Vietnam: Newly promulgating 06 principles of determination of investment costs per unit

Currently, investment costs per unit (hereinafter referred to as unit investment costs) refer to the amount of costs necessary per a unit of measure (e.g. area, volume, length, etc.), service capacity or capability, etc. according to designs for determination of construction investment costs. Unit investment costs shall include such costs as construction, equipment, construction and investment project management, construction investment consultancy and other costs. They shall also include value-added taxes on the aforesaid costs.

According to Article 21 of Circular No. 09/2019/TT-BXD of the Ministry of Construction of Vietnam, determination of investment costs per unit shall be carried out according to the 06 following principles:

- Typical construction works selected for calculation must be conformable to construction standards, construction regulations, regulations on classification and grading of construction works, may tend to be invested in and constructed and must be suitable to the scientific, technological and socio-economic development tendency at the time of calculation;

- As for specific groups and types of construction works, typical construction works must be chosen to correspond to classifications and grading of construction works in accordance with regulations in force;

- Technical instructions and construction standards applied to calculation of unit investment costs must be adequate and explicit;

- Unit investment costs must be calculated to ensure constituent costs are adequate and reasonable; ensure that they are typical or general;

- Data and figures used for determination of unit investment costs must ensure reliability and must be aligned with the design phase;

- Units of measure used for calculation of unit investment costs must match types of construction works.

Specifically, approach to determination of unit investment costs shall be subject to the instructions given in Appendix No. 5 hereto.

View more details at Circular No. 09/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from February 15, 2020.

Thu Ba

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