Vietnam Government Procurement Under Decree 374: A Guide for Foreign Bidders

Foreign companies can participate in Vietnam government procurement under Decree 374/2026/ND-CP when the procurement falls within its treaty coverage and the bidder meets the applicable participation requirements. Taking effect on 14 November 2026, the decree guides procurement under the CPTPP, EVFTA, and UKVFTA. Access depends on the procuring entity, contract value, goods or services, exclusions, and tender conditions.

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For overseas suppliers, engineering and construction contractors, and foreign-invested businesses, the first step is to establish whether a specific opportunity falls within the decree. Treaty coverage should be confirmed before committing resources to technical proposals, pricing, or local delivery arrangements.

What is Vietnam’s Decree 374?

Decree 374/2026/ND-CP governs contractor selection for procurement covered by three trade agreements:

• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);
• The EU–Vietnam Free Trade Agreement (EVFTA); and
• The UK–Vietnam Free Trade Agreement (UKVFTA).

Issued on 30 September 2026, the decree takes effect on 14 November 2026. It applies to covered procurement rather than all government purchasing in Vietnam.

Key issue	What foreign bidders should know
Scope	Coverage depends on the procuring entity, value threshold, goods or services, and exclusions.
Eligibility	Bidders must satisfy the applicable legal and tender-specific participation requirements.
Bid structure	Eligible bidders may participate independently or through a consortium.
Local participation	Domestic preferences may affect sourcing, consortium arrangements, subcontracting, or technology transfer.
Language	Intra-bloc tenders use Vietnamese; international tenders use English or Vietnamese and English.
Submission route	International tendering follows a non-electronic process; electronic intra-bloc tendering starts on 1 March 2027, subject to applicable exceptions.
Preparation time	General minimum periods range from 25 to 30 days, with specified 10-day exceptions.

Which government contracts are covered by Decree 374?

A procurement must satisfy four cumulative conditions to fall within Decree 374. According to the government’s summary, it must:

1. Involve a procuring entity listed in the decree’s appendices;
2. Meet or exceed the applicable value threshold;
3. Concern covered goods, services, or a combination of both; and
4. Fall outside the applicable exclusions.

If any condition is unmet, the procurement falls outside this framework. Foreign participation may still need to be assessed under other applicable procurement rules.

Before preparing a bid, companies should document the applicable agreement and appendix, procuring entity, procurement category, threshold, and exclusions.

How is procurement value calculated?

Article 13 bases the coverage assessment on the maximum estimated value over the procurement’s duration, including relevant fees, commissions, and additional purchase options.

For example, optional equipment purchases and maintenance included in the same procurement could raise its estimated value above the applicable threshold. The initial equipment price alone may therefore be insufficient to determine coverage.

Thresholds also change over time. Businesses should distinguish contracts accessible under current thresholds from those that may qualify in later periods.

Can foreign companies bid independently?

Eligible foreign bidders may participate independently or through a consortium. Decree 374 links organisational eligibility to the Bidding Law and requires bidders to have no current procurement ban imposed by a state agency or competent authority in any country or territory.

Companies should assess eligibility separately from their ability to meet the tender’s qualification criteria. An eligible business may still lack the required financial capacity, personnel, equipment, or project experience.

The choice of bidding entity also matters:

Bidding structure	Main preparation question
Overseas parent company	Does its corporate status satisfy the participation rules, and can it demonstrate the required qualifications?
Vietnamese subsidiary	Do its own financial records, personnel, and experience meet the tender requirements?
Consortium	Are qualifications, work allocation, signing authority, and performance responsibilities clearly documented?

Businesses should not assume that one group company can automatically rely on another’s credentials. Any proposed reliance on group resources should be checked against the tender documents.

Is bidder nationality the same as goods origin?

No. A supplier’s place of incorporation does not necessarily establish where its products originate.

Procurement teams should assess bidder status and goods origin separately, obtaining manufacturing and origin evidence from the supply chain early. Intra-bloc participation conditions should also be checked for the specific tender.

Do foreign bidders need a Vietnamese partner?

A Vietnamese partner is not a universal requirement for every tender under Decree 374. However, permitted domestic preferences may require local consortium or subcontracting participation in applicable procurement.

A local partner may also strengthen installation capacity, maintenance coverage, and knowledge of operating conditions. Where participation is optional, businesses should weigh these benefits against the cost and complexity of sharing delivery responsibilities.

Before entering a consortium or subcontracting arrangement, companies should assess the partner’s financial position, technical capacity, staffing, and ability to meet contractual commitments.

