Category Archives: Vietnam – General


1. How will the Fourth Industrial Revolution affect Vietnam garment and textile industry?

Like other industries, industry 4.0 will affect Vietnam garment and textile industry in 3 aspects: productivity, scale and management structure. High technology, including software development, and big data will be used as the main growth force of the industry. By applying high technology and automation in certain stages of the production, productivity increases as well as the owner can better control the operation of the whole production/ distribution system. However, a side effect of Industry 4.0 is replacement of human force by machines, which may cause substantial exuberance in work force, especially in sector that consumes one of the most manual work force like the garment and textile industry.

2. According to you, how should enterprises do to ensure good labor force in such a fierce competition?

Enterprises should encourage innovation spirit among workers. Workers who run high tech machines must be well trained (either via short training courses or high-level education at educational establishments) so that machines are operated to their full use.

3. It is said that upgrading technology and machinery is necessary to survive in Industry 4.0, what do you comment on this?

Technology and machinery play an important role in industry 4.0. However, it is not to say that the more technology is applied in the industry and more modern machines are used, the better productivity a company may achieve. Such application must go together with the improvement of work force quality and adjustment ability to new environment.

4. In order to lessen negative impacts of Industry 4.0 as well as to turn labor force into an advantage, according to you, what should Vietnam do?

Vietnam needs to set a clear vision for Industry 4.0 and work out on how to implement and achieve that vision. It must be aware that education and training is the core condition for business development. Textile and garment industry should not be considered as the industry for low level labor force as it used to be. In addition, Vietnam must invest in research facilities and encourage innovation in the sector. Only by doing so that labor force can be an advantage of Vietnam in terms of quality and knowledge instead of low price.

If you have any question on the above, please do not hesitate to contact Dr. Oliver Massmann under Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Thank you very much!


1. It can be said that FDI inflows has become the growth momentum for Vietnam’s banking and finance industry over the past few years. How do you comment on the changes in the local financial services sector recently?

There has been increasing foreign investment in Vietnam’s banking and finance industry, especially via M&A at the end of 2017 and the beginning of 2018. Currently, foreign investors are very optimistic about Vietnam’s steady economic growth and plan to expand their coverage in the market. They believe economic development will drive more demand for banking and finance activities, thus more opportunities for growth in the sector. Moreover, M&A activities have helped local banks improve their financial capacity and competitiveness in the market. Local credit institutions have diversified their products and services, applied more modern technology in their operation. Under competition pressure from foreign credit institutions, local ones have no way but to also enhance banking governance capacity as well as human resources quality. These in turn help local credit institutions grow in a more stable and safe manner.

2. How have foreign financial organizations been contributing to improve Vietnam’s financial services sector so far?

Foreign financial organizations which have track recorded experience in other countries, with wide network and customer resources, when coming to Vietnam have brought in high technology, wide variety of finance and banking products/ services, as well as management/ governance capacity. Vietnam’s financial organizations have learnt a lot from these new players, thus modernizing their own system, creating more products/ services for Vietnamese customers who have not become a major part of customer portfolio of foreign financial organizations. These local organizations and Vietnam’s financial services have somehow developed to a modern, internationally standardized level, thus making them more attractive to foreign investors.

3. A number of free trade agreements (FTAs) that Vietnam will ratify shortly are expected to drive FDI flows into the country’ financial services sector in the coming time. How do you see about this prospect?

Both the CPTPP and the EVFTA have higher level of market access commitments than the WTO. In addition, investors are better protected under the CPTPP and the EVFTA in Vietnam. The Investor State Dispute Settlement (ISDS) will ensure highest standards of legal certainty and enforceability for investors. Under that provision, for investment related disputes, the investors have the right to bring claims to the host country by means of international arbitration. The arbitration proceedings shall be made public as a matter of transparency in conflict cases. Such legal certainties along with the Government’s attempts to improve investment environment drive more FDIs flows into the country.

4. How do you forecast about some investment trends of international financial organizations into Vietnam this year?

Given the Government’s recent encouragement of investing in current banks rather than establishing new ones, M&A in the sector will be very vibrant. It is the fact that in recent years many investors have expressed their interest in becoming shareholders in certain commercial banks, especially weak/ VND 0 banks that need assistance in recovery, handling bad debts and restructuring. Moreover, Basel II standards will begin to apply from 2020, so there will be huge demand for capital to meet such strict requirements. However, as local banks are still looking for appropriate partners, we expect more major successful deals in the upcoming time.

5. What should Vietnamese government do to make the local financial services sector more accessible to foreign investors?

The Government should open more room for foreign ownership in local financial institutions, as most of them have nearly reached the allowed limit. This will lure more foreign participation in the market, thus creating opportunities to local financial sectors to absorb experience, management capacity, technology, etc. to become a stable and promising market in the region. The Government should also continue to complete the legal framework on financial services sector to comply with its commitments under signed FTAs, thus raising investors’ confidence in the system and willingness to invest further.

Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.


1. What potential do you see in e-sports? Is there future in the betting business for e-sports? Does this carry a risk of illegal activities like other sports?

Online sport betting is a place of unearthed opportunities in Vietnam. You can see Vietnamese people are a big fan of many sports, especially football and volleyball. Economic growth and rise in real wages have led to more and more money ending up being placed on sporting events. Though there is no official number on the amount of money that people bet in online unofficial websites during big football events, I believe the number must not be lower than millions of dollars. Legalizing online betting for sports would help reduce tax losses by the Government, thus reducing public debt. Moreover, we are now in 4.0 industry so it is an unavoidable business trend in the future. It is important that we have sufficient regulations and management capacity to prevent illegal activities in this sector.

2. Vietnam does not yet have regulations on e-sports and betting in this sector. However, the government has issued Decree No. 06/2017/ND-CP on betting business on horse racing, dog racing, and international football. Do you think that this regulatory framework can be extended to include e-sports betting?

Decree 06 sets out a pilot program for betting business on horse racing, dog racing, and international football. It is even uncertain that this activity will continue being permitted after the trial period has lapsed, as it depends on the result of the pilot program. Moreover, I understand that international football betting is currently permitted only via terminal devices and telephones (i.e., sms only). Thus, it may take some other years to implement international football betting via internet, not to mention extension to online betting for other sports.

3. Are there any international regulations on e-sports betting? What regulations could Vietnam use as a basis for the domestic management of to manage betting business in this sector?

There is no international regulations on e-sports betting but each country has its own set of regulations. Vietnam can have a look at China whose lottery market is split into two segments: Welfare Lottery (since 1987) and Sports Lottery (since 1994) or the UK, which is one of the most liberal, and yet highly regulated, gambling markets in the world.

4. It is a widely held view that e-sports target a younger audience than football and especially horse and dog racing. How is this relevant to the regulation of e-sports and betting in this area? Are there other fundamental differences setting e-sports apart from more traditional sports?

I believe the adoption of regulations on e-sports betting does not depend on the coverage of e-sports (young/ old players). As long as e-sports and e-sports betting have potential negative impacts on the society, they need to be regulated. However, it is true that how they are to be regulated depends on the age range of the players. Regulating traditional sports betting must be different from e-sports betting given the difference in their nature, the extent the players can participate in the games, interaction among players, role play, etc.

Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Compulsory Social Insurance for expats working in Vietnam – who’s in and who’s out?

Ever since the Law on Social Insurance[1] was issued in late 2014, employees and employers have been on notice that “expat employees working in Vietnam” will be required to participate in the State’s compulsory social insurance (SI) regime “from 2018”.  2018 came however with no further clarity around the details.

In October 2018, the Government issued Decree no. 143/2018/ND-CP[2] guiding the Law on SI and providing that “Employees who are expats working in Vietnam shall be required to participate in the SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.” (Article 2.1). Also in the same decree, several exceptions from SI participation are listed, including intra-company transferees and expats reaching retirement age.

According to the statistics of the Ministry of Labor, War Invalids and Social Affairs (“MOLISA”), 64% of applicable expats working in Vietnam joined the SI scheme under Decree 143[3]. Having said that, there remains confusion amongst both employers and expats employees as to the subjects of application of the law.

Finally, on 18 March 2019, MOLISA issued Official Letter no. 1064/LDTBXH-BHXH[4] clarifying the issue of exactly which expats will be required and not required to participate into the Vietnam-law SI scheme.

Specifically, expat employees working in Vietnam must satisfy all of the following criteria in order to be applicable for the SI scheme:



Nationality Non-Vietnamese nationals working in Vietnam An overseas Vietnamese national entering Vietnam to work via his/her passport of a foreign country would be deemed as a non-Vietnamese national working in Vietnam.


Licenses Work permits, practicing certificates, practicing licenses issued by the competent authority in Vietnam


As a side note, a work permit issued for
an expat entering Vietnam to supply services to a Vietnam-based entity would not fall under this category. 
Employment Indefinite-term or at least one-year definite-term labor contract with a Vietnam-based employer. We are of the view that a definite-term labor contract (from 12 to 24 months) would suffice in this regard.


It is worth noting that term of expat’s labor contract must be in line with term of his/her valid work permit, which is maximum 24 months from a theoretical perspective.


Age Men: Under 60 years old

Women: Under 55 years old

Please kindly be advised that these retirement ages are being proposed to increase to 62 for male and 60 for female according to the draft of new labor code.


Others NOT falling under the scope of statutory intra-company transferees, i.e. any expat managers, chief executive officers, experts and technicians, who have been employed by the offshore enterprise for at least 12 months and are temporarily re-assigned/ seconded to its Vietnam-based commercial presence (e.g. subsidiary, representative office, or branch). Frankly speaking, an expat deemed an intra-company transferee with his/her work permit exemption certificate would be NOT eligible to attend the SI scheme.

