Vietnam: Guidance on determination of investment counseling costs from February 15, 2020

Investment counseling costs are determined according to Article 8 of Circular No. 16/2019/TT-BXD of the Ministry of Construction of Vietnam as follows:

- Counseling costs shall be determined according to norms in percent (%) in proportion to the gross amount of construction expenses, the gross amount of equipment costs or the gross amount of construction and equipment expenses.

- Counseling costs vary depending on types of construction work or classification thereof in accordance with regulations currently in force. Costs of counseling of national defence and security projects shall be determined according to norms of counseling costs for respective civil, industrial, technical infrastructure, transport, agriculture and rural development construction works.

- Counseling costs shall be determined according to norms issued in Appendix No. 2 hereto, not including costs of preparation of application documents in foreign language. Costs of preparation of application documents in foreign language may be added to counseling costs and can be determined by estimation of costs which are not greater than 15% of counseling costs determined according to norms specified in Appendix No. 2 hereto.

- In case where preparing additional counseling documents according to international conventions or preparing separate reports upon any sponsor’s request is required with respect to projects funded by foreign loans, costs paid for these activities shall be determined by estimation of costs corresponding to respective work requirements.

- In case of simultaneous application of coefficients adjusting norms of counseling costs, adjusted counseling costs shall be determined by multiplying coefficients by norms of counseling costs.

- If it is necessary to hire a consulting person or entity to perform several consulting activities upon the request of competent authority during the period of inspection of acceptance testing of construction work, costs of hiring of such person or entity shall be determined on the basis of estimated costs relevant to consulting activities and scope of consulting duties that need to be performed.

View details at Circular No. 16/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from February 15, 2020.

Thu Ba

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