Price at the request of Bidding Documents. On the basis of exchange with each contractor participating in this stage, Bidding Documents for the second stage shall be determined.

3. In second stage, bidders participated in first stage shall be invited for submission of Bids. Bids include technical proposals and financial proposals with Bid Price and Bid Security at the request of Bid for second stage.

Article 31. Two-stage and two-envelope bidding procedure

1. Two-stage and two-envelope bidding procedure shall apply in cases of competitive bidding, limited bidding for procurement of goods, construction, mixed packages with new technology, complex and particular nature.

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3. In second stage, bidders satisfying requirements in first stage shall be invited for submission of Bids. Bids include technical proposals and financial proposals at the request of Bid for second stage corresponding to technical correction. In this stage, financial proposals submitted in first stage shall be opened concurrently with Bids in second stage for assessment.

Section 3. PROFESSIONAL BIDDING ORGANIZATION

Article 32. Professional bidding organization

1. Professional bidding organization includes bidding agents, non-business units which are established with function of performing professional tender.

2. The establishment and operation of bidding agents shall comply with legislations on enterprises.

3. The Government shall provide guidelines for this Article.

Chapter III

PLAN AND PROCESS OF BIDDER SELECTION

Article 33. Principles of making the plan on bidder selection

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2. A plan on bidder selection must set out clearly the number of packages and the contents of each package.

3. Division of the project, estimate of procurement into different packages shall be based on the technical nature and the sequence for its implementation, ensuring unity within the project, estimate of procurement and an appropriate size of package.

Article 34. Formulation of plan on bidder selection

1. Bases for formulating plan on bidder selection for project:

a) Decision on approving project or certificate of investment and relevant documents. For packages which must be executed prior to a decision on approving project, based on decision of head of Employer or head of unit assigned to perform task of preparation of project, in case the investor has not yet been identified;

b) Sources of Funds for project;

c) International treaties, international agreements for projects used official development assistance, concessional loans;

d) Relevant legal documents.

2. Bases for formulating plan on bidder selection for recurrent procurement:

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b) The decision on procurement has been approved;

c) Sources of funds and estimate of recurrent procurement have been approved;

d) Scheme on procurement for entire branch which has been approved by the Prime Minister (if any);

dd) Result of price evaluation of agencies and organizations with function providing price evaluation or quotation (if any).

3. Plan on bidder selection may be formulated after decision on approval for project, estimate of procurement or concurrently with process of formulating project, estimate of procurement or before decision on approving project for procurement which need to be performed before decision on approval for project.

Article 35. Content of plan on bidder selection for each package

1. Name of package:

Name of package presents nature, content and work scope of procurement, in line with contents stated in project, estimate of procurement. If package includes many separate parts, plan on bidder selection should state the name describing basic content of each part.

2. Package price:

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b) For procurement of consulting service for formulation of pre-feasible study report, feasible study report, price of procurement shall be defined on the basis of information on average price according to statistics of projects which have been made in a defined duration; the estimated total investment based on cost per unit; preliminary total investment;

c) If package includes many separate parts, to clearly indicate the estimated price for each part in package price.

3. Sources of Funds:

For each procurement, it must clearly state capital sources or methods of capital arrangement, time of capital allocation to pay for bidder; case of using official development assistance, concessional loans, it must clearly state name of donors and structure of capital sources, including the financed capital, domestic reciprocal capital.

4. Forms and methods of selection of bidders:

Each package must clearly state forms and methods of selection of bidders; selection of domestic or international contractor.

5. Beginning time of contractor selection:

Time beginning of contractor selection is calculated as from issuing Bid, Request for Proposals, and clearly indicated under month or quarter in year. Case of competitive bidding with application of short-list selection procedures, beginning time of contractor selection is calculated as from issuing EOI requests, Prequalification Documents.

6. Contract type:

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7. Contract performance duration:

Contract performance duration is number of days commencing from the effective date of contract until parties fulfill obligations as prescribed in contract, exclusive of duration of warranty obligation performance (if any).

Article 36. Submission of plan on bidder selection for approval

1. Submission of plan on bidder selection for approval:

a) Employer of project, the Procuring Entity of recurrent procurement shall be responsible for submission of plan on bidder selection to the competent person for consideration and approval;

b) For packages which need to be performed prior to a decision on approving project, in case where the Employer is identified, unit of Employer shall submit the plan on bidder selection to the head of Employer for consideration and approval. In case the Employer has not yet been identified, unit assigned to perform task of preparation of project shall submit plan on bidder selection to the head of its unit for consideration and approval.

2. Plan for bidder selection includes the following contents:

a) The performed part of work, including content of work related to preparation of project, packages performed previously with the respective value and legal bases for performance;

b) The part of work which is not reasonably practicable to apply one of form of contractor selection, including: operation of project management board, compensation and ground clearance, commencement, inauguration, payment of loan interests and other affairs not reasonably practicable to apply form of contractor selection;

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d) The part of work which have not met conditions for formulating plan on bidder selection (if any), in which clarifying content and value of this part of work;

dd) Summary of part of works specified in points a, b, c and d this Clause. Total amount of this part does not exceed the approved total investment of project or estimated budget of procurement.

3. Documents enclosed with plan on bidder selection:

When submitting plan on bidder selection for approval, it must enclose copies of documents as the basis for formulation of plan on bidder selection as prescribed in Article 34 of this Law.

Article 37. Evaluation of and approval for plan on bidder selection

1. Evaluation of plan on bidder selection:

a) Evaluation of plan on bidder selection includes examination, assessment of contents as prescribed in Articles 33, 34, 35 and 36 of this Law;

b) Organization assigned to evaluate the plan on bidder selection shall formulate report on evaluation and submit to the competent person for the approval;

c) Organization assigned to evaluate the plan on bidder selection shall make an evaluation report and submit it to the head of Employer or the head of unit assigned to perform task of preparation of project for approving plan on bidder selection in case where package needs to be performed prior to decision on approval for project.

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a) Based on the evaluation report, the competent person shall approve the plan on bidder selection in writing in order to do as basis for selection of bidder after project or estimate of procurement has been approved or concurrently with decision on approving of project, estimate of procurement in eligible case;

b) Based on the evaluation report, the head of Employer or the head of unit assigned to perform task of preparation of project shall approve plan on bidder selection in case where package needs to be performed prior to decision on approval for project.

Article 38. The process of bidder selection

1. The process of bidder selection for competitive bidding, limited bidding shall be performed as follows:

a) Prepare for selection of bidder;

b) Organize selection of bidder;

c) Assess the Bids and negotiate contract;

d) Submit, evaluate, approve and publish result of bidder selection;

dd) Finalize and sign contract.

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a) For Direct Contracting according to the ordinary process including steps: prepare for contractor selection; organize the contractor selection; assess Proposals and negotiate on proposals of bidders; submit, evaluate, approve and publicize the result of bidder selection; finalize and sign contract;

b) For Direct Contracting according to the reduced process including steps: prepare and send draft contract to bidder; negotiate, finalize contract; submit, approve and publish the result of bidder selection; sign contract.

3. The process of bidder selection for Shopping Method shall be performed as follows:

a) For Shopping Method according to the ordinary process including steps: prepare for contractor selection; organize the contractor selection; assess Proposals and negotiate on proposals of bidders; submit, evaluate, approve and publish the result of bidder selection; finalize and sign contract;

b) For Shopping Method according to the reduced process including steps: prepare and send request for quotation to bidders; negotiate contract; submit, approve and publish the result of bidder selection; finalize and sign contract.

