What are regulations on accounting of national railway infrastructure in Vietnam?

What are regulations on accounting of national railway infrastructure in Vietnam?

Pursuant to Article 8 of the Decree 46/2018/NĐ-CP stipulating accounting of national railway infrastructure in Vietnam as follows:

1. Any national railway infrastructure which is structurally-independent or a system combining individual parts intended for performing one or certain functions is considered as subject matter to be recorded.

If one system is handed over to multiple managing agencies, the subject matter to be recorded shall be the part of infrastructure delivered to each agency.

2. The managing agencies shall:

a. Set up accounting book and apply accounting for national railway infrastructure as prescribed in the law on accounting and the regulations hereof. 

b. Make annual reports on the increase or decrease in quantity and the depreciation of national railway infrastructure as prescribed in law regulations.

3. The input value and residual value of national railway infrastructure shall be determined in accordance with the following principles:

a. If the national railway infrastructure is operated before this Decree comes into effect and its input value or residual value are known, such value shall be recorded in the accounting books; if the infrastructure’s input value or residual value remains unknown, the conventional price based to determine its input value shall be recorded in the accounting books; this conventional price shall be determined by the Minister of Transport.

b. As for the national railway infrastructure which is completed and brought into operation from the effective date of this Decree, its value determined in procurement or settlement shall be recorded in the accounting books as prescribed.

c. If the national railway infrastructure is newly built and brought into operation but its final accounts have not been approved by the competent authorities, its provisional input value shall be recorded in the accounting books. The provisional input value in this case shall be selected according to the following order of precedence: proposed value in the final accounts; value stated in the taking-over A-B; the estimated value of the approved project. If the final accounts are approved by the competent authorities, the managing agencies shall adjust the above value as prescribed in the law on accounting.

d. If the national railway infrastructure, during the operation period, is upgraded and expanded in accordance with the project approved by the competent authorities, an increase in value shall be recorded.

4. The Ministry of Finance shall take charge and cooperate with the Ministry of Transport to provide regulations on accounting and calculations of the depreciation of national railway infrastructure.

What are regulations on maintenance of national railway infrastructure in Vietnam?

Pursuant to Article 9 of the Decree 46/2018/NĐ-CP stipulating maintenance of national railway infrastructure in Vietnam as follows:

1. The national railway infrastructure shall be maintained in accordance with the regulations hereof and other relevant regulations, shall comply with the prescribed procedures, plans and standards to keep it in good conditions for ordinary and safe operation.

2. Methods of maintenance of national railway infrastructure:

a. Performance-based maintenance:

Performance based maintenance is the maintenance carried out in accordance with the pre-determined quality standards within a specific time and with a certain amount of money specified in the Economic Contract. 

The managing agencies shall determine the fixed price of maintenance for each facility under its management and submit this price to the competent authorities for approval. The fixed price of maintenance for national railway infrastructure shall be determined according to the economic and technical norm approach or average cost approach in the last 03 consecutive years plus inflation (if any) or the combination of both approaches.

The Ministry of Transport shall stipulate the criteria for supervising and inspecting the maintenance of national railway infrastructure based on its quality.

b. Quantity-based maintenance:

Quantity-based maintenance is the maintenance and payment made in accordance with the workload which has been performed in reality.

3. The Ministry of Transport shall decide or designate competent authorities to choose which maintenance approach is used as specified in point a, b, clause 2 of this Article associated with the maintenance of national railway infrastructure specified in this Decree, law on quality management and construction maintenance, special law on railway and relevant laws to ensure economical and effective factors.

4. The selection of maintenance provider for national railway infrastructure under the approach specified in clause 2 of this Article shall be carried out in accordance with the law on bidding, special law on railway and relevant laws.

The selection of maintenance providers for the cases specified in point a, b and c, clause 5 of this Article shall be carried out in accordance with relevant laws.

5. The funding for maintenance of national railway infrastructure shall be financed from the state budget as prescribed in the law on state budget and from other sources as prescribed by laws, unless:

a. The national railway infrastructure has been counted as state capital portion of the enterprise.

b. The right to operate national railway infrastructure has been leased to an operator which is obliged to carry out the maintenance as prescribed in the contract.  

c. The right to operate the national railway infrastructure has been transferred, within a specific time, to the transferee which is obliged to carry out the maintenance as prescribed in the contract.

What are regulations on state budgetary estimate of expenditures on the maintenance of national railway infrastructure in Vietnam?

Pursuant to Article 10 of the Decree 46/2018/NĐ-CP stipulating state budgetary estimate of expenditures on the maintenance of national railway infrastructure in Vietnam as follows:

1. Procedures for preparing and giving budgetary estimates of expenditures on maintenance of national railway infrastructure shall be carried out in accordance with the law on state budget.

a. Based on the technical standards, technical regulations, economic and technical norms, unit prices, quantity of workload to be performed and the maintenance plan which is approved by the competent authorities, the managing agencies shall take charge and cooperate with the relevant agencies or enterprises to prepare the state budgetary estimate of expenditures on maintenance of railway infrastructure (except the cases specified in point a, b and c, clause 5, Article 9 hereof) and submit this estimate to the Ministry of Transport.

b. The Ministry of Transport shall review the budgetary estimate of expenditures on maintenance of national railway infrastructure in terms of priority; include this estimate in the annual state budget estimate and send it to the Ministry of Finance as prescribed in the law on state budget.

c. On the basis of the competent authority’s decision to provide state budgetary estimate, the Ministry of Transport shall provide this estimate, inclusive of the maintenance costs for national railway infrastructure, to the managing agency.

d. The managing agency shall initiate the budgetary estimates of expenditures on maintenance of railway infrastructure as prescribed by laws.

2. Procedures for preparing and providing budgetary estimates of 3-year or 5-year expenditures on the maintenance of national railway infrastructure shall be carried out in accordance with the law on 3-year and 5-year financial plans.

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