To consider whether a project is subject to the Bidding Law or not, it is necessary to base on the value of financed by State and financed by State enterprises contributed directly to the total investment of the project.

The PetroVietnam Low Pressure Gas Distribution Joint Stock Company is a member unit of PetroVietnam Gas Joint Stock Corporation (PVGas), has 50.5% of charter capital held by PVGas (PVGas' charter capital is approximately 96.7% held by the Vietnam Oil and Gas Group), and the rest is owned by non-state shareholders.

When executing construction investment projects, the Company usually structures the financial sources for project implementation including equity of about 30%, unsecured commercial loans (unsecured) about 70%.

According to the Construction Law No. 50/2014 / QH13, for state budget capital, non-budget state capital, and other capital sources, project preparation and implementation ways and management by state management agencies Construction as well as  construction agencies are different.

Through the receiving and responding system to enterprises’ recommendations, the Company would like to request competent agencies to guide the principles and methods of determining State-originated capital for the Company's model, the principle of calculating the ratio. percentage of capital structure for the project to distinguish between non-state budget capital and other capital sources in the process of implementing construction investment projects.

According to the Bidding Law for construction investment projects using State capital and in cases where the ratio of financed by State l and financed by State enterprises is less than 30% but not exceeding VND 500 billion in the total investment of the project, the selection of a contractor is not required in accordance with the Law on Bidding, where by the finalization time of a completed works with an adjustment of the owner's equity of the enterprise into the project with approximately 40% of the total investment.

The Company would like to requestguided the handling of situations in the process of implementing and approving the settlement of the completed project of construction investment projects in accordance with regulation

The Ministry of Planning and Investment has the following opinions:

Point c, Clause 1, Article 1 and Clause 44, Article 4 of the Law on Bidding stipulate on responsibilities of concerned parties and activities of bidding, including: 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.

Financed by the State means the use of State Budget funds; national bonds, Governmental bonds, bonds of local authorities; official development assistance capital, concessional loans from donors; fund for development of non-business activities; credit facilities for investment and development of the State; credit facilities guaranteed by the Government, loans guaranteed by assets of state; investment and development funds of State-owned enterprises, and value of land-use right.

Accordingly, a development investment project not owned by a State agency or a State enterprise shall be considered based on the State's capital share and the State enterprise's capital in the total investment of the project. If the share of the State, the capital of a State enterprise accounts for 30% or more or less than 30% but more than VND 500 billion in the total investment of the project, that project is governed by the Bidding Law.

Therefore, in order to consider whether a project is covered by the Bidding Law, it is necessary to base on the value of the State's capital and the State enterprises' capital contributed directly to the total investment of the project. regardless of the charter capital or the proportion of the State's contributed capital in enterprises that are project investors.