What is the method of preparing the cost estimate by experts for investment projects on IT application in Vietnam?
According to Appendix 05 promulgated together with Circular 04/2020/TT-BTTTT (effective from April 9, 2020), the method of preparing the cost estimate by experts for investment projects on IT application in Vietnam is specified as follows:
1. Scope
The method of preparing the cost estimate by experts is used in determining the following expenditures:
- Training costs for user guidance; training costs for management staff, system operators (if any) for training categories without published technical-economic norms;
- Expenditures for deployment, support, product administration, or project-specific tasks before acceptance and handover (if any);- Project management costs (in case of hiring project management consultants);
- Investment consulting costs;
- Other expenditures.
2. Formula for determining the estimate by experts
Cdt = Ccg + Cql + Ck + TN + VAT (5.1)
Where:
+ Cdt: Cost of the tasks needing estimation;+ Ccg: Direct expert costs;+ Cql: Management costs;+ Ck: Other costs;+ TN: Pre-determined taxable income;+ VAT: Value-added tax.
3. Method for determining expenditure entries
a) Direct Expert Costs (Ccg): These are necessary costs for hiring experts to perform the tasks needing estimation, determined based on the number of experts, the working time of experts, and the salary of experts.
b) Management Costs (Cql): These include costs related to the salaries of the management team, costs for maintaining the organization's activities, office working costs, and professional liability insurance costs of experts, etc. Management costs are determined by a percentage rate of the expert costs. The percentage rate is specified according to the guidelines in Table 5.2 of this Appendix.
c) Other Costs (Ck): Include all other related costs for performing the tasks needing estimation.
d) Pre-determined Taxable Income (TN): Determined as 6% of the total expert costs, management costs, and other costs.
e) Value-Added Tax (VAT): Determined in accordance with the type of work as per regulations.
TABLE 5.1: SUMMARY OF COST ESTIMATION BY EXPERTS
| No. | Expenditure entry | Description | Value (VND) | Notes |
|---|---|---|---|---|
| 1 | Direct Expert Costs | Ccg | ||
| 2 | Management Costs | (%)*Ccg | Cql | |
| 3 | Other Costs | Ck | ||
| 4 | Pre-determined Taxable Income | %* (Ccg+Cql+Ck) | TN | |
| 5 | Value-Added Tax | %*(Ccg+Cql+Ck+TN) | VAT | |
| Total | Ccg+Cql+Ck+TN+VAT | Cdt |
TABLE 5.2: MANAGEMENT COST NORMS
Unit: %
| No. | CONTENT OF WORK | Direct Expert Costs (billion VND) | ||
|---|---|---|---|---|
| Ccg ≤1 | 1 < Ccg < 5 | Ccg ≥ 5 | ||
| 1 | - Costs for deployment, support, administration, product operation or project-specific tasks before acceptance and handover (if any). | 65 | ||
| 2 |
Training costs for user guidance; training costs for management staff, system operators (if any) (for training categories without published technical-economic norms) |
55 | 50 | 45 |
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