Vietnam: Determining return on equity of investors

15:55, 05/01/2019

On December 10, 2018, the Ministry of Finance of Vietnam issued Circular No. 120/2018/TT-BTC, which specifies the return on equity of investors of projects on construction of Eastern Sections of the North – South Expressway during 2017 – 2020.

According to Circular No. 120/2018/TT-BTC of the Ministry of Finance of Vietnam, return on equity of investors shall be determined as follows:

- The Ministry of Transport shall determine and assume responsibility for the determined rate of return on each PPP project which must be conformable with the rate of return bracket announced by the Ministry of Transport;

- The rate of return is the average profit per equity of the investor (expressed as %) in accordance with regulations laid down in Clause 3 Article 1 of the Resolution No. 20/NQ-CP of Vietnam’s Government. An investor will earn profit from the time when a competent authority gives approval for the operation of the PPP project.

- The investor’s return on equity specified in the project contract shall be determined through bidding for investor selection. In case only one investor is successful in the prequalification, the regulatory authority shall submit a report thereof to the Government for consideration and decision on the investor’s return on equity.

View details at Circular No. 120/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from January 23, 2019.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

45 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn