Level of advance capital for projects using public investment capital in Vietnam

Bao Ngoc

15:06, 15/11/2021

On 11/11/2021, the Government of Vietnam promulgated Decree 99/2021/ND-CP regulating management and payment, finalization of projects using public investment capital.

According to the Decree, the amount of advance capital is regulated as follows:

- For works performed through contracts (including construction contracts and contracts of projects without construction components):

The total advance capital at the request of the investor must not exceed 30% of the contract value (including provisions, if any). In case it is necessary to advance to a higher level, the investment decider's permission must be obtained.

- For work performed without a contract:

The total amount of basic advance requested by the investor must not exceed 30% of the cost estimate for the approved work volume in Vietnam. In case it is necessary to advance to a higher level, the investment decider's permission must be obtained.

Note: The advance capital for the above cases must not exceed the annual public investment plan allocated to the project by the competent authority of Vietnam

For contracts that have been signed and are being performed before January 1, 2022, the content of the advance may continue to be performed according to the contents specified in the contract. Advance procedures completed after January 1, 2022, shall comply with the provisions of Decree 99/2021 of Vietnam

Decree 99/2021/ND-CP of Vietnam takes effect from January 1, 2022.

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