Vietnam: Guidance on management of IT application cost norms

According to Circular No. 04/2020/TT-BTTTT of the Ministry of Information and Communications of Vietnam, management of cost norms of IT application projects funded by state budget for development investment expenditures is prescribed as follows:

- The Ministry of Information and Communications shall promulgate IT application cost norms which shall be used for estimation and management of IT application costs.

- With regard to distinct works of sectors or provinces, related ministries and provincial People’s Committees shall, based on the methods for establishing cost norms laid down in Clause 1 Article 7 hereof, determine or hire qualified organizations or individuals to determine, adjust and verify costs, and promulgate cost norms after obtaining the consent from the Ministry of Information and Communications. Promulgated cost norms must be presented to the Ministry of Information and Communications for monitoring.

In which, promulgated economic-technical norms are the basis for determining unit costs, total investment, cost estimates and managing costs of IT application projects.

Moreover, Circular No. 04/2020/TT-BTTTT also stipulates that IT application unit costs shall be established on the basis of costs selected from economic-technical norms adopted by the Ministry of Information and Communications, relevant cost items and provisions in Appendix 04 enclosed herewith.

Note: Total investment, cost estimates, unit costs of IT application must be properly calculated and include all cost items as prescribed.

View details at Circular No. 04/2020/TT-BTTTT of the Ministry of Information and Communications of Vietnam, effective from April 09, 2020.

Le Hai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE