神马文学网LAW ON PROCUREMENT
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THE NATIONAL ASSEMBLY
OF THE SOCIALIST REPUBLIC OF VIETNAM
LEGISLATURE Xl, 8TH SESSION
LAW ON PROCUREMENT
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended by Resolution 51/2001/QH10 passed by Legislature X of
the National Assemblv at its l0th session on 25 December 2001;
This Law regulates procurement.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of application
This Law regulates procurement activities to select bidders for the provision of consulting service, goods, and civil works for packages of the following
projects:
1. Projects using State funds of 30% or more, for the purposes of development investment, comprising:
a) Investment projects for new construction, upgrading or expansion of already invested projects;
b) lnvestment projects for the procurement of tangible assets including equipment and machines without installation;
c) Planning projects for regional development, economic-branch development, and urban and rural construction;
d) Projects for scientific research, technology development,and technical assistance projects;
dd) Others for purposes of development investment
2. Projects using State funds for procurements to maintain the regular operations of State agencies, political organisations, politico-social organisations,
politico-socio-professional organisations, social organisations, socio-professional organisations. or units of the national armed forces.
3. Projects using State funds for procurements of assets for the major reconstruction or repair of invested equipment, production lines, civil works
and factories of State-owned enterprises
Article 2. Applicable entities
1. Domestic anti foreign organisations and individuals who participate in procurement activities of packages of the projects designated in
Article 1 of this Law.
2. Organisations and individuals that are otherwise involved in procurement activities of packages of the projects designated in Article I of
this Law.
3. Organisations and individuals administering projects that are outside the scope oF application of the Law, who choose to adopt the Law.
Article 3. Application of the Law on Procurement, related legislations, international treaties, and other international agreements
1. Procurement activities shall be in accordance with this Law and other related legislations.
2. When other laws regulate special aspects of procurement, the stipulations of' those laws shall apply.
3. For projects using Official Development Assistance (ODA) funds, procurement shall be in accordance with the international treaties to which
the Socialist Republic of Vietnam is a party or other international agreene
agreements which authorised organisations or agencies of the Socialist Republic of Vietnam have signed.
Article 4. Interpretation of Terms
Terms in this Law shall be construed as follows:
I. State funds includes the State budget, State-guaranteed credit, State credit for development investment, development investment capital of
State-owned enterprises, and other funds managed 5rate,
2 Procurement is t:he process of selecting a bidder who is responsive to the Procuring Entity's requirements to implement packages of the projects
designated in Article 1 of this Law on the basis of competition, fairness, transparency, efficiency and economy.
3. Procurement acticities include the activities of related parties in the bidder selection process.
4. Bidding process includes preparation for bidding, organisation of bidding, evaluation of bids, ppraisal and approval of bidding result,
announcement of award, finalisation of contract, and signature of contract.
5. National bidding is the process of selecting bidders who are responsive to the Procuring Entity's requirements, with participation by domestic bidders
only,
6. International bidding is the process of selecting bidders who are responsive to the Procuring Entity's requirements, with participation
both foreign and domestic bidders.
7. Project means a set of proposals for implementing part or the whole of work to achieve a particular objective or requirement in a pre-defined
period of time, based on specified sources of fund.
8, Competent Person is a person who is authorized to make decisions on project in accordance with applicable legislations. For those
projects financed by State f'unds of State-owned enterprises of 30% or more, except for 100% State-funded projects, the Competent Person is the Board
Directors or the authorised representatives of thestakeholders.
9. Investment Owner is the owner of the funds, or who is authorised to represent the funds owner, or borrower who directly manages and administers
the projects designated in paragraph 7 of this
Article.
10. Procuring Entit? means the Investment Owner or a professional organisation with sufficient capacity and experience to be used by the
Investment Owner to organize a procurement in accordance with the legislations on procurement.
11. Bidder is an organisation or individual eligible in accordance with Article 7 or Article 8 of this Law.
12. Principal bidder is a bidder who takes responsibility fbr participating in a procurement, signing the bid, and signing and performing the
contract if selected (hereinafter referred to as the bidder participating in the procurement). A bidder that bids by itself is referred to as an independent
bidder. A bidder who associates with one or more other bidders to submit one bid procurement is referred to as a joint venture.
13. Consultant bidder is a bidder who participates in the procurement of products of
consulting services that meet the knowledge and professional experience requirements set fbrth in paragraph 34 of this Article.
14. Supplier bidder is a bidder who participates in the procurement of goods as defined in paragraph 35 of this Article.
15. Cotrtractor bidder is a bidder who participates in the procurement of civil works as defined in paragraph 36 of this Article.
16. EPC bidder is a bidder who participates ill the perocurement of an EPC package as defined in paragraph 21 of this Article.
17. Subcontractor is a bidder who performs part of a procurement package under an agreement or contract signed with a principal bidder. A
subcontractor is not responsible for participating in the procurement.
18. Domestic bidder is a bidder which is estabtished and operates in accordance with Vietnamese laws.
19. Foreign bidder is a bidder which is established and operates in accordance with the laws of the country of its foreign nationality.
20. Procurement package is a part of a project, or in special cases the entire project; it may include proeuremcnt of similar items for different projects or
one-time procurement quantity of items using recurrent expenditures.
21. EPC package is a procurement package that covers all tasks of' engineering, procurement of equipment, materials and civil works.
22. Prequalification documents are all the documents that prescribe qualification and experience requirements for bidders, providing the
legal basis for the Procuring Entity to select the list of bidders to be invited to bid.
23. Prcqualifiatiott cpplication is the set of documents prepared by a bidder in accordance with
the requirements of the prequalification documents.
24. Bidding documents are all the doculnents used for open bidding or limited bidding, including
the requirements applicable to the procurement package. They serve as the legal basis for bidders to
prepare their bids and for the Procuring Entity to evaluate bids; they also provide the basis for
finalising and signing contracts.
25. Bid is the set of documents prepared by a bidder in accordance with requirements of the bidding documents and submitted to Procuring
Entity in accordance with provisions of the bidding documents.
26. Estimated price is the value of a procurement package as specified in the procurement plan, calculated on the basis of' the approved total
investment total cost estimate, or cost estimate in accordance with current legislations.
27. Bid price is the price offered by the bidder in the bid form included within its bid. In case the bidder offers letter of discount, bid price is the price
after deduction of such discount.
28. Proposed winning price is the price proposed by the Procuring Entity based on the bid price submitted by the selected successful bidder after the
correction of errors and adjustment of deviations form the requirements of the bidding documents.
29. Bid Winning price is the price approved in the bidder selection result that forms the basis for finalising and signing the contract.
30. Cost on the same ground is the bid price offered by the bidder to implement the procurement package after the correction of errors and
adjustment of deviations, plus the necessary fees of operation, maintenance, and other fees relating to the schedule, quality and origin of the goods or civil
works during the whole in-use period. The cost on the same ground is used to compare and rank the bids, and is referred to as the evaluated price.
31. Contrctct is a document signed between the Investment Owner and the selected bidder based on agreement reached between the parties, in
accordance with the decision on approval of the bidder selection result.
32. Bid secluritv is a deposit or letter of guarantee provided by a bidder to ensure that the bidder wil] honour its bid within the defined period in
accordance with the bidding documents.
