Decree 374/2026/ND-CP, issued on 30 September 2026 and effective from 14 November 2026, governs contractor selection for tenders covered by three new-generation free trade agreements: CPTPP, EVFTA and UKVFTA. It puts into practice the government procurement commitments Vietnam made when joining these agreements.
Main provisions
- Scope: applies only to tenders meeting four conditions at once: a listed procuring entity, value above the threshold, covered goods or services, and no applicable exclusion.
- Equal treatment: tender documents cannot exclude bidders simply for lacking experience in a particular country.
- Preparation periods: at least 25 days for expressions of interest or prequalification; 30 days for bids; 25 days for electronic bids.
- Language: international tenders use English, or Vietnamese and English.
- Electronic tendering within the bloc starts on 1 March 2027.
Preferences for domestic firms remain
Importantly, the decree allows domestic preference measures in line with the commitments: domestic sourcing, Vietnamese consortium or subcontracting participation, and technology transfer. The annual cap on preference value is 40% until 13 January 2029, then 30%, with schedules running to 2038 and 2044 depending on the appendix. Vietnamese firms therefore have time to build competitiveness.
Impact on Vietnam's economy
- Better public spending: wider competition helps the state buy better goods and services at fair prices, which matters greatly when the 2026 public investment plan exceeds VND1 quadrillion.
- Technology transfer: consortium and subcontracting requirements let Vietnamese firms learn from international contractors.
- Credibility: faithful implementation of FTA commitments builds partner trust and supports new agreements such as the one with EFTA.
- Transparency: clear procedures and reasonable timelines reduce disputes and misconduct in procurement.
Notes for bidders
- Confirm the tender is covered by an agreement before committing resources to a bid.
- Bidder nationality does not determine goods origin; gather origin evidence from the supply chain.
- Tenders opened before 14 November 2026 continue under the old rules.
vietnamii.com view: Decree 374 strikes a good balance between openness and protecting domestic capacity. Vietnamese construction, equipment and IT firms should use the preference period to partner with international players and raise their standards.