The procedure for investor selection according to the latest guidelines

Article overview

Bidding procedures for investor selection plays an essential role in attracting resources and ensuring transparency in development projects. This process not only helps identify suitable investment partners but also contributes to improving the efficiency and quality of the project. In the article below, Long Phan will analyze in detail each step in the bidding process, helping investors and management agencies better understand this process and the most effective way to implement it.

Bidding procedures for investor selection
Bidding procedures for investor selection

When will the investor selection bidding be carried out?

Pursuant to the provisions of Clause 4, Article 1 of Decree 23/2024/ND-CP amended and supplemented in Decree 115/2024/ND-CP, projects subject to bidding must be held according to regulations and not related to land use or land acquisition, including:

  • International football betting business project according to the law on betting business;
  • Dredging project combined with product recovery related to maritime infrastructure and inland waterways according to traffic regulations;
  • Projects are bid when there are 2 or more investors interested, in the fields of education, health, culture, sports and environment according to the law on encouraging socialization.

Bidding process for investor selection

According to the provisions of Article 46 of the Law on Bidding 2023, the investor selection process includes the following basic steps:

Step 1: Announce the business investment project:

Publicly announce the project to attract the attention of investors.

Step 2: Prepare for bidding:

Prepare, evaluate, and approve bidding documents.

Step 3: Organize bidding to select investors:

  • Invite bids.
  • Issuing, amending and clarifying bidding documents.
  • Prepare, submit, receive, manage, modify, withdraw, and replace bids.

Step 4: Evaluate bid documents:

  • Bid opening.
  • Check and evaluate the validity of bid documents.
  • Evaluate detailed bid documents.

Step 5: Submit and approve results:

  • Publicize the results of investor selection.
  • Explain the reasons to investors who did not win the bid (if any).

Step 6: Negotiate and sign the contract:

Finalize agreements and sign contracts with selected investors.

In addition, in case there are 02 or more investors interested, the competent authority needs to take additional steps:

  • Prepare a request for interest application.
  • Notice inviting interest.
  • Organize the evaluation of project registration documents and approve the results of invitation for interest before entering bidding preparation.
Process and procedures for selecting investors
Process and procedures for selecting investors

Bidding documents on investor selection

Bidding documents are a core element in the bidding process, containing all the information necessary for contractors to prepare and submit appropriate bids. Pursuant to Article 48 of the Law on Bidding 2023, bidding documents include the following contents:

  1. Instructions for investors: Detailed instructions for investors on the bidding process and requirements.
  2. Bidding data sheet: Necessary information for investors to prepare bid documents.
  3. Content of checking and evaluating validity: Criteria and procedures to check the validity of bid documents.
  4. Evaluation methods and standards:
  • Investor’s capacity and experience.
  • Business investment plan.
  • Effective land use or effective development of industries, fields, and localities.
  1. Bidding and bidding forms: Necessary forms to carry out bidding procedures and submit bids.
  2. Information and project implementation requirements: Specific requirements related to business investment projects.
  3. Draft contract: Contract form expected to be signed.
  4. Other relevant content: Any additional information required for the bidding process.

Note:

Bidding documents must not include any conditions that limit the participation of investors or create advantages for one or several investors, causing unfair competition.

The time to organize bidding to select investors

The time it takes for the organization to select investors depends on the scale and nature of the project. According to Article 49 of the Law on Bidding 2023, the minimum time to prepare bids is as follows:

  • For domestic bidding: Time to prepare bid documents is at least 45 days.
  • For international bidding: Minimum time is 60 days from the date of issuance of bidding documents to the date of bid closing.

In other cases, the competent person will decide the time based on project progress but still ensure reasonableness and enough time for contractors to prepare quality documents.

Time is an important factor in bidding, to ensure the investor selection process takes place according to regulations and is highly effective.

Bidding procedure documents for investor selection
Bidding procedure documents for investor selection

Consulting services and guidance on bidding procedures for investor selection at Long Phan

At Long Phan, we provide professional consulting services, helping customers understand and comply with regulations on investor selection bidding procedures. Our services include:

  • Consulting on regulations related to bidding;
  • Support customers in drafting and preparing bidding documents;
  • Support customers in evaluating and appraising bidding documents;
  • Support and guidance in the process of negotiating and signing contracts with winning investors;
  • Providing solution to resolve disputes related to bidding, ensuring the rights of businesses;
  • Advice on how to resolve when a dispute occurs.

The investor selection bidding process plays an important role in attracting and selecting investment partners for development projects. Complying with the correct steps and regulations in this process not only ensures transparency but also improves investment efficiency. If you have any questions or need in-depth advice, please contact Long Phan via the hotline 0906735386.