THE
MINISTRY OF PLANNING AND INVESTMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom Happiness
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No.
7/BKH-VPXT
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Hanoi,
April 29, 1997
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CIRCULAR
FURTHER
GUIDING THE IMPLEMENTATION OF THE REGULATION ON BIDDING BY FOREIGN INVESTED
ENTERPRISES
On the basis of the Regulation
on Bidding issued together with Decree No.43-CP of July 16, 1996 of the
Government and Inter-ministerial Circular No.02-TTLB of February 25, 1997 of
the Ministry of Planning and Investment, the Ministry of Construction and the
Ministry of Trade guiding the implementation of the Regulation on Bidding; and
at the same time to facilitate the implementation of the Regulation on Bidding
by joint venture enterprises and parties to business cooperation contracts
under the Law on Foreign Investment in Vietnam (hereafter referred to commonly
as foreign invested enterprises), the Ministry of Planning and Investment
provides the following additional guidances for the implementation of the
Regulation on Bidding by foreign invested enterprises:
I. SCOPE OF APPLICATION:
1. The provisions of this
Circular shall apply to projects of foreign invested enterprises with at least
30% of the prescribed capital being contributed by Vietnamese State enterprises
as defined in the Regulation on Bidding.
2. The competent agency that
grants the investment license for a project shall be the agency that will issue
a written approval of the bidding plan and bidding results of such project:
- Foreign invested enterprises
with projects licensed by the Ministry of Planning and Investment shall have
their bidding plans and bidding results approved in writing by the said
Ministry.
- Foreign invested enterprises
with projects licensed by the provincial-level People� Committees or Managing
Boards of Industrial Parks shall have their bidding plans and bidding results
approved in writing by the said agencies.
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1. Bidding plan:
After being granted the
investment license, to deploy the implementation of a project, the foreign
invested enterprise shall have to work out a bidding plan for the whole project
before organizing the bidding.
The bidding plan should define
all work regarding the consultancy, construction and installation and
procurement of materials and equipment which need or need not to be opened for
bidding.
Contents of a bidding plan have
been stipulated in Article 5 of the Regulation on Biding and Section I (1),
Part II of Inter-ministerial Circular No.02/TTLB of February 25, 1997, of which
the 4 following details must be clarified:
- The division of a project into
bidding packages
- The estimated value of each
bidding package
- The form of bidding
- The mode of contract
performance
The division of a project into
bidding packages must be reasonable and based, first of all, on technological
characteristics or the duration for the implementation of the project. The
project should not be divided into too big bidding packages so as to provide
conditions for bidders (especially Vietnamese bidders) to participate in the
bidding.
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The form of international
bidding shall be used only for bidding for consultancy, construction or
procurement of materials and equipment for projects with particular technical
requirements that are beyond the capabilities and experiences of Vietnamese
bidders.
An investment license shall
serve as legal basis for the approval of a bidding plan. If the bidding plan
does not conform with the investment license such as the excess of investment
capital, change of the bidding form..., the foreign invested enterprise shall
have to fill procedures for adjusting and supplementing the investment license
in accordance with the provisions of Circular No.03/BKH-QLDA of March 15, 1997
of the Ministry of Planning and Investment guiding the procedures for the
implementation of foreign investment projects in Vietnam.
2. Bidding results:
Only after the biding plan has
been approved, shall the foreign invested enterprise proceed with the bidding.
The bidding must be organized in accordance with the approved bidding plan.
Bidding results shall be
approved on the basis of each bidding package.
Some work to be done in the
process of organizing the bidding such as the appointment of a group of
specialists or the hiring of consultants, the contents of the tendering
dossier, evaluation criteria... shall be decided by the Managing Board of the
joint venture enterprise (or the authorized representatives of parties to a
business cooperation contract).
After considering, evaluating
and classifying bid dossiers, the Managing Board of the joint venture
enterprise (or the authorized representatives of parties to a business
cooperation contract) shall approve the bidding results.
The report on the bidding
process should focus on such major details as the working results of the group
of specialists or consultants, the tendering dossier�s contents, the evaluation
criteria (the scale of points), the results of evaluation of bidders (their
capabilities, experiences, technical solutions, bidding prices, the number of
points...), the bid winner and his/her offered bidding price.
III. DOCUMENTS NECESSARY FOR
PROPOSING THE APPROVAL
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- A written proposal for the
approval of the bidding plan made by the foreign invested enterprise.
- A written explanation of the
grounds for the elaboration of the bidding plan, including the division of the
project into bidding packages, the estimated value of each bidding package, the
form of bidding and the mode of contract performance...
- A copy of the investment
license or the adjusted investment license (if any).
- The feasibility study and
documents amending or supplementing it (if any).
The bidding plan shall be
approved within 20 days after the receipt of a full dossier (including the time
for consulting specialized ministries with regard to complicated projects).
2. Regarding bidding results:
- A written proposal for the
approval of the bidding results made by the foreign invested enterprise, in
which the bidders and their offered bidding prices must be clearly stated.
- A report on the organization
of the bidding, the evaluation and classification of bidders.
- Proposals of the Managing
Board of the joint venture enterprise (or the authorized representatives of
parties to a business cooperation contract) on the bidding results.
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The bidding results shall be
approved within 20 days after the receipt of a full dossier (including the time
for consulting the specialized ministries with regard to complicated projects).
All the above-said documents
(except for copies of bid dossiers) must be made in Vietnamese.
IV. COST OF EVALUATION TO
APPROVE THE BIDDING RESULTS
Cost of evaluation to approve
the bidding results of bidding packages proposed by foreign invested
enterprises shall be determined on the basis of Inter-ministerial Circular
No.02-TTLB of February 25, 1997 (Point 3, Part III) and shall be guided in
details as follows:
- It shall apply only to
consultancy bidding packages valued at 10 billion VND or more and bidding
packages for the procurement of materials and equipment or construction and
installation, valued at 50 billion VND or more.
- It must be equivalent to 50%
of the level prescribed in Inter-ministerial Circular No.02-TTLB of February
25, 1997.
The Ministry of Planning and
Investment promulgates the above guidances for foreign invested enterprises to
be aware of and abide by them, thus creating conditions for a quick
consideration and approval.
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