Vietnam’s regulations on national railway infrastructure

One of the outstanding contents of Decree No. 46/2018/NĐ-CP of Vietnam’s Government is the regulation on dossier of management and accounting of railway infrastructure. To be specific:

Dossier of management of national railway infrastructure

The dossier of management shall consist of:

- Documentation relating to the forming of and changes to the national railway infrastructure as prescribed in the regulations hereof and other relevant laws of the state.

- A declaration and a report on management, use and operation of national railway infrastructure.

- Railway infrastructure database.

According to Decree No. 46/2018/NĐ-CP of Vietnam’s Government, managing agencies shall:

- Prepare dossiers of infrastructure facilities within their scope of management.

- Manage and maintain adequate dossiers of infrastructure facilities under their management and send required reports to the Ministry of Transport and the regulatory authorities.

Accounting of national railway infrastructure

Decree No. 46/2018/NĐ-CP of Vietnam’s Government specifies: Any national railway infrastructure which is structurally-independent or a system combining individual parts intended for performing one or certain functions is considered as subject matter to be recorded.

If one system is handed over to multiple managing agencies, the subject matter to be recorded shall be the part of infrastructure delivered to each agency.

The managing agencies shall:

- Set up an accounting book and apply accounting for national railway infrastructure as prescribed in the law on accounting and the regulations hereof. 

- Make annual reports on the increase or decrease in quantity and the depreciation of national railway infrastructure as prescribed in law regulations.

The input value and residual value of national railway infrastructure shall be determined in accordance with the following principles:

- If the national railway infrastructure is operated before this Decree comes into effect and its input value or residual value are known, such value shall be recorded in the accounting books; if the infrastructure’s input value or residual value remains unknown, the conventional price based to determine its input value shall be recorded in the accounting books; this conventional price shall be determined by the Minister of Transport.

- As for the national railway infrastructure which is completed and brought into operation from the effective date of this Decree, its value determined in procurement or settlement shall be recorded in the accounting books as prescribed.

- If the national railway infrastructure is newly built and brought into operation but its final accounts have not been approved by the competent authorities, its provisional input value shall be recorded in the accounting books.

The provisional input value in this case shall be selected according to the following order of precedence:

+ Proposed value in the final accounts;

+ Value stated in the taking-over A-B;

+ The estimated value of the approved project. If the final accounts are approved by the competent authorities, the managing agencies shall adjust the above value as prescribed in the law on accounting.

- If the national railway infrastructure, during the operation period, is upgraded and expanded in accordance with the project approved by the competent authorities, an increase in value shall be recorded.

The Ministry of Finance shall take charge and cooperate with the Ministry of Transport to provide regulations on accounting and calculations of the depreciation of national railway infrastructure.

View more details at Decree No. 46/2018/NĐ-CP of Vietnam’s Government, effective from March 14, 2018.

-Thao Uyen-

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