Guidelines for applying cost norms for management and maintenance of national railway infrastructure in Vietnam

Guidelines for applying cost norms for management and maintenance of national railway infrastructure in Vietnam

In Appendix I issued with Circular 42/2024/TT-BGTVT, the management costs for the maintenance of national railway infrastructure in Vietnam are the enterprise's costs allocated for the project, including the following expenses:

- Management personnel costs, including payments for the management department such as wages and allowances of wage nature, deductions for social insurance, health insurance, unemployment insurance, and trade union fees for the management department staff according to the regulations of the Labor Code, policies, State policies, and relevant laws;

- Materials costs for management activities, materials used for the repair of fixed assets, tools, and instruments;

- Costs for the repair of fixed assets, transportation means, transmission, machinery, equipment, tools, and instruments used for management activities;

- Depreciation costs of fixed assets used in the management department such as office buildings for departments, transportation means, transmission, office management machinery and equipment, and other assets. Fixed asset depreciation is carried out according to the regulations of the Ministry of Finance on the policies for management, use, and depreciation of fixed assets;

- Costs for outsourced services serving management activities; expenses for purchasing and using technical documents, patents not meeting the standards for recognition as fixed assets are calculated according to the gradual allocation method into management costs; fixed asset lease payments, costs paid to contractors (if any);

- Taxes, fees, and charges (if any) per the legal regulations;

- Cash costs under general management, in addition to the above-mentioned expenses such as conference costs, hospitality, business trips, travel expenses, costs for female employees, research, training, association membership fees, and other reasonable and legitimate expenses (if any) according to the legal regulations;

- Costs that employers must pay to employees as prescribed (social insurance, health insurance, trade union fees, unemployment insurance, occupational accident insurance, other insurance, etc.).

For more details, refer to Circular 42/2024/TT-BGTVT effective from January 1, 2025.

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