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Lawyer in Vietnam - Dr. Oliver Massmann
THE WORLD BANK IS ASKING DUANE MORRIS
ON GOVERNMENT AND PUBLIC PROCUREMENT
HERE ARE OUR ANSWERS:
1. Legal framework and reform update
1. Which is the entity that conducts procurement for the authority that owns the majority of roads
in Vietnam ?
Ho Chi Minh City's People Committee
2. Are you aware of any change (in practice or in laws/regulations/procedures) related to public
procurement between June 1, 2017 and May 1, 2018? For example: amendments to applicable public
procurement laws, enactment and/or implementation of new regulations, implementation or improvement
of e-procurement platforms, changes to the bid security and performance guarantee framework, etc.
No
3. Please provide a list of the laws, regulations and other binding materials (including mandatory
standard procurement documents and contracts) that regulate public procurement in Vietnam.
Please include legislation or other binding materials promulgated at the national/federal level as well as
any additional legislation that is applicable to the procuring entity described in Section 1.
The Civil Code of Vietnam No. 91/2015/QH13 by the National Assembly of Vietnam dated 24 November
2015 ("Civil Code");
Construction Law No. 50/2014/QH13 by the National Assembly dated 18 June 2014 ("Construction
Law");
Law on Bidding No. 43/2013/QH13 by National Assembly dated 26 November 2013 ("Bidding Law");
Law on Public Investment No. 49/2014/QH13 of the National Assembly dated 18 June 2014 ("Law on
Public Investment");
Commercial Law No. 36/2005/Qh11 by the National Assembly dated 14 June 2005 ("Commercial Law");
Decree No. 63/2014/ND-CP by the Government dated 26 June 2014 guiding Law on Bidding ("Decree
No.63/2014/ND-CP");
Decree No. 37/2015/ND-CP by the Government dated 22 April 2015 on detailing construction contracts
("Decree No. 37/2015/ND-CP");
Decree No. 46/2015/ND-CP by the Government dated on 12 May 2015 on managing the quality and
maintenance of construction works ("Decree No. 46/2015/ND-CP");
Decree No. 30/2015/ND-CP by the Government dated 17 March 2015 on detailing certain provisions of
the Law on Bidding on selection of bidders ("Decree No. 30/2015/ND-CP");
Decree No. 15/2015/ND-CP by the Government dated 14 February 2015 on public-private partnership
investment ("Decree No. 15/2015/ND-CP");
Circular No. 04/2017/TT-BKHDT by the Ministry of Planning and Investment dated 15 November 2017
on detailing the selection of bidders via the national biding portal ("Circular No. 04/2017/TT-BKHDT");
Circular No. 26/2016/TT-BXD by the Ministry of Construction dated 26 October 2016 on detailing
certain provisions on management of quality and maintenance of construction works ("Circular No.
26/2016/TTBXD");
Circular No. 10/2016/TT-BKHDT of the Ministry of Planning and Investment on detailing the
supervision, following up and examination of bidding activities ("Circular No. 10/2016/TT-BKHDT");
Circular No. 23/2015/TT_BKHDT by the Ministry of Planning and Investment dated 21 December 2015
on detailing the making the evaluation report on bidding documents ("Circular No.
23/2015/TTBKHDT");
Circular No. 10/2015/TT-BKHDT of the Ministry of Planning and Investment dated 26 October 2015 on
detailing the plan for bidder selection ("Circular No. 10/2015/TT-BKHDT");
Circular No. 01/2015/TT-BKHDT by the Ministry of Planning and Investment dated 14 February 2015
on detailing the preparation of Invitation dossier for Concern, Invitation Dossier for Bidding, and Request
dossider for consultancy services ("Circular No. 01/2015/TT-BKHDT");
Circular No. 17/2010/TT-BKH by the Ministry of Planning and Investment dated 22 July 2010 detailing
a pilot online bidding program ("Circular No. 17/2010/TT-BKH");
Official Letter No. 5356/BKHDT-QLDT by the Ministry of Planning and Investment dated 18 August
2014 on registration of bidder's information on national bidding network system;
Official Letter No. 4962/BKHDT-QLDT by the Ministry of Planning and Investment dated 31 July 2014
on the implementation of Law on Bidding No. 43/2013/QH13 regarding investors selection;
Official Letter No. 4054/BKHDT-QLDT by the Ministry of Planning and Investment dated 7 June 2014
on implementation of Law on Bidding No. 43/2013/QH13 and Decree No. 63/2014/ND-CP;
Official Letter No. 5186/BKHDT-QLDT by the Ministry of Planning and Investment dated 11 August
2014 guiding to carry out to provide and publish bidding information in the transitional period.
4. Please list any mandatory standard tender documents and/or standard contract terms that the
Procuring Entity must use for a contract like the one described in Section 1.
p/ Other contents.
5. Are you aware of any change (in practice or in laws/regulations/procedures) related to public
procurement between May 2, 2019 and May 1, 2020? For example: amendments to applicable public
procurement laws, enactment and/or implementation of new regulations, implementation or improvement
of e-procurement platforms, changes to the bid security and performance guarantee framework, etc.
No
2. E-procurement Platforms and Statistics
6. If one or several electronic procurement portal(s) (i.e., an official website(s) specifically and
exclusively dedicated to public procurement) are in operation, please mark which platform would
most commonly be used by the Procuring Entity.
National level - Link: www.muasamcong.mpi.gov.vn
7. If a procurement portal is used by the procuring entity, how many works contracts are procured
through the portal?
More than 75%
8. If electronic procurement portals are available, please indicate which of the following actions can
be performed through each portal:
Accessing notices on procurement opportunities: Procuring entity and bidders
Accessing tender documentation: Procuring entity and bidders
Accessing tender documentation: Procuring entity and bidders
Asking the procuring entity for clarifications: Bidders
Submitting tenders: Bidders
Submitting bid security: Bidders
Opening bids: Procuring entity
Notifying decisions (clarification, award,etc.): Procuring entity
Accessing award decisions: Procuring entity and bidders
Accessing explanations of award decisions: Procuring entity and bidders
Submitting performance guarantees: Bidders
Signing the contract: Procuring entity and bidders
Contract terms must specify:
a/ Applied legal bases;
b/ Language used in the contract,
c/ Content and volume of work;
d/ Quality, technical requirements of work; pre-acceptance test and handover;
dd/ Contract performance duration and schedule;
e/ Contract price, advance payment, currency used in payment, and payment for the contract;
g/ Contract performance security, contract advance guarantee;
h/ Adjustment of the construction contract;
i/ Rights and obligations of the parties to the construction contract;
k/ Liability for violations of the contract, rewards and fines for violations of the contract;
l/ Suspension and termination of the contract;
m/ Settlement of disputes over the contract;
n/ Risks and force majeure events;
o/ Settlement and liquidation of the contract;
9. Which of the following information about road works contracts procured by the Procuring
Entity is made publicly available?