33. Performance security is a deposit or letter of guarantee pravided bv a bidder to ensure that the successful bidder will perform the contract within
the defined period in accordance with the bidding documents.
34. Consulting services, include:
a) Consultancies for project preparation, including preparation, appraisal of planning reports, general development outlines, architectural designs, pre-feasibility studies, and feasibility studies:
b) Consultancies for proje, ct implementation, including surveying, designing, building total cost estimate, detailed estimates, preparing bidding
documents, evaluating bids, supervising the construction and equipment installation; and
C
c) Consultancles for project management, financial arrangements, training, technology transfer, and other consulting services.
35. Goods means machinery, equipment, fuels, naterials. commodities and non-consulting services.
36. Civil works means the works related to the process of construction and installation of equipment for projects and their components, as well as major
reconstruction and repairs.
37. Procurement complaint is a request by a participating bidder fbr review of the bidder, electron results and related issues in the bidding process
which the bidder
38. National Procurement Network is a network established and administered by the State administrative body in charge of procurement,
applying information technology to uniformly govern procurement information to serve procurement
activities.
39. Procurement appraisal is an examination and evaluation on procurement plans, bidding documents, and bidder selection results by appraisal
body, organisation. It serves as the basis for the Competent Person to consider and decide in accordance with this Law. The appraisal of bidder
selection results is not a re-evaluation of the bids.
Article 5. Procurement information
1. The following procurement information shallbe published in the procurement newspaper and on
the procurement website managed by the State
administrative body in charge of procurement.
a) Procurement plans;
b) Announcements for prequalification and the
results thereof;
c) Bid announcements fbr open bidding;
d) Lists of bidders invited to participate;
dd) Bidder selection results;
e) Information on the treatment of violations of
current procurement legislation:
g) Current legislations on procurement; and
h) Other related information.
2. Information stipulated in paragraph I of this
Article, after posting in the procurement newspaper
and on the procurement website, may also be
published in other mass media to facilitate the
access of interested organisations and individuals.
The Government will provide detailed guidelines
on procurement information.
Article 6. Procurement plan
l. Procurement plan shall be approved in writina
by a Competent Person following the investment
decision, or concurrently with the investment
decision when conditions are suitable, to serve as the
legal basis for the Investment Owner to select
bidders, with the exception of procurement packages
that must precede the investment decision The
Competent Person is responsible for his/her decision
before the law.
2. A procurement plan shall cover the entire
project: in eases in which a procurement plan for an
entire project is not yet possible and extremely
necessary, a procurement plan may be prepared for a
number of packages that have to be done first.
3. A procurement plan shall specify the number
and contents of the procurement packages. Content
of each procurement package includes:
(a) name of the procurement package:
(b) estimated price:
(C) funding sources;
(d) method and procedure of procurement;
(dd) period of time for bidder selection;
(e) form of contract: and
(g) period of time for contract performance.
1. procurement packaging shall be based on the
technical raturc and strict sequencing of the project,
and should ensure appropriate size, compatibility
and uniformity. For each package, there shall be a
single set of' bidding' documents and one-time bidding
process Each package shall be awarded as a single
contract unless it is composed of separate parts that
can be implemented through a number of contracts.
Article 7. Eligibility of organisation as
bidder
An organisational bidder is eligible if it meets in
full the following conditions;
1. Possesses, in the case of a domestic bidder, a
certificate of business registration, a certificate of
investment in accordance with applicable laws or, fbr
organisation without the certificate of business
registration, a decision on establishment, or, in the
case of a foreign bidder, registration to operate
issued by an authority of the country of the bidder's
nationality
2. Manages its finances independently; and
3. Is not subject to a competent body's formal
determination of non-transparent financial status,
bankruptcy, or insolvency, and not being in the
process of dissolution.
Article 8. Eligibility of individual as bidder
An individual bidder is eligible if it meets in full
the fbllowing conditions:
1. Has adequate civil conduct ability in
accordance with the law of the country of the bidder's
nationality;
2. Possesses lawful registration to operate or a
professional certificate issued by the competent
agency; and
3. Is not currently subject to criminal prcceedings
Article 9. Requirements for the Procuring
Entity and Procurement Specialist Team
1, An individual of the Procuring runty shall
meet the following requirements:
a) Is knowledgeable regarding the legislations on
procurement;
b) Is knowledgeable in project management;
c) Possesses appropriate expertise matching the
requirements of the procurement package such as
technology, finance, commerce, administration, and
law: and
d) Is sufficiently fluent in fbreign language skills
to meet the requirements of packages involving the
selection of bidders through international bidding
and packages funded by ODA.
2. The nature and complexity of a procurement
package shall determine the composition of the
procurement specialist team. which shall include
experts in technology, finance, commerce,
administration, law, and other fields. Members of
the procurement specialist team shall meet the
following conditions:
a) Certificate of attendance at a procurement
training course:
b) Professional expertise relating to the package;
c) Good knowledge of the corresponding specific:
contents of the package; and
d) At least 3 years of working experience in the
fields relating to the package's economic and
technical issues.
Member of procurement specialist team is not
necessarily individual of the Procuring Entity and
vice versa.
3. If the Investment Owner has the necessary
human resources to meet the conditions listed in
paragraph 1 of this Article. it shall act as the
Procuring Entity. If not, or if its human resources do
not meet such conditions, the Investment Owner
may select an appropriate consulting organisation or
a professional procuring agency, in accordance with
this Law, which bas sufficient capacity and
experience to act as Procuring rarity on its behalf.
In all cases the Investment Owner remains
responsible for the bidder selection process and signs
the contract with the selected bidder after
finalisation.
Article 10. Conditions for participation in a
bidding
A bidder participating in bidding for a package
shall meet the following conditions:
1. Be eligible in accordance with Article 7 or 8 of
this Law:
2. Submit only one bid per procurement package
as either an independent bidder or joint venture.
In the case of a joint venture, there shall be a written
agreement among the parties clearly stating the
leader of that joint-venture, the common
responsibilities and individual responsibilities of
each party for the tasks under the package:
3. Comply with the requirements in the
Procuring Entity's invitation for bids or letter of
invitation for bids; and
4. Ensure,competition as stipulated in Article 1 1
of this Law.
Article 11. Ensuring competition in
procurement
1. A bidder who participates in bidding for
procurement packages of the projects designated in
Article 1 of this Law shall comply with the following
requirements relating to competition:
a) A consultant bidder who prepares a feasibility
study shall not participate in the bidding for
consulting services to prepare technical design of the
project, a consultant bidder who has participated in
the project's technical design shall not be allowed to
participate in subsequent stages; with the exception
of EPC packages;
b) A bidder who participates in bidding shall be
institutionally. financially independent and not
subject to the same manageing body with the
consultant preparing the bidding, documents and
evaluating bids;
c) A consultant bidder supervising the
performance of the contract shall be institutionally,
financial independent and not subject to the same
managing body with the bidder implementing the
contract; and
d) Bidders participating in bidding of
procurement packages of a project shall be
institutionally, financially independent and not
subject to the same managing body with thc project's
investment Owner.
2. The requirements in paragraph 1 of this
Article shall be implemented no later than 3 years
after this Law comes into effect, based on the plan
set out by the Government.
