Vietnam: Inclusions in project administrative and investment counseling costs

Investment and construction expenses of projects funded by the state budget and non-state budgetary capital or PPP investment projects under clause 2 of Article 32 of Decree No. 68/2019/ND-CP dated August 14, 2019 of Vietnam’s Government shall be determined according to norms of project-related administrative costs issued in the Table No. 1.1 and No. 1.2 in the Appendix No. 1 attached to Circular No. 16/2019/TT-BXD as a basis for calculation, including:

- Wages, salaries paid to project administrators or employees according to their employment contracts;

- Salary allowances; bonuses, welfare benefits; contributions (e.g. social insurance, health insurance, unemployment insurance, trade union dues, other payments prescribed under laws, paid to persons entitled to receive wages and salaries from projects);

- Costs of scientific and technological application, management of application of the building information modeling (BIM) system;

- Costs of training in enhancement of project administrator’s capabilities; payments for public services;

- Payments for stationery supplies; communication and telecommunication costs; costs of project-related seminars;

- Business travel fees;

- Costs of hiring, repair or purchase of assets necessary for administration of projects, other costs and contingency expenses.

Circular No. 16/2019/TT-BXD of the Ministry of Construction of Vietnam also stipulates that project-related administrative costs constituting total investment amount determined in percent (%) (issued in the Table No. 1.1 in Appendix No. 1 hereto) are multiplied by construction and equipment costs (not including VAT yet) constituting total investment amount.

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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