Phases of the Procurement Process
This section of the questionnaire follows the chronological evolution of a procurement cycle, starting with
the process the Procuring Entity undertakes to assess its needs and secure the budget. Section 4 also
explores the steps that a local company would have to undertake in order to: (i) secure a government
contract; (ii) deliver the agreed-upon works; and (iii) obtain payment.
Phase 1: Budgeting and Needs Assessment
For the definition of “procuring entity”, please refer to Section 1.
10. According to the legal framework, when the Procuring Entity prepares to advertise a new
procurement opportunity for a contract like the one described in Section 1, what are used to
estimate the contract value and projected length of works?
Market analysis, Standardized unit cost, Project-specific technical drawings, Similar projects from
previous years, price evaluation result by authorized state agency or price evaluation enterprise for assets,
goods and services subject to price evaluation under the Law on Price.
11. In practice, is the estimated contract value/budget published in the tender notice/tender
documents?
Yes, contract value
12. Is the Procuring Entity required to have already allocated budget to a specific project before
tendering?
Yes, there is a specific budget allocatior Comment:
13. How often does the Procuring Entity award a contract without having all the necessary funds?
Rarely (between 10-25%)
Phrase 2: from Advertisement to Bid Submission
The following questions relate to the initial phase of the procurement process, focusing on how the
procurement method is chosen, how the tender is advertised, and how bids are collected from the private
sector.
14.According to the legal framework, would open tendering (i.e., the process in which any business
can submit a bid) be the default method of procurement in Vietnam for a contract like the one
Cost Duration
(days)
Web link
for
resourceEstimated cost/length/completion time - as calculated
by the Procuring Entity at the time of advertising the
procurement opportunity.

Contract cost/length/completion time - as agreed upon
in the contract signed by the Procuring Entity and the
contractor.
□ □
Actual cost/length/completion time - as measured at
project completion.
□ □
described in Section 1?
No, Section 1, Chapter 2 of the Bidding Law
15. According to the legal framework, can the Procuring Entity require bidders to participate in a
prequalification process specific to that contract before being able to submit their economic offer?
Yes. Article 22 and 24 of Decree 63/2014/ND-CP
16. In practice, what is the most common method of procurement for a contract like the one
described in Section 1?
Open tendering is not the default, but remains the most common for a case comparable to the case study.
17. Does the legal framework define the situations in which open tendering must be used (including
thresholds)? If the legal framework regulates exceptions to open tendering, please list them.
Yes. Article 20 of the Bidding Law. Exceptions to open tendering are cases under restrictive tendering,
direct award, competitive dialogue, direct procurement, self-implementation, community's and
participation selection of bidders in some special cases (Articles 21-27 of the Bidding Law)
18. Does the legal framework prohibit dividing contracts to circumvent thresholds for open
tendering?
Yes. Article 89.6 (k) of the Bidding Law
In practice, how often does this happen?
Very rarely (< 10% of cases)
19. Which of the following materials need to be made publicly available by the procuring entity?
By law and Publicly available in practice
Procurement plans: Article 8.1 of the Bidding Law
Tender notices: Article 8.1 of the Bidding Law
Tender documents and technical specifications: Article 8.1 of the Bidding Law
Notices of award / bidding results: Article 8.1 of the Bidding Law
Tender Notices & Tender Documents
20. According to the legal framework, is there a minimum time limit between the advertisement of
the tender notice and the submission deadline for an open tendering procedure like the one
described in Section 1?
Yes. Article 12.1.e of the Bidding Law
In practice, how many days would pass between the advertisement of the tender notice and the
submission deadline for a case like the one described in Section 1?
30 -40 days
21. Does the legal framework establish the minimum content of the tender notice and tender
documents? If "Yes", please list the requirements.
Yes.
Articles 8 of Bidding Law:
a) The plan on selection of contractors, investors;
b) Notice of invitation for expression of interest, notice of invitation for pre-qualification;
c) Notice of invitation for quotation, notice of bid invitation;
d) Short list;
dd) Results of selection of contractors, investors;
e) Results of bid opening for bidding via network;
g) Information on handling of violations of law on bidding;
h) Legal documents on bidding;
i) List of investment projects in the form of public-private partnership, projects with land use;
k) The database of bidders, investors, bidding experts, lecturers of bidding, and establishments of training
on bidding;
l) Other relevant information.
Subcontracting
22. Does the legal framework regulate subcontracting?
Yes. Article 128.2 of Decree No. 63/2014/ND-CP
23. According to the legal framework, if the intent to subcontract was not disclosed in the bid, what
is the contractor who decides to subcontract after the contract is signed required to do?
The matter is not regulated.
Clarifications
24. When a potential bidder seeks clarifications on the tender documents from the procuring entity,
what is the most common way of addressing them?
The procuring entity addresses all clarifications in a public meeting.
The procuring entity will answer, and it is always required to communicate the answer to all other bidders
too - Legal basis: Article 14.2 (c) of Decree No. 63/2014/ND-CP
Bid Security
25. Does the legal framework require BidCo to provide a form of bid guarantee?
Yes. Article 11.1 of the Bidding Law
26. If BidCo is required, what is the most common instrument of bid security deposit?
Cash/Bank guarantee / letter of credit
Phase 3: from Bid Opening to Contract Signing
The following questions relate to bid opening, bid evaluation, exclusions and contract signing. When
answering these questions, please continue to refer to the case study assumptions outlined in Section 1.
For the definition of “procuring entity", please refer to Section 1.
27. Does the legal framework establish a timeframe for the procuring entity to proceed to bid
opening once the deadline for bid submission has been reached?
Yes. Article 14.3(b) of Decree No. 63/2014/ND-CP
In practice, how many days after the deadline for bid submission does the Procuring Entity proceed
to bid opening? If bid opening is carried out in multiple sessions, please answer this question
considering the first session. If bid opening happens immediately, please indicate 0 days.
0 days
28. In practice, in a case comparable to the case study scenario, how many days would pass between
bid opening and public notice of award (i.e., the moment in which all tenderers, participants and
relevant parties are notified of the award decision), considering that no complaint/challenges/protests
have been filed? In this estimate, please include the time to evaluate the bids, notify all bidders of the
decision and notify the winner of the award. If there is no public notice, please indicate the time until
notification of BidCo.
Time: 45 – 60 days. Main reasons for delay: The bidder selection result must be verified or there needs
some amendments to the bidding dossiers/ documents.
29. Is there a standstill (or pause) period between public notice of award and contract signing to
allow unsuccessful bidders to challenge the award decision?