The Government will provide detailed guidelines
on ensuring competition in procurement.
Article 12. Prohibited acts in procurement
1. Giving, offering, receiving, or requesting any
object of value by an individual or organisation
involved in the process of bidder selection or contract
implementation, which results in dishonest or non-
impartial behaviour in making a decision about the
successful bidder, in signing or implementing a
contract;
2. Exertion of personal influence to affect or
intervene in or intentionally make wrong or
dishonest report. and thereby distort the bidder
selection result or the signing or implementing of the
contract;
3. collusion between the Procuring Entity and
bidders, or among the state administrative body, the
Procuring entity. and the bidders, to alter the bids,
collude with the appraisal body or the Inspectorate,
thereby affecting the collective or national interest;
4. Participation by an organisation or individual
in the evaluation of bids and the appraisal of the
bidder selection results for the same procurement
package;
5. Designation of a specific brand name or origin
of supplies in bidding documents for goods, civil
works, or EPC packages;
6. Participation by a Procuring Entity as a
bidder in its own procurement package;
7. Splitting of a project into procurement
packages contrary to the requirements of paragraph
4 of Article 6 of this Law:
8. Participation by a bidder in goods or civil
vorks packages other than EPC packages for which
it has provided consulting services;
9. leakage of the following types of procurement
details and information:
a) Contents of the bidding documents prior to the
stipulated issuance date:
b) Contents of the bids, handbooks, minutes of
bid evaluation sessions, or expert opinions and
comments on the bids provided by consultants prior
to publication of the bidder selection results;
c) Requests for clarification of bids made by the
procuring Entity and the responses thereto made by
bidders during the bid evaluation process prior to
publication of' the bidder selection results:
d) Reports by the Procurement Specialist Team
the Procuring Entity, consultant, or professional
agencies related to the process of bidding, bid
evaluation, and appraisal prior to publication of the
bidder selection results:
dd) Bidder selection results prior to the required
time fbr publication: and
e) Other bidding-related documents marked an
Confidential' pursuant to the legislations on
confidentiality:
10. Arranging' a situation in which an
individual's natural father, mother, father or mother
in law, or spouse, natural child or children, adopted
child or children, son or daughter in law. or natural
brother(s) or sister(s) participate in a procurement
where the individual himself/herself serves as the
Procuring Entity or a member of the Procurement
Specialist Team, the appraisal team for the bidder
selection result, or a person who has the right to
approve the bidder selection result;
11. Contravening the regulations on funds
management or impeding disbursement, payment or
settlement in accordance with the signed contract
between the Investment Owner and bidder:
12.Arrangement or collusion between two or
more bidders so that one may win an award:
between a bidder performing a contract and the
consultant supervising its performance; or between a
bidder performing a contract and an organisation or
agency assigned to take over the result of contract
performance:
13. Service by an individual as the authorised
representative of a bidder participating in
procurement package of a project administered by an
agency or organisation that the individual previously
worked for, as long as the interval since the
individual's departure from such agency or
organisation is less than 1 year:
14. Permission by a bidder for other bidders to
use its legal status to participate in a procurement or
transfer contract performance by a bidder, after
winning a contract, to other bidders;
15. Abuse by a bidder of a bidding complaint to
impede the bidding process or contract signing, or to
restrict the participation of other bidders:
16. Application of a bidder selection method
other than open bidding when conditions are not
suitable pursuant to Articles 19 - 24 of this Law: or
17. Organisation Of bidding when no funding
source for the procurement package has been
specified, leading to the insolvency of the bidders.
Article 13．International bidding
1． International bidding Shall be Carried out in
the following cases：
a)A procurement package under an ODA-funded
project when specifically required by the donor：
b)A procurement package for goods that have
yet been produded domesticallv：or
C)A procurement package for which domestic
bidders are incapable Of meeting the requirements of
the bidding documents or for which national bidding
has been conducted with no successful bidder．
2.A successful fOreign bidder Who fails to
implement the volume and value committed for
vietnamese joint venture members or subcontractors
(if any)stated in its bid shall be rejected．
3．A foreign bidder who is successfully selected to
implement a procurement package in Vietnam Shall
comply with the regulatlons on managing foreign
contractors stipulated by the Vietnamese Government。
Article 14． Preferences in international
bidding
Subjects eligible for preferences in international
bidding include：
1．A bidder who is established and operates in
Vietnam in accordance with the Law on Enterprises
and the Law On Investment：
2. A joint venture a member of which is a bidder
as described in paragraph 1 of this Article and
assumes responsibility for work valued at over 50%
of a procurement package for consulting services.
civil works. or EPC: or
3. A bidder who participates in a procurement
package for goods which the domestic production
represents 30% of the cost or more.
The Government will provide detailed guidelines
on preferences in international bidding.
Article 15. Currencies of bids
1. The currency for bidding shall be specified in
the bidding documents in accordance with the
principle of one currency for one concrete volume.
2. In the process of bid evaluation, conversion to
a common currency for comparison shall be effected
using the exchange rates of Vietnamese dong and
foreign currency as regulated in the bidding
documents.
3.Costs incurred domestically shall be quoted in
Vietnamese dong.
Article 16. Language of bids
The language to be used in the bidding
documents, bids and other documents exchanged
between the Procuring Entity and the bidders shall
be Vietnamese in national bidding and Vietnamese.
English in international bidding.
Article 17. Costs of bidding
1. The costs of bid preparation and participation
shall be borne by the bidders.
2. Costs pertaining to the selection process shall
be included in the total investment or total cost
estimate of a project.
3. The bidding documents shaIl be sold to the
bidders
The Government shall provide detailed
regulations on bidding costs.
Chapter H
BIDDER SELECTION
Section 1
METHODS OF BIDDER SELECTION
Article 18. Open bidding
1. Bidders to implement procurement packages
of the types of projects described in Article 1 of this
Law shall be selected by open bidding, except under
the special circumstances stated in Articles from 19
to 24 of this Law.
2. Open bidding shall mean that there is no
restriction on the number of bidders to participate
Before issuing the bidding documents, the Procuring
Entity shall provide bid announcement in accordance
with Article 5 of this Law so that bidders may obtain
information for participation The Procuring Entity
shall provide the bidding documents to bidders who
wish to participate. The bidding documents shall
contain no conditions that restrict the participation
of bidders or favour certain bidder(s) over others.
causing unfair competition.
Article 19. Limited bidding
1. Limited bidding shall be applied only in the
following cases:
a) At request of the foreign donor whose funds
are being used for the procurement package:
b) The highly technical or particularly technical
or experimental or research packages that few
bidders can satisfy.
2. When conducting limited bidding, at least 5
bidders considered qualified and capable of
participating shall be invited: if there are less than 5,
the Investment Owner shall report the matter to the
Competent Person for consideration and decision
3. The unit price for items comprising a
procurement package to which repeat order is
applied shall not exceed the unit price for
corresponding items of the similar package covered
by the previously signed contract.
4. Repeat order may be applied for
implementation of similar packages belonging to the
same project or to other projects.
Article 22. Shopping in procurement of goods
1. Shopping shall be applied in cases meeting
both of the following conditions:
a) The estimated price of the procurement
package is less than VND 2 billion; and
b) The package is for the procurement of common
supplies that are readily available on the market
with standardised and equal technical features.
