Vietnam: Guidance on determination of project-related administrative costs

Circular No. 16/2019/TT-BXD of the Ministry of Construction of Vietnam, project-related administrative costs shall be determined as follows:

- Project-related administrative costs constituting total investment amount determined in percent (%) (issued in the Table No. 1.1 in Appendix No. 1 hereto) are multiplied by construction and equipment costs (not including VAT yet) constituting total investment amount.

- Project-related administrative costs included in a construction cost estimate or total cost estimate of a project determined in percent (%) (the same as the one used for calculation of project-related administrative costs included in the approved total investment amount) are multiplied by construction and equipment expenses (not including VAT) included in the construction cost estimate or total cost estimate of a project.

- Project-related administrative costs of offshore investment and construction projects, those located on islands; those located along land borders, those located at communes facing extreme socio-economic difficulties (coastal zones and islands; border communes, safety zone communes; mountainous or ethnic minority villages facing extreme difficulties) shall be determined according to the Government’s regulations by using the norms specified in the Table No. 1.1 in Appendix No. 1 hereto, and shall be adjusted with the coefficient k = 1.35.

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View details at Circular No. 16/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from February 15, 2020.

Thu Ba

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