No
30. In practice, in a case comparable to the case study scenario, how many days would pass on
average between public notice of award and contract signing? Please include the time for the winner
to submit relevant documents and the time to sign the contract.
Time: 20 – 25 days
31. In practice, how many days would pass on average between contract signing and receipt of a
notice to proceed with the works?
Time: 0 days or upon receipt of the performance security by the procuring entity.
Main reasons for delay: No receipt of the performance security
Does BidCo need to obtain work permits or other administrative authorizations between public
notice of award and contract signing? Please include environmental permits, occupancy permits,
activity permits, etc. as applicable.
No
Evaluation & Award
32. Does the legal framework regulate how members of the selection committee are chosen?
Yes. Article 116, Decree No. 63/2014/ND-CP
33. Are employees of the procuring entity required to follow a mandatory code of conduct or ethics
that includes topics like screening procedures, conflict of interest, training requirements, etc.?
No. Not mentioned in the laws
34. According to the legal framework, what would be the award criterion considering a case like the
one described in Section 1?
Price - Legal basis: Article 39.1 of the Bidding Law
Price and other qualitative elements (i.e., best value for money or the most advantageous combination of
cost, time to completion, quality and sustainability, or the most economically advantageous tender) -
Legal
basis: Article 39.2 of the Bidding Law
Other, please explain: Combination of technical and price assessment (Article 39.3 of the Bidding Law)
35. In practice, how often is the award decision based solely on price and not on best value for
money?
Very rarely (<10% of cases)
36. Does the legal framework establish criteria to identify abnormally low bids?
No
37. Does the legal framework define what constitutes a non-substantial error?
Yes, Article 17, Decree 63/2014/ND-CP
In practice, how often does the Procuring Entity require bidders to amend their offers (because of
mistakes, arithmetic errors, etc.)?
Occasionally (between 25-50%)
In practice, in these cases would the bidder be given the opportunity to rectify such error before
dis-qualification?
Yes, Article 17, Decree no. 63/2014/ND-CP
Exclusion & Loss
38. When a bidder is unsuccessful (either because of exclusion or loss), is it provided with an
explanation of the reasons for the exclusion/loss in writing?
Yes, by law the bidder must always be provided with an explanation in writing, according to Article 20.6
(b) of Decree No. 63/2014/ND-CP; within 5 workings days from the time the bidding result is approved.
If “Yes”, is the bidder usually told early enough so that it can challenge the exclusion/loss in a
timely manner?
Yes
39. When a bidder loses, is it provided with an explanation of the reasons for the loss in writing?
Yes, the bidder must always be provided with an explanation in writing, according to Article 20.6(b)
Decree no.63/2014/ND-CP
Phase 4: Contract Management
Performance Guarantee
40. According to the legal framework, is BidCo required to provide a performance guarantee
deposit that ensures a source of compensation in case of failure to perform its contractual
obligations?
Yes. Amount: 2%- 10% of the bid winning price.
Articles 66 & 72 of the Bidding Law.
41. If BidCo is required, what is the most common instrument of performance guarantee?
Certificate of deposit
Bank Guarantee / Letter of Credit
Payment retention until satisfactory completion of the contract
42. In practice, how long does it usually take for the procuring entity to return the performance
guarantee in full once the certificate of completion of works is issued?
5-10 days
Contract Renegotiations / Amendments
43. Does the legal framework regulate contract renegotiation? If "Yes", please indicate the relevant
provisions.
Yes. Article 67 of the Bidding Law and Article 93 of Decree No. 63/2014/ND-CP
44. How often would a contract like the one described in Section 1 be renegotiated?
Occasionally (between 25-50%)
45. If the contract described in Section 1 were more complex (i.e., lengthier and/or more costly
execution, more complex scope or object, etc.), how often would it be renegotiated?
Often (between 50-90%)
46. According to the legal framework, is there a percentage of price increase below which the
procuring entity is not required to provide a reason for the renegotiation? If "Yes", please provide
the percentage and the relevant legal basis.
No.
47. According to the legal framework, is there a percentage of price increase above which the
procuring entity is not allowed to renegotiate and is always required to re-tender? If"Yes", please
provide the percentage and the relevant legal basis.
No.
48. In practice, are the results of contract renegotiations made publicly available?
No. Not addressed by law but practically No
49. In practice, how many days would pass on average from the moment one of the parties requests/
initiates a renegotiation of the contract until a new contract amendment is signed?
It varies upon the negociation
50. How often do bidders submit unrealistically low bids to win the contract, confident of having a
possibility to renegotiate at a later stage?
Occasionally (25-50%)
51. How often are "emergencies" used as a reason to renegotiate?
Very rarely (<10% of cases)
52. How often would a changing (variation) order/price adjustment (i.e. a modification below a
certain threshold or clearly defined in the terms of the contract) take place in a contract like the
one described in Section 1?
Occasionally (25-50%)
In practice, how many days would pass on average from the moment that the modification becomes
necessary until a changing (variation) order/price adjustment is issued?
20-30 days
53. How often would additional works related to the initial contract (i.e. works by the original
contractor that have become necessary and that were not included in the initial procurement) be
awarded to the same contractor through direct award?
Occasionally (25-50%)
In practice, how many days would pass on average from the moment additional works become
necessary until they are awarded to the same original contractor?
30 days
Phase 5: Payment, Delays and Quality Assessment
The following questions relate to payment and inspections.
Payment
54. According to the legal framework, is there a limit to how much the procuring entity can pay
upfront for the contractor to hire workers, buy materials, and start operations, in a contract like
the one described in Section 1?
No.
In practice, how much would usually be paid upfront for a contract like the one described in
Section 1?
Minimum 10% of the contract value, maximum 50% of the contract value.
In practice, if an advance payment is usually issued, does the contractor have to provide a
guarantee for receiving this payment?
Yes
In practice, how many calendar days will be necessary for BidCo to receive the advance payment
once the request has been submitted to the Procuring Entity?
10-20 days
55. During the execution of the contract, does the legal framework establish a timeframe within
which the procuring entity must process the payment once an invoice is received?
Yes. Article 19 of Decree No. 37/2015/ND-CP
In practice, how many calendar days will be necessary on average for BidCo to receive
payment once the invoice has been delivered to the relevant authority?
Maximum 14 days
In practice, how many people would need to authorize payment within the procuring entity
before payment is made?
2
In practice, how often will BidCo receive payment within the timeframe established by the
legal framework?
Often (between 50-90%)
According to the legal framework, is the company entitled to claim interest on late payments
if the procuring entity does not pay within the legally - established timeframe?
Yes. Article 94 of Decree No. 63/2014/ND-CP
If so, in practice how often would such interest be paid to the company?