2. When conducting shopping, the request for
quotations shall be sent to the bidders. The bidders
will send the quotation to the procuring E
Directly, tY fAx or post. For each procurement
package, there shall be at least 3 quotations from 3
different bidders
Article 23. Force account
1. Force account shall be applied in cases in
which the Investment Owrier is sufficienty capable
and experienced to implement the package of the
project under his/her own management and use.
2. When force account is applied, the estimated
cost for the procurement package must have been
approved in accordance with applicable legislations.
The supervising unit shall be institutionally and
financially independent from the Investment Owner.
Article 24. Bidder selection in special cases
In cases in which there are specific requirements
that cannot apply the methods of bidder selection
stipulated in Articles from 18 to 23 of this Law, the
Investment Owner shall prepare a proposal for
Bidder selection. ensuring competition and efficiency
and economy, and shall submit it to the Prime
Minister for consideration and approval.
Section 2
GENERAL REGULATIONS ON BIDDING
Article 25. Conditions for issuing bidding
documents
Bidding documents shall be issued only if the
following conditions are met:
1. The procurement plan has been approved:
2. The bidding' documents have been approved:
and 3. The bid announcement or list of bidders
invited to participate has been published in
accordance with Article 5 of this Law.
Article 26. Procedures of bidding
1. Single-envelope bidding shall be applied in
open and limited bidding for the procurement of
goods, civil works and EPC packages. The bidder
submits a bid that includes the technical and
financial proposals in accordance with bidding
documents. There is only one opening of bids.
2. Two-envelope bidding is applied in open and
limited bidding for the procurement of consulting
services. The bidder shall submit the technical and
financial proposals separately in accordance with the
requirements of the bidding documents. There shall
be two separate openings of bids; in which, technical
proposals shall be opened first for evaluation.
followed by the opening of the financial proposals
accompanying all those technical proposals that have
been evaluated as satisfactory for combined
evaluation, In the case of a procurement package
with a high technical level, the financial envelope of
the bidder with the highest technical score shall be
opened for consideration and negotiation.
3. Two-stage bidding is applied in open and
limited bidding for goods. works, or EPC packages
with novel, complex, and diversified technical
requirements. The sequence is as follows:
a) In stage 1, based on the bidding documents for
stage 1. bidders shall submit technical proposal and
un-priced financial proposal. Discussions to be held
with each bidder shall form the basis for determining
the bidding documents for stage 2:
b) In stage 2, based on the bidding documents for
stage 2. the bidders who participated in
be invited to submit bids tbr stage 2 comprised of a
technical proposal and a financial proposal including
bid price, along with the bid security.
Article 27. Bid security
1. When participating in goods, civil works, or
EPC packages, bidders shall provide a bid security
bcfore deadline for bid submission. In two-stage
bidding. the bidder shall provide the bid security in
Stage 2.
2. The amount of the bid security shall be stated
in the bidding documents at a level specified
according to the features of each procurement
package, but it shall not exceed 3% of the approved
estimated price for the package.
3. The validity period of the bid security shall be
the validity period of the bid plus 30 days.
4. When it is necessary to extend the validity of
bids, the Procuring Entity shall request the bidders
to extend the validity period of the bid security
correspondingly: in such cases the bidder shall not
alter the contents of the submitted bid including the
bid price and shall extend the validity period of the
hid security correspondingly. If tiao bidder refuses to
extend the validity period of the hid. the Procuring
Entity shall return the hid security.
5. The bid security of unsuccessful bidders shall
be returned within 30 days after the date of
announcement of the bidder selection result.As for
successful bidders, the bid security shall be returned
following submission of the contract performance
security in accordance with Article 55 of this Law.
6. A bidder's bid security shall nor be returned in
the following cases:
a) Withdrawal of the bid after the deadline for
bid submission while tile bid is still valid:
b) Within 30 days after receiving the notice of
award from the Procuring Entity. failure to proceed
with or finalise the contract, or refusal to sign the
finalised contract without valid reasons: or
c) Failure to procide the performance security as
specified under Article 55 of this Law.
Article 28. Principles for bid evaluation
1. Bid evaluation shall be based on the
ecaluation criteria and other requirements in the
bidding documents to ensure selection of an
adequately qualified and experienced bidder with a
feasible solution for the procurement package.
2. In addition to paragraph 1 of this Article. bid
evaluation shall be based on the bid as submitted
and clarifications from the bidder.
3. The sequence of bid evaluation shall be
followed as stipulated in Article 35 of this Law.
Article 29. Methods of bid evaluation
1. The method of bid evaluation shall be reflected
in the evaluation criteria stated in bidding
documents. Bid evaluation criteria include criteria
relating to qualifications and experience when
prequalification is not applied: technical criteria
~ i
combined criteria for consulting services packages or
contents to determine cost on the same ground of
technical, financial and commercial aspects for
comparing and ranking bids for goods, civil works
and EPC packages.
2. For consulting service packages the merit
point method is used for technical evaluation When
preparing the evaluation criteria, the minimum
technical requirements shall be defined but shall
not be regulated less than 70% of the total technical
points: in the case of high-level technical
requirements, minimum technical requirements
shall not be regulated less than 80%. The evaluation
criteria for comparison and ranking of bids shall be
prepared in accordance with the following:
a) For normal consulting services with no high-
level technical requirements, the combined merit
point score shall be used to rank the bids, following
the principle that the technical score shall not be less
than 70% of the total combined score. The bid with
the highest combined score shall be ranked the first:
and
b) For consulting services with high-level
technical requirements, the bidder with the highest
technical score shall be ranked the first for financial
consideration.
3. For goods, civil works or EPC packages: either
he merit point method or "pass". "fail" criteria shall
be used for technical evaluation, When preparing the
technical evaluation criteria in the merit point
system, the minimum technical requirements shall
be defined but shall not be regulated less than 70%
of the technical points: in the case of high-hevel
technical requirements, the minimum technical
requirements shall not be regulated less than 80%.
For the bids evaluated technically responsive, then
the basis for comparison and ranking will be cost on
the same technical, financial, and commercial
ground. The bid evaluated the lowest cost on the
same ground shall be ranked the first.
The Government will provide detailed quidelines
on bid evaluation method.
Article 30. E-procurement
E-procurement shall be conducted via the
Internet. Bid announcement, issuance of bidding
documents, bid submission, bid evaluation and
notification of the bidder selection results shall be
done on the National Procurement Network built
and managed by the State administrative body in
charge of procurement.
The Government shall provide detailed
regulations on application of e-procurement.
Article 31. Regulations on time-limits in
procurement
Based on peatures of each procurement package.
Competent Person decides in details on time-limits
in procurement in accordance with the followings:
1. The maximum duration allowed for
prequalification is 30 days for national bidding and
45 days for international bidding. This period shall
be counted from the issuance of pre-qualification
documents to the date of approval of the
prequalification results.
2. The minimum duration allowed for
advertising an invitation for bid shall be 10 days
before issuance of the bidding documents.
3 The minimun duration allowed for bid
preparation is 15 days for national bidding and 30
days for international bidding. This period shall be
counted from the issuance of the bidding documents
to the deadline for bid submission.