4. The process of bidder selection for Direct Procurement shall be performed as follows:

a) Prepare for selection of bidder;

b) Organize selection of bidder;

c) Assess the Proposals and negotiate proposals of bidders;

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dd) Finalize and sign contract.

5. The process of bidder selection for Force Account shall be performed as follows:

a) Prepare for plan on Force Account and draft contract;

b) Finalize the plan on Force Account and negotiate, finalize contract;

c) Sign contract.

6. The process of bidder selection for individual consulting bidders shall be performed as follows:

a) Prepare and send reference provisions to the individual consulting bidders;

b) The individual consulting bidders submit dossier of scientific curriculum vitae;

c) Assess dossier of scientific curriculum vitae of individual consulting bidders;

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dd) Submit, approve and publish result of bidder selection;

e) Sign contract.

7. The process of bidder selection for packages with participation of community in performance shall be performed as follows:

a) Prepare plan on selecting population communities, organizations, teams, groups of workers in localities to carry out package:

b) Organize selection;

c) Approve and publish the selection result;

d) Finalize and sign contract.

8. The Government shall provide guidelines for this Article.

Chapter IV

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Article 39. Methods to assess Bids for procurement of non-consulting service, goods, works, mixed procurement

1. Least-cost selection:

a) This method applies to simple procurement with small scale in which technical, financial and commercial proposals are considered as a same ground when satisfy requirements stated in Bid;

b) Evaluation and Qualification Criteria include: qualification criteria and criteria of procurement;

c) For the Bids which have been assessed if they meet criteria for evaluation as prescribed at point b this Clause, the Bid Price after error correction and adjustment of deviation shall prevail for the purpose of comparison and ranking. Bidders shall be ranked corresponding to Bid Price after error correction and adjustment of deviation, minus the discount (if any). The bidder with lowest price shall be ranked the first.

2. Lowest evaluated bid selection:

a) This method applies to packages of which expenses may be converted on a same ground on technical, financial and commercial elements for entire use life cycle of goods or works;

b) Evaluation and Qualification Criteria include: criteria pertaining to qualifications in case of not applying pre-qualification; technical evaluation criteria; standards for determination of evaluated price.

Elements which are converted on the same ground to determine evaluated price include: necessary expenses associated with operation, maintenance and other expenses related to origin of goods, loan interest, progress, quality of goods or construction works of procurement, prestige of contractor through the progress and quality during implementation of previous similar contracts and other elements;

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3. Technical- and cost-based selection:

a) This method apply to packages of information technology, telecommunication or procurement of goods, works, mixed procurement when both the least-cost selection and lowest evaluated bid selection specified at Clause 1 and Clause 2 of this Article are not reasonably practicable to apply;

b) Evaluation and Qualification Criteria include: Qualification criteria in case of not applying pre-qualification; technical evaluation criteria; collective evaluation criteria. The collective evaluation criteria are formulated on the basis of combination between technical- and cost-based criteria;

c) For Bids which have passed technical evaluation, comparison and ranking are based on the collective score respectively. The bidder with the highest collective score shall be ranked the first.

4. For qualification criteria, pass-fail system shall apply. Regarding technical evaluation criteria, Weighted Scoring Method or pass-fail system shall apply. Regarding technical- and cost-based selection prescribed in Clause 3 of this Article, Weighted Scoring Method shall apply. If Weighted Scoring Method applies, the minimum technical score shall be not smaller than 80% of the total technical score.

5. The Government shall provide guidelines for this Article.

Article 40. Methods to assess Bids for procurement of consulting service

1. For consulting bidders being organizations, one of the following methods shall apply:

a) Least-cost selection shall apply to simple consulting packages. Evaluation and Qualification Criteria is technical evaluation criteria. For Bids which have passed technical evaluation, comparison and ranking are based on the Bid Price after error correction and adjustment of deviation, minus (-) the discount (if any). The bidder with lowest price shall be ranked the first;

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c) Technical- and cost-based selection shall apply to the procurement of consulting services with special importance to quality and expenses associated with performance of package. Evaluation and Qualification Criteria is technical evaluation criteria and collective evaluation criteria. The collective evaluation criteria are formulated on the basis of combination between technical- and cost-based criteria. When formulating the collective evaluation criteria, it must ensure principle which the rate of technical score shall range from 70% to 80% and the rate of cost score shall range from 20% to 30% of the collective score, and the sum of rate of technical score and rate of cost score is 100%. The bidder with the highest collective score shall be ranked the first;

d) Technical-based selection shall apply to procurement of consulting services with high and particular technical requirements. Evaluation and Qualification Criteria is technical evaluation criteria. When formulating technical evaluation criteria, the minimum technical score shall be not smaller than 80% of the total technical score. Bidder has bid dossier satisfying the minimum technical score as prescribed and obtain the highest technical score shall be ranked the first and invited to come for opening of financial proposals as basis for negotiating contract.

2. For technical evaluation criteria specified at points a, b, c and d Clause 1 of this Article, Weighted Scoring Method shall apply. When formulating technical evaluation criteria, the minimum technical score shall be not smaller than 70% of the total technical score, except for the case prescribed in Point d Clause 1 of this Article.

3. For consulting bidders being individuals, Evaluation and Qualification Criteria shall be criteria for evaluation of dossiers of scientific curriculum vitae and technical proposals (if any). The bidder with the best dossier of scientific curriculum vitae, technical proposals and satisfying requirements of reference provisions shall be ranked the first.

Article 41. Methods to assess Proposals

Method to assess Proposals in Shopping Method shall comply with least-cost selection specified at clause 1 article 39 of this Law.

Article 42. Consideration of contract award in case of procurement of consulting services

1. A consulting bidder shall be considered for contract award if it meets the following conditions:

a) Obtaining satisfactory Bid/Proposal;

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c) Obtaining the lowest bid price after error correction and adjustment of deviation minus (-) the discount (if any) in case of least-cost selection; obtaining the highest technical score in case of fixed price selection and technical-based selection; obtaining the highest collective score in case of technical- and cost-based selection;

d) Obtaining proposed successful bid not exceeding the approved package price. If the approved estimated budget of package is lower than or higher than the approved package price, this estimate shall replace package price as basis for consideration for recommendation as the successful bidder.

2. A consulting bidder being individual shall be considered for contract award if he/she meets the following conditions:

a) The bidder has the best dossier of scientific curriculum vitae, technical proposal (if any) and satisfying requirements of reference provisions;

b) Obtaining proposed successful bid not exceeding the approved package price. If the approved estimated budget of package is lower than or higher than the approved package price, this estimate shall replace package price as basis for consideration for recommendation as the winning bidder.

3. For bidders fail to be selected, the notice of bidder-selection result must clearly state the reason thereof.

Article 43. Consideration of contract award in case of procurement of non-consulting services, goods, works, and mixed procurement

1. The provider of non-consulting service, goods, works, or mixed procurement shall be considered for contract award upon satisfying the following conditions:

a) Obtaining satisfactory Bid/Proposal;

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c) Obtaining qualified technical proposal;

d) Having negative deviation not exceeding 10% of Bid Price;

dd) Obtaining the lowest bid price after error correction and adjustment of deviation minus (-) the discount (if any) in case of least-cost selection; obtaining the lowest evaluated price in case of lowest evaluated bid selection; obtaining the highest collective score in case of technical- and cost-based selection;

e) Obtaining proposed successful bid not exceeding the approved package price. If the approved estimated budget of package is lower than or higher than the approved package price, this estimate shall replace package price as basis for consideration for recommendation as the winning bidder.

