(Chinhphu.vn) – Development investment projects that not belonging to Points a and b, Clause 44, Article 4 of the Bidding Law, which use State capital and State enterprises' capital of 30% or more or under 30% but over VND 500 billion of the total Investment of the project is governed by the Bidding Law.

According to Mr. Nguyen Van An (in Hochiminh City) refer to Point c, Clause 1, Article 1 of the Bidding: Law " Projects on development investment other than cases defined at point a and point b of this Clause which are financed by state, state-owned enterprises with level equal to 30% or more or less than 30% but more than 500 billion VND in total invested capital of project.”.

Mr. An would like to ask, is his company which is a 100% state-owned company but when implementing an investment project in the following cases, is it compulsory to apply the Law on Bidding to organize bidding?

- In case the company holds 30% or more of the charter capital of another enterprise, or holds less than 30% of the charter capital, the project has a total investment of over VND 500 billion and this enterprise uses 100 % of its own capital to implement the project.

- In case his company holds less than 30% of the charter capital of another enterprise (a joint stock company) and at the same time, another 100% state-owned company also holds less than 30% of its charter capital this; The total investment capital of his company and the other State-owned company in a joint stock company is over 30% of the charter capital and this enterprise uses 100% of its own capital to implement the project.

- In case the company cooperates with another partner (not a state-owned enterprise) to implement a project under a business cooperation contract signed between the two parties (no legal entity is established), in which, the company contributes over 30% of the total investment of the project.

- For a project of an enterprise where his company has contributed capital, and this enterprise uses the bank's loan that the bank has State capital, will the project be considered to use capital State and capital of state-owned enterprises? (including the ratio of corporations, and bank financing ratio)?

Regarding this issue, The Ministry of Planning and Investment has the following opinions:

Point c, Clause 1, Article 1 and Clause 44, Article 4 of the Bidding Law No. 43/2013 / QH13 stipulates that Projects on development investment other than cases defined at point a and point b of this Clause which are financed by state, state-owned enterprises with level equal to 30% or more or less than 30% but more than 500 billion VND in total invested capital of project shall be governed by this Law; State capital including State budget, national bonds, Government bonds, local government bonds, official development assistance capital, concessional loans from donors; capital from the non-business operation development fund, the State's development investment credit capital, the Government-guaranteed credit capital, and loan capital secured by the State's assets, and the development investment capital of enterprises Government; value of land use rights.

For Mr. An's question, if an enterprise is a State-owned enterprise, the development investment project of a State enterprise is governed by the Bidding Law as stipulated in Point b, Clause 1, Article 1 of the Bidding Law.

Where an enterprise is not a State enterprise, the determination of the project is governed by the Bidding Law or not, that is based on the percentage of State capital in the total investment of the project as prescribed. as above.

Accordingly, the investor is responsible for determining the State capital and State-owned capital in the total investment.