4. The maximum period of bid validity shall he
180 days from the deadline for bid submission.
When necessary, a bidder may be requested to
extend bid validity, provided that in no case shall
such extension exceed 30 days.
5. The maximum duration allowed for bid
evaluation shall be 45 days fbr national bidding and
60 days for international bidding. This period shall
be counted from the bid opening to the submission of
the bid evaluation report by the Investment Owner
to the Competent Person for consideration and
decision.
6. The maximum appraisal duration for each of
the following contents is 20 days: thc procurement
plan. the bidding documents, and the bidder
selection result. For procurement packages that
require approval by the Prime Minister, the
maximum appraisal duration for procurement plan.
bidder selection result shall be 30 days.
Section 3
BIDDING PROCESS
Article 32. Preparation for bidding
1. Prequalification
Prequalification shall bc implemented in
accordance with the following:
a) Prequalification of bidders shall be conducted
prior to bidding with a view to selecting capable and
experienced bidders in accordance with package's
requirements to participate in thc bidding.
Prequalification is mandatory for goods and EPC
packages of estimated price of VND 300 Billion or
more, and for civil works packages of estimated price
of VND 200 billion or more.
b) The prequalification process includes
reparation of the prequalification documents;
announcement for prequalification: receiving and
handling prequalification applications: evaluation of
prequalification applications; submission and
approval of prequalification results; and notification
of prequalification results.
c) The criteria for evaluation of the
prequalification applications shall be specified in the
prequalification documents in accordance with the
standard prequalification documents prescribed by
the Government, which is comprised of criteria
relating to technical capacity, financial capacity, and
expcrience.
2. Preparation of bidding documents
The bidding documents shall be prepared ill
accordance with the standard bidding documents
prescribed by the Government, including:
a) Technical requirements:
For consulting services packages, there shall
include requirements regarding the knowledge and
professional experience of the expert (terms of
reference);
For goods packages, there shall include
requirements relating to scope of supply, quantity
and quality of the goods to be determined through
specifications, technical parameters, technical
standards, manufacturing standards, warranty
periods, environmental requirements and other
necessary requirements; and
For civil works packages, there shall include
requirements in accordance with technical designing
documents accompanying bills of quantity, technical
instructions, and other necessary requirements;
b) Financial and commercial requirements,
including the costs for implementing the package,
bid price to be offered and price list in details,
delivery terms, method and terms of payment,
funding sources, bid currency and general and
specific conditions of the contract: and
c) Evaluation criteria, important requirements,
preferences (if any), taxes, insurance and other
requirements.
3. Invitation for bids
Invitation for bids shall be implemented as
follows:
a) By an announcement for bids in open bidding:
b) By a letter of invitation for bids in limited
bidding or open bidding with prequalification.
Article 33. Organising the bidding
1. Issuing the bidding documents
The bidding documents shall be issued to the
Bidders in open bidding, to the listed bidders in the
case of limited bidding, or to the pre-qualified
bidders.
If the bidding documents need to be amended
after issuance, bidders who have received the
bidding documents shall be informed at least 10 days
prior to the deadline for bid submission.
2. Receiving and handling the bids
Bids submitted in accordance with the
requirements of the bidding documents shall be
received and handled as "confidential" documents by
the, Procuring Entity.
3. Bid opening
Bids shall be opened publicly immediately after
the deadline for bid submission for all the bids
submitted in accordance with thc requirements of
the bidding documents.
The key information of each bid shall be
announced at the opening, recorded in the minutes
and certified by the signature of representatives of
the Procuring Entity, bidders and relevant agencies
in attendance.
Article 34. Clarifications to the bidding
documents
l. A bidder who requires clarification of the
bidding documents shall submit a written request to
the Procuring Entity for consideration and action
2. The Procuring Entity shall provide
clarifications to bidding document in one or both of
he following forms:
a) Send written clarifications to bidders who
received the bidding documents; and/or
b) If necessary, organise a pre-bid meeting to
discuss the contents of the bidding documents that
are unclear to bidders. The issues discussed shall be
recorded in writing and sent to the bidders by the
Procuring Entity.
3. Written clarifications to the bidding
documents pursuant to paragraph 2 of this Article
shall form an integral part of the bidding documents.
Article 35. Bid evaluation process
1. A preliminary evaluation shall be conducted in
order to reject bids that are invalid, unconformable
to important requirements of the bidding documents.
2. A detailed evaluation shall be carried out as
a) A techmcal evaluation to identify the bids that
are substantially responsive to the hidding
documents: and
b) For goods, civil works or EPC packages, the
cost on the same technical, financial, and commercial
ground shall be determined for the comparison and
ranking of the bids. For consulting services
packages, a combined evaluation shall be conducted
for the comparison and ranking of the bids; with
respect to consulting services packages of high-level
technical requirement, the financial proposal of the
bidder with the highest technical ranking shah be
considered.
Article 36. Clarifications to bids
1. Bidders shall not be allowed to modify or
supplement their bids after the deadline, for bid
submission.
2. Following the bid opening, bidders shall be
responsible for providing clarifications to bids upon
request by the Procuring Entity. Clarification shall
be communicated either directly or indirectly, but
shall not alter substantially the contents of the
submitted bid or the bid price. All clarifications shall
be in writing and shall be retained by the Procuring
Entity as part of the bid.
3. Clarifications to bids shall only be made
between the Procuring Entity and the bidder of the
bid in question.
Article 37. Considerations for the successful
bidder in consulting services package
A consultant bidder shall be considered and
proposed as the successful bidder under the following
conditions:
1. Has an eligible bid:
2. Has a technical proposal including
qualification, experience, methodology and personnel
evaluated as meeting the requirements;
3. Has the highest combined technical and
financial score, or, in the case of a procurement
package of high-level technical requirement, has the
highest technical score: and
4. Has a proposed winning price that does not
exceed the approved estimated price of the
procurement package.
Article 38. Considerations for the successful
bidders in goods, civil works or EPC package
A bidder for a goods, civil works or EPC package
shall be considered and proposed as the successful
bidder under the following conditions:
1. Has an eligible bid:
2. Is evaluated as being responsive in terms of
capacity and experience requirements;
3. Has a technical proposal evaluated as meeting
the requirements in the merit point system or
according to the "pass", "fail" criteria, as applicable;
4. Has the lowest cost on the same ground; and
5. Has a proposed winning price that does not
exceed the approved estimated price of the
procurement package.
Article 39. Submission and appraisal of the
bidder selection result
1. The Procuring Entity shall prepare a report on
the bidder selection results so that the lnvestment
Owner shall submit it to the Competent Person for
consideration and decision, and send it to the
appraisal body. organisation.
2. The appraisal body. organisation shall prepere
an appraisal report based on the Investment Owner's
report and submit it to the Competent Person for
consideration and decision.
Article 40, Approval of the bidder selection
results
1. The Competent Person shall consider and
approve the bidder selection results based on the
report on the bidder selection results and the
appraisal report on the bidder selection results.
2. If there is successful bidder, thu content of the
approval document shall include:
a) The name of the successful bidder:
b) The bid winning price:
c) The form of contract;
d) The contract performance period: and
dd) Other matters that need attention (if any)
3. If there is no successful bidder, the approval
document shall contain a clear statement that there
is no succcessful bidder and the bidding is cancelled to
start another bidder selection process in accordance
with this Law.