For ease of reference, timeline and ratio for SI contributions applicable to both employer and expat employees under Decree 143 please see the table below.

In short, employers who hire expat employees would have to bear an extra liability to ‘part’ pay SI from 1 December 2018 and to ‘fully’ pay SI from 1 January 2022 while the relevant expat employees will NOT commence contributing to the scheme until 1 January 2022.

Sickness and Maternity Labor Accident and Occupation Disease Pension


Death Allowance


1 December 2018

Employer 3% 0.5% 0% 3.5%
Expat Employee 0% 0% 0% 0%

1 January 2022

Employer 3% 0.5% 14% 17.5%
Expat Employee 0% 0% 8% 8%

Importantly, please also note that there is a statutory maximum cap for all SI contribution, as with caps applicable to Vietnamese employees, if the expat employee’s actual gross salary is higher than the maximum cap, the cap becomes the basis of the % calculation. Specifically, in light of SI, the basis for % calculation would be (i) the actual gross salary OR (ii) 20 times of ‘Base Salary[5], whichever is lower. Accordingly, such cap shall apply equally to both the employer % contribution and the employee % contribution.


[1] Law on Social Insurance no. 58/2014/QH13 dated 20 November 2014 (“Law on Social Insurance”)

[2] Decree no. 143/2018/ND-CP dated 15 October 2018, elaborating on Law on Social Insurance and Law on Occupational Safety and Hygiene regarding compulsory social insurance for employees who are foreign nationals working in Vietnam (“Decree 143”)


[4] Official Letter no. 1064/LDTBXH-BHXH issued by the MOLISA dated 18 March 2019

[5] ‘Base Salary’ is a measure set by the Vietnamese government from time to time. The current Base Salary applicable since 1 Jan 2019 is VND 1,390,000 / month, corresponding to a monthly cap of VND 27,800,000. However, it is worth noting that the Base Salary will change effective 1 July 2019 to VND 1,490,000, corresponding to a monthly cap of VND 29,800,000.


For more information about labor laws in Vietnam please contact Giles at or Nhan Le  at

Rechtsanwalt in Vietnam Dr. Oliver Massmann – Die Weltbank fragt Duane Morris nach Geschäften und Regierungsaufträgen- Was Sie wissen müssen: Annahmen der Fallstudie

Ist eines der an der Ausschreibung teilnehmenden Unternehmen und erfüllt alle zahlungsfähigkeits- , technische und administrative Anforderungen zur Wettbewerbsfähigkeit;Ist eine mittelständische Gesellschaft mit beschränkter Haftung, die sich in Privatbesitz und im Inland befindet (oder deren üblichse rechtliche Entsprechung);
Ist in Ho Chi Minh City tätig;
Ist hinsichtlich aller Vorschriften auf dem neuesten Stand und genießt bei allen zuständigen Behörden, einschließlich derjenigen, die mit Steuern im Zusammenhang stehen, gutes Ansehen.
Verfügt über alle erforderlichen Lizenzen und Genehmigungen, um in diesem technischen Bereich tätig zu sein;
Hat bereits an einer öffentlichen Ausschreibung teilgenommen und ist bereits bei der nachstehend definierten Vergabestelleregistriert.

Betrifft die Erneuerung von 20 km Bodenbelag einer ebenen zweispurigen Straße (keine Autobahn und nicht unter Konzession), die Ho-Chi-Minh-Stadt mit einer anderen vietnmeischen Stadt (und gegebenenfalls in demselben Bundesstaat, derselben Region oder Provinz wie Ho-Chi-Minh-Stadt) verbindet. mit einer Asphaltauflage von 40 bis 59 mm (oder dem in Vietnam am häufigsten vorkommenden Äquivalent);
Wert: USD 2,5 Millionen (entspricht VND 57.641.204.415);
Enthält keine weiteren Arbeiten (wie z. B. Baustellenräumung, Entwässerung des Bodens, Brücken oder weitere routinemäßige Wartungsarbeiten).

Ist die mit der Vergabe von Bauarbeiten beauftragte Agentur für die Behörde, die Eigentümerin der oben genannte Straße ist;
Ist der einzige Geldgeber für die Arbeiten, hat ein Budget für diese und ist zahlungsfähig.

Ist eine offene, uneingeschränkte und wettbewerbsorientierte öffentliche Ausschreibung für die Erneuerung einer Straße wie der oben genannten;
Wird ohne Beschwerden / Herausforderungen / Proteste von interessierten Parteien abgeschlossen;
Endet mit der Vergabe des Auftrags an BidCo, dessen Angebot alle technischen und administrativen Kriterien erfüllte und das beste Preis-Leistungs-Verhältnis bot.

1. Welches Organisation führt die Ausschreibung für die Behörde durch, die Eigentümerin der Mehrheit der Straßen ist, die mit der oben genannten vergleichbar ist?
Abteilung für Straßen von Vietnam im Verkehrsministerium („Vergabestelle“)

2. Bitte geben Sie eine Liste der Gesetze, Vorschriften und sonstigen verbindlichen Materialien (einschließlich Richtlinien und Handbücher) an, die das öffentliche Auftragswesen in Vietnam regeln. Bitte fügen Sie Rechtsvorschriften oder andere verbindliche Materialien hinzu, die auf nationaler / Bundesebene veröffentlicht wurden, sowie zusätzliche Rechtsvorschriften, die auf das Vergabeorgan anwendbar sind.

Zivilgesetzbuch von Vietnam Nr. 91/2015 / QH13 der Nationalversammlung von Vietnam vom 24. November 2015, 18. Juni 2014
Baurecht Nr. 50/2014 / QH13 der Nationalversammlung vom 18. Juni 2014
Gebotsgesetz Nr. 43/2013/QH13 vom 26. November 2013
Handelsrecht Nr. 36/2005/QH11 vom 14. Juni2005
Verordnung Nr. 63/2014/ND-CP vom 26. Juni 2014
Verordnung Nr. 37/2015/ND-CP vom 22. April 2015
Verordnung Nr. 46/2015/ND-CP vom 17. März 2015
Verordnung Nr. 30/2015/ND-CP vom 17. März 2015
Verordnung Nr. 63/2018/ND-CP vom 4. Mai 2018
Drucksache Nr. 04/2017/TT-BKHDT vom 15. November 2017
Drucksache Nr. 26/2016/TT-BXD vom 26. Oktober 2016
Drucksache Nr. 10/2016/TT-BKHDT vom 22. Juli 2016
Drucksache Nr. 23/2015/TT-BKHDT vom 21. Dezember 2015
Drucksache Nr. 10/2015/TT-BKHDT vom 31. Oktober 2015
Drucksache Nr. 01/2015/TT-BKHDT vom 15. April 2015
Drucksache Nr. 07/2015/TTLT-BKHDT-BTC vom 8. September 2015
3. Bitte listen Sie alle obligatorischen Standard-Ausschreibungsunterlagen und / oder Standardvertragsbedingungen auf, die die Vergabestelle für einen Vertrag wie den oben beschriebenen verwenden muss
In den Vertragsbedingungen muss Folgendes angegeben werden:

Angewandte Rechtsgrundlagen;
Im Vertrag verwendete Sprache;
Inhalt und Umfang der Arbeit;
Qualität, technische Anforderungen an die Arbeit; Vorabnahme und Übergabe;
Dauer und Zeitplan der Vertragserfüllung;
Vertragspreis, Vorauszahlung, Zahlungswährung und Zahlung für den Vertrag;
Vertragserfüllungssicherheit, Vertragsvorschussgarantie;
Anpassung des Bauvertrages;
Rechte und Pflichten der Parteien des Bauvertrags;
Haftung für Vertragsverletzungen, Prämien und Bußgelder für Vertragsverletzungen
Aussetzung und Beendigung des Vertrages;
Beilegung von Streitigkeiten hinschtlich des Vertrags;
Risiken und Ereignisse höherer Gewalt; Abwicklung und Auflösung des Vertrages;
Sonstiger Inhalt.
4. Kann die Vergabestelle, falls solche Dokumente verwendet werden, eine Klausel ohne Begründung ändern??

5. Haben Sie Kenntnis von Änderungen der Gesetze / Vorschriften / Verfahren im Zusammenhang mit öffentlichen Aufträgen zwischen dem 2. Mai 2018 und dem 1. Mai 2019? Zum Beispiel: Änderungen der geltenden Vergabegesetze, Erlass und / oder Umsetzung neuer Vorschriften, Implementierung oder Verbesserung von E-Procurement-Plattformen, Änderungen des Angebotsicherheits- und Leistungsgarantierahmens usw.
Ja. Erlass des Dekrets 63/2018 / ND-CP vom 4. Mai 2018 anstelle des Dekrets 15/2015 / ND-CP über eine öffentlich-private Partnerschaft.

6. Wenn ein oder mehrere elektronische Vergabeportale (d. h. eine offizielle Website, die speziell und ausschließlich für die öffentliche Auftragsvergabe vorgesehen ist) in Betrieb sind, geben Sie an, welche Plattform am häufigsten vom Vergabeorgan verwendet wird.

7. Welche Informationen über Baustellenverträge, die von der Vergabestelle vermittelt werden, werden öffentlich zugänglich gemacht?

Geschätzte Kosten / Dauer / Ausführungszeit – berechnet zum Zeitpunkt der Bewerbung der Vergabemögichkeit.

8. Wenn die Vergabestelle sich gemäß den gesetzlichen Rahmenbedingungen für die Ausschreibung einer neuen Möglichkeitfür einen Auftrag wie den in Abschnitt 1 beschriebenen vorbereitet, wie wird dann der Auftragswert und die voraussichtliche Bauleistung geschätzt?
Marktanalyse, einheitliche Stückkosten, projektspezifische technische Zeichnungen, ähnliche Projekte aus den Vorjahren und Ergebnis der Preisbewertung durch eine autorisierte staatliche Agentur oder ein Preisbewertungsunternehmen für Vermögenswerte, Waren und Dienstleistungen, die der Preisbewertung gemäß dem Preisgesetz unterliegen.