Occationally (between 25-50%)
In practice, for a contract like the one described in Section 1, how many days would pass on
average between the moment BidCo notifies the Procuring Entity that the works are completed and
a formal agreement between them stipulating that the works are indeed finished and comply with
the contract specifications (i.e. a certificate of completion of works)? Please include the time for the
Procuring Entity to conduct a final inspection.
7-14 days
How often do disagreements between the Procuring Entity and BidCo on the completed works
delay the process of reaching a formal agreement that the works are finished?
Occationally (between 25-50%)
In practice, by how many days would the time you indicated in Q.55.f be extended to resolve this
disagreement and obtain a certificate of completion of works from the Procuring Entity?
30 days
56. Assuming that BidCo delivers works complying with the quality standards agreed-upon in the
contract, within budget and on time, what strategies, if any, does the procuring entity use to delay
or avoid payment?
Bureucracy/paperwork inspections
In practice, how often does the procuring entity not pay?
Very rarely (< 10% of cases)
In practice, how often is a portion of the payment retained to guarantee the works for a
predetermined amount of time?
Very rarely (< 10% of cases)
Inspections & Warranties
57. Does the procuring entity have guidelines or protocols regulating inspections on the quality of
the works?
Yes. Articles 6, 8, 9 of Circular No. 26/2016/TT- BXD
58. Which of the following is true for a contract like the one described in Section 1? Please select the
most common option only.
 Inspections are carried out before every payment
 Inspections are carried out before some - but not all - payments
 Inspections are carried out routinely, but are not connected with payments
 Inspections are carried out randomly
 Only one final inspection is conducted
 No inspections are conducted Comment
59. Upon completion of the works, does the legal framework require BidCo to guarantee the works
for a certain period of time?
Yes. Articles 35-36 of Decree No. 46/2015/ND-CP
61. If BidCo is required, what is the most common instrument of post-completion guarantee?
Payment retention
62. In practice, how long after completion of the works is BidCo required to maintain the
instrument
that guarantees them?
12- 18 months
Delays & Overruns
63. In practice, how often are the works delivered within the original deadline?
Often (between 50-90%)
64. In practice, if delays are common, what are the main reasons for them?
Burdensome administrative processes within the procuring entity
Capacity of the procuring entity (staff/skills/budgetary constraints)
Capacity of the contractor (technical/financial/managerial/human capital constraints)
Poor planning on the procuring entity's side (poorly designed project specifications, etc.)
Poor planning on the contractor's side
65. In practice, how often are the works delivered within the original budget?
Occasionally (between 25-50%)
66. In practice, if cost overruns are common, what are the main reasons for them?
Market conditions (changes in input prices, fluctuations in exchange rate, etc.)
Burdensome administrative processes within the procuring entity
Capacity of the contractor (technical/financial/managerial/human capital constraints)
Poor planning on the procuring entity's side (poorly designed project specifications, etc.)
Poor planning on the contractor's side
5. Formal Challenges throughout the Procurement Process
In answering, please refer to the Procuring Entity you selected in Q. 1.
Challenging the contract award
In answering the following questions please assume that:
 The Procuring Entity you selected in Q.1 has awarded a works contract to BidCo.
 Three companies challenge the award on the following grounds:
o Company 1 argues that BidCo submitted a recklessly low bid that shouldhave been excluded.
o Company 2 argues that one of the evaluation criteria was used arbitrarily by the Procuring
Entity to reduce the Company's final score.
o Company 3 argues that the technical project they submitted met the minimum standards
established by the tender documents and should not have been excluded.
Assume all challengers submit their claims within the legal deadlines, free of mistakes, pay the fees
associated with their challenges, and pursue their claims until no further legal remedy is available. Please
include all administrative, judicial and quasi-judicial authorities that may be involved in the process.
67. According to the legal framework, who has legal standing to challenge the contract award?
Bidders
Legal basis:
FIRST
INSTANCE
a. Which authority would hear the challenge? If more
than one is possible, please list all relevant
authorities and specify which one a complaining
party would most commonly choose.
Investor of the project
b. How often would the award of a road works
contract rendered by the Procuring Entity be
challenged?
Between 10-25% of cases
c. Calendar days in practice between the moment a
challenge is filed and the day the complaining
party receives a decision.
30-45 business days
d. Would the challenge suspend the procurement
process?
No, the procurement process would
con
SECOND
INSTANCE
a. To which authority would the first instance decision
be appealed?
Investor of the project
b. How often would the first instance decision be
appealed?
Between 10-25% of cases
c. Calendar days in practice between the moment the
decision is appealed and the day the complaining
party receives a decision.
10-20 days
d. Would the appeal suspend the procurement process? No, suspension is discretionary but
NO'
THIRD
INSTANCE
a. To which authority would the second instance
decision be appealed?
Not available
b. How often would the second instance decision be
appealed?
Not available
c. Calendar days in practice between the moment the
decision is appealed and the day the complaining
party receives a decision.
d. Would the appeal suspend the procurement process? Not
available
68. If more than 3 instances of review are available,
please list the authorities and resolution times for all
further tiers of review.
Not available
Research - Criticalities of the Procurement Process
69. How often are the following strategies used by the procuring entity to circumvent public
procurement rules?
Not advertise procurement opportunities long enough to minimize competition: 10-25%
Prioritize projects without sufficient motivation just to benefit a particular bidder. : 10-25%
Prioritize non-competitive tenders to restrict market entry. : 10-25%
Define technical specifications to benefit a specific bidder. : >90%
Hold informal meetings with individual bidders: >90%
Unilaterally change some of the tendering requirements after the bid is opened, but before the contract is
signed: <10% of cases
Biased interpretation of the selection criteria.: 25-50%
Change the award criteria after the bids are opened: <10% of cases
Add specific obligations in the contract that were not previously incorporated in the tender documents,
and by doing so impose unnecessary burdens on the contractor.:<10% of cases
Delay payments to the contractor to request other works not included in the tender documents:<10% of
cases
Delay the certification of completion of the contract to obtain other works/goods/services not previously
included in the tender documents:<10% of cases
Unilaterally and arbitrarily terminate the contract:<10% of cases
70/ How often are the following strategies used by private sector companies to circumvent public
procurement rules?
Collusion between bidders (cover bidding, bid suppression, bid rotation, market allocation). .:<10% of
cases
Collusion with the procuring entity, to negate market entry to other competitors: 50-90%
Submission of recklessly low bids to win the tender. 10-25%
Falsification of documents or failure to disclose essential information in the bidder's offer. 10-25%
Informally paying public officials: 50-90%
Abuse the renegotiation process to increase the price or the scope of the project without another
competitive process. .: 50-90%
Delay the execution of the contract to coerce the procuring entity to award other contracts to the same
company. 10-25%
Execute the contract with less quality or with different technical specifications than were submitted
during the tender process. .: 50-90%
Employ subcontractors that were neither properly selected nor disclosed during the tender process. 10-
25%
***
If you have any question on the above, please do not hesitate to contact Dr. Oliver Massmann under
omassmann@duanemorris.com . Dr. Oliver Massmann is the General Director of Duane Morris Vietnam
LLC.