Article 41. Notification of the bidder
selection results
shall be provided right after the Competent Person's
decision approving them,
2. The notice of the bidder selection result should
not contain an explanation to the unsuccessful
bidders,
Article 42. Finalisation and signature of the
contract
1. Finalisation of the contract for signature with
the successful bidder shall be based on the following
a) An approved bidder selection result,
b) A form of contract filled in with adequate
information regarding the procurement package:
c) The requirements in the bidding documents:
d) The contents of the bids and clarifications
thereto (if any) by the successful bidder: and
dd) Any necessary finalisation betwteen the
Procuring Entity and the successful bidder,
2. The results of contract finalisation shall form
the basis for signature of the contract by the
Procuring Entity and the selected bidder.
3. If the finalisation fails, the investment Owner
shall report to the Competent Person for
consideration of selection of the next-ranked bidder.
if the next-ranked bidder also fails to meet the
requirements, this is to be reported to the Competent
Person for consideration and decision.
Section 4
CANCELLATION OF BIDDING AND REJECTION OF BIDS
Article 43. Cancellation of bidding
1. Bidding shall be cancelled in any of the
following circumstances:
a) A change in the objective, scope of investment
stated in the bidding documents:
b) Evidence that the Procuring Entity has been
colluding with bidders;
c) Failure by all bids to basically meel the
requirements of the bidding documents: or
d) Evidence of collusion among all the bidders
thereby harming the Procuring Entity's interests.
2. Based on the decision by the Competent
Person. the Procuring Entity shall be responsible to
inform all the bidders of the cancellation.
Article 44. Financial responsibilities when a
bidding is cancelled
l. If the cancellation occurs through no fault of
the bidders, the Procuring Entity shall be liable to
compensate the bidders for the costs of bid
participation, on the basis of current regulations and
cost norms provided by the State, except for cases in
which no bidder meets the requirements.
2. If the cancellation is due to changes in the
objective, scope of investment, the compensation
shall be decided upon by the Competent Person and
decucted from the project budget. In case of other
reasons caused by the Procuring Entity. the involved
individual(s) of the Procuring Entity shall bear the
responsibility for payment.
3. In cases in which cancellation is due to the
Procuring Entity's collusion with one or more
bidders. the involved individual(s) shall bear the
responsibility to compensate the other bidders.
Article 45. Rejection of bids
A bid shall be rejected tinder the following
circumstances:
1. It fails to meet the important requirements
stated in the bidding documents:
2. It fails to meet the technical requirements
based on the evaluation criteria;
3. It contains arithmetical errors with a total
absolute value exceeding 10% of the bid price, except
for consulting services packages, or a bidder does not
accept correction of arithmetical crrors identified by
4. A bid contains deviations with a total absolute
value exceeding 10% of the bid price. except for
consulting services packages
Chapter III
THE CONTRACT
Article 46. Principles for preparation of
contract
1. The contract shall comply with the regulations
of this Law and other applicable legislations.
2. In the case of a joint venture. the contract.
with the Investment Owner shall contain the
signatures of all members of the joint venture
3. The contract price shall not exedde the bid
winning price except for the case stipulated in
paragraph 4 of this Aticle.
4. If a need arises fbr a quantity of work or goods
beyond the scope of the bidding documents, leading
to the overrun of contract price compared to winning
price, the situation shall be considered and decided
upon by the Competent Person.
Article 47. Contents of contract
1 Object of the contract;
2 Quantity and volume of the contract;
3 Specifications, quality :md other technical
requirements:
4. Contract price;
5 Form, of contract:
6. Performance period and schedule:
7. Methods and terms of payment:
8. Conditions for delivery and acceptance;
9. Warranty for goods, civil works to be procured;
10. Rights and duties of the parties:
1l. Responsibilities arising due to breaches of
12. Validity of the contract: and
13. Other obligations in accordance with each
form of contract.
Article 48. Forms of contract
1. Lump-sum;
2. Unit price:
3. Time-based; and
4. Percentage-based.
Article 49. Lump-sum contract form
l. The lump-sum form of contract shall be
applied to tasks that can be defined clearly with
regard to volume and quantity.
2. The contract price is fixed throughout contract
performance. The Investment Owner makes
payments to the bidder up to the point at which the
bidder has completed its obligations under the
contract, equal to the contract price.
Article 50. Unit price contract form
1. The unit price form of contract shall be
applied to tasks for which the volume and quantity
are not in sufficient conditions to be clearly defined.
2. The Investment Owner will make payments to
the actual implemented volume and quantity of work
based on the unit price stated in the contract or the
unit price approved to be adjusted in accordance
with Article 57 of this Law.
Article 51. Time-based contract form
1 The time-based form of contract shall be
applied to complex research, engineering,
construction supervision, training, and capacity
building assignments.
2. The Investment Owner will make payments to
tile actual time worked by the consultants counted in
months, weeks, days, or hours based on the rate
specified in the contract or the rate approved to be
adjusted in accordance with Article 57 of this Law.
Article 52. Percentage-based contract form
1. The percentage-based form of contract shall be
applied to ordinary and simple consulting services.
2. The contract price will remain unchanged
throughout contract performance. The contract price
will be calculated based on the percentage of work or
volume of the assignment. The Investment Owner
will make payments to the contractor up to the point
at which the contractor has completed its obligations
under the contract, equal to the contract price.
Article 53. Multiple forms of contract in a
single contract
If a single contract is comprised of one or more
forms of contract stipulated in Articles 49, 50, 51 and
52 of this Law, the principles of payment prescribed
or each form shall be applied to the corresponding
portion.
Article 54. Signing the contract
1. The signing of the contract shall be based on
the following documents:
a) The results of finalisation of the contract:
b) The decision on approval and notification of
bidder selection results:
c) The bid of the selected bidder and
clarifications thereto; and
d) The bidding documents.
2. Contract signing shall be subject to the
following conditions:
a) The bid of the selected bidder must be in its
validity: and
b) The financial and technical capacity of the
bidder updated at the time of contract signing must
be responsive to the requirements of bidding
documents.
Article 55. Performance security
1. With the exception of consulting services
packages and force account the successful bidder
shall provide a performance security before the
contract enters into effect.
2 The amount of the performance security shall
be as stated in the bidding documents, not exceeding
10% of the contract price. In cases in which there is a
need to prevent high risk, the amount of the
performance security shall be higher but shall not
exceed 30% of the contract price and the matter must
be approved by the Competent Person.
3. The validity period of the performance
security shall extend until beginning of warranty
4. The performance security shall not be
returned if the winning bidder refuses to perform a
contract that has become effective.
Article 56. Warranty
Contracts that cover the content of goods or civil
works shall contain provision for a warranty.
Warranty periods and amounts. as well as other
terms shall be stated in the contract in accordance
with applicable legislations.
The Government will provide detailed guidelines
on warranty for goods and civil works in contracts.
