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| The University of Engineering and Technology under the Vietnam National University showcases its microchip and semiconductor design technologies and applications__Photo: Duong Giang/VNA |
The Government provides new incentives to support domestic contractors, innovative startups and their products. These incentives, provided in Decree 214/2025/ND-CP dated August 4, 2025, detailing a number of articles of, and measures to implement, the Law on Bidding regarding contractor selection, aim to help domestic businesses compete more effectively by providing them with advantages in the bidding process.
Incentives for domestic contractors being innovative startups and individual contractors
To encourage and create favorable conditions for innovative startups and individual contractors to compete more effectively in the market, Article 9 of the new Decree stipulates:
- When offering innovative products specified in Clause 4, Article 6of the Decree, domestic innovative startups will not have to meet requirements of revenues and the number of years of operation in the same line for at least 6 years from the date these products are first manufactured and ready for circulation in the market.
- When offering goods or providing services, domestic contractors specified at Point g, Clause 1, Article 10 of the Law on Bidding will not have to meet the conditions on competition assurance in the assessment of eligibility and five years’ capacity and experience requirements after being recognized by competent authorities.
- When participating in bidding, innovative products specified in Clause 4, Article 6 of the Decree and made by domestic innovative individuals or groups of individuals or innovative startups will be eligible for incentives provided in Clause 3, Article 6 of the Decree.
- When participating in domestic or international bidding, innovative products specified in Clause 4, Article 6 of the Decree and provided by domestic innovative startups will enjoy incentives specified in Clauses 1 and 2, Article 7 of the Decree.
Incentives for innovative products of Vietnamese origin
Decree 214 provides incentives for goods being innovative products of Vietnamese origin in bidding, including methods of calculating scores and rankings when different bidding methods are applied.
Incentives for innovative products of Vietnamese origin as specified at Point i, Clause 1, Article 10 of the Law on Bidding are as follows:
- In case the lowest price method is applied, a sum equal to 15 percent of the bid price (after error correction, deviation adjustments, and subtraction of any discounts) of the goods will be added to the total bid price of the contractor for comparison and ranking. For goods eligible for incentives with a domestic production cost ratio of less than 50 percent, a sum equal to 7.5 percent of the bid price (after error correction, deviation adjustments, and subtraction of any discounts) will be added to the total bid price for comparison and ranking. For goods eligible for incentives with a domestic production cost ratio of 50 percent or more, a sum equal to 5 percent of the bid price (after error correction, deviation adjustments, and subtraction of any discounts) will be added to the total bid price for comparison and ranking.
- In case the evaluated price method is applied, a sum equal to 15 percent of the bid price (after error correction, deviation adjustments, and subtraction of any discounts) of the goods will be added to the evaluated price for comparison and ranking. For goods eligible for incentives with a domestic production cost ratio of less than 50 percent, a sum equal to 7.5 percent of the bid price (after error correction, deviation adjustments, and subtraction of any discounts) will be added to the evaluated price for comparison and ranking. For goods eligible for incentives with a domestic production cost ratio of 50 percent or more, a sum equal to 5 percent of the bid price (after error correction, deviation adjustments, and subtraction of any discounts) will be added to the evaluated price for comparison and ranking.
Conditions for innovative products of Vietnamese origin to enjoy incentives
Under the new Decree, the following innovative products originating from Vietnam may enjoy incentives:
- Products on the list of hi-tech products prioritized for investment and development or the list of hi-tech products prioritized for development as decided by the Prime Minister;
- Products and goods created from outcomes of special scientific, technological and innovation tasks, or outcomes of domestic scientific, technological and innovation tasks specified in the law on science, technology and innovation;
- Products created on the basis of contractors’ own patents, semiconductor integrated circuit layout designs or plant varieties for which protection titles were granted no more than 5 years ago, or computer programs for which copyright registration certificates were granted no more than 5 years ago;
- Semiconductor chips;
- Products that have won the Ho Chi Minh Prize or the State Prize for Science and Technology in accordance with the law on emulation and commendation and the law on science, technology and innovation;
- New products created through the research and development process at facilities of the National Innovation Center or other national or provincial innovation centers; and
- New products created from outcomes of the scientific research and technology development carried out in accordance with the law on technology transfer.
The above products may enjoy incentives for a period of six years from the time they are first produced and qualified to be marketed.- (VLLF)