Thank you very much!

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Lawyer in Vietnam - Dr. Oliver Massmann THE WORLD BANK IS ASKING DUANE MORRIS ON GOVERNMENT AND PUBLIC PROCUREMENT HERE ARE OUR ANSWERS:

  • 1. Lawyer in Vietnam - Dr. Oliver Massmann THE WORLD BANK IS ASKING DUANE MORRIS ON GOVERNMENT AND PUBLIC PROCUREMENT HERE ARE OUR ANSWERS: 1. Legal framework and reform update 1. Which is the entity that conducts procurement for the authority that owns the majority of roads in Vietnam ? Ho Chi Minh City's People Committee 2. Are you aware of any change (in practice or in laws/regulations/procedures) related to public procurement between June 1, 2017 and May 1, 2018? For example: amendments to applicable public procurement laws, enactment and/or implementation of new regulations, implementation or improvement of e-procurement platforms, changes to the bid security and performance guarantee framework, etc. No 3. Please provide a list of the laws, regulations and other binding materials (including mandatory standard procurement documents and contracts) that regulate public procurement in Vietnam. Please include legislation or other binding materials promulgated at the national/federal level as well as any additional legislation that is applicable to the procuring entity described in Section 1. The Civil Code of Vietnam No. 91/2015/QH13 by the National Assembly of Vietnam dated 24 November 2015 ("Civil Code"); Construction Law No. 50/2014/QH13 by the National Assembly dated 18 June 2014 ("Construction Law"); Law on Bidding No. 43/2013/QH13 by National Assembly dated 26 November 2013 ("Bidding Law"); Law on Public Investment No. 49/2014/QH13 of the National Assembly dated 18 June 2014 ("Law on Public Investment"); Commercial Law No. 36/2005/Qh11 by the National Assembly dated 14 June 2005 ("Commercial Law"); Decree No. 63/2014/ND-CP by the Government dated 26 June 2014 guiding Law on Bidding ("Decree No.63/2014/ND-CP"); Decree No. 37/2015/ND-CP by the Government dated 22 April 2015 on detailing construction contracts ("Decree No. 37/2015/ND-CP"); Decree No. 46/2015/ND-CP by the Government dated on 12 May 2015 on managing the quality and maintenance of construction works ("Decree No. 46/2015/ND-CP"); Decree No. 30/2015/ND-CP by the Government dated 17 March 2015 on detailing certain provisions of the Law on Bidding on selection of bidders ("Decree No. 30/2015/ND-CP"); Decree No. 15/2015/ND-CP by the Government dated 14 February 2015 on public-private partnership investment ("Decree No. 15/2015/ND-CP");
  • 2. Circular No. 04/2017/TT-BKHDT by the Ministry of Planning and Investment dated 15 November 2017 on detailing the selection of bidders via the national biding portal ("Circular No. 04/2017/TT-BKHDT"); Circular No. 26/2016/TT-BXD by the Ministry of Construction dated 26 October 2016 on detailing certain provisions on management of quality and maintenance of construction works ("Circular No. 26/2016/TTBXD"); Circular No. 10/2016/TT-BKHDT of the Ministry of Planning and Investment on detailing the supervision, following up and examination of bidding activities ("Circular No. 10/2016/TT-BKHDT"); Circular No. 23/2015/TT_BKHDT by the Ministry of Planning and Investment dated 21 December 2015 on detailing the making the evaluation report on bidding documents ("Circular No. 23/2015/TTBKHDT"); Circular No. 10/2015/TT-BKHDT of the Ministry of Planning and Investment dated 26 October 2015 on detailing the plan for bidder selection ("Circular No. 10/2015/TT-BKHDT"); Circular No. 01/2015/TT-BKHDT by the Ministry of Planning and Investment dated 14 February 2015 on detailing the preparation of Invitation dossier for Concern, Invitation Dossier for Bidding, and Request dossider for consultancy services ("Circular No. 01/2015/TT-BKHDT"); Circular No. 17/2010/TT-BKH by the Ministry of Planning and Investment dated 22 July 2010 detailing a pilot online bidding program ("Circular No. 17/2010/TT-BKH"); Official Letter No. 5356/BKHDT-QLDT by the Ministry of Planning and Investment dated 18 August 2014 on registration of bidder's information on national bidding network system; Official Letter No. 4962/BKHDT-QLDT by the Ministry of Planning and Investment dated 31 July 2014 on the implementation of Law on Bidding No. 43/2013/QH13 regarding investors selection; Official Letter No. 4054/BKHDT-QLDT by the Ministry of Planning and Investment dated 7 June 2014 on implementation of Law on Bidding No. 43/2013/QH13 and Decree No. 63/2014/ND-CP; Official Letter No. 5186/BKHDT-QLDT by the Ministry of Planning and Investment dated 11 August 2014 guiding to carry out to provide and publish bidding information in the transitional period. 4. Please list any mandatory standard tender documents and/or standard contract terms that the Procuring Entity must use for a contract like the one described in Section 1.