Article 57. Adjustments to the contract
1. Adjustments to the contract shall apply solely
to unit price or time-based contracts as follows:
a) When changes in the State's policies on
taxation or wages/salaries direcdly affect the contract
price. adjustments shall be made once thc policies in
question have taken effect.
b) When the volumes or quantities involved in
the contract performance increase or decrease within
the margin allowed in the bidding documents, and
such changes are not caused by the fault of the
2. Acceptnnce of the contract shall be effected as
follows:
a) The acceptance of the contract in whole or in
part shall be conducted in accordance with the
contract as signed: and
b) Individuals participating in acceptance shall
be disinterested, honest, objectivc. capable.
experienced. knowledgeable, and qualified for the
task, and shall be responsible before the law for
performance of this task.
3. Close-out of the contract shall be completed
within 45 days of the date when the lnvestment
Owner and thc bidder completed performnnce of
their contractual duties: in the casec of complicated
procurement packages the period may be extended
but in any event shall not exceed 90 days.
Chapter IV
RIGHTS AND DUTIES OF THE PARTIES IN
PROCUREMENT
Article 60. Responsibilities of Competent
Person
1. Approving procurement plan:
2. Approving or delegating authority to approve
bidding documents:
3, Approving or delegating authority to approve
the bidder sclection results:
4. Deciding on the handling of exceptional
procurement cases:
5. Settling procurement complaints:
6. Dealing with violations of procurement
legislation as stipulated in Article 75 of this Law and
other applicable legislations: and
7. Being liable for his/her own decisions before
the laws.
Article 61. Rights and duties of the
Investment Owner
1. Deciding on all of the contents relating to the
prequalification of bidders:
2. Approving the list of participating bidders:
3. Forming the Procurement Speciaiist Team or
selecting a consulting organisation or a professional
procurement agent in accordance with this Law to
art as a procuring agency on behalf of the
Investment Owner;
4. Approving the list of bidders who meet the
technical requirements, as well as the ranking of
bidders:
5. Approving the direct appointment result in
the cases specified in subparagraphs a and dd of
paragrqph 1 of Article 20 of this Law:
6. Being responsible for formulating the
requirements in a procurement package involving
direct appointment:
7. Being responsible for the contents and signing
of the contract with the selected bidder and for
fulfilling the obligations in the contract signed with
the bidder:
8. Being legally responsible for the bidder selection
process according to the provisions of this Law;
9. Compensating damaged parties in accordance
with applicable legislations if the damage is caused
by his/her fault:
10. Providing information to the procurement
newspaper and the procurement website;
11. Settling procurement complaints: and
12. Preserving the confidentiality of procurement
related documents in accordance with this Law,
Article 62. Rights and duties of the
Procuring Entity
1. The Procuring Entity shall have the following
rights and duties:
a) Preparing and organising the bidding, and
evaluating the bids in accordance with this Law;
b) Seeking bid clarifications from bidders during
bid evaluation:
c) 5ummarising the bidder selection process and
reporting to the Investment Owner on the results of
prequalification and bidder selection:
d) Finalising contracts on the basis of the
approved bidder selection results;
dd) Preparing the contents of the contract for the
Investment Owner's decision and signature;
e) Being honest. objective, and impartial in the
bidding process;
g) Compensating damaged parties in accordance
with applicable legislations if the damage is caused
by his/her fault:
h) ProvidinG infomation to the procurement
newspaper and the procurement website:
i) Settling procurement complaints; and
k) Preserving the confidentiality of procurement-
relaated documents in accordance with this Law.
2. If a Procuring Entity also serves as the
Investment Owner, in addition to the rights and
duties prescribed in paragraph 1 of this Article.
Article 61 shall also apply.
Article 63. Rights and duties of the
Procurement Specialist Team
1. Evaluating bids strictly against the
requirements of the bidding documents and the
evaluation criteria stated therein:
2. Preserving the canfidentiality of procurement-
related documents in accordance with this Law
during the performance of their duties:
3. Reserving their own opinions:
4. Being honest, objective, and impartial in the
process of bid evaluation and in reporting the
evaluation results:
5. Compensating damaged parties in accordance
with applicable legislations if the damage is caused by
his/her fault: and
6. Performing other statutory rights and duties.
Article 64. Rights and duties of bidders
1. Participating in bidding as independent
bidders or as members of a joint venture:
2. Seeking clarifications to the bidding
documents from thu ProCurinG Entity:
3. Fulfilling obligations in accordance with the
contract entered into with Investment Owner and
subcontractors (if any):
4. Filing procurement complaints, petitions,
denunciations;
5. Complying with the legislation on procurement:
6. Being truthful and accurate in the process of
bidding and in filing procuremeni complaints,
petitions denunciations; and
7. Compensating damaged parties in accordance
with applicable legislations if the damage is caused
by his or her fault.
Article 65. Rights and duties of the
appraisal body, organisation
l. Acting independently and complying with this
Law and other applicable legislations when
conducting appraisals;
2. Requesting the Investment Owner and the
procuring Entity to Furnish relevant documents
adequately:
3. Preserving the confidentiality of procurement-
related ducuments during appraisal
4. Being honest, objective, and impartiaI when
conducting appraisals:
5. Reserving his or her own ideas and being
liable for his/her appraisal report: and
6. Performing other statutory rights and duties.
Chapter V
ADMINISTRATION OF PROCUREMENT
ACTIVITIES
Article 66. Contents of state administration
of procurement
1. Promulgating. disseminating, directing and
organising the implementation of the legislations on
procurement;
2. Training and building capacity of procurement
personnel:
3. Summarising, assessing and reporting on the
status of procurement implementation;
4. Administering the procurement information
system nationwide, including: the procurement
newspaper, the procurement website and the
National Procurement Network:
5. International procurement cooperation: and
6. Overseeing. inspecting. and settoling
and dealing with vilations of the legislation on
procurement in accordance with this Law and other
applicable legislations.
Article 67. Responsibilities and powers of
the Government and the Prime Minister
1. The Government exercises unified
administration over procurement nationwide.
2. The Prime Minister exercises the following
rights and powers:
a) Directing the inspection and handling of
procurement complaints in accordance with this Law
and the legislation on inspection;
b) Designating appraisal body, organisation to
assist the Competent Person during the process of
considering and issuing approval of procurement
contents;
c) Deciding on the procurement contents as
stipulated in Article 60 of this Law for the
investment projects conducted under National
assembly Resolutions: and
d) Exercising other rights and powers in
accordance with this Law and other applicable
legislations.
Article 68. Responsibilities and powers of
the Ministry of Planning and Investment
1. Assuming responsibility before the
Government for the state administration of.
procurement;
2. Appraising the procurement plans and bidder
selection results of procurement packages under
projects within the Prime Minister's approval power
pursuant to subparagraph c of paragraph 2 Article
67 of this Law:
3. Establishing and administering the
procurement newspaper, the procurement website.
and the National Procurement Network:
4. Serving as the focal point assisting the
Government and the Prime Minister in international
cooperation in procurement;
5. Organising training and capacity building
activities for procurement personnel:
6. Summarising, assessing and reporting on
procurement implementation;
7. Settling procurement complaints within the
scope of its responsibilities and powers:
8. Leading and coordinating with conccrned
agencies in conducting oversight and inspection in
connection with procurement nationwide: and
9. Carrying out other duties as assigned by the
Government.
