In the field of bidding, in order for domestic and foreign contractors and investors to be eligible to participate in a bidding package and be able to submit dossiers of participation in bidding, the requirements for such contractors and investors are very strict. Bidders and investors must fully meet the standards prescribed in the bidding law. So in accordance with the provisions of current law, namely the law on bidding, contractors and investors must ensure what factors to be considered to have full eligibility. To clarify this issue, Hong Bang Law Firm would like to send Clients the following advice:

Legal grounds

Law on bidding 43/2013/QH13

Interpretation of terms of bidding and contractor

• Bidding means the process of selecting a bidder to sign and implement contract of provision of advisory services, non-advisory services, procurement of goods, construction and installation; selecting an investor to sign and implement contract of investment project in form of public-private partnership, investment project with land use on the basis of ensuring competitiveness, fairness, transparency and economic efficiency.
• Head contractor means a bidder liable for its participation in bidding which gives its name to a tender, and which directly signs in and implements a contract if selected. Head contractor may be dependent contractor or member of partnership of contractors.
• Sub-contractor means a contractor performing part of the work of a procurement on the basis of a contract signed with the head contractor. The special sub-contractor means a sub-contractor performing special works of a procurement proposed by the head contractor in bidding dossier, dossier of proposals on the basis of requirements stated in bidding dossier, dossier of requirements.
• Foreign contractor means an organization established under foreign law or an individual of foreign nationality participating in bid in Vietnam.
• Domestic contractor means an organization established under Vietnamese law or individual of Vietnamese nationality participating in bid.

Eligibility of bidders, investors

• A bidder or investor being an organization shall be deemed to be eligible when it satisfies the following conditions:
• • Having registration for establishment and operation issued by the competent authority of country where it is operating;
  • It is an independent cost accounting entity;
  • It is not in the process of dissolution; not concluded to fall into the state of bankruptcy or to be insolvent as prescribed by law.
  • It has registered on the national bidding network system;
  • To ensure competitiveness in bid as prescribed in Article 6 of this Law;
  • It is not in time banned from bid participation;
  • Its name is stated in short list for case where the short list has been selected;
  • It must have a partnership with domestic contractors or use sub-contractors if it is foreign bidder when participating in international bid in Vietnam, unless domestic contractors have not full capability to participate in any part of procurement.
• A bidder or investor being an individual shall be deemed to be eligible when it satisfies the following conditions:
• • Having full capacity for civil acts pursuant to the law of the country of which such individual is a citizen;
  • Having an appropriate professional certificate as prescribed by law;
  • Having lawful registration for operation as prescribed by law;
  • Such individual is not being examined for penal liability;
  • Such individual is not in time banned from bid participation.

Bidders and investors with eligibility as prescribed above 1,2 part may participate in bid with an independent status or partnership; in case of partnership, it must have written agreement among members, in which clearly stating responsibilities of head of partnership and general responsibilities, separate responsibilities of each member in partnership.

If you need more detailed advice, please contact: Deputy Director in charge of business Lawyer: Nhat Nam via hotline: 0912.35.65.75, call the free legal consultancy call center: 1900 6575 or send a service request via email: lienheluathongbang@gmail.com .

Wish you and your family healthy, peaceful and successful!

Best regards!