9. Wird in der Praxis der geschätzte Auftragswert / das geschätzte Budget in der Bekanntmachung / den Ausschreibungsunterlagen veröffentlicht?
Ja, der Vertragswert.

10. Muss die Vergabestelle vor der Ausschreibung bereits einem bestimmten Projekt ein Budget zugewiesen haben?
Ja, es gibt eine spezifische Mittelzuweisung.

11. Wie oft vergibt die Vergabestelle in einem offenen Ausschreibungsverfahren einen Auftrag, ohne bereits alle erforderlichen Mittel bereitgestellt zu haben?
Selten (zwischen10-25%).

12. Wäre im rechtlichen Rahmen das offene Ausschreibungsverfahren (d. h. der Prozess, in dem ein Unternehmen ein Angebot einreichen kann) die vertraglich festgelegte Methode der Vergabe in Vietnam für einen Vertrag wie den in Abschnitt 1 genannten?
Offene Ausschreibungen sind nicht der Standard, sind aber in der Praxis am weitesten verbreitet.

13. Wie viele Tage würde BidCo in der Praxis benötigen, um eine Entscheidung über die Präqualifikation von dem Moment an zu erhalten, in dem es alle erforderlichen Unterlagen eingereicht hat?
30 Tage
14. Kann die Vergabestelle nach der Bekanntmachung eines offenen Ausschreibungsverfahrens vom Bieter verlangen, dass er sich an einem für diesen Auftrag spezifischen Präqualifizierungsverfahren beteiligt, bevor er sein wirtschaftliches Angebot einreichen kann?
Ja. Dies geschieht gelegentlich für einen Vertrag wie den in Abschnitt 1 beschriebenen.

15. Was ist die in der Praxis gebräuchlichste Methode für einen Vertrag wie den in Abschnitt 1 beschriebenen?
Offene Ausschreibungen sind nicht der Standard, bleiben aber in der Praxis am weitesten verbreitet.

16. Sind gesetzlich die Situationen definiert, in welchen die jeweilige Vergabemethode angewendet werden sollte?
Ja, in Abschnitt 2 des Gebotsgesetz.
17. Verbietet der Rechtsrahmen, dass Teilverträge Schwellenwerte für offene Ausschreibungen umgehen?
Ja, Artikel89.6.k des Gebotsgesetzes Nr. 43/2013/QH13.
18. Welche Strategien werden allgemein verwendet, um die Regeln und Schwellenwerte für die offene Vergabe zu umgehen?
Die Vergabestelle legt sehr hohe technische Spezifikationen fest.
19. Gibt es einen rechtlichen Rahmen, der eine Mindestfrist zwischen der Bekanntmachung der Ausschreibung und der Frist für die Einreichung innerhalb einer offenen Ausschreibung wie der in Abschnitt 1 beschrieben, festsetzt?
Ja. Artikel12.1.e des Gebotsgesetz Nr. 43/2013/QH13.
20. Wie viele Tage würde es in der Praxis zwischen der Bekanntmachung der Ausschreibung und der Einreichungsfrist für einen Vertrag wie dem in Abschnitt 1 beschriebenen dauern?
30-40 Tage
21. Wie oft ändert die Vergabestelle die Ausschreibungsunterlagen aus irgendeinem Grund nach der Werbung, jedoch vor Ablauf der Einreichungsfrist?

Gelegentlich (zwischen 25-50%).

22. Wie stellt der rechtliche Rahmen den Mindestinhalt der Bekanntmachung und der Ausschreibungsunterlagen fest?

Ja. Artikel 218-219 des Wirtschaftsrchts Nr. 36/2005/QH 11; sowie Drucksache Nr. 03/2015/TT-BKHDT
Die Bekanntmachung muss Folgendes enthalten:

Name und Adresse des Beschaffenden
kurze Beschreibung des Angebotsinhalts
Frist, Ort und Verfahren für den Eingang der Angebotsunterlage
Anleitung zur Klärung der Ausschreibungsunterlagen
Die Ausschreibungsunterlagen müssen enthalten:
Anforderungen an die Beschaffung von Waren oder Dienstleistungen
Methoden zur Bewertung, zum Vergleich, zum Ranking und zur Auswahl des Bewerbers
andere Anweisungen zum Bieten

23. Welche der folgenden Informationen sind in der Praxis normalerweise NICHT in der Bekanntmachung und / oder in den Ausschreibungsunterlagen enthalten?

Gründe für den Ausschluss von Bietern; Hauptbedingungen des Vertrags; Zahlungsplan unter dem Vergabevertrag.

24. Welche Aspekte der Vergabe von Unteraufträgen werden durch den geltenden Rechtsrahmen geregelt?

Merkmale – der rechtliche Rahmen regelt den Verwaltungsprozess für die Vergabe von Unteraufträgen, die Grenzen der Vergabe von Unteraufträgen, die erforderlichen Genehmigungen usw.
Offenlegung – Der rechtliche Rahmen regelt, wann und wie Unternehmen das Vergabestelle über ihre Absicht informieren sollten, Unteraufträge zu vergeben
Haftung – Der rechtliche Rahmen regelt die Haftung des Auftragnehmers und des Unterauftragnehmers im Falle einer Schlechtleistung

25. Wie werden in der Praxis normalerweise zu klärende Fragen von potenziellen Bietern angesprochen?

Die Vergabestelle spricht alle Klarstellungen in einer öffentlichen Sitzung an.
Die Vergabestelle wird antworten, und die Antwort muss auch allen anderen Bietern mitgeteilt werden

26. Muss BidCo gemäß den gesetzlichen Rahmenbedingungen eine Form der Angebotsgarantie abgeben?

Ja. Artikel 11.1 des Gebotsgesetz Nr. 43/2013/QH13

27. Welches Instrument würde BidCo in der Praxis am häufigsten als Gebotsgarantie einsetzen?
Bargeld / beglaubigter Scheck; Bankgarantie / Akkreditiv; Bietungsgarantie

28. Wird durch den rechtlichen Rahmen ein Zeitrahmen für die Vergabestelle festgelegt, der die Angebotseröffnung abschließt, sobald die Frist für die Angebotsabgabe erreicht ist?

Ja, Artikel14.3(b) Dekret Nr. 63/2014/ND-CP.
29. Auswahlausschuss – Welche der folgenden Merkmale werden durch den geltenden Rechtsrahmen geregelt?

Die Ausbildungserfordernisse der Ausschussmitglieder;

30. Die beruflichen Anforderungen der Mitglieder des Ausschusses.
Müssen die Mitarbeiter einen verbindlichen Verhaltenskodex oder eine Ethik einhalten, die Themen wie Screening-Verfahren, Interessenkonflikte, Schulungsanforderungen usw. umfasst?


31. Welches Vergabekriterium würde nach dem rechtlichen Rahmen für einen Auftrag wie den in Abschnitt 1 beschriebenen verwendet werden?

Der Preis

Preis und andere qualitative Elemente (d. h. bestes Preis-Leistungs-Verhältnis oder die vorteilhafteste Kombination aus Kosten, Zeit bis zur Fertigstellung, Qualität und Nachhaltigkeit oder das wirtschaftlich günstigste Angebot)

Die Wahl liegt im Ermessen des Vergabestelles

32. Erfordert der Rechtsrahmen, dass alle Bewertungskriterien außerhalb des Preises objektiv und quantifizierbar sein müssen?

Dies wird in Gesetzen nicht erwähnt.

33. Ist der rechtliche Rahmen ein Kriterium für die Ermittlung ungewöhnlich niedriger Angebote?


Definiert der Rechtsrahmen, was einen nicht wesentlichen Fehler darstellt?

Ja, Artikel 17, Dekret 63/2014/ND-CP

34. Wird ein Bewerber vor der Auftragsvergabe ausgeschlossen, erhält er eine schriftliche Begründung für den Ausschluss?

Nein, der ausgeschlossene Bewerber wird in der Auftragsvergabe direkt benachrichtigt.

34. Ist BidCo nach dem rechtlichen Rahmen verpflichtet, eine Sicherheitsleistung zu hinterlegen, die eine Entschädigungsquelle für den Fall der Nichterfüllung seiner vertraglichen Verpflichtungen darstellt?

Ja, Artikel 66 und72 des Gebotsgesetz.

35. Welches Instrument würde BidCo in der Praxis am häufigsten als Leistungsgarantie verwenden?

Bescheinigung über die Hinterlegung Bankgarantie / Akkreditiv; Einbehaltung der Zahlung bis zum zufriedenstellenden Abschluss des Vertrages.

36. Welche Aspekte des Vertragsmanagements werden durch den geltenden Rechtsrahmen geregelt?
Nuverhandlungen (Artikel 67 Gebotsgesetz, Artikel 93 Dekret Nr. 63/2014/ND-CP).

37. Gibt es nach dem rechtlichen Rahmen einen Prozentsatz der Preiserhöhung, unterhalb dessen die Vergabestelle keinen Grund für die Neuverhandlung angeben muss?


38. Gibt es entsprechend dem rechtlichen Rahmen einen Prozentsatz der Preiserhöhung, über dem die Vergabestelle nicht neu verhandeln darf und immer eine Neuausschreibung durchführen muss?

