Method for determining cost estimates for investment in information technology application in Vietnam from February 14, 2025

On December 30, 2024, the Minister of Information and Communications of Vietnam promulgated Circular 18/2024/TT-BTTTT regulating the formulation and management of investment costs related to the application of information technology and the rental of information technology services using state budget funds.

Method for determining cost estimates for investment in information technology application in Vietnam from February 14, 2025

According to Article 6 of Circular 18/2024/TT-BTTTT, the method for determining cost estimates in Vietnam is regulated as follows:

(1) Determining construction costs

Construction costs are determined according to the guidelines in section 1 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT.

(2) Determining equipment costs

- Costs for purchasing information technology equipment

+ Equipment costs are determined based on the quantity, type of equipment needed for purchase, and equipment prices on the market, in accordance with the guidelines at point a, section 2.1 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

+ Costs for building, developing, upgrading, and expanding internal software are determined according to the guidelines at point b, section 2.1 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

- Costs for creating databases; standardizing, converting to serve data input, creating databases; and performing data entry for databases are determined according to the guidelines in section 2.2 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

- Costs for installing, setting up equipment; setting up software; checking, calibrating equipment and software are determined according to the guidelines in section 2.3 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

- Costs for training and user guidance; training costs for system administrators and operators (if necessary) are determined according to the guidelines in section 2.4 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

- Costs for transportation, insurance of equipment (if applicable and not included in the equipment purchase cost) are determined by creating an estimate according to the guidelines in section 2.6 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

- Costs for deployment, support, administration, and operation of products or project tasks before the acceptance and delivery of the entire project product (if applicable) are determined by creating an estimate according to the guidelines in section 2.5 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT;

- Other related costs (if applicable) are determined by creating an estimate according to the guidelines in section 2.7 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT.

(3) Determining project management costs

Project management costs are the maximum costs for managing the project consistent with the time, scope of work approved for the project, determined on the basis of cost norms by percentage or by creating an estimate suitable with the project management costs in the approved total investment capital, project management form, project implementation time, scale, and characteristics of project management work according to the guidelines in section 3 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT.

(4) Determining investment consulting costs

- For investment consulting work with a cost norm by percentage, the investment consulting cost is determined based on the cost norm by percentage.

If the issued norm is not suitable for the consulting work to be calculated, the investor is responsible for considering and deciding to prepare an estimate suitable with the content of the work to be performed. The estimate preparation is carried out according to the expert-guided cost determination method in Appendix No. 06 issued together with Circular 18/2024/TT-BTTTT;

- For investment consulting work without a cost norm by percentage, the consulting cost is determined by preparing an estimate suitable with the content of the work to be performed. The estimate preparation is carried out according to the expert-guided cost determination method in Appendix No. 06 issued together with Circular 18/2024/TT-BTTTT;

- For some investment consulting work conducted before determining the estimate, those investment consulting costs are identified based on the estimated cost or approved bidding package price or contracts signed that are compliant with legal regulations.

(5) Determining other costs

Other costs include costs not specified in the aforementioned items, determined based on cost norms by percentage or by preparing an estimate according to the guidelines in section 5 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT.

(6) Determining contingency costs

Contingency costs for unforeseen work volumes are calculated as a percentage (%) on the total costs specified in the aforementioned items.

Contingency costs for price fluctuation factors are calculated based on the investment duration (in months, quarters, years) of the project.

Contingency costs are determined according to the guidelines in section 6 of Appendix No. 03 issued together with Circular 18/2024/TT-BTTTT.

(7) Methods for determining adjusted estimates are guided in Appendix No. 08 issued together with Circular 18/2024/TT-BTTTT.

Circular 18/2024/TT-BTTTT takes effect from February 14, 2025.

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