Decree 374/2026/ND-CP on Government Procurement Affecting Foreign Bidders

Foreign suppliers considering public contracts in Vietnam need to know whether the buyer can accept their bid and the goods or services they propose. A product may be commercially suitable while the bidding company or its supply arrangements fall outside the conditions of a particular tender.

Decree 374/2026/ND-CP on Government Procurement, issued on September 30, 2026, takes effect on November 14, 2026. It updates procurement under 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). For overseas businesses, this is part of international trade law in Vietnam that affects access to public customers.

Why Vietnam Issued Decree 374

Vietnam already had procurement rules for these agreements under Decree 95/2020, as amended. Decree 374 replaces that framework and connects treaty procurement more closely with the current Bidding Law and its implementing rules. Detailed procedures now rely more on the general procurement framework, while the decree retains rules needed for the three agreements.

The changes give purchasing entities more flexibility over the competition and over permitted sources of goods in treaty-group tenders. They also establish a timetable for electronic bidding within the treaty group. Foreign suppliers have reason to reassess particular opportunities, although the decree does not make every public contract available to every overseas company.

Quick Reference

From November 14, 2026, Decree 374 will govern qualifying public procurement under CPTPP, EVFTA and UKVFTA. The buyer, contract value, goods or services, and applicable exclusions must all be checked. The changes are especially relevant to foreign equipment suppliers and businesses bidding for consulting, technology or construction work.

Purchasing entities may choose competition within the treaty group or international bidding. In treaty-group tenders for goods, the tender documents may add further countries of origin, subject to the stated conditions. In international bidding, they generally cannot require a particular origin. Electronic bidding within the treaty group is scheduled from March 1, 2027, with exceptions. Before committing bid costs, a supplier should check its proposed bidding entity, the permitted goods and the submission arrangements. Access to a tender does not settle all requirements for delivering the contract.

Issues Under Decree 374/2026/ND-CP on Government Procurement

Identify the Public Contracts Covered by the Agreements

The decree applies when four conditions are met together. The package must reach the relevant value threshold, belong to a listed purchasing entity, cover the specified goods or services, and fall outside the exclusions. A government connection or a large contract value alone does not establish coverage.

The thresholds and commitments differ between the agreements and categories of procurement. A supplier should identify the actual buyer and package before relying on a general statement that Vietnam has opened its public market. Equipment, IT services and construction can require different assessments. Some listed computer and data-network services are subject to specific restrictions on who may bid.

A business can start with a small group of prospective public customers and check the contracts it wants to pursue. A package outside Decree 374 still needs assessment under the procurement rules that apply to it.

Understand Who May Compete for the Contract

Under the previous framework, bidding within the treaty group was the starting requirement. International bidding was available where the competent person considered it necessary for greater efficiency. Decree 374 directly allows the purchasing entity to choose between bidding within the treaty group and international bidding.

Bidding within the treaty group limits participation to eligible bidders from the relevant member countries. The permitted group can differ with the applicable commitment. International bidding allows a wider competition, subject to the tender conditions and applicable law.

An EU, UK or CPTPP supplier should therefore check the selected approach before estimating its competitive position. A supplier outside the relevant group should check whether international bidding is available. The decree gives the buyer a choice; it does not guarantee that the buyer will choose the approach a particular supplier prefers.

Check Whether the Tender Accepts Your Manufacturing Source

The change in goods sourcing is particularly useful for businesses that manufacture in several countries. The earlier rules linked eligible bidders in treaty-group tenders to goods originating in the corresponding member countries. Decree 374 allows tender documents to include additional groups of countries or territories as acceptable sources. They may also set conditions concerning the manufacturer’s head office. This flexibility applies to treaty-group tenders. In international bidding, tender documents generally may not name a specific origin unless a domestic preference measure applies.

For a treaty-group tender, the supplier has reason to examine whether the new wording allows that source. It must still qualify as a bidder and satisfy the actual conditions. The broader wording is not automatic acceptance of goods from every country.

The bidding company, manufacturer and origin of the goods need separate attention. A brand name or the country where the sales invoice is issued may not establish the origin. The supplier should confirm the production location and obtain the supporting information before committing to a model or price.

Procurement eligibility and preferential import duty are also separate questions. The customs assessment of the goods should establish the relevant import treatment. Acceptance in a tender does not itself give the shipment a reduced tariff.

Choose the Bidding Company and Local Partners Carefully

The entity submitting the bid must satisfy the applicable eligibility and tender requirements. Decree 374 allows eligible bidders to participate independently or in a consortium. It also requires the bidder to be free from a current procurement ban imposed by a competent authority in any country or territory.

The decree continues to allow domestic preference measures within the permitted framework and timetable. Where those measures apply, the conditions can include Vietnamese goods, a local consortium member or subcontractor, or other specified commitments. These requirements need to be read in the particular tender; foreign status alone does not answer whether a local partner is needed.