2. For bidders fail to be selected, the notice of bidder-selection result must clearly state the reason thereof.

Chapter V

CENTRALIZED PROCUREMENT, RECURRENT PROCUREMENT, PURCHASE OF DRUGS, MEDICAL SUPPLIES; SUPPLY OF PUBLIC PRODUCTS AND SERVICES

Section 1. CENTRALIZED PROCUREMENT

Article 44. General provisions on centralized procurement

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2. Centralized procurement shall apply in case where goods and services need to be procured with big quantity, similar categories at one or many agencies, organizations, enterprises or Employer.

3. Centralized procurement may be performed in one of the following ways:

a) The centralized procurement unit gathers needs of procurement, conduct the selection of bidder, directly sign contract with the selected bidder for procurement of goods or services;

b) The centralized procurement unit gathers needs of procurement, conduct the selection of bidder, sign a written framework agreement with single or multiple selected bidders as basis for units which have need of Direct Procurement to sign contract with the selected bidder for procurement of goods or services.

4. The centralized procurement unit shall conduct the selection of bidder on the basis of assigned tasks, or sign contract with units which have need for procurement.

5. The Government shall provide guidelines for this Article.

Article 45. Framework agreement

1. Framework agreement in the centralized procurement means a long-term agreement between the centralized procurement unit with single or multiple contractors, in which include standards and conditions as basis for procurement according to each specific contract.

2. Duration for use of framework agreements shall be stipulated in plan on bidder selection but not exceed 03 years.

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Article 46. Conditions for application

Regulatory agencies, political organizations, socio-political organizations, socio-political-occupational organizations, social organizations, socio-occupational organizations and units of the People’s armed forces, and public non-business units may apply the recurrent procurement of goods and services upon satisfying all the following conditions:

1. Use the sources of funds for recurrent procurement;

2. Goods and services in the list of goods and services being recurrently procured to maintain ordinary course of agencies, organizations and units.

Article 47. Organizing selection of bidder

1. Selection of bidder in recurrent procurement shall comply with Articles 38, 39, 40, 41, 42 and 43 of this Law.

2. The Government shall provide guidelines for recurrent procurement.

Section 3. PURCHASE OF DRUGS AND MEDICAL SUPPLIES

Article 48. The selection of providers of drugs and medical supplies

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2. Selection of providers of drug supply shall also be performed under form of price negotiation. Form of negotiation shall be applied to procurement of drugs which there are only one to two producers; original proprietary medicines, rare drugs, drugs still under patent term and other particular cases.

3. A bidder shall be considered for being awarded contract of procurement of each drug item when satisfying the following conditions:

a) Conditions specified at points a, b, d, dd and e Clause 1 Article 43 of this Law;

b) Technical proposals considered to satisfy requirements on quality, provision, preservation and time limit for drugs use.

4. The Government shall provide guidelines for this Article.

Article 49. Centralized purchase of drugs

1. The centralized purchase of drugs shall be performed at national level and local level.

2. The Government shall provide for the centralized purchase of drugs and roadmap to perform the centralized purchase of drugs.

Article 50. Preferential treatment in purchase of drugs

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Article 51. Responsibilities of regulatory bodies in bidding of drugs and medical supplies

1. The Ministry of Health shall promulgate list of drugs involving bidding; list of drugs involving centralized bidding; and list of drugs allowed applying form of price negotiation.

2. Government shall provide for responsibilities of Ministries and sectors in bidding of drugs and medical supplies, and the disclosure of prices of drugs and medical supplies according to results of contractor selection.

Article 52. Payment of expenses associated with purchase of drugs and medical supplies

If non-public health facilities do not select to apply provisions of this Law for purchase of drugs, medical supplies, such health facilities shall only be paid from medical insurance fund according to the drugs items and unit prices of drugs and medical supplies already won bidding of the public health facilities at provincial level in the same administrative divisions.

SECTION 4. SUPPLY OF PUBLIC PRODUCTS AND SERVICES

Article 53. Forms of selection of bidders

The selection of providers of public products and services shall perform under forms of competitive bidding, limited bidding, and Direct Contracting, Shopping Method, Direct Procurement and Force Account.

Article 54. The process of bidder selection

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a) Prepare for selection of bidder;

b) Organize selection of bidder;

c) Assess the Bid/Proposal and negotiate contract;

d) Submit, evaluate, approve and publish result of bidder selection;

dd) Finalize and sign contract.

2. The Government shall provide guidelines for this Article.

Chapter VI

SELECTION OF INVESTORS

Article 55. Formulation of plan on investor selection

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a) Decision on approving project;

b) International treaties, international agreements for projects used official development assistance, concessional loans;

c) Relevant documents.

2. Content of plan on investor selection:

a) Name of project;

b) Total investment and total capital of project;

c) Preliminary content of amount financed by State, financial regime of State to support for implementation of project (if any);

d) Forms and methods of selection of investors;

dd) Beginning time of investor selection:

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g) Contract performance time.

Article 56. The process of investor selection

1. The process of investor selection shall be performed as follows:

a) Prepare for selection of investor;

b) Organize selection of investor;

c) Evaluate the Bids, Proposals;

d) Submit, evaluate, approve and publish result of investor selection;

dd) Negotiate, finalize and sign contract.

2. The Government shall provide guidelines for this Article.

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1. The Procuring Entity shall submit the plan on selection of investor, Pre-qualification Document, result of pre-qualification, Bid, Request for Proposals and result of investor selection to the competent persons, concurrently send them to appraisal organization.

2. The appraisal organization shall make a report on appraisal of the plan on selection of investor, Pre-qualification Document, result of pre-qualification, Bid, Request for Proposals and result of investor selection to submit to the competent persons.

3. Based on the submitted dossier and report on appraisal, the competent persons shall approve the plan on selection of investor, Pre-qualification Document, result of pre-qualification, Bid, Request for Proposals and result of investor selection.

4. The Government shall provide guidelines for this Article.

Article 58. Methods of Bid Evaluation

1. Methods of Bid Evaluation include: service price-related evaluation, State’s holding-related evaluation, social and state benefits-related evaluation and combined evaluation.

2. Evaluation and Qualification Criteria include: Qualification criteria; technical evaluation criteria, financial evaluation criteria.

3. The Government shall provide guidelines for this Article.

Article 59. Consideration for contract award in selection of investors

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a) Obtaining satisfactory Bid/Proposal;

b) Satisfying requirements pertaining to qualifications;

c) Satisfying technical requirements;

d) Satisfying financial requirements;

dd) Project obtains highest efficiency.

2. For investors fail to be selected, the notice of investor-selection result must clearly state the reason thereof.

Chapter VII

SELECTION OF BIDDERS AND INVESTORS ONLINE

Article 60. Selection of bidders and investors online

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a) Publishing information on bidding as prescribed in Article 8 of this Law;

b) Publishing EOI requests, Prequalification Documents, Requests for Proposals;

c) Submitting Bid Security, Performance Security, and joint venture agreement;

d) Submitting, withdrawing EOI requests, Prequalification Documents, Bids, Proposals;

dd) Opening bid;

e) Evaluating EOI responses, Prequalification Applications, Bids, and Proposals;

g) Signing contract and making payment of contract;

h) Other relevant contents.