How do domestic preferences affect foreign bids?

Domestic preferences can affect sourcing, bid structure, delivery responsibilities, and pricing. Article 10 permits measures such as domestic sourcing, Vietnamese consortium or subcontracting participation, and technology transfer under the applicable conditions.

Article 10 also establishes phased limits on domestic preferences for covered procurement. The annual total value of those preferences must remain within prescribed limits, calculated against the total contract prices of procurement packages within the decree’s scope.

Procurement coverage	Annual preference limit	End of domestic preferences
Appendices I and III	40% through 13 January 2029; 30% from 14 January 2029 through 31 July 2038	1 August 2038
Appendix II	40% through 13 January 2029; 30% from 14 January 2029 through 13 January 2044	14 January 2044

These percentages concern the annual value of domestic preferences. They do not prescribe a standard discount for each bid.

Article 11 separately permits conditional preferences for member-country bidders and goods in international tenders where Article 10 domestic preferences are not applied.

Businesses should identify the preference mechanism stated in each tender before finalising their sourcing arrangements, partnership structure, and price.

Are foreign bidders entitled to equal treatment?

Article 5 establishes national treatment and non-discrimination obligations for member-country goods, services, and bidders, subject to permitted domestic preferences. It also protects equal treatment among domestic bidders regardless of foreign shareholding or organisational links abroad.

Tender documents cannot use experience in a particular country as an exclusion criterion. Businesses should present overseas project experience through evidence of scope, technical complexity, completion results, and their actual responsibilities.

Where a permitted brand reference appears, bidders should demonstrate equivalence through a specification comparison supported by technical evidence.

If a requirement appears restrictive or unclear, the bidder should request clarification early. The request should identify the relevant clause and explain its effect on the proposed submission. Responses and amendments should then be incorporated into the final bid.

What language and submission procedures apply?

Intra-bloc tenders use Vietnamese. International tenders use English or both Vietnamese and English. Where international tender documents use both languages, bidders may choose Vietnamese or English for their submission.

International tendering follows a non-electronic process under Decree 374. Electronic intra-bloc procurement starts on 1 March 2027, subject to the applicable exceptions.

For each opportunity, the bid manager should confirm the submission channel, document format, signing requirements, language, and closing time. Translation and document preparation should begin early enough to allow consistency checks across the technical and financial submissions.

What are the minimum tender preparation periods?

The general minimum preparation periods are:

Submission	General minimum period
Expression of interest or prequalification application	25 days
Bid	30 days
Bid submitted electronically	25 days

Specified exceptions permit a minimum of 10 days, including:

• Qualifying urgent cases;
• Procurement of common, readily available goods with standardised technical characteristics and equivalent quality, worth no more than VND10 billion; and
• Procurement of common, simple non-consulting services worth no more than VND10 billion.

These periods can leave limited time to obtain overseas records, translations, and guarantees. Businesses should maintain current corporate documents, financial statements, and project references between tenders.

Once an opportunity opens, the submission timetable should prioritise tasks dependent on banks, overseas offices, partners, and other external parties. It should also reserve time for approvals, corrections, and an independent review of the complete bid.

Does Decree 374 apply to tenders already under way?

Article 18 provides transition rules. Inconsistent documents may require adjustment before closing, while tenders opened before 14 November 2026 continue under the previous regime.

Businesses pursuing an existing opportunity should confirm its procedural stage and monitor amendments. Changes may affect the timetable or require revisions to a submission already in preparation.

What should businesses check before approving a bid?

Management should resolve five commercial questions before authorising significant bid expenditure.

Decision area	Question to resolve
Access	Are coverage, eligibility, and participation conditions satisfied?
Competitiveness	What margin remains after installation, servicing, compliance, and other delivery costs?
Execution	Are the required personnel, equipment, and partner resources available?
Contract exposure	Can the business manage payment delays, currency movements, warranty obligations, and liability risks?
Readiness	Can outstanding evidence, guarantees, and approvals be obtained before closing?

Acceptance conditions, payment terms, and dispute provisions should inform the assessment. Management should set conditions for proceeding and identify issues that would trigger withdrawal.

Companies should concentrate on procuring entities and contract categories that match their capabilities. Monitoring procurement plans, maintaining qualification records, and assessing partners between tenders can improve preparation and reduce repeated costs.

As thresholds decline, businesses should reassess which opportunities justify additional resources. Investment in local capacity should follow where eligibility, delivery capability, and expected returns align.