Vietnam: Return on equity of investors in projects on construction of Eastern Sections of the North – South Expressway

09:00, 04/01/2019

Recently, the Ministry of Finance of Vietnam has issued Circular No. 120/2018/TT-BTC, which specifies return on equity of investors in projects on construction of Eastern Sections of the North – South Expressway.

The Ministry of Transport of Vietnam shall determine and assume responsibility for the determined rate of return on each PPP project which must be conformable with the rate of return bracket announced by the Ministry of Transport in Clause 2 Article 73 of Decree No. 63/2018/ND-CP of Vietnam’s Government, to be specific:

- The rate of return is the average profit per equity of the investor (expressed as %) in accordance with regulations laid down in Clause 3 Article 1 of the Resolution No. 20/NQ-CP of Vietnam’s Government.

- An investor will earn profit from the time when a competent authority gives approval for the operation of the PPP project.

- The investor’s return on equity specified in the project contract shall be determined through bidding for investor selection. In case only one investor is successful in the prequalification, the regulatory authority shall submit a report thereof to the Government for consideration and decision on the investor’s return on equity.

View details at Circular No. 120/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from January 23, 2019.

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