2. The Government shall provide guidelines for selection of bidders and investors online and application roadmap.

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1. It must publish and not limit the access of information.

2. Users may realize the real time upon accessing national bidding network. Time on national bidding network is the real time and standard time in bidding through national bidding network.

3. It must operate continuously, unified, be stable and safe on information, have ability to identify users, keep confidential and entire data.

4. It must perform the storage of information and may retrieve histories of transactions on national bidding network.

5. It must ensure that bidders and investors cannot send EOI responses, Prequalification Applications, Bids, and Proposals to the Procuring Entity after deadline for submission of bids.

Chapter VIII

CONTRACT

Section 1. CONTRACT CONCLUDED WITH SELECTED BIDDER

Article 62. Contract type

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a) Fixed-price contract means contract with fixed price during performance for all work contents in contract. Payment for fixed-price contract shall be performed many times during implementation or once upon finishing contract. Total amount paid to contractor until finishing obligations under contract shall be equal to the price stated in contract;

b) When applying the fixed-price contract, prices of packages as the basis for consideration for recommendation as the winning bidder must include expenses associated with risk elements which may happen during the course of implementation of contract, reserve expenses associated with slippage in price. Bid Price must include all expenses associated with risk elements and expenses associated with slippage in price which may happen during the course of implementation of contract;

c) Fixed-price contract is type of basic contract. When deciding on application of contract types defined at Clause 2 and Clause 3 of this Article, the person approving the plan on bidder selection must ensure that such contract types are more appropriate than fixed-price contract. For procurement of simple consulting service or non-consulting service; procurement of goods, works, mixed procurement with small scale, the form of fixed-price contract shall apply;

d) For procurement of works, during the course of negotiating and finalizing contract, the relevant parties need review the table of work volume under the approved design; if the bidder or the Procuring Entity detects that the tables of work quantity and volume are not exact in comparison with design, the Procuring Entity shall report to the Employer for consideration to decide on adjustment of the work volume in order to ensure the conformity with design;

dd) When applying the fixed-price contract, the Employer of project, the Procuring Entity of recurrent procurement, the centralized procurement units or units with need of procurement for the centralized procurement shall be responsible for the accuracy of work quantity and volume. In case of using consulting bidder to make dossier of design, Bid, Request for Proposals, in contract between Employer, Procuring Entity, centralized procurement unit or unit which has need of procurement with the consulting bidder must have provisions on responsibilities of parties in handling or compensation in case of calculating wrongly the work quantity and volume.

2. Fixed-unit rate contract:

Fixe-unit rate contract refers to a contract with unit price not changeable during performance of all work contents in contract. The contractor will be paid according to the practical work quantity and volume which are tested for acceptance as prescribed on the basis of the fixed unit price in contract.

3. Adjustable-unit rate contract:

Adjustable-unit rate refers to a contract with changeable unit price based on agreements in contract for all work contents in contract. The contractor will be paid according to the practical work quantity and volume which are tested for acceptance as prescribed on the basis of the unit price in contract or the adjusted unit price.

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Time-based contract means contract which is applied to procurement of consulting service. The Contract Price is calculated on the basis of working time according to month, week, day, hour and costs other than remuneration. The contractor will be paid according to the practical working time on the basis of remuneration corresponding to the title and work stated in contract.

Article 63. Contract documents

1. Contract documents include the following:

a) Written contract;

b) Annex of contract including the detailed list of scope of work, price schedules, time for performance (if any);

c) Decision on approving the result of bidder selection.

2. Apart from documents specified at Clause 1 of this Article, depend on scale, nature of procurement, contractual dossier may include one or a number of the following documents:

a) The written record of finalizing contract;

b) The written agreement of parties about contractual conditions, including general conditions and special conditions;

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d) Bid, Request for Proposals and modifications thereof;

dd) Relevant documents.

3. In case of any changes to contents under contract, parties must sign addenda to contract.

Article 64. Conditions for signing of contract

1. At time of signing, bid dossier and Proposals of the contractor still remains valid.

2. At time of signing, the contractor must ensure to meet requirements on technical and financial capability for implementation of the procurement. In necessary case, the Employer of project, the Procuring Entity of recurrent procurement, the centralized procurement unit or unit with need of procurement for the centralized procurement may conduct verification of information on capability of bidder, if the bidder still satisfies requirements for performance of package, parties will sign contract.

3. . The Employer of project, the Procuring Entity of recurrent procurement, the centralized procurement unit or unit with need of procurement for the centralized procurement must ensure conditions on funding for advance payment, payment funding, and ground for implementation and other necessary conditions for carrying out the package on the schedule.

Article 65. Contract concluded with the contractor

1. After selecting bidder, the Employer of project, the Procuring Entity of recurrent procurement, the centralized procurement unit or unit with need of procurement for the centralized procurement and the contractor must sign contract to perform the package. For a joint venture, all JV’s Parties must directly sign and affix their seal (if any) on the written contract. The contract signed between parties must comply with provisions of this Law and other provisions of relevant legislation.

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3. Contract signed between parties must conform to texts in Bid, Request for Proposals, bid dossier, Proposals, result of contractual negotiation, and decision on approving result of bidder selection.

4. Contract Price does not exceed the successful bid. In case of additional quantities of any item of work apart from Bid, Request for Proposals, leading to the excess of Contract Price in comparison with the successful bid, the Contract Price must be ensured to not exceed the approved price of procurement or estimate; if project, estimate on procurement include many procurement, total Contract Price must ensure to not exceed total the invested capital and estimated budget already been approved.

5. The Government shall provide for content of contract involving bidding.

Article 66. Performance Security

1. Performance Security shall apply to the selected bidder, except for providers of consulting services, the bidder selected according to form of Force Account and community’s participation.

2. The selected bidder must provide a Performance Security prior to the date on which the contract takes effect.

3. Based on scale, nature of package, the amount of a Performance Security shall be stipulated in the Bid Documents, Requests for Proposals ranging from 2% to 10% of the successful bid.

4. Validity period of Performance Security shall begin from the effective day of contract until the date on which parties completely fulfill obligations or until the day of transfer of warranty obligations in case of having provisions on warranty. In case of extending the contract performance period, it must require the bidder to extend respectively validity period of Performance Security.

5. The contractor shall not be entitled to the return of the Performance Security in the following cases:

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b) The contractor breaks terms of the contract;

c) The contractor has executed the contract behind of schedule due to the its faults but refuses to extend the validity of Performance Security.

Article 67. Principles of adjustment to contract

1. Adjustment to contracts must be specified specifically in the written contract, written agreement on contractual conditions (if any).

2. Adjustment to contracts shall only apply within term of validity of contract.

3. Adjustment to contract price shall only apply contract based on fixed unit price, contract based on modifiable unit price and time-based contract.

4. The adjusted contract sum shall not exceed package price or estimated budget already been approved. In case of projects, estimates on procurement including multiple packages, the adjusted contract sum shall not exceed the total investment, the estimated budget for procurement already been approved.

5. For adjustable unit price-based contract, the adjustment of unit price shall be performed as from time of arising the elements causing changes of price and only be applied for the performed quantity of items or work on schedule stated in contract or the adjusted schedule as prescribed in Clause 6 and Clause 7 of this Article.

6. Time for performance shall be solely adjusted in the following case:

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b) Changes to the scope of work, design, measures for construction due to objective requirements affect to the contract time for performance;

c) Handing over of ground inconsistently with agreements in contract affect to the contract time for performance but cause is not fault of contractor.