Article 69. Responsibilities and powers of
Ministries, Ministerial-level agencies and
People's Committees at different levels
Within tho scope of their powers and
responsibilities. Ministries, Ministerial-level
agencise, and People's Committees at different levels
exercise the following responsibilities and powers:
1. EXercising procurement administration:
2. Organising training and capacity building
activities for procurement personnel:
3. Summarising and assessing procurement
implementation:
4. Reporting on procurement activities in
accordance with Government regulations:
5. Settiing procurement complaint in accordance
with this Law;
6. Overseeing inspecting procurement activities:
7. Dealmg with violations of legislation on
procurement by organisations and individuals
involved in procureent activities: and
8. In cases in which a Minister, Head of a
Ministerial agency. or the Chair of a People's
committec at different levels serves as the
competent Person. he or she shall have to exercise
the responsibilities stipulated in Article 60 of this Law.
Article 70. Settling exceptional procurement
cases
l. The following principles shall apply to the
settlement of cxceptional procurement cases:
a) Ensuring competition, fairness, transparency,
efficiency and economy;
b) Taking the approved procurement plan.
bidding documents and submitted bids as the basis:
and
c) Decisions on the settlement of exceptional
Procurement cases shall be made by the Competent
Person, who shall be responsible for such decisions
before the law.
2. Categories of exceptional procurement cases:
a) Preparation and organisation of procurement:
including adjustments to a procurement plan with
respect to estimated price or other contents of the
procurement package; the bidding documents; bid
submission when there are late bids or too few bids;
or the number of participating bidders;
b) Bid evaluation: including cases in which the
bid prices exceed the estimated price. or the unit
prices are abnormal:
c) Successful bidder's proposal and contract
signing: cases in which the winning price is less than
50% of the approved estimated price or estimated
cost: there are two equal best evaluated bids: or the
proposed contracting price exceeds the approved
winning price: or
d) On the procurement procedures or process.
The Government will provide detailed guidelines
on the settlement of exceptional procurement cases.
Article 71. Inspection in procurement
1. Procurement inspection shall be carried out
with regard to organisations and individuals relating
to procurement activities of packages under the
projects designated in Article 1 of this Law.
2. Procurement inspection is a professional
inspection branch in procurement. Organisation and
operation of procurement inspection are conducted in
accordanee with the legislation on inspection.
Article 72. Settlement of procurement
complaints
1. A bidder who is participating in the bidding
process shall have thc right to file a complaint on the
bidder selection results and other issues relating to
the bidding process.
2. The parties responsible for settling
procurement complaints are the Procuring Entity,
the Investment Owner and the Competent Person.
The Competent Person shall settle bidders'
complaints regarding the bidder selection results on
the basis of the report by the Consuhing Council on
Complaint Settlement as set forth in Article 73 of
this Law.
3. The deadline for a complaint on issues relating
to the bidding process other than the bidder selection
results shall be counted from the occurrence of such
action to the time prior to the announcement of the
bidding results. The deadline for filing complaints
regarding the bidder selection results is 10 days from
the date of announcement of the results.
Article 73. Process of settlement of
procurement complaints
1. Complaints on issues relating to bidding
process shall be settled as follows:
a) The Procuring Entity shall be responsible to
settle a bidder's procurement complaint within 5
working days of receipt of the complaint. If the
Procuring Entity is unable to settle or the settlement
is unsatisfactm'y to the bidder, the bidder shall have
the right to file the complaint with the Investment
Owner for consideration and settlement as
stipulisted in subparagraph b of this paragraph:
b) The Investment Owner shall be responsible to
settle a bidder's procurement complaint within 7
working days of receipt of the bidder's complaint. If
the Investment Owner is unable to settle or the
settlement is unsatisfactory to the bidder, the bidder
shall have the right to file the complaint with the
Competent Person for consideration and settlement
as stipulated in subparagraph c of this paragraph;
and
c) The Competent Person shall be responsible to
settle a bidder's procurement complaint within 15
working days from receipt of the bidder's complaint.
If the Competent Person is unable to settle or the
settlement is unsatisfactory to the bidder, the bidder
shall have the right to sue in court.
2. Procurement complaints relating to the bidder
selection results shall be settled as follows:
a) In accordance with subparagraph a of
paragraph 1 of this Article.
b) In accordance with subparagraph b of
paragraph 1 of this Article. However, if the
Investment Owner is unable to settle or the
settlement is unsatisfactory to the bidder, the bidder
shall have the right to file, the complaint with the
Competent Person and Chair of the Consulting
Council on Complaint Settlement as set forth in
subparagraph c of this paragraph.
c) The Consulting Council on Complaint
settlement (hereinafter referred to as Consulting
council) is responsible for requesting the bidder, the
Investment Owner, and other agencies involved in
the procurement to provide the information,
documents, and comments necessary to produce a
report on the results of the review. The Consulting
Council may work directly with the involved
individuals as necessary to clarify the issues. The
maximum duration for the Consulting Council to do
its work and issue its report is 20 days from receipt
of the procurement complaint. The representative of
the State procurement administrative body shall be
the Chair of the Consulting Council, and its
members shall include representatives of the
Competent Person and the relevant professionnl
association. No later than 5 days after receipt of the
Consulting Council's report, the Competent Person
shall issue a decision on the settlement of the
bidder's complaint. If the settlement is not
satisfactory to the bidder, the bidder shall have the
right to sue in court.
3. Bidders have the right to sue in court when
they have a procurement complaint. If choosing not
to go to court, then the bidder should proceed in
accordance with paragraph 1 or 2 of this Article, as
applicable.
The Government shall provide detailed
regulations on the settlement of procurement
complaints and the operation of the Consulting
Council.
Article 74. Petitions and denunciations in
procurement
Petitions, denunciations and the settlement to
Petitions, denunciations in procurement shall be
implemented in accordance with the legislation on
petitions and denunciations.
Article 75. Dealing with uiolations of the
LaW on Procurement
1 organisations and individuals who violate the
legislations on procurement shah be dealt with
according to one or more of the following ways:
a) Organisations or individuals who violate the
Law on Procurement, but whose violations are not
among the acts specifically listed under Article 12 of
this Law. shall receive a warning;
b) Organisations or individuals who violate the
Law on Procurement and thereby damage the
interests of related parties shall be subject to
monetary fines: and
c) Organisations or individuals who are involved
in the acts specifically listed in Article 12 of this Law
shall be debarred.
2. Individuals whose acts in violation of the Law
on Procurement constitute crimes shall be dealt with
in accorrdance with the Crimina] legislation.
3. In addition to the sanctions listed in
paragraphs 1 and 2 of this Article, organisations and
individuals who violate the Law on Procurement
shall be listed in the procurement newspaper and on
the procurement website.
The Government shall provide detailed
regulations on dealing with violations of the
legislation on procurement.
Chapter VI
IMPLEMENTING PROVISIONS
Article 76. Guidelines for implementation
The Government shall provide detailed
provisions and guidelines as to enforcement of this
Law.
Article 77. Effectiveness
This Law shall take effect on ist April 2006.
This Law was ratified by the Nctttonal Assembly of
the Socialist Republic of Vietnam, Legislature Xl,
Session 8, on 29th November, 2005.
CHAIR OF THE NATIONAl, ASSEMBLY
Nguyen Van An