Announcement of investment unit cost in construction in Vietnam for 2023

Announcement of investment unit cost in construction in Vietnam for 2023

The investment unit cost in construction is the necessary cost per unit, calculated by area, volume, length, or capacity or serviceability of the project according to the design.

The design capacity or serviceability of the project refers to the capacity for production or usage of the project as determined by appropriate measurement units.

The investment rate is announced on average for the entire country. When applying the investment rate for projects located in the regions listed below, an adjustment coefficient for the region published in Part 4 of Decision 816/QD-BXD dated August 22, 2024, will be used. The regions where adjustment coefficients are published include:

- Region 1 includes the provinces of: Lao Cai, Yen Bai, Dien Bien, Hoa Binh, Lai Chau, Son La, Ha Giang, Cao Bang, Bac Kan, Lang Son, Tuyen Quang, Thai Nguyen, Phu Tho, Bac Giang.

- Region 2 includes the provinces and cities of: Quang Ninh, Bac Ninh, Ha Nam, Hai Duong, Hung Yen, Hai Phong City, Nam Dinh, Ninh Binh, Thai Binh, Vinh Phuc.

- Region 3 includes the provinces and cities of: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien-Hue, Da Nang City, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan.

- Region 4 includes the provinces of: Kon Tum, Gia Lai, Dak Lak, Dak Nong, Lam Dong.

- Region 5 includes the provinces of: Binh Phuoc, Binh Duong, Dong Nai, Tay Ninh, Ba Ria-Vung Tau.

- Region 6 includes the provinces and cities of: Long An, Dong Thap, Tien Giang, An Giang, Ben Tre, Vinh Long, Tra Vinh, Hau Giang, Kien Giang, Soc Trang, Bac Lieu, Ca Mau, Can Tho City.

- Region 7: Hanoi City.

- Region 8: Ho Chi Minh City.

The investment rate published alongside Decision 816/QD-BXD dated August 22, 2024, serves as a reference, useful in determining preliminary total construction investment, total construction investment, and in determining and managing construction investment costs during the project preparation stage for several common construction projects.

The investment rate is calculated based on the pricing level of the fourth quarter of 2023. For projects using foreign currency in USD, the foreign currency costs are converted to Vietnamese dong at the average exchange rate for the fourth quarter of 2023, which is 1 USD = 24,378 VND according to the foreign currency exchange rate announced by the Joint Stock Commercial Bank for Foreign Trade of Vietnam.

More details can be found in Decision 816/QD-BXD dated August 22, 2024.

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