What are regulations on the accounting of irrigation infrastructure assets in Vietnam?

What are regulations on the accounting of irrigation infrastructure assets in Vietnam?

Pursuant to Article 10 of the Decree 129/2017/NĐ-CP stipulating the accounting of irrigation infrastructure assets in Vietnam as follows:

1. Irrigation infrastructure assets having an independent structure or a system consisting of many separate parts of assets linked together to perform one or a number of certain functions is an object included in accounting book.

In case a system is assigned to many management agencies, the object of accounting bookkeeping is the portion of assets assigned to each agency.

2. Agencies assigned to manage assets are agencies that open accounting books of irrigation infrastructure assets assigned to manage them according to the provisions of law on accounting.

3. The historical cost of irrigation infrastructure assets is determined according to the following principles:

a) For irrigation infrastructure assets in use before the effective date of this Decree:

- In case the irrigation infrastructure property has information on its historical cost and residual value, the existing value shall be used to record in the accounting books;

- In case there is no information on historical cost and residual value of an irrigation infrastructure property, it shall be determined according to the conventional price prescribed by the Minister of Agriculture and Rural Development on the basis of the value of works of equivalent technical level;

b) For irrigation infrastructure assets completed (new construction investment) and put into use from the effective date of this Decree, the book value is the approved final settlement value;

c) In case the irrigation infrastructure property in the process of management and use is upgraded or expanded according to the project approved by the competent authority, the final settlement value of the project is recorded as an increase in asset value;

d) In case the irrigation infrastructure property is newly built, completed and put into use, but has not yet been approved by a competent state agency, its temporarily calculated historical cost shall be used to record it in the accounting books. The estimated historical cost in this case shall be selected in the following order of priority: The value proposed for settlement; value determined according to AB's acceptance record; approved project cost estimate. When the final settlement is approved, the accounting agency must adjust the accounted value according to the provisions of law on accounting.

4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, stipulating the accounting regime and calculating the depreciation of irrigation infrastructure assets.

What are regulations on maintenance of irrigation infrastructure assets in Vietnam?

Pursuant to Article 11 of the Decree 129/2017/NĐ-CP stipulating maintenance of irrigation infrastructure assets in Vietnam as follows:

1. Irrigation infrastructure assets must be maintained according to technical standards, norms and procedures in order to maintain the technical condition of the property, ensure normal operation and safe use.

2. Contents of maintenance of irrigation infrastructure assets include one, several or all of the following tasks: Inspection, monitoring, quality assessment, maintenance and repair (regularly, periodically) assets, but excluding activities that change the function and scale of the works.

3. The maintenance of irrigation infrastructure assets must comply with the economic and technical norms and the technical maintenance and management process specified at Points b and h, Clause 2, Article 56 of the Law on Irrigation.

4. Periodically, the agency assigned to manage the property is responsible for making a list and a plan for maintenance of irrigation infrastructure assets under its management and submit to the Ministry of Agriculture and Rural Development for approval for centrally managed assets, provincial People's Committees for approval for locally managed properties and publicly announce on January 1 of each year on the website of the agency assigned to manage the property. The list and plan for maintenance of irrigation infrastructure assets include the following main contents:

a) Types of irrigation infrastructure assets;

b) Volume of work to be performed; unit price for each volume of work; total funding; funding; method of acceptance and payment;

c) Preferential mechanism (if any) applied to organizations and individuals assigned to maintain irrigation infrastructure assets;

d) Other relevant contents.

What are forms of maintenance of irrigation infrastructure assets in Vietnam?

Pursuant to Article 12 of the Decree 129/2017/NĐ-CP stipulating forms of maintenance of irrigation infrastructure assets in Vietnam as follows:

1. Maintenance according to the quality of implementation

a) Performance-based maintenance means that the State assigns enterprises to perform maintenance activities according to defined quality standards for a certain period of time with a certain amount of money specified in the economic contract;

b) Performance-based maintenance applies to routine maintenance of irrigation infrastructure assets;

c) The agency assigned to manage the property is responsible for determining the specific unit price of regular maintenance for each irrigation infrastructure property within the scope of its assigned management; submit to competent authorities for approval. In case of organizing bidding to select the maintenance enterprise, this price is the bidding package price;

d) The Ministry of Agriculture and Rural Development shall prescribe criteria for supervision and acceptance of results of regular maintenance of irrigation infrastructure assets according to the quality of implementation.

2. Maintenance according to actual volume

a) Maintenance according to actual volume of irrigation infrastructure assets means that the State assigns enterprises to maintain irrigation infrastructure assets and make payments to enterprises according to the actual volume of work performed;

b) The maintenance according to the actual volume applies to periodic repair and unexpected repair activities.

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