On 07 July 2026, the Government issued Decree No. 274/2026/ND-CP detailing articles and measures to implement the Law on Bidding regarding the selection of investors to implement business investment projects (“Decree 274”). Decree 274 will take effect on 21 August 2026, replacing Decree No. 23/2024/ND-CP, Decree No. 115/2024/ND-CP, and Decree No. 225/2025/ND-CP. Decree 274’s focus not only extends beyond determining which projects are subject to mandatory bidding, but also addresses the investor-selection process, post-award obligations, and sanctions for violations.
In this article, BLawyers Vietnam presents the notable highlights of Decree 274 so that investors, real estate enterprises, parties involved in bidding activities, and bidding professionals can review the following before participating in a project: projects required to organize bidding, the investor-selection process, post-award obligations, and sanctions for violations.
1. Which business investment projects are required to organize bidding for investor selection?
The question is: Are all investor projects required to participate in the bidding process to select investors? The answer is no. Investors need to be aware of the following mandatory project categories:
- Investment projects on construction of mixed-use urban area and synchronous technical and social infrastructure systems or rural residential areas using land for which the land allocation or land lease is decided by the People’s Council of the first-level administrative division through bidding for investor selection;
- Investment projects using land subject to bidding in accordance with the law on management of sectors and domains, in cases where land is recovered by the State for socio-economic development in the national and public interests, except for the case mentioned in item (i);
- Projects must organize bidding as required by specialized laws that do not fall into the above two cases (the Decree 247 states “investment projects without using land”) and do not fall into the case of auction of public assets.
In addition, Decree 274 clearly defines the exceptions to the 03 projects categories above that do not require investor-selection bidding. Clearly identifying these cases helps investors better understand the requirements, allowing them to implement plans that meet their expectations.
2. For which form does Decree 274 clearly regulate the investor-selection process and procedure?
Decree 274 classifies each process and procedure for each form of a project, as follows:
- Open bidding or limited bidding through the method of one stage and one envelope of dossiers;
- Projects requiring valuable architectural works in accordance with the law on architecture shall apply the form of open bidding through the method of one-stage and two-envelope bidding;
- Projects with specific requirements for socio-economic development of sectors, regions and localities but technical, social and environmental standards have not yet been specified, applying the form of open bidding through the two-stage and one-envelope method;
- Projects involving land use and projects not involving land use that must determine the number of interested investors, as specifically regulated by Decree 274; and
- Other forms.
Depending on forms of projects, Decree 274 has set out the process and procedures, including key steps such as: announcement of investment projects, preparation and organization of bids, evaluation of bids, thorough appraisal, approval of the results, and contract signing.
3. What are the implementation steps after winning the bid for the investment project?
The approval of the winning bid results is only the initial legal procedure of a business investment project. Below are the key matters that investors need to pay attention to when putting the project into the actual implementation stage:
- First, the winning investors will either directly implement the project or establish an economic organization to implement the business investment project. However, for foreign investors implementing a project involving land use, additional compliance with the land law is required. Other points to note include: (1) the economic organization established must be 100% owned by the winning investor; (2) land-related conditions (if any) must be satisfied; and (3) other conditions relating to its economic organization under investment and enterprise law, among others.
- Second, after completing the establishment of the economic organization, the investor proceeds to implement its investment project. Certain obligations at this stage include: (1) implementing contract performance, with attention also required for projects divided into multiple investment phases; and (2) the obligation to advance funds for compensation and resettlement support for projects involving land use.
- In addition, Decree 274 sets out condition for the transfer of projects, transfer of shares, or contributed capital.
4. What sanctions for violations in investor-selection bidding should be noted?
In order to improve deterrence and ensure a transparent business investment environment, Article 66 of Decree 274 has concretized the period of prohibition from participating in bidding activities for organizations and individuals that commit violations. Specifically, as follows:
- The most severe sanction is prohibition from participating in bidding activities for 03 to 05 years, which applies to acts of bribery, abuse of position or power, fraud, and similar conduct.
- For acts of bid collusion aimed at facilitating another party’s winning bid as stated in Article 16.3.c of Decree 274, or acts of obstruction under Article 16.5, the period of prohibition from participating in bidding is 1 to 3 years.
- Other violations will be subject to a prohibition from participating in bidding of 6 months to 1 year.
Legal support from BLawyers Vietnam
If your company is considering participating in or implementing a business investment project and needs to assess bidding conditions, prepare bidding dossiers, fulfill post-award obligations, or address risks arising with Government authorities, BLawyers Vietnam can assist:
- Advising as well as reviewing the initial legal conditions before participating in the investor selection process;
- Assisting in the preparation, review and completion of proposals, bids, and documents proving capacity, experience and related commitments in the process of participating in bidding;
- Consulting and representing competent state agencies in procedures after winning bids, including signing project contracts, performing contract security obligations, establishing economic organizations and implementing relevant land procedures;
- Review and advise on plans to handle legal risks arising during project implementation, including issues of project transfer, capital transfer, change of investor and compliance with sanctions in bidding activities.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.
Date: 28 July 2026
Writers: Thanh Huynh & Huy Pham