7. Cases of adjustment to the contract time for performance which do not prolong the progress of finishing project, contractual parties may agree and unify such adjustments. Case of adjustment to the contract time for performance which prolong the progress of finishing project, it must report to the competent person for consideration and decision.

Section 2. CONTRACT CONCLUDED WITH INVESTOR

Article 68. Contract type

In case of selection of investors, contracts include: Building-Operation-Transfer (BOT) contract, Building-Transfer-Operation (BTO) contract, Building- Owning-Operation (BOO) contract, Building-Transfer (BT) contract and other types of contract as prescribed by law on investment.

Article 69. Contract documents

1. Contract documents include the following:

a) Written contract;

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c) The contract negotiation record;

d) Decision on approving the result of investor selection;

dd) The written agreement of parties about contractual conditions, including general conditions and special conditions;

e) Bid, Proposal and clarifications thereof;

g) Bid Documents, Request for Proposals and amendments thereof;

h) Relevant documents.

2. In case of any changes to contents under contract, parties must sign addenda to contract.

Article 70. Conditions for signing of contract

1. At time of signing, bid dossier and Proposals of the selected investor still remains valid.

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3. The competent regulatory agencies must ensure conditions on capital financed by state, ground for implementation and other necessary conditions for carrying out the project on the schedule.

Article 71. Contract concluded with the selected investor

1. After selecting investor, the competent regulatory agencies shall sign contract with the selected investor or the selected investor and project management enterprise. For a joint venture, all JV’s Parties must directly sign and affix their seal (if any) on the written contract. The contract signed between parties must comply with provisions of this Law and other provisions of relevant legislation.

2. Contract signed between parties must conform to texts in Bid, Request for Proposals, bid dossier, Proposals, result of contractual negotiation, and decision on approving result of investor selection and written agreement on investment.

Article 72. Performance Security

1. The selected investor must provide a Performance Security prior to the date on which the contract takes effect.

2. Based on scale, nature of project, the amount of a Performance Security shall be stipulated in the Bid Documents, Requests for Proposals ranging from 1% to 3% of the successful bid.

3. The term of validity of a Performance Security shall begin from the day of officially signing contract until the date works is completed and tested for acceptance or until the date conditions of service provision guarantee are completed as prescribed in contract. In case of extending the contract performance period, it must require the investor to extend respectively term of validity of Performance Security.

4. The investor shall not be entitled to the return of the Performance Security in the following cases:

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b) The investor breaks terms of the contract;

c) The investor has executed the contract behind of schedule due to the its faults but refuses to extend the validity of Performance Security.

Chapter IX

RESPONSIBILITIES OF PARTIES IN SELECTION OF BIDDERS/INVESTORS

Article 73. Responsibilities of the competent person

1. Approve the plan on selection of bidder/ investor, except for case defined at point a Clause 1 Article 74 of this Law.

2. Resolve protests during selection of bidder/ investor.

3. Take actions against violations of bidding in accordance with this Law and other relevant laws.

4. Cancel bid as prescribed at Clauses 2, 3 and 4 Article 17 of this Law.

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6. Inspect, supervise, and monitor the work of bidding and contract performance.

7. In case of selection of bidders, apart from provisions at Clauses 1, 2, 3, 4, 5 and 6 of this Article, the competent person shall have the following responsibilities:

a) Adjust tasks and competence of Employer in case of failing to meet legislation on bidding and requirements of project, procurement;

b) Require the Employer, the Procuring Entity to supply dossiers, documents in order to serve the inspection, supervision, monitoring, settlement of protests, actions against violations on bidding and works defined at Clause 4 and clause 5 of this article;

c) Give opinions on handling of complex circumstances at the proposal of the Employer defined at point a clause 2 Article 86 of this Law.

8. In case of selection of investors, apart from provisions at Clauses 1, 2, 3, 4, 5 and 6 of this Article, the competent person shall have the following responsibilities:

a) Decide selection of the Procuring Entity;

b) Approve Pre-qualification Document, result of pre-qualification, Bid, Request for Proposals, result of investor selection;

a) Make a decision dealing with any exceptional situation;

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dd) Cancel bid as prescribed at Clauses 1 Article 17 of this Law;

e) Require the Procuring Entity to supply dossiers, documents in order to serve the inspection, supervision, monitoring, settlement of protests, actions against violations on bidding and works defined at Clause 4 and clause 5 of this article.

9. Decide establishment of the Procuring Entity with personnel satisfying the conditions as prescribed by this Law in case of investor selection for recurrent procurement. If the personnel fail to satisfy, the competent person must conduct selection of a professional bidding organization to act as the Procuring Entity or to perform some of tasks of the Procuring Entity.

10. Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault.

11. Make explanations for observance with provisions in this article at the request of superior agencies, inspection agencies, and regulatory bodies on bidding activities.

12. Perform other tasks as prescribed in this Law.

Article 74. Responsibilities of the Employer

1. Approve contents during contractor selection including:

a) Plan on selection of bidders in case where the package is performed prior to decision on approving the project;

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c) Bid, Request for Proposals;

d) List of ranked contractors;

dd) Result of selection of bidders.

2. Sign or authorize for signing and manage the contract performance with contractor.

3. Decide establishment of the Procuring Entity with personnel satisfying conditions as prescribed in this Law. If the personnel fail to satisfy, the competent person must conduct selection of a professional bidding organization to act as the Procuring Entity or to perform some of tasks of the Procuring Entity.

4. Make a decision dealing with any exceptional situation.

5. Resolve protests during selection of bidder.

6. Maintain confidentiality of relevant documents during selection of bidders.

7. Archive relevant information during selection of bidders as prescribed by law on archival and regulations of Government.

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9. Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault.

10. Cancel bid as prescribed at Clauses 1 Article 17 of this Law.

11. Take legal responsibility and be held accountable to competent persons during the selection of bidder process.

12. Provide information, relevant documents and make explanations on observance with provisions in this Article at the request of superior agencies, inspection agencies, and regulatory bodies on bidding activities.

13. If the Employer currently being the Procuring Entity, the investor must take responsibilities specified in Article 75 of this Law.

14. Perform other tasks as prescribed in this Law.

Article 75. Responsibilities of the Procuring Entity

1. For contractor selection to perform packages of project:

a) Make preparations for contractor selection; to organize contractor selection, and to assess EOI responses, Prequalification Applications, Bids, and Proposals;

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a) Request bidders to clarify their EOI responses, Prequalification Applications, Bids and Proposals during the evaluation process;

d) Submit the result of short list selection and result of bidder selection for approval;

dd) Negotiate and finalize contract with bidder;

e) Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault.

g) Maintain confidentiality of relevant documents during selection of bidders;

h) Ensure honesty, objectivity and impartiality throughout the process of bidder selection;

i) Provide information to the Vietnam Public Procurement Review Journal and to the national bidding website; to provide information and relevant documents and make explanations on observance with provisions in this Clause at the request of competent person, Employer, inspection agencies, regulatory bodies on bidding activities;

k) Take legal responsibility and be held accountable to the Employer during the selection of bidder process.

