Vietnam: Decree On Tendering And The Selection Of Construction Contractors Amended

Keywords: tendering, construction contractors, Vietnam, Decree 68,

On 12 September 2012 the Vietnamese Government issued Decree No. 68/2012/ND-CP (Decree 68) to amend and supplement administrative procedures in Decree No. 85/2009/ND-CP (Decree 85) of 15 October 2009. Decree 85 provides guidelines for the implementation of the Law on Tendering and for selection of construction contractors in accordance with the Law on Construction.

For information about Decree 85, see Mayer Brown JSM's Legal Update "Decree 85 on Tendering and Selection of Construction Contractors" of 8 December 2009.

Changes to the administrative procedures in Decree 85 are set out below with our own italics added.

Changes to procedures for the evaluation and approval of the tendering plan

Decree 68 supplements the composition of a file submitted for the evaluation of the tendering plan. Under Decree 68, the file submitted for the evaluation of the tendering plan will have the same composition as the file submitted for approval of the tendering plan (as prescribed in Article 11.2 of Decree 85).

The file submitted for approval of the results of the tendering plan under Decree 68, among other things, needs to include only a copy of the decision approving the tendering plan, instead of the tendering plan itself.

Changes to procedures for the evaluation and approval of the selection of contractor

Decree 68 supplements the composition of a file submitted for the evaluation of the results concerning the selection of the contractor. The file submitted for the evaluation of the results concerning the selection of the contractor will be the same in composition as the file submitted for approval of the results of selection of the contractor (as prescribed in Article 71 of Decree 85).

The file submitted for approval of the results of the selection of contractor, among other things, now includes just a copy of the decision approving the tendering plan, instead of the tendering plan. Such a file must include, as the case may be, copy of the decision approving the tender invitation documents or set of requirements.

The party calling for tenders will either submit one set of the file for evaluation personally or send it to the address of the evaluating body or organisation.

Procedures for resolving protests concerning the tendering or selection of contractor

The protest application must be signed by the person who signed the tender form (or the legal representative of the tenderer) and sealed (if there is a seal). The protest application must be prepared on the standard form in Appendix I issued with Decree 68.

The tenderer will either submit its protest application personally or >I?send it to the address of the person responsible for resolving protests.

Other changes and supplements

  • Preparations for tendering

    A notice inviting expressions of interest (including the English version in the case of international tendering) must be published in three consecutive editions of the Tendering Newspaper and on the tendering website, and may simultaneously be published in other mass media.

    The request for expressions of interest will be provided free of charge by the party calling for tenders to tenderers wishing to participate. This will apply from the first date on which the request for expressions of interest is published until prior to expiry of the deadline for submitting expressions of interest.

    If a request for expressions of interest is not issued in accordance with regulations or if there is any conduct restricting tenderers from receiving the request for expressions of interest, the party calling for tenders will be prohibited from participating in tendering for a period of between six months and one year.

    Tenderers can either submit their expressions of interest personally or send them to the address of the party calling for tenders prior to expiry of the deadline for submitting expressions of interest.
  • Decentralisation of responsibilities for evaluation and approval in tendering

    The Prime Minister of the Government will approve or assign the authorised person to approve a tender package applying the form of direct appointment of contractor in special cases.

Effectiveness

Decree 68 will come into full effect on 1 November 2012.

Conclusion

The Vietnamese Government has taken a step forward with the above changes, which show its determination to increase transparency and simplify administrative procedures. The changes will help facilitate the process of tendering and the selection of construction contractors.

Originally published 28 September 2012

Learn more about our Vietnam offices and Construction & Engineering, Infrastructure, Real Estate practices.

Visit us at www.mayerbrownjsm.com

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2012. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.

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