What are regulations on payment of advances and recovery of advances regarding construction projects financed by public investments in Vietnam?
Hello Lawnet. I have a question. What are regulations on payment of advances and recovery of advances regarding construction projects financed by public investments in Vietnam? Thank you!
Pursuant to Article 6 of the Circular 107/2018/TT-BTC stipulating regulations on payment of advances and recovery of advances regarding construction projects financed by public investments in Vietnam as follows:
Payment of advances and recovery of advances for investment and construction projects of overseas Vietnamese bodies shall conform to regulations on payment of advances and recovery of advances on state budget-funded investments laid down in the Circulars of the Ministry of Finance such as Circular No. 08/2016/TT-BTC dated January 18, 2016, Circular No. 108/2016/TT-BTC dated June 30, 2016 and Circular No. 52/2018/TT-BTC dated May 24, 2018.
As regards construction contracts signed abroad, if they are executed under regulations of host countries and laws of Vietnam on payment of advances, recovery of advances and contract advance guarantee, signed contracts must apply.
In specific cases where projects of particular nature need advances greater than the prescribed limit, the State Treasury shall pay advances which do not exceed the limit of investments to be allocated to a project in a financial year upon the presiding ministry’s request.
In specific cases where projects of particular nature need advances even when documents evidencing advances prescribed herein are not sufficient in accordance with regulations of host countries, the presiding ministry must send explanatory documents to the Ministry of Finance to request its review and grant of its decision.
In this case, the presiding ministry shall send the written request for advances on investments specific to project items (specifying monetary amount, accounts and beneficiaries). The written request for payment of investments made by the presiding ministry shall be subject to the Appendix No.05 hereto.
Above are regulations on payment of advances and recovery of advances regarding construction projects financed by public investments in Vietnam.
Best regards!