39. Sind die Ergebnisse der Vertragsverhandlungen in der Praxis öffentlich zugänglich?


40. Wie viele Tage würden in der Praxis im Durchschnitt vergehen, wenn eine der Parteien eine Neuverhandlung des Vertrags beantragt / initiiert, bis eine neue Vertragsänderung unterzeichnet wird?
Dies hängt vom Umfang der Neuverhandlung ab.
41. Gibt es rechtlich eine Grenze für die Höhe des Betrags, den das beschaffende Unternehmen im Voraus zahlen kann, damit der Auftragnehmer Arbeiter einstellen, Material kaufen und in einem Vertrag wie dem in Abschnitt 1 beschriebenen einen Betrieb beginnen kann?
42. Besteht während der Vertragsabwicklung ein Zeitrahmen, innerhalb dessen die Vergabestelle die Zahlung nach Eingang einer Rechnung verarbeiten muss?

Ja, Artikel 19 des Dekrets Nr. 37/2015/ND-CP.

43. Ist das Unternehmen nach dem rechtlichen Rahmen berechtigt, Verzugszinsen zu fordern, wenn das Vergabeorgan nicht innerhalb der gesetzlich festgelegten Frist bezahlt?

Ja. Artikel 94 des Dekrets Nr. 63/2014/ND-CP

44. Unter der Annahme, dass BidCo Werke erbringt, die den im Vertrag vereinbarten Qualitätsstandards im Rahmen von Budget und Pünktlichkeit entsprechen, welche Strategien wendet das Vergabeunternehmen gegebenenfalls an, um Zahlungen zu verzögern oder zu vermeiden?

Bürokratie / Papierkram Inspektionen / finanzielle Schwierigkeiten

45. Verfügt die Vergabestelle über Richtlinien oder Protokolle, die Kontrollen der Qualität der Werke regeln?

46. Muss BidCo gesetzlichen nach Abschluss der Arbeiten eine Garantie geben?
Ja. Bankgarantie / Akkreditiv; Einbehaltung der Zahlung.

47. Wenn eine Garantie nach Fertigstellung nicht gesetzlich vorgeschrieben ist, wird die Vergabestelle normalerweise einen Vertrag wie den in Abschnitt 1 beschriebenen verlangen?
48. Welches Instrument der Garantie nach Fertigstellung (Gewährleistung) würde das Vergabestelle in der Praxis am häufigsten verlangen?
Ja. Bankgarantie / Akkreditiv; Einbehaltung der Zahlung.
49. Was sind in der Praxis die Hauptgründe dafür, dass die Arbeiten das ursprüngliche Budget übersteigen?
Marktbedingungen (Änderungen der Rohstoffpreise, Wechselkursschwankungen usw.); umständliche Verwaltungsprozesse innerhalb der Vergabestelle; Kapazität des Auftragnehmers (technische / finanzielle / verwaltungstechnische / personelle Beschränkungen); schlechte Planung seitens der Vergabestelle (schlecht konzipierte Projektspezifikationen usw.); Fehlplanung auf der Seite des Auftragnehmers.
Formale Herausforderungen im gesamten Vergabeprozess
Die Vergabestelle veröffentlicht Ausschreibungsunterlagen für einen Straßenbauvertrag.
Vor Ablauf der Frist für die Einreichung der Angebote wenden sich 3 Unternehmen gege die Ausschreibungsunterlagenaus den folgenden Gründen:
Unternehmen 1 argumentiert, dass die Ausschreibungsunterlagen einen bestimmten Bewerber egünstigen.
Unternehmen 2 argumentiert, dass eines der Bewertungskriterien, nach denen der dem Projekt zugewiesene Projektmanager über mindestens 20 Jahre Erfahrung verfügt, willkürlich ist und nicht verwendet werden sollte
Unternehmen 3 argumentiert, dass die Anforderung einer Leistungsgarantie von 10% den Zugang zu SMEs behindere.
Nehmen Sie an, dass alle Anfechtenden ihre Ansprüche innerhalb der gesetzlichen Fristen fehlerfrei einreichen, die mit ihren Anfechtungen verbundenen Gebühren zahlen und ihre Ansprüche geltend machen, bis keine weiteren Rechtsmittel zur Verfügung stehen.

50. Können gesetzlich Ausschreibungsunterlagen vor Ablauf der Frist für die Einreichung von Angeboten angefochten werden?

51. Wer ist nach dem rechtlichen Rahmen rechtlich befugt, Ausschreibungsunterlagen anzufechten?
Potentielle Bewerber.
Erste Instanz

Welche Behörde wäre für die Anfechtung zuständig?

Investor des Projekts

Würde die Anfechtung den Vergabeprozess aussetzen?

Nein, der Vergabeprozess würde fortgesetzt werden.

Zweite Instanz

Bei welcher Behörde wird die Entscheidung in erster Instanz angefochten?

Vergabestelle, Investor des Projekts

Würde der Einspruch den Vergabeprozess aussetzen?
Nein, der Vergabeprozess würde fortgesetzt werden.
Die Vergabestelle hat an BidCo einen Werkvertrag vergeben.
Drei Unternehmen wenden sich aus folgenden Gründen dagegen:
Unternehmen 1 macht geltend, BidCo habe ein rücksichtslos niedriges Gebot abgegeben, das hätte ausgeschlossen werden sollen.

Unternehmen 2 argumentiert, dass eines der Bewertungskriterien von der Vergabestelle willkürlich verwendet wurde, um die endgültige Platzierung des Unternehmens zu verringern.

Unternehmen 3 macht geltend, das von ihnen eingereichte technische Projekt habe die in den Ausschreibungsunterlagen festgelegten Mindeststandards erfüllt und hätte nicht ausgeschlossen werden dürfen.

Nehmen Sie an, dass alle ihre Ansprüche innerhalb der gesetzlichen Fristen fehlerfrei einreichen, die mit ihren Anfechtungen verbundenen Gebühren zahlen und ihre Ansprüche geltend machen, bis keine weiteren Rechtsmittel zur Verfügung stehen.

52- Wer ist laut rechtlichen Rahmenbedingungen berechtigt, den Zuschlag anzufechten?

Erste Instanz

Welche Behörde wäre zuständig?


Würde die Anfechtung den Vergabeprozess aussetzen?

Nein, der Vergabeprozess würde fortgesetzt werden.

Zweite Instanz

Bei welcher Behörde wird die Entscheidung in erster Instanz angefochten?

Verantwortliche im Auswahlverfahren für Bieter / Investoren, Beratender Ausschuss

Würde die Einspruch den Vergabeprozess aussetzen?

Nein, die Aussetzung ist in ähnlichen Fällen dem Ermessen anheim gestellt, in der Praxis jedoch nicht üblich.


Falls Sie Fragen haben oder weitere Informationen zu dem oben Genannten benötigen, zögern Sie bitte nicht Herrn Dr. Oliver Massmann unter zu kontaktieren.
Dr. Oliver Massmann ist der General Director bei Duane Morris Vietnam LLC.


On 22 February 2019, the Ministry of Industry and Trade of Vietnam (“MOIT”) published a second draft decision of the Prime Minister on the mechanism for encouraging the development of solar power projects in Vietnam to solicit public comments (“FIT2”). The time for soliciting public comments on FIT2 draft has expired on 15 April 2019.

By 16 April 2019, Electricity and Renewable Energy Agency of MOIT (“EREA”) coordinated with VBF Power and Energy Working Group to arrange a seminar for discussion of the final draft FIT2 of EREA (the “Final FIT2 Draft”). The Head of EREA confirmed in the seminar that the Final FIT2 Draft would be submitted to the Government for evaluation and approval. It is expected that the Final FIT2 Draft would be issued with a guiding circular (including new model solar PPAs) by 30 June 2019 or earlier. Duane Morris would like to highlight some key contents of the Final FIT2 Draft as follows:

New FITs for Solar Power Projects – from 1 July 2019 to 31 December 2021

Compared to the previous drafts, the Final FIT2 Draft has (i) increased the FITs for floating solar power projects in order to compensate the high costs of this technology, (ii) removed FITs for solar power projects with integrated storage system as there is low interest on this option, and (iii) sets a single commercial operation date (COD) deadline of 31 December 2021 (instead of 30 June 2021) for this new FIT2 program. The Final FIT2 Draft also adjusted and classified solar power projects into three groups as follows:

• Floating solar power projects, which are defined as grid connected solar power projects having solar PV panels installed on structures floating on the water surface.
• Ground-mounted solar power projects, which are defined as grid-connected solar power projects having solar PV panels installed on the ground, or on rooftops or attached to civil buildings and having an installed capacity of more than 1 MWp.
• Rooftop solar power projects, which are defined as solar power projects having solar PV panels installed on the roof, or attached to a civil buildings, and having an installed capacity of 1 MWp or less.

The proposed tariffs (as below) will apply to part or the whole of solar power projects achieving actual COD before 31 December 2021 for application for a PPA term of 20 years from the COD.

No. Technology Region I Region II Region III Region IV
VND / kWh US cent equivalent VND / kWh US cent equivalent VND / kWh US cent equivalent VND / kWh US cent equivalent
1 Floating solar power projects 2,281 (second draft: 2,159) 9.98 ( second draft: 9.44) 1,963 (second draft: 1,853) 8.13 (second draft: 8.13) 1,758 (second draft: 1,664) 7.69 (second draft: 7.28) 1,655 (second draft: 1,566) 7.24 (second draft: 6.85)
2 Ground-mounted solar power projects 2,102 9.20 1,809 7.91 1,620 7.09 1,525 6.67
3 Rooftop solar power projects 2,486 10.87 2,139 9.36 1,916 8.38 1,803 7.89

Region I comprises 28 northern provinces of Vietnam, including: Ha Giang, Bac Kan, Cao Bang, Tuyen Quang, Thai Nguyen, Lao Cai, Yen Bai, Lang Son, Quang Ninh, Phu Tho, Vinh Phuc, Bac Giang, Hai Duong, Hoa Binh, Hanoi, Ha Nam, Bac Ninh, Hung Yen, Hai Phong, Ninh Binh, Thai Binh, Ha Tinh, Nam Dinh, Quang Binh, Thanh Hoa, Lai Chau, Nghe An, and Son La.

