A company is not a State-owned company, if its investment and development projects are funded by the State, the capital of State-owned enterprises is 30% or more or less than 30% but above VND 500 billion in the total investment of the project, the project is governed by the Bidding Law.

Ms. Nguyen Thi Hong Huong (in HCMC City) works at a joint venture company, established by an enterprise (with 80% state owned capital, not a State-owned enterprise under the Enterprise Law 2014) and a private enterprise (without State capital).

Ms. Huong's company is selecting the consulting contractors, services (with the capital of the company) to implement the project investment.

Ms. Huong would like to ask, in this case, is the Company's contractor selection required to perform bidding according to the current law provisions? If yes, which is the case in the Bidding Law? (Chinhphu.vn)

The Ministry of Planning and Investment answers this issue as follows:

Point c, Clause 1, Article 1 and Clause 44, Article 4 of the Law on Bidding  stipulate 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 VND 500 billion in total invested capital of project.

State capital includes State budget capital, national bonds, Government bonds, local government bonds, official development assistance capital, concessional loans of donors; capital from the non-business operation development fund, the State's development investment credit capital, government-guaranteed credit capital, loan capital guaranteed by the State's properties, and the State enterprise's development investment capital, land use right value.

For Ms. Huong's case, because the company is not a State-owned enterprise, it is based on the provisions of Point c, Clause 1, Article 1 of the above Bidding Law, if the company's development investment project has if using state capital, the capital of a State enterprise of 30% or more or less than 30%, but over VND 500 billion of the total investment of the project, the project is governed by the Bidding Law. The investor is responsible for determining the State capital, the capital of a State enterprise in the total investment of the project.