Detailed Analysis of the Amendments to the Law on Bidding

In the context of Vietnam’s deepening economic integration and the growing need for institutional reforms, the legal framework governing bidding, public investment, and public finance must be adjusted to align with practical realities and international practices. Responding to this need, on June 25 and 26, 2025, the National Assembly passed a law amending and supplementing several provisions of eight important laws, notably including major revisions to the Law on Bidding.

With the goal of removing bottlenecks, streamlining procedures, and enhancing transparency and efficiency in contractor selection, the amended Law on Bidding is not only a legislative advancement but also a catalyst for administrative reform, contributing to more effective public investment, private investment, and public-private partnerships (PPP). The following article summarizes the key highlights of the amended Law on Bidding, covering its scope of application, bidding procedures, new provisions for the healthcare sector, and accountability mechanisms.

Key Highlights:

a) Broader scope of application and increased autonomy
The Law stipulates that all entities using state budget funds, including state-owned enterprises (SOEs), must comply with the Law on Bidding when selecting contractors. However, when SOEs use non-state funds, they may choose their procurement methods, provided that transparency, publicity, and efficiency are ensured — along with greater accountability for inspection and oversight (according to the Government e-Portal).

b) Prioritizing simplified procedures
According to Bao Dau Thau (the Bidding Newspaper), one of the key reforms in the amended law is the simplification of contractor selection procedures, which helps shorten the implementation time of procurement packages — especially urgent projects requiring quick disbursement. The law removes the requirement to appraise contractor selection results for small packages and grants stronger authority to investors in approving procurement plans and bidding documents.

c) Promoting technology and innovation
The amended law introduces incentives for innovative products and digital technology services that meet domestic production criteria, as stipulated by the Ministry of Science and Technology. These products are given preferential treatment in contractor selection (incentives are intended to promote science, technology, and innovation).

Investors classified as science and technology enterprises, start-ups, digital technology firms, or those owning or licensing strategic technologies are eligible for preferential treatment in investor selection.

These entities are also given preference in capability and experience evaluations.

d) Shift in management mindset – Strengthening oversight and post-audit mechanisms
National Assembly deputies emphasized the need for transparent and accountable bidding practices to avoid formality, collusion, subcontract selling, and poor construction quality. The new law requires clear attribution of responsibility to project owners and expert panels, and introduces specific penalties for fraudulent acts, including bidding bans, administrative fines, or criminal prosecution (Bao Dau Thau).

e) Enhanced electronic monitoring and contractor database
The Law requires that:

• Project owners evaluate contract performance quality on the National Bidding Network System;
• A database on contractors’ credibility, experience, and capacity be developed to support post-audit processes and facilitate more transparent future decisions;
• E-bidding be expanded to reduce manual manipulation.

Conclusion

The 2025 amendments to the Law on Bidding mark a significant step in institutional reform, aiming to create a more transparent, efficient, and open bidding environment. These changes address practical obstacles, expand autonomy, shorten procedures, and strengthen oversight — all of which are expected to foster better public and private sector investment outcomes.

Harley Miller Law Firm

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