What is the total construction investment? What are the methods for determination of total construction investment in Vietnam?
What is the total construction investment in Vietnam?
Based on Clause 1, Article 5, Decree 10/2021/ND-CP explains the content of total construction investment as follows:
Total construction investment
1. Total construction investment refers to total construction investment of projects identified and satisfactory to fundamental design and other details under construction investment feasibility reports.
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Accordingly, the total construction investment refers to total construction investment of projects identified and satisfactory to fundamental design and other details under construction investment feasibility reports
What is the total construction investment? What are the methods for determination of total construction investment in Vietnam?
What are the methods for determination of total construction investment in Vietnam?
Pursuant to Clause 1, Article 6 of Decree 10/2021/ND-CP regulations on determination of total construction investment as follows:
Determination of total construction investment
1. Total construction investment is determined by using following methods:
a) Determination according to construction load based on fundamental design and other requirements of projects;
b) Determination according to construction investment rate;
c) Determination according to costs of similar projects, constructions;
d) Combination of methods under Points a, b, and c of this Clause.
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Accordingly, the total construction investment is determined by using following methods:
- Determination according to construction load based on fundamental design and other requirements of projects;
- Determination according to construction investment rate;
- Determination according to costs of similar projects, constructions;
- Combination of methods.
What costs are included in the total construction investment in Vietnam?
Specifically, Clause 2, Article 5, Decree 10/2021/ND-CP, amended by Clause 1, Article 10, Decree 35/2023/ND-CP, regulates costs included in the content of total construction investment. as follows:
Total construction investment
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2. Total investment includes: compensation, assistance and relocation costs (if any); construction cost; equipment cost; project management cost; construction investment and consultancy cost; other costs; backup costs and is prescribed as follows:
a) Compensation, assistance and relocation costs include: compensation costs for land, houses, constructions on land, assets attached to land, assets on water and other compensation costs as per the law; assistance costs when the government performs land appropriation; relocation costs; costs for organizing compensation, assistance and relocation; land use and rental costs during construction period and other costs related to the use and repurposing of land, water resources, marine resources according to regulations of law (if any); costs for repositioning and repaying technical infrastructure invested for construction serving land clearance (if any) and other relevant costs
b) Construction costs include: construction costs for constructions and work items of projects; temporary and/or auxiliary constructions and work items serving construction progress; deconstruction cost for constructions beyond deconstruction scope serving land clearance affairs identified under compensation, assistance and relocation costs;
c) Equipment costs include: cost for purchasing construction and technology equipment; administrative cost for equipment purchase (if any); cost for purchasing copyrights of software serving construction and technology equipment (if any); training and technology transfer costs (if any); costs for processing, manufacturing equipment to be processed (if any); cost for installing, experimenting, calibrating; cost for conducting test operation of equipment based on technical requirements (if any); transportation costs; insurance; tax and fees; other relevant costs;
d) Project management costs refer to costs necessary to organize management of implementation and implement management affairs from project preparation, project execution to conclusion of construction, bringing project constructions into operation and settlement of construction investment capital and are elaborated under Article 30 of this Decree;
dd) Construction investment consultancy costs refer to costs necessary to perform construction investment consultancy affairs from project preparation, project execution to conclusion of construction, bringing project constructions into operation and settlement of construction investment capital and are elaborated under Article 31 of this Decree;
e) Other costs include costs necessary to execute construction investment projects, include: costs for clearing and disarming mines, explosive ordnances; costs for moving specific construction machinery and devices to and from construction sites; costs for guaranteeing traffic safety during construction period; costs for returning technical infrastructure damaged by construction period to its original state; costs for material storage; costs for constructing sheltering structures for machine, machine foundation, electrical and compressed air supply systems, on-site water supply systems, installing and/or dismantling machines; construction insurance costs during construction period; costs for registering international standards and monitoring construction deformation processes; costs for accounting, inspection and approval of investment capital settlement; costs for examining acceptance inspection during construction period and at completion of constructions and work items performed by agencies specialized in construction or councils established by Prime Minister; conducting scientific and technology research, applying and utilizing new materials related to projects; initial working capital for construction investment for business purposes, loan interests during construction period; costs for conducting unloaded and loaded test operation for technology and manufacturing lines before transfer (other than salvageable product value); costs for appraising construction investment feasibility reports, construction investment economic-technical reports; resource taxes, fees and charges as per the law and other necessary costs to execute construction investment projects not specified under Points a, c, d, and dd of this Article;
g) Backup costs include costs for additional work load and inflation that occurs during project execution.
Accordingly, Total investment includes:
- compensation,
- assistance and relocation costs (if any);
- construction cost;
- equipment cost;
- project management cost;
- construction investment and consultancy cost;
- other costs;
- backup costs
Details of costs are included in the content of the total construction investment specified above.
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