2. For selection of tenders in recurrent procurement, apart from provisions at points a, b, c, d, dd, e, g, h and i Clause 1 this Article, the Procuring Entity must take the following responsibilities:

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b) Approve result of bidder selection;

c) Sign and manage the contract performance with contractor;

d) Make a decision dealing with any exceptional situation;

dd) Resolve protests during selection of bidder;

e) Cancel bid as prescribed at Clauses 1 Article 17 of this Law;

g) Take legal responsibility and be held accountable to competent persons during the selection of bidder process;

h) Archive relevant information during selection of bidders as prescribed by law on archival and regulations of Government;

i) Provide information to the Vietnam Public Procurement Review Journal and to the national bidding website; to provide information and relevant documents and make explanations on observance with provisions in this Clause at the request of competent person, inspection agencies, and regulatory bodies on bidding activities;

k) Send annual report on bidding.

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a) Make preparations for investor selection; to organize investor selection; to assess Prequalification Applications, Bids, and Proposals in accordance with this Law;

b) Decide establishment of expert group;

a) Request investors to clarify their EOI responses, Prequalification Applications, Bids and Proposals during the evaluation process;

b) Submit Pre-qualification Document, result of pre-qualification, Bid, Request for Proposals, result of investor selection for approval;

d) Negotiate contract with investor;

e) Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault;

g) Maintain confidentiality of relevant documents during selection of investors;

h) Archive relevant information during selection of investors as prescribed by law on archival and regulations of Government;

i) Resolve protests during selection of investor;

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l) Provide information to the Vietnam Public Procurement Review Journal and to the national bidding website; to provide information and relevant documents and make explanations on observance with provisions in this Clause at the request of competent person, inspection agencies, and regulatory bodies on bidding activities.

4. Perform other tasks as prescribed in this Law.

Article 76. Responsibilities of the expert groups

1. Keep honest, objective and impartial throughout the process of implementation of tasks.

2. Conduct evaluation of EOI responses, Prequalification Applications, Bids, and Proposals correctly in accordance with the requirements.

3. Report the Procuring Entity about result of assessing EOI responses, Prequalification Applications, Bids, Proposals and list of the ranked bidders/investors.

4. Maintain confidentiality of relevant documents during selection of bidders/investors.

5. Reserve their own opinions.

6. Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault.

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8. Perform other tasks as prescribed in this Law.

Article 77. Responsibilities of bidders and investors

1. Request the Procuring Entity to clarify EOI request, Pre-qualification Document, Bid, and Request for Proposals.

2. Fulfill the contractual undertakings provided to the Subcontractors (if any).

3. Lodge protests or make complaints and denunciations regarding bidding.

4. Comply with the provisions of the law on bidding.

5. Keep honest and accurate during the process of participation in bidding and while lodging protests or making complaints and denunciations.

6. Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault.

7. Provide information, relevant documents and make explanations on observance with provisions in this Article at the request of superior agencies, the Employer, the Procuring Entity, inspection agencies, regulatory bodies on bidding activities.

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Article 78. Responsibilities of the evaluating organizations

1. Act independently and to comply with the provisions of this Law and other relevant laws when conducting evaluations.

2. Request the Employer and the Procuring Entity to provide all relevant documents and data.

3. Maintain confidentiality of documents and data throughout the process of evaluation.

4. Keep honest, objective and impartial throughout the process of evaluation.

5. Reserve their own opinions and bear liability for their evaluation report.

6. Pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the competent person’s fault.

7. Provide information, relevant documents and make explanations on observance with provisions in this Article at the request of competent person, the Employer of project, the Procuring Entity of recurrent procurement, centralized procurement, inspection agencies, and regulatory bodies on bidding activities.

8. Perform other tasks as prescribed in this Law.

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In addition to responsibilities defined in Article 75 of this Law, the Procuring Entity participating in national bidding network shall have the following responsibilities:

1. Equip information technology infrastructure which meets requirements of bidding online.

2. Manage and not disclose secret key of the granted digital certificate. In case where a Procuring Entity lost digital certificate or detect the illegal use of digital certificate, it must notify immediately to the provider of digital signature certification service for cancelation and grant of new digital certificate; to expand the validity period of digital certificate to ensure the digital certificate to be valid during the process of bidding;

3. Take legal responsibility for accuracy and honesty of information registered or published on national bidding network when signing in by their digital signature;

4. Check and certify the publishing of their information entered in national bidding network;

5. Comply with provisions of this Law and other provisions of relevant legislation.

Article 80. Responsibilities of the bidders and investors participating in national bidding network

In addition to responsibilities defined in Article 77 of this Law, the bidders and investors participating in national bidding network also have the following responsibilities:

1. Equip information technology infrastructure when participating in bidding online.

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3. Take legal responsibility for accuracy and honesty of information registered or published on national bidding network when signing in by their digital signature.

4. Take responsibility for result when participating in bidding online in case of having incident due to the network system at the side of bidders or investors which make documents to be not able to be open or not readable;

5. Comply with provisions of this Law and other provisions of relevant legislation.

Chapter X

STATE MANAGEMENT OF BIDDING ACTIVITIES

Article 81. Content of state management of bidding activities

1. Promulgating, making public, propagating, provide guidelines for and implementing regulations of legal documents and policies on bidding.

2. Granting certificates of practicing in bidding operation.

3. Managing the work of training and capacity building on bidding.

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5. Administering on a nationwide basis the bidding information system.

6. Monitoring, supervising, checking, inspecting, resolving protests, complaints and denunciations regarding bidding, and dealing with breaches of the law on bidding in accordance with this Law and other relevant laws.

7. Conducting international cooperation on bidding.

Article 82. Responsibilities of Government and the Prime Minister

1. The Government shall exercise consistent administration of bidding throughout the country.

2. The Prime Minister shall discharge the following responsibilities:

a) Make decisions on the bidding issues stipulated in article 73 of this Law for projects under his competence;

b) Approve plan on selection of bidders/investors in special cases;

c) Direct the work of conducting inspections and of resolving complaints, denunciation and actions against violations against this Law and relevant law provisions;

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Article 83. Responsibilities of the Ministry of Planning and Investment

1. Be held accountable to the Government for the exercise of unified state administration of bidding activities nationwide as prescribed in Article 81 of this Law.

2. In addition to provision at Clause 1 this Article, the Ministry of Planning and Investment shall have the following responsibilities:

a) Evaluate plans on selection of bidder/ investor in projects under the consideration and decision competence of the Prime Minister;

b) Build up, manage, and guide the use of the national bidding website and bidding newspaper;

c) Perform other tasks on bidding as assigned by Government and the Prime Minister.

Article 84. Responsibilities of ministries, ministerial equivalent bodies, and all level people's committees

Ministries, ministerial equivalent bodies, and all level people's committees shall, within their tasks and powers, have the following responsibilities:

1. Exercise administration of bidding work.

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3. Resolve protests regarding bidding.

4. Conduct checks and inspections, resolve complaints, denunciation, and with breaches of the law on bidding.

5. Organize the capacity building of bidding knowledge for cadres, civil servants and public employees engaged in bidding work.

6. In cases where a minister, head of a ministerial equivalent body or chairman of a people's committee at any level is concurrently the authorized person, then such minister, head or chairman must also discharge the responsibilities stipulated in article 73 of this Law; if being Employer, he must also discharge the responsibilities stipulated in article 74 of this Law.

Article 85. Responsibilities of the organization operating national bidding network

1. Manage and operate national bidding network.

2. Maintain confidentiality of documents and data throughout the process of online bidding in accordance with regulations.

3. Supply services to guide the Employer, the Procuring Entity, bidders/investors in bidding online, and registering, publishing information on national bidding network.

