Regulation on maintenance of maritime infrastructure in Vietnam

On March 12, 2018, the Government of Vietnam issued Decree No. 43/2018/NĐ-CP on management, use and operation of maritime infrastructure.

According to Decree No. 43/2018/NĐ-CP of Vietnam’s Government, maritime infrastructure must be maintained in accordance with this Decree and relevant regulations and in compliance with prescribed procedures, plan and standards to keep it in good conditions for ordinary and safe operation.

There are 03 methods of maintenance of maritime infrastructure:

Performance-based maintenance:

- Performance-based maintenance refers to maintenance carried out according to pre-determined quality standards, in a specific term with a certain amount of money as specified in the contract.

- The infrastructure supervisor shall determine the fixed price of maintenance for every facility under its management; and then submit it to competent authority for approval. The fixed price of maintenance shall be determined according to economic and technical norm approach or average cost approach in the last 3 consecutive years plus (+) inflation (if any) or a combination of above approaches.

- The Ministry of Transport of Vietnam shall stipulate criteria for supervision and inspection of maintenance of maritime infrastructure according to the quality.

Quantity-based maintenance:

Quantity-based maintenance refers to maintenance and payments made according to workload which has been performed.

Maintenance and product exploitation:

- Maintenance and exploitation of product means the state designates a maintenance provider to dredge and repair navigable channels in combination of exploitation of product to pay maintenance costs. This maintenance approach applies to the case of dredging and repairing navigable channels with presence of exploited products.

- The maintenance and exploitation of product must be in the form of a project which is executed in accordance with law on public investment and law on bidding.

The Ministry of Transport shall decide or designate competent authorities to decide which maintenance approach is used associated with maintenance of maritime infrastructure prescribed in this Decree, law on quality management and construction maintenance, and special law on maritime to ensure economical and effective factors.

Decree No. 43/2018/NĐ-CP of Vietnam’s Government comes into force from March 12, 2018.

-Thao Uyen-

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