Region II comprises 6 central provinces of Vietnam, including: Quang Tri, Dien Bien, Thua Thien Hue, Quang Nam, Da Nang, and Quang Ngai.

Region III comprises 23 central highlands and southern provinces of Vietnam, including: Kon Tum, Ca Mau, Hau Giang, Binh Dinh, Bac Lieu, Kien Giang, Soc Trang, Can Tho, Vinh Long, Tra Vinh, Lam Dong, Ben Tre, Tien Giang, An Giang, Dak Nong, Ho Chi Minh City, Dong Nai, Dong Thap, Ba Ria – Vung Tau, Long An, Binh Duong, Binh Phuoc and Tay Ninh.

Region IV comprises 6 central highlands and southern provinces of Vietnam, including: Phu Yen, Gia Lai, Dak Lak, Khanh Hoa, Ninh Thuan, and Binh Thuan).

Model PPA for Solar Power Projects

For all solar PPAs with EVN / its subsidiaries as buyers, a model PPA will be required. EREA said that after the PM approves the Final FIT2 Draft, the MOIT would issue a circular to promulgate new model PPAs. We asked directly their plan to disclose these model PPAs and circular but the Head of EREA could not answer, pending approval of the Final FIT2 Draft. EREA’s representative hinted that there should be not many major changes in model solar PPAs.

At the seminar, Head of EREA confirmed that the risk of network system of EVN remains the same. This means EVN shall have the right to refuse the power purchase in case any errors / curtailment issues of the power network / system.

Regarding direct PPA between generators and power purchasers (other than EVN and its subsidiaries) for rooftop solar power projects, the Final FIT2 Draft allows the parties to agree the terms of such direct PPA in line with the applicable law.

Direct PPA for Rooftop Solar Power Project and for other Solar Power Projects

Technically, the power purchaser in the Final FIT2 Draft includes EVN, EVN’s subsidiaries and other power purchasers. However, EREA’s intention in this final draft is to regulate the other power purchasers for direct PPA of rooftop solar power projects only. There is also no clear definition of other power purchasers in the Final FIT2 Draft as EREA would like to let it open for further guidance in the circulars.

The direct power purchase in the Final FIT2 Draft is for (i) rooftop solar power project of 1 MW or less installed capacity, and (ii) not connected to the grid. In this case, the price and PPA will be agreed by the parties.

The direct PPA between generators and power consumers other than EVN for solar power projects of more than 1 MW is currently under ERAV’s scheme, and not included in this Final FIT2 Draft. At the seminar, ERAV explained that they were working with counsels on this. The draft model would be likely disclosed for soliciting comments by early June 2019, then submitted to the PM for approval. If it goes smoothly, by end of 2019 – early 2020, ERAV would provide the answer on whether the DPPA scheme would be implemented.

Ninh Thuan Province – COD prior to 1 Jan 2021

In the Final FIT2 Draft, solar power projects in Ninh Thuan enjoy FiT of US cent 9.35 if (i) it has been approved in a power master plan, (ii) it could achieve the COD prior to 1 January 2021, and (iii) it is included in a group of 2000MW solar power projects. We asked about the status of 2000MW group in Ninh Thuan had been approved, and whether there is any chance for new investors to join this scheme. Head of EREA confirmed that by 31 December 2018, 1930 MW projects had been approved in Ninh Thuan. It is not legal feasible for new solar power projects in Ninh Thuan to be approved. However, it is possible for foreign investors to take over any current projects, even in the case such projects are withdrawn from current investors due to violation of Investment Law.

Solar Power Project Auction Pilot

In the Final FIT2 Draft, by 2020 MOIT will prepare and submit the draft to the Government for approval of the pilot. However, at the seminar, Head of EREA confirmed that it is impossible for implementation of power project auction prior to 2021. Thus, similar as the case of wind projects under Decision 39, it is intended that solar power project auction will be scheduled for at least since early 2021.

Power Network Bottleneck Issue

MOIT is proposing to the Government to enable private investment in network by way of BOT or a mode that allowing investors to construct and then hand-over network to EVN with some special compensation.

What if the Final FIT Draft could not be approved and issued

This is the final draft which would be submitted to the PM for approval. If it is not approved, then there will be no FIT regulations for solar power projects. EREA confirmed this situation in the seminar.

Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Playing by the rules: what is the value of the Singapore Infrastructure Dispute-Management Protocol in Vietnam?

Can a new Singapore dispute resolution protocol spur efficient infrastructure development in Vietnam?  It’s a question worthy of examination considering a slew of high-profile disputes, delays and cost overruns on major infrastructure projects in Vietnam in recent years.  Even more so considering forecast needs to spend more than US$300 billion on infrastructure in Vietnam over the next decade in order to serve the needs of Vietnam’s rapidly growing economy.

The answer is not clear cut.  While the protocol has clear prima facie value, the current legal framework in Vietnam isn’t supportive of a key fundamental principle: that outcomes of the process are binding on the parties.  However the time is right, and opportunity is ripe, for Vietnam to embrace the concept and make bold policy decisions backed up with legislative action.

New roads, bridges, ports, and power plants are all in high need in Vietnam and the government is hard at work improving the PPP legislation to facilitate and foster the conditions for successful projects.  Many such projects are complex and challenging, with numerous parties involved, and thus prone to disputes, or simply just differences of opinions that need resolving in order that works can complete. As a result, time spent developing, agreeing and implementing dispute resolution terms between involved parties is time well spent.  However it can also be inefficient and often unnecessary for parties to agree bespoke terms on a case-to-case basis.

Cognisant of the issues, and also no doubt sensing a potential market, a number of governmental and non-governmental organizations have developed best-practice standards, protocols and clauses that project investors and contractors can look to for support.  The latest comes from Singapore’s Ministry of Law, keen to cement Singapore’s reputation as a hub for all things infrastructure in Southeast Asia.  The Singapore Infrastructure Dispute-Management Protocol (SIDP) was launched in October 2018 and is intended to help parties involved in large infrastructure projects manage disputes and minimise the risks of time and cost overruns, thus maximizing chances of efficient delivery of infrastructure.

The SIDP doesn’t hide its ambition to serve mega projects, stating in its preamble that it is “designed and recommended for construction or infrastructure projects of more than S$500 million in value”.  Only a relatively small number of projects in Vietnam would fit that criterion though that doesn’t mean that concepts and recommendations underpinning the SIDP couldn’t be replicated by smaller projects.

So, what’s so good about the SIDP? Perhaps the most highlighted feature of SIDP is that it places a heavy emphasis on preventing disputes, or at least de-escalating differences, through detailed procedural terms and collaborative tools.  When parties agree to adopt the SIDP as their dispute resolution protocol, they must appoint a Dispute Board (DB) right at the outset of the project. The DB need not consist of lawyers, but can comprise industry experts and can vary from a single-person board to a multiple-member panel. The DB commences pro-active work right after establishment in the form of regular meetings and site visits.

While regular meetings are quite common in other dispute protocols, site visits are a relatively new feature.  Pursuant to the SIDP, a DB will conduct at least three site visits every 12 months unless otherwise agreed by the parties. The site visits aim at early detection of any potential problems. After each meeting and site visit, the DB will prepare a report with recommendation for early dialogue on real or potential issues, as necessary.

If the DB becomes aware of any differences between parties through site visits or upon request of the parties, the DB may move one step further by interviewing senior representatives of the parties to try to clarify, scope, and articulate the ambit of the differences. Such interviews are relatively informal with a view to enabling the DB to provide recommendations for specific processes or measures to resolve differences, ideally before they blow up or become entrenched or intractable.  These features represent the sensible underlying philosophy of the SIDP, in contrast with more traditional dispute resolution methods, that a ‘stitch in time saves nine’.

That is not to say that the SIDP doesn’t have teeth.  Should the parties involved feel the need to refer a dispute directly to the DB, a number of options are open for the DB to resolve the dispute, including by issuing an opinion on the matter in question or bringing the parties together for formal mediation.  Crucially, the SIDP provides that such opinions or results of mediation are binding on the parties.

There is no question that the SIDP is a well-conceived and thorough tool of great value to large infrastructure project participants. But how would it work in practice in Vietnam?

Operationally there is no reason to doubt that it would work just as intended.  The big issue for Vietnam is around the fundamental agreement of the parties that a DB decision or opinion or a DB-facilitated mediated agreement can be binding on the parties.  Without that, the efficacy of the protocol as a whole is called into doubt, at least from a purely legal perspective.

Take for example a case where a Singaporean-domiciled construction company provides services to a Vietnam-domiciled entity and the parties agree to use the SIDP to manage and resolve disputes.  Imagine that the parties do in fact effectively implement the SIDP during the course of their relationship, resulting in the DB handling a dispute and giving its opinion on the same (or facilitating a mediated settlement between the parties on the same).  Imagine further that the result of that process, agreed to by the parties, is that the Vietnam entity owes $100 million to the Singapore entity. The SIDP itself provides and envisages that the result of the SIDP process is automatically binding on the parties and that the courts of Singapore can act to enforce the same in the event that the Vietnam entity fails to comply.