If a distributor or local commercial partner in Vietnam is involved, agree who submits the bid, signs the public contract, supplies the goods and handles after-sales work. A distributor, consortium member and subcontractor have different responsibilities. Confirm that the chosen arrangement supports the tender requirements and that each party can perform its promised work.

Prepare for Electronic Bidding and the Required Language

For bidding within the treaty group, the decree sets March 1, 2027 as the start of procurement through the National E-Procurement System, subject to the specified exceptions. International bidding under the decree is conducted outside that electronic process. The November 2026 commencement date and the March 2027 electronic-bidding date therefore serve different purposes.

Foreign suppliers should confirm the applicable registration, signing and submission arrangements early. The person preparing the commercial offer may need support from colleagues who hold corporate records and technical documents. System access and a complete submission should be checked before the closing date.

Language also affects preparation. Bidding within the treaty group uses Vietnamese. International bidding uses English or Vietnamese and English; where the tender documents use both languages, bidders may choose either. Allow time for accurate translations and make sure product descriptions, figures and commitments match across the documents.

Allow Time for Evidence and Changes to the Tender

The familiar minimum bid preparation periods largely continue: ordinarily 30 days, or 25 days where bids are received electronically, with shorter periods for specified cases. These are minimum periods rather than a promise that the supplier will have enough time to gather missing records. The published closing date remains important.

Prepare evidence of the bidding entity’s capacity and relevant experience before an attractive tender appears. Decree 374 preserves protection against conditions requiring previous contracts with public buyers in a particular country, or experience supplying within that country, as an exclusion criterion. A new entrant can still be required to demonstrate suitable experience and capability.

Tenders crossing November 14, 2026 need additional attention. Documents already issued may require changes if they conflict with the new decree and closing has not occurred. Bidders must receive reasonable time to respond. Packages already opened before commencement continue under the former rules. Keep track of formal amendments and base the submission on the latest documents.

Assess the Cost and Responsibilities of Performing the Contract

Before submitting a binding offer, the supplier should understand what performance will require in Vietnam. Price the delivery, acceptance process, warranty support and payment conditions together. A bid that assumes easy access to the site or immediate acceptance may leave costs unaccounted for.

For an engineering, procurement and construction package, EPC contract review in Vietnam helps assess the work allocation, completion evidence and consequences of delay. Raise material questions within the procurement process. Do not assume that essential terms can be rewritten after selection.

For goods, agree who imports, arranges inland delivery and bears storage costs if the site is unavailable. These responsibilities belong in the assessment of transport and logistics in Vietnam. If overseas personnel will install, test or maintain equipment, check the separate requirements for foreign personnel in Vietnam. Procurement eligibility does not, by itself, establish permission to perform every activity promised in the bid.

Frequently Asked Questions About Decree 374/2026/ND-CP on Government Procurement

Q1: Does the decree require a Vietnamese subsidiary to bid

It does not create a general requirement for every foreign bidder to incorporate in Vietnam. The proposed bidder must meet the relevant conditions, and performance may involve separate permissions. A Vietnamese subsidiary bidding as a domestic bidder is entitled to equal treatment regardless of foreign ownership or organizational links abroad, subject to permitted domestic preference measures. A local establishment decision should fit the wider Vietnam market entry strategy, rather than follow an assumption that incorporation solves every tender requirement.

Q2: Can goods made outside the relevant FTA countries be offered

That depends on the type of tender. In international bidding, tender documents generally cannot require a specific origin unless a domestic preference measure applies. In a treaty-group tender, such goods are acceptable only where the tender adds that source and the bidder meets the other conditions, including any manufacturer head-office requirement. A foreign brand or group relationship alone does not establish eligibility.

Q3: Do the new rules apply immediately to every existing tender

No. The decree takes effect on November 14, 2026 and distinguishes tenders according to their stage. Bidders should check whether documents have been issued, whether closing has occurred and whether bids have been opened. The electronic-bidding timetable starts later.

Conclusion

For a foreign supplier, Decree 374/2026/ND-CP on Government Procurement makes the specific tender worth a closer look. Before approving substantial bid expenditure, confirm that the proposed company and manufacturing source fit the tender. Then test whether the submission timetable and delivery commitments are workable. This gives the business a clearer basis for deciding which public contracts to pursue.

About the Author

About ANT Lawyers, a Law Firm in Vietnam

Founded in 2012, ANT Lawyers is a Vietnam law firm with offices in Hanoi, Ho Chi Minh City and Da Nang. Our corporate lawyers advise on company formation, investment licensing, M&A and corporate governance in Vietnam. We combine legal analysis with practical understanding of Vietnam’s regulatory environment and local administrative practice.

General Disclaimer

This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.