  • 3. p/ Other contents. 5. Are you aware of any change (in practice or in laws/regulations/procedures) related to public procurement between May 2, 2019 and May 1, 2020? For example: amendments to applicable public procurement laws, enactment and/or implementation of new regulations, implementation or improvement of e-procurement platforms, changes to the bid security and performance guarantee framework, etc. No 2. E-procurement Platforms and Statistics 6. If one or several electronic procurement portal(s) (i.e., an official website(s) specifically and exclusively dedicated to public procurement) are in operation, please mark which platform would most commonly be used by the Procuring Entity. National level - Link: www.muasamcong.mpi.gov.vn 7. If a procurement portal is used by the procuring entity, how many works contracts are procured through the portal? More than 75% 8. If electronic procurement portals are available, please indicate which of the following actions can be performed through each portal: Accessing notices on procurement opportunities: Procuring entity and bidders Accessing tender documentation: Procuring entity and bidders Accessing tender documentation: Procuring entity and bidders Asking the procuring entity for clarifications: Bidders Submitting tenders: Bidders Submitting bid security: Bidders Opening bids: Procuring entity Notifying decisions (clarification, award,etc.): Procuring entity Accessing award decisions: Procuring entity and bidders Accessing explanations of award decisions: Procuring entity and bidders Submitting performance guarantees: Bidders Signing the contract: Procuring entity and bidders Contract terms must specify: a/ Applied legal bases; b/ Language used in the contract, c/ Content and volume of work; d/ Quality, technical requirements of work; pre-acceptance test and handover; dd/ Contract performance duration and schedule; e/ Contract price, advance payment, currency used in payment, and payment for the contract; g/ Contract performance security, contract advance guarantee; h/ Adjustment of the construction contract; i/ Rights and obligations of the parties to the construction contract; k/ Liability for violations of the contract, rewards and fines for violations of the contract; l/ Suspension and termination of the contract; m/ Settlement of disputes over the contract; n/ Risks and force majeure events; o/ Settlement and liquidation of the contract;
  • 4. 9. Which of the following information about road works contracts procured by the Procuring Entity is made publicly available? Phases of the Procurement Process This section of the questionnaire follows the chronological evolution of a procurement cycle, starting with the process the Procuring Entity undertakes to assess its needs and secure the budget. Section 4 also explores the steps that a local company would have to undertake in order to: (i) secure a government contract; (ii) deliver the agreed-upon works; and (iii) obtain payment. Phase 1: Budgeting and Needs Assessment For the definition of “procuring entity”, please refer to Section 1. 10. According to the legal framework, when the Procuring Entity prepares to advertise a new procurement opportunity for a contract like the one described in Section 1, what are used to estimate the contract value and projected length of works? Market analysis, Standardized unit cost, Project-specific technical drawings, Similar projects from previous years, price evaluation result by authorized state agency or price evaluation enterprise for assets, goods and services subject to price evaluation under the Law on Price. 11. In practice, is the estimated contract value/budget published in the tender notice/tender documents? Yes, contract value 12. Is the Procuring Entity required to have already allocated budget to a specific project before tendering? Yes, there is a specific budget allocatior Comment: 13. How often does the Procuring Entity award a contract without having all the necessary funds? Rarely (between 10-25%) Phrase 2: from Advertisement to Bid Submission The following questions relate to the initial phase of the procurement process, focusing on how the procurement method is chosen, how the tender is advertised, and how bids are collected from the private sector. 14.According to the legal framework, would open tendering (i.e., the process in which any business can submit a bid) be the default method of procurement in Vietnam for a contract like the one Cost Duration (days) Web link for resourceEstimated cost/length/completion time - as calculated by the Procuring Entity at the time of advertising the procurement opportunity.  Contract cost/length/completion time - as agreed upon in the contract signed by the Procuring Entity and the contractor. □ □ Actual cost/length/completion time - as measured at project completion. □ □
  • 5. described in Section 1? No, Section 1, Chapter 2 of the Bidding Law 15. According to the legal framework, can the Procuring Entity require bidders to participate in a prequalification process specific to that contract before being able to submit their economic offer? Yes. Article 22 and 24 of Decree 63/2014/ND-CP 16. In practice, what is the most common method of procurement for a contract like the one described in Section 1? Open tendering is not the default, but remains the most common for a case comparable to the case study. 17. Does the legal framework define the situations in which open tendering must be used (including thresholds)? If the legal framework regulates exceptions to open tendering, please list them. Yes. Article 20 of the Bidding Law. Exceptions to open tendering are cases under restrictive tendering, direct award, competitive dialogue, direct procurement, self-implementation, community's and participation selection of bidders in some special cases (Articles 21-27 of the Bidding Law) 18. Does the legal framework prohibit dividing contracts to circumvent thresholds for open tendering? Yes. Article 89.6 (k) of the Bidding Law In practice, how often does this happen? Very rarely (< 10% of cases) 19. Which of the following materials need to be made publicly available by the procuring entity? By law and Publicly available in practice Procurement plans: Article 8.1 of the Bidding Law Tender notices: Article 8.1 of the Bidding Law Tender documents and technical specifications: Article 8.1 of the Bidding Law Notices of award / bidding results: Article 8.1 of the Bidding Law Tender Notices & Tender Documents 20. According to the legal framework, is there a minimum time limit between the advertisement of the tender notice and the submission deadline for an open tendering procedure like the one described in Section 1? Yes. Article 12.1.e of the Bidding Law In practice, how many days would pass between the advertisement of the tender notice and the submission deadline for a case like the one described in Section 1? 30 -40 days 21. Does the legal framework establish the minimum content of the tender notice and tender documents? If "Yes", please list the requirements. Yes. Articles 8 of Bidding Law: a) The plan on selection of contractors, investors;
  • 6. b) Notice of invitation for expression of interest, notice of invitation for pre-qualification; c) Notice of invitation for quotation, notice of bid invitation; d) Short list; dd) Results of selection of contractors, investors; e) Results of bid opening for bidding via network; g) Information on handling of violations of law on bidding; h) Legal documents on bidding; i) List of investment projects in the form of public-private partnership, projects with land use; k) The database of bidders, investors, bidding experts, lecturers of bidding, and establishments of training on bidding; l) Other relevant information. Subcontracting 22. Does the legal framework regulate subcontracting? Yes. Article 128.2 of Decree No. 63/2014/ND-CP 23. According to the legal framework, if the intent to subcontract was not disclosed in the bid, what is the contractor who decides to subcontract after the contract is signed required to do? The matter is not regulated. Clarifications 24. When a potential bidder seeks clarifications on the tender documents from the procuring entity, what is the most common way of addressing them? The procuring entity addresses all clarifications in a public meeting. The procuring entity will answer, and it is always required to communicate the answer to all other bidders too - Legal basis: Article 14.2 (c) of Decree No. 63/2014/ND-CP Bid Security 25. Does the legal framework require BidCo to provide a form of bid guarantee? Yes. Article 11.1 of the Bidding Law