The fact is however that there is currently no clear mechanism to enforce that against the Vietnam entity in Vietnam.  Vietnam law contains no terms that would enable the Singapore company to automatically enforce the DB decision, or a mediated settlement, against the Vietnam company in Vietnam.  The Singapore company could seek, and presumably obtain, a Singapore court award against the Vietnam entity enforcing the DB decision but then what?  In the absence of a formal bilateral judicial assistance treaty between the two countries, no special option under their bilateral investment treaty, and rare circumstances where a case for reciprocity might be made, there is essentially nil chance that authorities in Vietnam would act to recognize or enforce the Singapore court judgment in Vietnam under Vietnam law. One only has to look at the extreme difficulties international companies have had enforcing foreign arbitral awards in Vietnam – something for which there is an express legal mechanism in Vietnam law – to know that it would be mission impossible to enforce a foreign court decision.

As long as this remains the status quo in Vietnam, the true value of the SIDP in Vietnam is in doubt.  While there is inherent value in pro-actively managing, identifying and resolving disputes, if the final “agreed binding” outcome is, for all intents and purposes, worthless, why go to the bother in the first place?

Of course this is an extreme position and mega infrastructure projects tend to have many facets to them that count in favour of commercial settlements (not least of all government to government links that can add a political element to resolving disputes).  But lenders, contractors and their lawyers are duty bound to consider the harsh legal realities which currently speak against assuming that the SIDP can be an effective tool for use in Vietnam projects, especially where purely local counterparts are involved.

The time is right then for the government of Vietnam to take bold action, similar to its recent ISDS commitments in the CPTPP, to enable private commercial agreements on use of tools like the SIDP to mean something when push comes to shove.  Actions like this are a vital key to unlocking the private funds necessary to finance Vietnam’s vast infrastructure needs.

The opportunity also happens to be on the table right now in the form of a new UN convention on enforcement of international settlement agreements. Otherwise known as the Singapore Convention on Mediation, the convention would do for mediation what the New York Convention does for arbitration: provide an avenue to directly invoke and enforce mediated agreements in Vietnam, ostensibly without the courts re-examining the issues or interfering.  The Singapore Convention on Mediation was adopted by the UN General Assembly in December 2018 and will come into force when signed by at least three States. A signing ceremony for the Convention is expected to take place in August 2019 in Singapore.  One hopes Vietnam will be at the table.


For more information about Vietnam infrastructure projects please contact Giles at  Giles is co-General Director of Duane Morris Vietnam LLC and branch director of Duane Morris’ HCMC office.

Vietnam – The World Bank is asking Duane Morris about Doing Business and Government Contracting – What you must know:

Case Study Assumptions

• Is one of the companies participating in the call for tender and meets all solvency, technical and administrative requirements to compete;
• Is a privately and domestically-owned medium-sized Limited Liability Company (or its most common legal equivalent);
• Operates in Ho Chi Minh City;
• Is up to date with all regulations and is in good standing with all relevant authorities, including those related to taxes;
• Has all licenses and permits needed to operate in this technical area;
• Has already responded to a public call for tender and is already registered with the procuring entity defined below.

• Entails resurfacing 20 km of a flat two-lane road (not a highway and not under concession), connecting Ho Chi Minh City to another city within Vietnam (and within the same state, region or province as Ho Chi Minh City, if applicable), with an asphalt overlay of 40 to 59 mm (or its most common equivalent in Vietnam);
• Value: USD 2.5 Million (equivalent to VND 57,641,204,415);
• Does not include any other work (such as site clearance, subsoil drainage, bridgework or further routine maintenance).

Procuring Entity
• Is the agency in charge of procuring construction works for the authority that owns the road described above;
• Is the sole funder of the works, has budget for the works and is solvent.

Procurement Process
• Is an open, unrestricted, and competitive public call for tender for resurfacing a road like the one described above;
• Is completed without complaints/challenges/protests from interested parties;
• Ends with the awarding of the contract to BidCo, whose bid satisfied all technical and administrative criteria and offered the best value for money.

1. What is the entity that conducts procurement for the authority that owns the majority of roads comparable to the one described above?
Directorate for Roads of Vietnam within the Transport Ministry (“Procuring Entity”)
2. Please provide a list of the laws, regulations and other binding materials (including guidelines and manuals) 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.
• Civil Code of Vietnam no. 91/2015/QH13 by the National Assembly of Vietnam dated 24 November 2015 18 June 2014
• Construction Law no. 50/2014/QH13 by the National Assembly dated 18 June 2014
• Law on Bidding no. 43/2013/QH13 dated 26 November 2013
• Commercial Law no. 36/2005/QH11 dated 14 June 2005
• Decree no. 63/2014/ND-CP dated 26 June 2014
• Decree no. 37/2015/ND-CP dated 22 April 2015
• Decree no. 46/2015/ND-CP dated 17 March 2015
• Decree no. 30/2015/ND-CP dated 17 March 2015
• Decree no. 63/2018/ND-CP dated 4 May 2018
• Circular no. 04/2017/TT-BKHDT dated 15 November 2017
• Circular no. 26/2016/TT-BXD dated 26 October 2016
• Circular no. 10/2016/TT-BKHDT dated 22 July 2016
• Circular no. 23/2015/TT-BKHDT dated 21 December 2015
• Circular no. 10/2015/TT-BKHDT dated 31 October 2015
• Circular no. 01/2015/TT-BKHDT dated 15 April 2015
• Circular no. 07/2015/TTLT-BKHDT-BTC dated 8 September 2015
3. 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 above
Contract terms must specify:
• Applied legal bases;
• Language used in the contract;
• Content and volume of work;
• Quality, technical requirements of work; pre-acceptance test and handover;
• Contract performance duration and schedule;
• Contract price, advance payment, currency used in payment, and payment for the contract;
• Contract performance security, contract advance guarantee;
• Adjustment of the construction contract;
• Rights and obligations of the parties to the construction contract;
• Liability for violations of the contract, rewards and fines for violations of the contract;
• Suspension and termination of the contract;
• Settlement of disputes over the contract;
• Risks and force majeure events; o/ Settlement and liquidation of the contract;
• Other contents.
4. If such documents are in use, can the Procuring Entity modify any of their clauses without justification?
5. Are you aware of any change in laws/regulations/procedures) related to public procurement between May 2, 2018 and May 1, 2019? 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.
Yes. Issuance of Decree 63/2018/ND-CP dated 04 May 2018 to replace Decree 15/2015/ND-CP on public private partnership.
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 bv the Procuring Entity.
7. Which information about road works contracts procured by the Procuring Entity is made publicly available?
Estimated cost/length/completion time – as calculated by the Procuring Entity at the time of advertising the procurement opportunity.
8. 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, and 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.
9. In practice, is the estimated contract value / budget published in the tender notice/tender documents?
Yes, contract value.
10. Is the Procuring Entity required to have already allocated budget to a specific project before tendering?
Yes, there is a specific budget allocation.
11. In an open tendering procedure, how often does the Procuring Entity award a contract without having already set aside all the necessary funds?
Rarely (between 10-25%).
12. 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 described in Section 1?
Open tendering is not the default but remains the most common in practice.
13. In practice, how many days would be necessary for BidCo to receive a decision on its prequalification from the moment it submitted all the necessary documents?
30 days
14. According to the legal framework, after the advertisement of an open tendering procedure 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. This happens occasionally for a contract like the one described in Section 1.
15. 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 in practice.
16. Does the legal framework define the situations in which each procurement method should be used?
Yes, Section 2 of the Bidding Law.
17. Does the legal framework prohibit dividing contracts to circumvent thresholds for open tendering?
Yes, Article 89.6.k of Law on Bidding No. 43/2013/QH13.
18. What are the commonly used strategies to circumvent the rules and thresholds on open procurement?
The procuring entity sets out very high technical specifications.
19. 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 Law on Bidding No. 43/2013/QH13.
20. In practice, how many days would pass between the advertisement of the tender notice and the submission deadline for a contract like the one described in Section 1?
30-40 days
21. How often does the Procuring Entity modify the tender documents for any reason after advertisement, but before the submission deadline?
Occasionally (between 25-50%).
22. Does the legal framework establish the minimum content of the tender notice and tender documents?
Yes. Articles 218-219 of Commercial Law No. 36/2005/QH 11; and Circular No. 03/2015/TT-BKHDT
Tender notice must include:
• Name and address of procuring entity
• brief description of bidding contents
• time limit, place and procedures for receipt of bid documents
• time limt, place and procedures for submission of bid documents
• guidance on seeking clarification of the tender documents
Tender documents must include:
• tender notice
• requirements on procuring goods or services
• methods of evaluation, comparison, ranking and selection of bidders
• other instructions related to bidding
23. In practice, which of the following are usually NOT included in the tender notice and/or tender documents?
Grounds for exclusion of bidders; Main terms and conditions of the contract; Payment schedule under the procurement contract.
24. Which aspects of subcontracting are regulated by the applicable legal framework?

