Vietnam public procurement rules for suppliers

Vietnam public procurement rules start with the Law on Bidding. The law is No. 43/2013/QH13, and it took effect on 1 July 2014. It covers how state bodies buy goods, works and services with public money. If you want to sell to a ministry, a province, a hospital or a state company, this is the rulebook you follow.

The two documents to know

Two texts do most of the work. The first is the Law on Bidding itself. It sets the principles: fair competition, openness, transparency and economic efficiency. It also lists the ways a buyer may pick a supplier and the acts that are banned.

The second is Decree 63/2014/ND-CP. It explains how the law works in daily practice. It covers the steps for a tender, the content of bidding documents, how bids are checked, and how a buyer must handle complaints.

The decree is where most practical detail sits. Read it next to the law, not instead of it. Buyers also follow circulars from the planning ministry that give standard forms. A supplier who knows these forms can read a tender notice much faster.

Source: Law on Bidding No. 43/2013/QH13 of the National Assembly, and Decree No. 63/2014/ND-CP of the Government guiding its implementation.

How a state tender is announced

A tender does not start with a notice. It starts with a plan. The buyer prepares a plan for choosing suppliers and has it approved by the right authority. Only then does the buying work begin.

Notices are meant to be public. Vietnam runs a national online bidding network at muasamcong.mpi.gov.vn. Buyers post their plans, invitations to bid and results there. A supplier can register on it, search notices by field and place, and follow tenders without paying a broker.

Check the network often. Notices set a closing date, and a late bid is simply rejected. Many buyers also post in newspapers, so watch both places if you can.

Source: Law on Bidding No. 43/2013/QH13 and Decree No. 63/2014/ND-CP. National online bidding network, muasamcong.mpi.gov.vn.

How buyers choose a supplier

The law lists several ways to select a supplier. Open bidding is the default. Anyone who meets the conditions may bid. Restricted bidding limits the invitation to a short list, and it is used only in set cases, for example when only a few suppliers can do the work.

Smaller or simpler purchases can use other routes. These include competitive quotation, direct procurement and direct appointment. Each one has its own conditions. A buyer must be able to explain why it chose a route other than open bidding.

For a supplier, the lesson is simple. Open bidding is where most chances are. The other routes are narrower, and they often depend on size, urgency or special technical needs.

Source: Law on Bidding No. 43/2013/QH13, chapter on forms of contractor selection, and Decree No. 63/2014/ND-CP.

What a supplier needs to bid

The law sets basic conditions for taking part. A company must be legally registered. It must keep its own accounts and not depend on another party for them. It must not be bankrupt, and it must not be in a state where it is being wound up.

A bidder must also keep a clean record. It must not be banned from bidding at the time of the tender. It must not have a conflict of interest with the buyer or with the people who prepare the tender. A bidder that helps write the bidding documents and then bids on them breaks this rule.

Beyond these basics, each tender sets its own tests. Expect questions on experience with similar jobs, staff, equipment and financial strength. Prepare a file with contracts, accounts and proof of past work so you can answer fast.

Many tenders also ask for a bid security. This is a guarantee, often from a bank, that protects the buyer if a winner backs out. The bidding documents state the amount and how long it must stay valid.

Source: Law on Bidding No. 43/2013/QH13, provisions on conditions for taking part in bidding, and Decree No. 63/2014/ND-CP.

How bids are judged

Bids are opened in public on the closing date. The buyer then checks each bid against the rules in the bidding documents. The criteria must be written in the documents before bids arrive. A buyer may not add new ones later.

Evaluation usually has steps. First comes a check that the bid is complete and valid. Next comes a check of the supplier's capacity and experience. For goods and works, the last step compares price and technical quality using the method the documents announced.

The result is reported to the person who approves the choice, and all bidders are told the outcome. A bidder who thinks the process was unfair may complain to the buyer, and may take it further under the law.

Source: Law on Bidding No. 43/2013/QH13, provisions on bid evaluation and complaints, and Decree No. 63/2014/ND-CP.

Practical steps for a first bid

Start small. Register on the national bidding network and set up searches for your products. Read two or three old tenders to see how documents are laid out.

Next, build your capacity file. Gather company papers, tax records, accounts and letters from past clients. Then read each new tender line by line. A missing stamp or form is a common reason for rejection.

Never offer a gift or favor to a buyer or to a member of an evaluation team. The law bans bribery, collusion and bid rigging, and a company caught doing so can be barred from future tenders.

This article is general information only. Bidding rules for public contracts get amended, so read the current text yourself and ask a Vietnamese lawyer before you bid on a large contract.

Source: Law on Bidding No. 43/2013/QH13, provisions on prohibited acts, and Decree No. 63/2014/ND-CP.

Sources

Law on Bidding No. 43/2013/QH13 (26 November 2013). Decree No. 63/2014/ND-CP (26 June 2014). National online bidding network, muasamcong.mpi.gov.vn.