Vietnam: Details of cost item for drainage service

According to new regulations of Circular No. 13/2018/TT-BXD of the Ministry of Construction of Vietnam, each cost item is determined as follows:

- Direct material cost is calculated by multiplying total quantity of such type of materials by the unit price thereof. 

- Direct labor cost includes cash payments made by the drainage service provider to direct workers such as salaries, wages, and salary allowances, other allowances (if any), etc.

- Direct machinery and equipment cost: determined according to machinery and equipment-shift rate, and regulations on management, utilization and depreciation of machinery and equipment.

- Manufacturing overhead includes indirect costs incurred by the provider of the drainage service, consisting of:  costs of depreciation, maintenance and repair of fixed assets, costs of indirect factory supplies and materials, salaries, wages, salary allowances, social insurance, health insurance, etc.

- General and administrative expenses include necessary costs for maintaining operations of the management and executive board of the enterprise providing the drainage service, and all expenses in general for the entire enterprise such as costs of depreciation and repair of fixed assets in service of the enterprise’s management and executive board, salaries, wages and salary allowances, social insurance, health insurance and unemployment insurance premiums, union dues, etc.

View more details at Circular No. 13/2018/TT-BXD of the Ministry of Construction of Vietnam, effective from February 15, 2019.

- Thanh Lam -

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