• Features – the legal framework regulates the administrative process to subcontract, the limits of subcontracting, the authorizations required, etc.
• Disclosure – the legal framework regulates when and how companies should inform the Procuring Entity of their intent to subcontract
• Liability – the legal framework regulates liability of the contractor and subcontractor in case of poor performance
25. In practice, how are clarification requests from potential bidders usually addressed?
• 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.
26. According to the legal framework, is BidCo required to provide a form of bid guarantee?
Yes. Article 11.1 of Law on Bidding No. 43/2013/QH13
27. In practice, which instrument would BidCo most commonly use as a bid guarantee?
Cash/Certified check; Bank guarantee/Letter of credit; Bid bond
28. 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) Decree no. 63/2014/ND-CP.
29. Selection committee – Which of the following characteristics are regulated by the applicable legal framework?
• The education requirements of members of the committee;
• The professional requirements of members of the committee.
30. 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.?
31. According to the legal framework, which award criterion would be used for a contract like the one described in Section 1?
• Price
• 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)
• The choice is left at the discretion of the Procuring Entity
32. Does the legal framework require all non-price evaluation criteria to be objective and quantifiable?
This is not mentioned in laws.
33. Does the legal framework establish a criteria to identify abnormally low bids?
34. Does the legal framework define what constitutes a non-substantial error?
Yes, Article 17, Decree 63/2014/ND-CP
35. When a bidder is excluded before the contract is awarded, is it provided with an explanation of the reasons for the exclusion in writing?
No, the excluded bidder will be notified directly in the contract award.
36. 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, Articles 66 and 72 of Bidding Law.
37. In practice, which instrument would BidCo most commonly use as a performance guarantee?
Certificate of deposit; Bank Guarantee / Letter of Credit; Payment retention until satisfactory completion of the contract.
38. Which aspects of contract management are regulated by the applicable legal framework?
Renegotiation (Article 67 Bidding Law, Article 93 Decree no. 63/2014/ND-CP).
39. 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?
40. 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?
41. In practice, are the results of contract renegotiations made publicly available?
42. 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 depends on the extent of re¬negotiation.
43. 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?
44. 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.
45. 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
46. 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?
Bureaucracy/paperwork Inspections/ financial difficulties
47. Does the procuring entity have guidelines or protocols regulating inspections on the quality of the works?
48. According to the legal framework, is BidCo required to provide a guarantee upon completion of the works?
Yes. Bank guarantee / Letter of credit; Payment retention.
49. If a post-completion guarantee is not required bv law would it usually be requested by the Procuring Entity for a contract like the one described in Section 1?
50. In practice, which instrument of post-completion guarantee would the Procuring Entity most commonly request?
Bank guarantee / Letter of credit; Payment retention.
51. In practice, what are the main reasons for works delivered over the original budget?
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.
Formal Challenges throughout the Procurement Process
Assume that:
• The Procuring Entity publishes tender documents for a road works contract.
• Before the deadline to submit the bids, 3 companies challenge the tender documents on the following grounds:
 Company 1 argues that the tender documents favor one specific bidder.
 Company 2 argues that one of the evaluation criteria establishing that the Project Manager assigned to the project has at least 20 years of experience is arbitrary and should not be used.
 Company 3 argues that requiring a 10% performance guarantee hinders access to SMEs.

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.
52. According to the legal framework, can tender documents be challenged prior to the deadline to submit bids?
53. According to the legal framework, who has legal standing to challenge tender documents?
Potential bidders.
First instance
Which authority would hear the challenge?
Investor of the project
Would the challenge suspend the procurement process?
No, the procurement process would continue
Second instance
To which authority would the first instance decision be appealed?
Procuring entity, investor of the project
Would the appeal suspend the procurement process?
No, the procurement process would continue
Assume that:
• The Procuring Entity has awarded a works contract to BidCo.
• Three companies challenge the award on the following grounds:
 Company 1 argues that BidCo submitted a recklessly low bid that should have been excluded.
 Company 2 argues that one of the evaluation criteria was used arbitrarily by the Procuring Entity to reduce the Company’s final score.
 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.
54. According to the legal framework, who has legal standing to challenge the contract award?
First instance
Which authority would hear the challenge?
Procuring entity
Would the challenge suspend the procurement process?
No, the procurement process would continue
Second instance
To which authority would the first instance decision be appealed?
Responsible persons in the bidder/ investor selection process, Advisory Committee
Would the challenge suspend the procurement process?
No, suspension is discretionary but not common in practice for similar cases.

Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Anwalt in Vietnam Dr. Oliver Massmann – Arzneimittel- ASEAN im Kontext – Kommt nach Vietnam – Ihr werdet gerecht behandelt – Denkt nicht weiter an Indonesien

Was passiert im Moment in Indonesien?

Laut einer neu verabschiedeten Regelung in Jakarta, benötigt jedes nicht in Indonesien hergestellte Medikament eine zwingende Lizenz. Während für wirtschaftliche Unternehmungen im Pharmasektor ein Joint Venture mit einem einheimischen Geschäftspartner erforderlich ist, führt diese obligatorische Lizenz dazu, dass ausländische Investoren noch reservierter gegenüber einer solchen Investition in dem Sektor sind. Denn keiner will, dass sein Geistiges Eigentum in der vollständigen Verfügungsgewalt des einheimischen Geschäftspartners liegt.

Mangels ausländischer Investitionen steht Indonesien Herausforderungen beim Aufbau einer wissensbasierten Wirtschaft gegenüber, was aufgrund technologischer Enteignungen geschah.

Vietnams Potential im Arzneimarkt

Vietnam hat eine Bevölkerung von mehr als 90 Millionen Menschen, mit einem Durchschnittsalter von 29 Jahren.

Die gesamte Gesundheitsversorgung versorgt 73% der Bevölkerung hinsichtlich grundlegender Gesundheitsdienstleistungen, was im Vergleich zu anderen Staaten in der westlichen Pazifikregion als hoch eingestuft wird.

Vietnams generische Marktdurchdringung hinsichtlich der Angebotsabgabe und der ursprünglichen Herstellerpreise liegt bei 97%. Andererseits ist der Zugang zu neuen Arzneimittel noch gering. Nur 6 % der in den letzten 3-7 Jahren auf den Markt gebrachten Medikamente sind in Vietnam erhältlich, damit gehört der Wert (22%) und der Volumenanteil (4%) der Produzenten zu den niedrigsten im Asien-Pazifik Bereich. Das führt wiederum zu ausgelagerten medizinischen Tourismus mit jährlich einem geschätzten Wert von 2 Milliarden USD.

Dem Bevölkerungsfonds der UN nach, hat Vietnam trotz Bevölkerungsbooms, eine seit 2017 alternde Gesellschaft.

Laut einem Bericht von der Weltbank wird dieser Alterungsprozess nicht lange anhalten. Man schätze, dass der Prozess ungefähr 15 Jahre lang andauere und bis 2040 abgeschlossen sei. Eine alternde Bevölkerung zusammen mit dem Faktor, dass das Einkommen der Vietnamesen immer mehr ansteigt gepaart mit einem stabilen Wirtschaftswachstum in den letzten Jahren, führt auch zu einer erhöhten Nachfrage nach Gesundheitsdienstleistungen.

Die Ausgaben für das Gesundheitswesen machten 7,5% des BIP (16,1 Mrd. USD) aus und werden zwischen 2017-2021 voraussichtlich auf 12,5% ansteigen. Zwischen 2016 und 2020 soll der Umsatz mit 10,5% am stärksten wachsen, verglichen mit Medizinprodukten und privaten Gesundheitsausgaben, die um 9,3% bzw. 7,2% wachsen werden. Laut dem Business Monitor International werden die Ausgaben für pharmazeutische Produkte pro Kapital sich bis 2020 (85 USD) und 2025 (163 USD) verdoppeln, mit einem durchschnittlichen Wachstum von 14% pro Jahr.

Im Jahr 2016 wird ein Anstieg bei Medizinprodukten von 981 Millionen USD auf 1,4 Milliarden USD bis 2020 geschätzt, während die privaten Gesundheitsausgaben 2016 von 6,6 Milliarden US-Dollar auf 8,7 Milliarden US-Dollar bis 2020 steigen werden.

Rechtssicherheit aufgrund der umfassenden Trans-Pazifischen Partnerschaft (CPTPP) und der EU – Vietnamesische Freihandesabkommen (EVFTA)

Am 8. März 2018 wurde das CPTPP in Chile unterschrieben und ist seit dem 30. Dezember offiziell in Kraft. Die Auswirkungen des CPTPP versprechen entscheidende Vorteile für den Pharmasektor in Vietnam. Das CPTPP hat zum Ziel Handels- und Zollhindernisse unter den Mitgliedsstaaten auf gewisse Waren vollständig zu eliminieren. Das CPTPP soll aufgrund der national befürwortenden Rechtsanwendungsstrategie für einen fairen Wettbewerb sorgen, welcher zudem neue ausländische Investitionen im Pharmasektor anregen soll.

Darüber hinaus erhalten die Investoren einige Sicherheiten durch das Verbot der Enteignung, so dass Vietnam keine geistigen Eigentumsrechte von Pharmaunternehmen enteignen kann. Zudem wird das EVFTA auch für ein gewisses Wachstum des Pharmasektors in Vietnam sorgen. So verpflichtet beispielsweise Artikel 14.2 Kapitel 2 des Abkommens Vietnam dazu, solche Rechtsinstrumente zu schaffen und umzusetzen, die eine ausländische Niederlassung in Vietnam ermöglichen. Des Weiteren verlangt dieser Artikel auch, dass Vietnam ausländischen Investoren erlaubt, Arzneimittel, die von ihnen rechtmäßig importiert wurden, direkt oder über Händler oder Großhändler zu verkaufen, die nicht verpflichtet sind, über ein solches Zertifikat zu verfügen, welches gute Lagerbedingungen (GSP) attestiert. Wenn die vietnamesische Gesetzgebung für die Zertifizierungsanforderungen und -prozesse verantwortlich sein sollte, schafft die EVFTA echten Einfluss, da sie die Gründung ausländischer Unternehmen und deren erweiterten Tätigkeitsbereich fördert. Schließlich hebt die EVFTA alle zusätzlichen Anforderungen für alle pharmazeutischen-, biologischen Produkten und Arzneimittel auf.

