What are regulations on the determination of equipment costs in the method of budgeting for the application of information technology in Vietnam?

What are regulations on the determination of equipment costs in the method of budgeting for the application of information technology in Vietnam? - image from internet

According to Appendix 02 issued with Circular 04/2020/TT-BTTTT (effective from April 9, 2020), the determination of equipment costs (G_TB) in the budgeting process for the application of information technology is regulated as follows:

The equipment costs are determined using the following formula:

G_TB = G_MS + G_CSDL + G_LĐ + G_ĐT + G_TK (2.2)

In which: 

- G_MS: Equipment procurement costs for information technology include equipment that requires installation and configuration, equipment that does not require installation and configuration, auxiliary and peripheral equipment, commercial software, in-house software, and other equipment; costs for transportation, equipment insurance, taxes, and fees related to equipment procurement.

- GCSDL: Costs for establishing databases, standardizing and converting data for data entry, and performing data entry for the database.

- G_LĐ: Costs for equipment installation, software installation, equipment and software testing and calibration.

- G_ĐT: Costs for training on system usage, training for system administration and operation (if any).

- G_TK: Costs for deployment, support, administration, and operation of the project's products or work items before acceptance and handover (if any).

1. Equipment procurement costs for information technology:

a) The costs for equipment that requires installation and configuration, equipment that does not require installation and configuration, auxiliary and peripheral equipment, and commercial software are determined based on the quantity and type of equipment needed for procurement and the market price of the equipment, using the following formula:

In which: 

- Q_i: The quantity or volume of the i-th equipment (i = 1 to n).

- G: The price per unit of the i-th equipment (i = 1 to n), including the equipment price at the place of purchase (manufacturing or supply location in Vietnam) or the price calculated up to the Vietnamese port (for imported equipment); transportation costs; storage costs; maintenance costs at the deployment location; insurance costs; and taxes (excluding VAT) and fees (if applicable).

-T_i^GTGT-TB: The VAT tax rate applicable to the i-th type of equipment (i = 1 to n).

For equipment whose price has not been determined, an estimated price can be calculated based on quotations from suppliers or manufacturers who ensure compliance with equipment supply requirements for the project, or based on prices of similar equipment in terms of capacity and technology available in the market at the time of calculation or similar equipment used in other ongoing projects.

b) In-house software:

The costs for construction, development, upgrade, and expansion of in-house software are determined using one of the following methods:

- Cost-based method:

The costs for construction, development, upgrade, and expansion of in-house software are determined using the following formula:

The direct costs for construction, development, upgrade, and expansion of in-house software are determined according to the guidelines provided by the Ministry of Information and Communications.

- Market quotation method:

In the case of determining costs based on market quotations, the costs for construction, development, upgrade, and expansion of in-house software are determined based on quotations from at least 03 different suppliers. The investor identifies and requests at least 03 organizations or individuals to provide quotations based on the technical requirements outlined in Article 27 of Decree 73/2019/ND-CP, and submits them to the investor at the same designated time.

- Expert method:

Based on the specific nature of the software's business functions, deployment scope, and technical complexity, the investor proposes the establishment of an expert team with relevant experience and capabilities to determine the costs for construction, development, upgrade, and expansion of in-house software.

- Comparison method:

In cases where software with similar characteristics in terms of scope, scale, and similarity in business processes (execution steps, agents involved, technical complexity, environment) is identified or being implemented, it can be used as a basis to determine the costs for construction, development, upgrade, and expansion of in-house software.

- Combination of the above methods:

Depending on the project's specific conditions, requirements, and available data sources, a combination of the above-mentioned methods can be applied to determine the costs for construction, development, upgrade, and expansion of in-house software.

2. Costs for establishing databases; standardizing and converting data for data entry; and performing data entry for the database are determined according to the guidelines provided in Appendix 03 issued with this Circular.

3. Costs for equipment installation; software installation; and testing, calibration of equipment and software are determined according to the guidelines provided in Appendix 03 issued with this Circular.

4. Costs for training on system usage; training for system administration and operation (if any) are determined using the following formula:

G_ĐT = G_ĐTĐM + G_DT (2.4)

- G_ĐTĐM: Training costs calculated based on economic-technical norms.

- G_DT: Training costs calculated by budget estimation.

Training costs calculated based on economic-technical norms are determined according to the guidelines provided in Appendix 03 issued with this Circular.

Training costs calculated by budget estimation are determined according to the guidelines provided in Appendix 05 issued with this Circular.

5. Costs for deployment, support, management, and operation of the project's product or work items before acceptance and handover (if any) are determined by budget estimation according to the guidelines provided in Appendix 05 issued with this Circular.

6. Equipment costs are aggregated according to Table 2.2 in this Appendix.

TABLE 2.2: AGGREGATED EQUIPMENT COSTS

Unit: VND

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