4. Save information in serve of searching, monitoring, supervising, checking, inspecting and auditing.

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Article 86. Dealing with exceptional situations

1. Dealing with exceptional situations means settlement of cases arising in bidding which have not yet been stipulated specifically clearly in law on bidding. The person making a decision on dealing with any exceptional situation in bidding shall be responsible before the law for his decision on the basis of ensuring the following principles:

a) Ensuring competitiveness, fairness, transparency and economic efficiency;

b) Acting on the basis of the approved plan on selection of bidder/ investor, EOI requests, Prequalification Documents, Bidding Documents, Request for Proposals, EOI responses, Prequalification Applications, Bids, Proposals; result of selection of bidder/ investor; the contract signed with selected bidder/investor; practical situation of performance of packages and projects.

2. Competencies for dealing with exceptional situations in bidding:

a) For contractor selection to perform packages of project, the person making decision to deal with exceptional situations is Employer. In complex cases, the Employer may make decision on dealing with exceptional situations after consulting the competent person;

b) For selection of tenders in recurrent procurement, centralized procurement, the person making decision to deal with exceptional situations is the Procuring Entity;

c) For investor selection, the person making decision to deal with exceptional situations is competent person.

3. The Government shall provide guidelines for this Article.

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1. Inspection of bidding activities:

a) Bidding inspections shall be carried out and applied to organizations and individuals who are involved in bidding activities specified in this Law;

b) The bidding Inspectorate shall be the specialized inspectorate for the bidding sector. The organization and operations of the bidding Inspectorate shall be performed in accordance with the law on inspections.

2. Checks of bidding activities:

a) Checks of bidding activities include: checks of promulgation of documents guiding on bidding of Ministries, sectors, localities and enterprises; checks of training on bidding, checks of formulation and approval of plan on selection of bidder/ investor; checks of selection of bidder/ investor; conclusion in contracts and other activities involving bidding;

b) Checks of bidding shall be conducted regularly or irregularly under decisions on the heads of agencies competent to check.

3. Supervision of bidding activities:

Supervision of bidding activities is regular work of the competent person aiming to ensure the observance of process of selection of bidder and investor with this Law.

4. The Government shall provide guidelines for this Article.

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The making of complaints and denunciations and the resolution of such complaints and denunciations on bidding shall be performed in accordance with the law on complaints and denunciations.

Chapter XI

FRAUD AND CORRUPTION AND ACTIONS AGAINST VIOLATIONS IN BIDDING

Article 89. Fraud and corruption in bidding

1. Giving, taking, brokerage of bribes.

2. Taking advantage of positions, powers aiming to interfere illegally in bidding activities.

3. Collusive practice, including the following acts:

a) Agreeing on bidding withdrawal or withdrawal of Bid Submission Form already been submitted so that one party or parties in agreement win bid;

b) Agreeing that one party or parties jointly prepare(s) Bidding Documents so that one party may win bid;

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4. Fraudulent practice, including the following acts:

a) Providing a wrong presentation intentionally or falsifying information, documents of a bidder/investor with the aim to obtain financial benefits or other benefits or with the aim to avoid any obligation;

b) Individuals who directly assess the Bidding Documents and results of bidder/investor selection provide wrong reports or untrue information falsifying the results of bidder/investor selection;

c) Bidder/Investors intentionally provide dishonest information in the Bidding Documents falsifying the result of bidder/investor selection.

5. Interference, including the following acts:

a) Destroying, cheating, changing, hiding proof or reporting contrary to the truth; threatening, disturbing or suggesting with any bidder/investor with the aim to prevent the clarification of corrupt, fraudulent or conclusive practice with authorities in charge of supervisions, inspections and audit;

b) Impeding bidder/investors, authorities in charge of supervision, inspection and audit.

6. Inequality and intransparency, including the following acts:

a) Making a Bid as a bidder/investor or performing tasks of a Procuring Entity/Employer for its own invitation for bids;

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c) Engaging in evaluation of the Bidding Documents and assessing the results of Bidder/Investor selection of the same package/project;

Any individual of the Procuring Entity/Employer directly participates in the Bidder/Investor selection process, or participates in an expert groups or evaluation groups for results of Bidder/Investor selection, or a Head of the Procuring Entity/Employer has procurements of which his or her natural parent, parent-in-law, spouse, natural child, adopted child, son or daughter-in-law or sibling is a Bidder/Investor or a legal representative of the Procuring Entity/Employer;

dd) Making a bid for the procurement of Goods for which it provided consulting services;

e) Any individual makes a bid in his/her name for the package of project whose Procuring Entity/Employer is his/her workplace within 12 months, from the date on which he/she quits his/her job from such workplace;

g) The supervision consultant concurrently provides the verification consulting for the package which is under supervision of bidder;

h) Applying a method of Bidder/Investor selection other than National Competitive Bidding upon the unsatisfaction of requirements prescribed in this Law;

i) Specifying detailed requirements pertaining to trademarks and origin of goods in Bid Documents applicable to procurement of goods, for works and mixed procurement when applying forms of competitive bidding, limited bidding;

k) Dividing a project or procurement estimate into packages contrary to the provisions in the Law on Bidding No. 43/2013/QH13 with the aim to apply Direct Contracting or Bidder/Investor limitations.

7. Disclosing or receiving the following documents in terms of the Bidder/Investor selection process, other than the cases prescribed in Point b Clause 7 of Article 73, Clause 12 of Article 74, Point I Clause 1 of Article 75, Clause 7 of Article 76, Clause 7 of Article 78, Point d Clause 2 of Article 92 of this Law:

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b) Contents of EOI responses, Prequalification Applications, Bids, Proposals, notebooks and minutes of bid consideration meetings, comments and assessments regarding each dossier of expression of interest, dossier of pre-qualification participation, Proposals prior to the announcement of the short list, results of selection of bidder/ investor;

c) Requests for clarification of Bids, Proposals made by the Procuring Entity and responses of bidders/investors during the process of assessment of Bids, Proposals prior to announcement of the results of selection of bidder/ investor;

d) Reports by the Procuring Entity, by the expert group, evaluation report, report of consulting bidder, report of relevant specialized agencies during the process of selection of bidder/ investor prior to announcement of the results of selection of bidder/ investor;

dd) Results of Bidder/Investor selection prior to the stipulated time for announcement;

e) Other documents during the Bidder/Investor selection process which are stamped "confidential" as prescribed by law.

8. Bid transfer including the following acts:

a) Any Bidder/Investor transfers to another Bidder/Investor a part of work under package at value of 10% or more of less than 10% but over 50 billion VND (after deducting part of work under responsibilities of subcontractors) calculated on the Contract Price;

b) The Employer or supervision consultant accepts for the Bidder/Investor to transfer work under their duties, deducted part of work under duties of sub-contractors as stated in contract.

9. Holding selection of bidder when the financing source for the package has not yet been determined, resulting in insolvency of the contractor.

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1. Any organization or individual who violates the law on bidding and other relevant law shall, depending on the nature and seriousness of violation, be disciplined, sanctioned administratively or liable to criminal prosecution; in case where violation of law on bidding causes damages to benefits of state, the lawful rights and benefits of organizations and individuals, the offender must pay compensation as prescribed by law.

2. In addition to penalties prescribed in clause 1 of this article, depending on the nature and seriousness of violation, organizations and individuals breaching law on bidding shall be also banned participation in bidding activities and put into list of infringing contractors on national bidding network.