Darüber hinaus bieten sowohl das CPTPP als auch das EVFTA einen weiteren Schutz für Investoren in Vietnam. Das Investor-Staat Streitbeilegungs (ISDS) Instrument wird zudem den höchsten Grad an Rechtssicherheit als auch Rechtsdurchsetzung für den Investoren gewährleisten. Dieser Vorschrift zugrunde haben Investoren bei investitionsbezogenen Rechtsstreiten das Recht, ihre Klage in dem Gastland vor einem internationalen Schiedsgericht zu bringen

Die schiedsgerichtlichen Verfahren sollen bei Konfliktfällen zur Wahrung der Transparenz veröffentlicht werden. Der Umfang des ISDS soll aufgrund des CPTPP hinsichtlich einzelner Passagen bezüglich „Investitionsvereinbarungen“ und „Investitionsautorisierung“ verkürzt werden. Die letzte Streitbeilegung ist rechtsbindend und durchsetzbar ohne das es einer weiteren Überprüfung hinsichtlich der Gültigkeit seitens der lokalen Gerichte bedarf. Das zweite Instrument ist das Übereinkommen über das öffentliche Beschaffungswesen (GPA). Das GPA hat in beiden Abkommen die Gleichbehandlung zwischen gebietsansässigen und vietnamesischen Anbietern hinsichtlich des Investitionskapitals zum Gegenstand, wenn eine Regierung Güter erwerben will oder eine Dienstleistung anfordert, die den angegebenen Schwellenwert überschreitet.

Vietnam verpflichtet sich dazu, Informationen zu Ausschreibungen rechtzeitig zu veröffentlichen und den Anbietern ausreichend Zeit für die Vorbereitung und Einreichung von Angeboten zu geben, damit die Vertraulichkeit der Angebote gewahrt wird.

Zudem wird seitens des GPA in beiden Vereinbarungen verlangt, dass Parteien Angebote auf der Grundlage fairer und objektiver Grundsätze bewerten, Angebote nur anhand der in Bekanntmachungen und Ausschreibungsunterlagen festgelegten Kriterien bewerten und vergeben. Sowie ein wirksames System für Beschwerden und Streitbeilegung soll geschaffen werden. Dieses Instrument wird einen fairen Wettbewerb, Projekte von Qualität und effizienten Entwicklungsprozessen gewährleisten.

Denken Sie nicht mehr an Indonesien – Kommen Sie nach Vietnam!

Im Pharma- und Gesundheitssektor hat sich Vietnam als sehr attraktiver Standort erwiesen. In den Jahren 2016 und 2017 insbesondere gab es in Vietnam eine Reihe von M & A-Transaktionen in dem Sektor, in dem ausländische Investoren durch Übernahme bestehender großer lokaler Unternehmen auf den Markt kamen. Diese Abschlüsse beinhalteten folgende Transaktionen: Abbott übernahm 51,69% der Anteile der DOMESCO Medical Import-Export Joint Stock Corporation. Nachdem Abbott zwei Fabriken aufgekauft hatte, die westliche Arzneimittel in Vietnam herstellen – wurde auch Singapur Industrial Zone in Binh Duong aufgekauft. Die Taishi Corporation wurde zudem Aktionär der Hau Giang Pharma Company mit Anteilen von Vietnam hat sich für ausländische Investoren 24,4%. Im September 2016 arbeitete Vinapharm mit der Sanofi Corporation zusammen, um die Produkte von Sanofi in Vietnam herzustellen und zu vermarkten.

Im Gegensatz dazu geht Indonesien, was weder dem CPTPP und FTA mit der EU beigetreten ist, aktive Vehikel im biopharma- oder anderen innovativen Bereichen aus. Vielmehr verlangt Indonesien in seinen neuen Vorschriften, dass jegliches pharmazeutisches Erzeugnis, was nicht dort produziert wurde, einer obligatorischen Lizenz bedarf.

Es ist offensichtlich, dass Vietnam einen biopharmazeutischen Hotspot in der Region etablieren will!

Bitte zögern Sie nicht Dr. Oliver Massmann unter zu kontaktieren, falls Sie weitere Fragen oder mehr Details zu dem oben Genannten haben. Dr. Oliver Massmann ist der Generaldirektor von Duane Morris Vietnam LLC.

VIETNAM – PHARMACEUTICALS – ASEAN IN CONTEXT – Come to Vietnam – you will be treated just – think no more of Indonesia

What happens in Indonesia now?

Any pharmaceutical product not being made in Indonesia must obtain a compulsory license, according to a recent new regulation adopted in Jakarta. While joint venture with a local partner is required for investors doing business in pharmaceutical sector in Indonesia, this compulsory licensing regulation has deterred foreign investment and no one wants their intellectual property stuck in the hand of their local partner. Lack of foreign investment, Indonesia has to face with challenges in establishing a knowledge-based economy due to technological expropriation.

Vietnam pharmaceutical market potential

Vietnam has a population of more than 90 million people, with its average age of 29. The Universal Healthcare Coverage in Vietnam is with 73% of the population with regards to essential health services, relatively high compared with other countries in the Western Pacific region. Vietnam’s generic penetration in tendering and ex-manufacturer prices of producers is with 97%. On the other hand, the accessibility of new pharmaceuticals is still low. Only 6% of recent launched pharmaceuticals in the last 3-7 years are available in Vietnam, thus, the value (22%) and the volume (4%) share of producers is among the lowest in APAC area. This is leading to outbound medical tourism with an estimated amount of USD2 billion a year.

According to the United Nations Fund (UNFPA), although Vietnam is still in the golden population period, the population has started aging since 2017. In a World Bank’s report, this aging process will not last very long, i.e., around 15 years and be completed by 2040. Aging population together with growing income among the Vietnamese people and a steady economic growth in recent years has led to potentially more demand for healthcare services.

Expenditure for the healthcare constituted 7.5% of the GDP (USD16.1 billion) and is expected to increase to 12.5% between 2017-2021. Between 2016 and 2020, sales of pharmaceutical are predicted to grow the fastest at 10.5%, compared to medical devices and private healthcare spending, which will grow at 9.3%and 7.2% respectively. Spending on pharmaceutical products per capital will double in 2020 (USD 85) and USD 163 in 2025, with average growth of 14%/year, according to Business Monitor International.

Medical devices are estimated to grow from US$ 981 million in 2016 to US$ 1.4 billion in 2020, while private healthcare spending is predicted to grow from US$ 6.6 billion in 2016 to US$ 8.7 billion in 2020.

Legal certainties as a result of the Comprehensive Trans-Pacific Partnership (CPTPP) and the EU – Vietnam Free Trade Agreement (EVFTA)

On 8 March 2018, the CPTPP was finally signed in Chile and officially takes effect since 30 December 2018. The effects of the CPTPP promise great benefits for pharmaceutical sector in Vietnam. The CPTPP is targeting to eliminate tariff lines and custom duties among member states on certain goods and commodities to 100%. With the National and Most-Favored Nation Treatment principle, the CPTPP is ensuring a fair competition, which will attract new foreign investment, also in the pharmaceutical sector.

Furthermore, the investors gain some securities due to prohibition of expropriation, so that, Vietnam cannot expropriate intellectual property rights from pharmaceutical companies. However, the EVFTA will also ensure certain growth for the pharmaceutical sector in Vietnam. For instance, Article 14.2 Chapter 2 of the agreement requires Vietnam to create and implement legal instruments to allow foreign establishment in Vietnam. In addition, this Article also requires Vietnam to allow foreign invested enterprises to sell pharmaceuticals legally imported by them directly or through distributors or wholesalers who are not required to have a Good Storage Practice (GSP) certificate or directly. If the Vietnamese legislation is responsible for certification requirements and process, the EVFTA creates real influence as it encourages establishment of foreign enterprises and their extended scope of activities. Lastly, the EVFTA is removing all additional requirements for all pharmaceuticals, biologics and drugs.

Additionally, both the CPTPP and the EVFTA offer further protection for investors in Vietnam. The Investor State Dispute Settlement (ISDS) will ensure highest standards of legal certainty and enforceability for investors. Under that provision, for investment related disputes, the investors have the right to bring claims to the host country by means of international arbitration. The arbitration proceedings shall be made public as a matter of transparency in conflict cases. In relation to the CPTPP, the scope of the ISDS was reduced by removing references to “investment agreements” and “investment authorization”. The final settlement is binding and enforceable without question from the local courts regarding its validity.
The second instrument is the Government Procurement Agreement (GPA). The GPA in both agreements mainly deals with the requirement to treat bidders or domestic bidders with investment capital and Vietnamese bidders equally when a government buys goods or requests for a service worth over the specified threshold. Vietnam undertakes to timely publish information on tender, allow sufficient time for bidders to prepare for and submit bids, maintain confidentiality of tenders. The GPA in both agreements also requires its parties assess bids based on fair and objective principles, evaluate and award bids only based on criteria set out in notices and tender documentation, create an effective regime for complaints and settling disputes, etc. This instrument will ensure a fair competition and projects of quality and efficient developing processes.

Think no more of Indonesia – Come to Vietnam!

Vietnam has been proven a very attractive destination for foreign investors in pharmaceutical and healthcare sector. In particular, in 2016 and 2017, Vietnam witnessed a number of M&A deals in the sector where foreign investors accessed the market by taking over existing big local enterprises. These deals include Abbott taking over 51.69% shares in DOMESCO Medical Import-Export Joint Stock Corporation after its purchase of two factories producing Western medicines in Vietnam – Singapore Industrial Zone in Binh Duong. Taishi Corporation also became Hau Giang Pharma Company’s shareholder by owning 24.4% of its stakes. In September 2016, Vinapharm cooperated with Sanofi Corporation to produce and market Sanofi’s products in Vietnam.
In contrast, Indonesia – a country not a member to both the CPTPP and any FTA with the EU, is actively driving out biopharmaceutical and other sophisticated ventures. In its recent regulations, Indonesia requires the compulsory licensing of any pharmaceutical product not being made in the country.

It is then clear that Vietnam is creating a biopharmaceutical sweet spot in the region!

Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.