  • 7. 26. If BidCo is required, what is the most common instrument of bid security deposit? Cash/Bank guarantee / letter of credit Phase 3: from Bid Opening to Contract Signing The following questions relate to bid opening, bid evaluation, exclusions and contract signing. When answering these questions, please continue to refer to the case study assumptions outlined in Section 1. For the definition of “procuring entity", please refer to Section 1. 27. Does the legal framework establish a timeframe for the procuring entity to proceed to bid opening once the deadline for bid submission has been reached? Yes. Article 14.3(b) of Decree No. 63/2014/ND-CP In practice, how many days after the deadline for bid submission does the Procuring Entity proceed to bid opening? If bid opening is carried out in multiple sessions, please answer this question considering the first session. If bid opening happens immediately, please indicate 0 days. 0 days 28. In practice, in a case comparable to the case study scenario, how many days would pass between bid opening and public notice of award (i.e., the moment in which all tenderers, participants and relevant parties are notified of the award decision), considering that no complaint/challenges/protests have been filed? In this estimate, please include the time to evaluate the bids, notify all bidders of the decision and notify the winner of the award. If there is no public notice, please indicate the time until notification of BidCo. Time: 45 – 60 days. Main reasons for delay: The bidder selection result must be verified or there needs some amendments to the bidding dossiers/ documents. 29. Is there a standstill (or pause) period between public notice of award and contract signing to allow unsuccessful bidders to challenge the award decision? No 30. In practice, in a case comparable to the case study scenario, how many days would pass on average between public notice of award and contract signing? Please include the time for the winner to submit relevant documents and the time to sign the contract. Time: 20 – 25 days 31. In practice, how many days would pass on average between contract signing and receipt of a notice to proceed with the works? Time: 0 days or upon receipt of the performance security by the procuring entity. Main reasons for delay: No receipt of the performance security Does BidCo need to obtain work permits or other administrative authorizations between public notice of award and contract signing? Please include environmental permits, occupancy permits, activity permits, etc. as applicable. No Evaluation & Award
  • 8. 32. Does the legal framework regulate how members of the selection committee are chosen? Yes. Article 116, Decree No. 63/2014/ND-CP 33. Are employees of the procuring entity required to follow a mandatory code of conduct or ethics that includes topics like screening procedures, conflict of interest, training requirements, etc.? No. Not mentioned in the laws 34. According to the legal framework, what would be the award criterion considering a case like the one described in Section 1? Price - Legal basis: Article 39.1 of the Bidding Law Price and other qualitative elements (i.e., best value for money or the most advantageous combination of cost, time to completion, quality and sustainability, or the most economically advantageous tender) - Legal basis: Article 39.2 of the Bidding Law Other, please explain: Combination of technical and price assessment (Article 39.3 of the Bidding Law) 35. In practice, how often is the award decision based solely on price and not on best value for money? Very rarely (<10% of cases) 36. Does the legal framework establish criteria to identify abnormally low bids? No 37. Does the legal framework define what constitutes a non-substantial error? Yes, Article 17, Decree 63/2014/ND-CP In practice, how often does the Procuring Entity require bidders to amend their offers (because of mistakes, arithmetic errors, etc.)? Occasionally (between 25-50%) In practice, in these cases would the bidder be given the opportunity to rectify such error before dis-qualification? Yes, Article 17, Decree no. 63/2014/ND-CP Exclusion & Loss 38. When a bidder is unsuccessful (either because of exclusion or loss), is it provided with an explanation of the reasons for the exclusion/loss in writing? Yes, by law the bidder must always be provided with an explanation in writing, according to Article 20.6 (b) of Decree No. 63/2014/ND-CP; within 5 workings days from the time the bidding result is approved. If “Yes”, is the bidder usually told early enough so that it can challenge the exclusion/loss in a timely manner? Yes 39. When a bidder loses, is it provided with an explanation of the reasons for the loss in writing?
  • 9. Yes, the bidder must always be provided with an explanation in writing, according to Article 20.6(b) Decree no.63/2014/ND-CP Phase 4: Contract Management Performance Guarantee 40. According to the legal framework, is BidCo required to provide a performance guarantee deposit that ensures a source of compensation in case of failure to perform its contractual obligations? Yes. Amount: 2%- 10% of the bid winning price. Articles 66 & 72 of the Bidding Law. 41. If BidCo is required, what is the most common instrument of performance guarantee? Certificate of deposit Bank Guarantee / Letter of Credit Payment retention until satisfactory completion of the contract 42. In practice, how long does it usually take for the procuring entity to return the performance guarantee in full once the certificate of completion of works is issued? 5-10 days Contract Renegotiations / Amendments 43. Does the legal framework regulate contract renegotiation? If "Yes", please indicate the relevant provisions. Yes. Article 67 of the Bidding Law and Article 93 of Decree No. 63/2014/ND-CP 44. How often would a contract like the one described in Section 1 be renegotiated? Occasionally (between 25-50%) 45. If the contract described in Section 1 were more complex (i.e., lengthier and/or more costly execution, more complex scope or object, etc.), how often would it be renegotiated? Often (between 50-90%) 46. According to the legal framework, is there a percentage of price increase below which the procuring entity is not required to provide a reason for the renegotiation? If "Yes", please provide the percentage and the relevant legal basis. No. 47. According to the legal framework, is there a percentage of price increase above which the procuring entity is not allowed to renegotiate and is always required to re-tender? If"Yes", please provide the percentage and the relevant legal basis. No. 48. In practice, are the results of contract renegotiations made publicly available? No. Not addressed by law but practically No
  • 10. 49. In practice, how many days would pass on average from the moment one of the parties requests/ initiates a renegotiation of the contract until a new contract amendment is signed? It varies upon the negociation 50. How often do bidders submit unrealistically low bids to win the contract, confident of having a possibility to renegotiate at a later stage? Occasionally (25-50%) 51. How often are "emergencies" used as a reason to renegotiate? Very rarely (<10% of cases) 52. How often would a changing (variation) order/price adjustment (i.e. a modification below a certain threshold or clearly defined in the terms of the contract) take place in a contract like the one described in Section 1? Occasionally (25-50%) In practice, how many days would pass on average from the moment that the modification becomes necessary until a changing (variation) order/price adjustment is issued? 20-30 days 53. How often would additional works related to the initial contract (i.e. works by the original contractor that have become necessary and that were not included in the initial procurement) be awarded to the same contractor through direct award? Occasionally (25-50%) In practice, how many days would pass on average from the moment additional works become necessary until they are awarded to the same original contractor? 30 days Phase 5: Payment, Delays and Quality Assessment The following questions relate to payment and inspections. Payment 54. According to the legal framework, is there a limit to how much the procuring entity can pay upfront for the contractor to hire workers, buy materials, and start operations, in a contract like the one described in Section 1? No. In practice, how much would usually be paid upfront for a contract like the one described in Section 1? Minimum 10% of the contract value, maximum 50% of the contract value. In practice, if an advance payment is usually issued, does the contractor have to provide a guarantee for receiving this payment? Yes