3. Competence of banning participation in bidding activities is prescribed as follows:

a) The competent persons shall issue decisions on banning participation in bidding activities for projects, estimate of procurement under their management; case of serious violation, they may suggest the Ministers, Heads of ministerial-level agencies, chairpersons of the provincial/municipal People’s Committees to issue decision on banning participation in bidding activities within management of Ministries, sectors and localities or suggest the Minister of Planning and Investment to issue decisions on banning participation in bidding activities nationwide;

b) The Ministers, Heads of ministerial-level agencies, chairpersons of provincial/municipal People’s Committees shall issue decisions on banning participation in bidding activities within management of their Ministries, sectors and localities for cases suggested by the competent persons as prescribed at point a this Clause;

c) The Minister of Planning and Investment shall issue decisions on banning participation in bidding activities nationwide for cases suggested by the competent persons as prescribed at point a this Clause.

4. Publishing actions against violations:

a) Decisions on actions against violations must be sent to the dealt organizations and individuals, the relevant agencies and organizations, concurrently be sent to the Ministry of Planning and Investment for monitoring and summing up;

b) Decisions on actions against violations must be published on the Vietnam Public Procurement Review Journal, national bidding network.

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Chapter XII

RESOLUTION OF PROTESTS AND DISPUTES IN BIDDING

Section 1. RESOLUTION OF PROTESTS REGARDING BIDDING

Article 91. Resolution of protests regarding bidding

1. When considering that lawful rights and benefits are severely affected, the contractors and investors have rights:

a) Make protests to the Procuring Entity, Employer, and competent person about matters during selection of bidder/ investor; result of selection of bidder/ investor according to the process of resolution of protests specified in Article 92 of this Law;

b) Institute court proceedings at any time, including time of resolution of protests or after having result of resolution of protests.

2. In case where bidders/investors instituted court proceedings, they are not entitled to send protest to the Procuring Entity, Employer, or the competent person. If in the process of resolution of protests, bidders/investors instituted court proceedings, the resolution of protests shall be terminated immediately.

Article 92. The process of resolution of protests

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a) A contractor may send a written protest to the Employer of project; the Procuring Entity of recurrent procurement, centralized procurement since happening matters and prior to having notice of result of bidder selection;

b) The Employer, the Procuring Entity shall be responsible to have a document to resolve a protest made by a bidder within a time-limit of a maximum 07 working days from the date of receipt of the written protest of the bidder;

c) If the Employer, the Procuring Entity has no document to resolve the protest or if the bidder disagrees with the result of resolution of protest, the bidder shall have the right to lodge the protest with the authorized person within 05 working days, as from the expired day of replying or day of receiving document of resolution of protest made by Employer, the Procuring Entity;

d) The authorized person shall be responsible to resolve a protest made by a bidder within a time-limit of a maximum 5 working days from the date of receipt of the written protest of the bidder.

2. The process of resolution of protests regarding result of selection of bidders shall be performed as follows:

a) A bidder may send a written protest to the Employer of project; the Procuring Entity of recurrent procurement, centralized procurement in period of 10 days after having notice of result of bidder selection;

b) The Employer, the Procuring Entity shall be responsible to have a document to resolve a protest made by a bidder within a time-limit of a maximum 7 working days from the date of receipt of the written protest of the bidder;

c) If the Employer, the Procuring Entity has no document to resolve the protest or if the bidder disagrees with the result of resolution of protest, the bidder shall have the right to lodge the protest with the authorized person and the Consulting Council for resolution of protests within 05 working days, as from the expired day of replying or day of receiving document of resolution of protest made by Employer, the Procuring Entity. The Minister of Planning and Investment shall establish a Consulting Council for Resolution of Protests at central level; the Ministers, Deputy Ministers of Ministerial agencies shall establish the Councils at ministerial level; the heads of regulatory bodies on bidding at localities shall establish the Councils at local level;

d) When receiving written protest, the Consulting Councils for Resolution of Protests shall be entitled to request the bidders, Employer, the Procuring Entity and relevant agencies for information provision in order to consider and have written report to the competent person about the plan and content or replying protest within 20 days, after receiving the written protest made by the bidder;

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e) The competent person shall issue decision on resolution of protest regarding result of selection of bidder within 05 working days, after receiving the written opinion of the Consulting Council for Resolution of Protests.

3. The process of resolution of protests regarding matters during selection of investors shall be performed as follows:

a) The investor may send a written protest to the Procuring Entity as from happening events and prior to having notice of result of selection of investor;

b) The Procuring Entity shall be responsible to have a document to resolve a protest made by an investor within a time-limit of a maximum 15 days from the date of receipt of the written protest of the investor;

c) If the Procuring Entity has no document to resolve the protest or if the bidder disagrees with the result of resolution of protest, the bidder shall have the right to lodge the protest with the authorized person within 05 working days, as from the expired day of replying or day of receiving document of resolution of protest made by the Procuring Entity;

d) The authorized person shall be responsible to resolve a protest made by an investor within a time-limit of a maximum 15 working days from the date of receipt of the written protest of the investor.

4. The process of resolution of protests regarding result of selection of investors shall be performed as follows:

a) An investor may send a written protest to the Procuring Entity in period of 10 days after having notice of result of investor selection;

b) The Procuring Entity shall be responsible to have a document to resolve a protest made by an investor within a time-limit of a maximum 15 days from the date of receipt of the written protest of the investor;

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d) When receiving written protest, the Consulting Councils for Resolution of Protests shall be entitled to request the bidders, the Procuring Entity and relevant agencies for information provision in order to consider and have written report to the competent person about the plan and content or replying protest within 30 days, after receiving the written protest made by the investor;

dd) In necessary case, the Consulting Councils for Resolution of Protests shall, based on the written protest made by the investor, suggest the competent person to consider for temporary suspension of the bid. If accepting, within 10 working days, after receiving the document of the Consulting Council for Resolution of Protests, the competent person shall issue a written notice about temporary suspension of the bid. The document of temporary suspension of the bid must be sent to the Procuring Entity, investor within 05 working days after issuing the written notice about temporary suspension of the bid. Duration of temporary suspension of the bid shall be calculated from the date the Procuring Entity receive the notice of temporary suspension until the competent person issues a document to resolve protest;

e) The competent person shall issue decision on resolution of protest regarding result of selection of investor within 10 working days, after receiving the written opinion of the Consulting Council for Resolution of Protests.

5. If a bidder/investor sends a written protest directly to the competent person without observance with the processes of resolution of protests specified in this Article, such written protest shall not be considered for settlement.

6. The Government shall provide guidelines for this Article.

SECTION 2. RESOLUTION OF DISPUTES IN BIDDING BY COURTS

Article 93. The principles of resolution

Resolution of disputes in bidding by courts shall comply with law on civil procedures.

Article 94. The right to request Court for application of temporary emergency measures

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Chapter XIII

IMPLEMENTATION

Article 95. Entry in force

1. This Law comes into force as of July 1, 2014.

2. The Bidding Law No. 61/2005/QH11 shall expire from the effective date of this Law.

3. Section 1 Chapter VI of the Construction Law No. 16/2003/QH11 and Article 2 of the Law amending and supplementing a number of articles of the laws concerning capital construction investment No. 38/2009/QH12 shall be annulled.

Article 96. Guidelines

The Government shall provide guidelines for Articles, Clauses as assigned in this Law./.

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AUTHENTICATION OF CONSOLIDATED DOCUMENT
CHAIRPERSON




Nguyen Hanh Phuc