  • 11. In practice, how many calendar days will be necessary for BidCo to receive the advance payment once the request has been submitted to the Procuring Entity? 10-20 days 55. During the execution of the contract, does the legal framework establish a timeframe within which the procuring entity must process the payment once an invoice is received? Yes. Article 19 of Decree No. 37/2015/ND-CP In practice, how many calendar days will be necessary on average for BidCo to receive payment once the invoice has been delivered to the relevant authority? Maximum 14 days In practice, how many people would need to authorize payment within the procuring entity before payment is made? 2 In practice, how often will BidCo receive payment within the timeframe established by the legal framework? Often (between 50-90%) According to the legal framework, is the company entitled to claim interest on late payments if the procuring entity does not pay within the legally - established timeframe? Yes. Article 94 of Decree No. 63/2014/ND-CP If so, in practice how often would such interest be paid to the company? Occationally (between 25-50%) In practice, for a contract like the one described in Section 1, how many days would pass on average between the moment BidCo notifies the Procuring Entity that the works are completed and a formal agreement between them stipulating that the works are indeed finished and comply with the contract specifications (i.e. a certificate of completion of works)? Please include the time for the Procuring Entity to conduct a final inspection. 7-14 days How often do disagreements between the Procuring Entity and BidCo on the completed works delay the process of reaching a formal agreement that the works are finished? Occationally (between 25-50%) In practice, by how many days would the time you indicated in Q.55.f be extended to resolve this disagreement and obtain a certificate of completion of works from the Procuring Entity? 30 days 56. Assuming that BidCo delivers works complying with the quality standards agreed-upon in the contract, within budget and on time, what strategies, if any, does the procuring entity use to delay or avoid payment? Bureucracy/paperwork inspections
  • 12. In practice, how often does the procuring entity not pay? Very rarely (< 10% of cases) In practice, how often is a portion of the payment retained to guarantee the works for a predetermined amount of time? Very rarely (< 10% of cases) Inspections & Warranties 57. Does the procuring entity have guidelines or protocols regulating inspections on the quality of the works? Yes. Articles 6, 8, 9 of Circular No. 26/2016/TT- BXD 58. Which of the following is true for a contract like the one described in Section 1? Please select the most common option only.  Inspections are carried out before every payment  Inspections are carried out before some - but not all - payments  Inspections are carried out routinely, but are not connected with payments  Inspections are carried out randomly  Only one final inspection is conducted  No inspections are conducted Comment 59. Upon completion of the works, does the legal framework require BidCo to guarantee the works for a certain period of time? Yes. Articles 35-36 of Decree No. 46/2015/ND-CP 61. If BidCo is required, what is the most common instrument of post-completion guarantee? Payment retention 62. In practice, how long after completion of the works is BidCo required to maintain the instrument that guarantees them? 12- 18 months Delays & Overruns 63. In practice, how often are the works delivered within the original deadline? Often (between 50-90%) 64. In practice, if delays are common, what are the main reasons for them? Burdensome administrative processes within the procuring entity Capacity of the procuring entity (staff/skills/budgetary constraints) Capacity of the contractor (technical/financial/managerial/human capital constraints) Poor planning on the procuring entity's side (poorly designed project specifications, etc.) Poor planning on the contractor's side
  • 13. 65. In practice, how often are the works delivered within the original budget? Occasionally (between 25-50%) 66. In practice, if cost overruns are common, what are the main reasons for them? Market conditions (changes in input prices, fluctuations in exchange rate, etc.) Burdensome administrative processes within the procuring entity Capacity of the contractor (technical/financial/managerial/human capital constraints) Poor planning on the procuring entity's side (poorly designed project specifications, etc.) Poor planning on the contractor's side 5. Formal Challenges throughout the Procurement Process In answering, please refer to the Procuring Entity you selected in Q. 1. Challenging the contract award In answering the following questions please assume that:  The Procuring Entity you selected in Q.1 has awarded a works contract to BidCo.  Three companies challenge the award on the following grounds: o Company 1 argues that BidCo submitted a recklessly low bid that shouldhave been excluded. o Company 2 argues that one of the evaluation criteria was used arbitrarily by the Procuring Entity to reduce the Company's final score. o Company 3 argues that the technical project they submitted met the minimum standards established by the tender documents and should not have been excluded. Assume all challengers submit their claims within the legal deadlines, free of mistakes, pay the fees associated with their challenges, and pursue their claims until no further legal remedy is available. Please include all administrative, judicial and quasi-judicial authorities that may be involved in the process. 67. According to the legal framework, who has legal standing to challenge the contract award? Bidders Legal basis: FIRST INSTANCE a. Which authority would hear the challenge? If more than one is possible, please list all relevant authorities and specify which one a complaining party would most commonly choose. Investor of the project b. How often would the award of a road works contract rendered by the Procuring Entity be challenged? Between 10-25% of cases c. Calendar days in practice between the moment a challenge is filed and the day the complaining party receives a decision. 30-45 business days d. Would the challenge suspend the procurement process? No, the procurement process would con SECOND INSTANCE a. To which authority would the first instance decision be appealed? Investor of the project b. How often would the first instance decision be appealed? Between 10-25% of cases c. Calendar days in practice between the moment the decision is appealed and the day the complaining party receives a decision. 10-20 days
  • 14. d. Would the appeal suspend the procurement process? No, suspension is discretionary but NO' THIRD INSTANCE a. To which authority would the second instance decision be appealed? Not available b. How often would the second instance decision be appealed? Not available c. Calendar days in practice between the moment the decision is appealed and the day the complaining party receives a decision. d. Would the appeal suspend the procurement process? Not available 68. If more than 3 instances of review are available, please list the authorities and resolution times for all further tiers of review. Not available Research - Criticalities of the Procurement Process 69. How often are the following strategies used by the procuring entity to circumvent public procurement rules? Not advertise procurement opportunities long enough to minimize competition: 10-25% Prioritize projects without sufficient motivation just to benefit a particular bidder. : 10-25% Prioritize non-competitive tenders to restrict market entry. : 10-25% Define technical specifications to benefit a specific bidder. : >90% Hold informal meetings with individual bidders: >90% Unilaterally change some of the tendering requirements after the bid is opened, but before the contract is signed: <10% of cases Biased interpretation of the selection criteria.: 25-50% Change the award criteria after the bids are opened: <10% of cases Add specific obligations in the contract that were not previously incorporated in the tender documents, and by doing so impose unnecessary burdens on the contractor.:<10% of cases Delay payments to the contractor to request other works not included in the tender documents:<10% of cases Delay the certification of completion of the contract to obtain other works/goods/services not previously included in the tender documents:<10% of cases Unilaterally and arbitrarily terminate the contract:<10% of cases 70/ How often are the following strategies used by private sector companies to circumvent public procurement rules? Collusion between bidders (cover bidding, bid suppression, bid rotation, market allocation). .:<10% of cases Collusion with the procuring entity, to negate market entry to other competitors: 50-90% Submission of recklessly low bids to win the tender. 10-25% Falsification of documents or failure to disclose essential information in the bidder's offer. 10-25% Informally paying public officials: 50-90% Abuse the renegotiation process to increase the price or the scope of the project without another competitive process. .: 50-90% Delay the execution of the contract to coerce the procuring entity to award other contracts to the same company. 10-25% Execute the contract with less quality or with different technical specifications than were submitted during the tender process. .: 50-90% Employ subcontractors that were neither properly selected nor disclosed during the tender process. 10- 25%
  • 15. *** If you have any question on the above, please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com . Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC. Thank you very much!