Vietnam’s announcement of rates of investment in construction in 2023

Vietnam’s announcement of rates of investment in construction in 2023

The rate of investment in construction is the necessary cost for one unit calculated by the area, volume, length, or serving capacity or capability of works according to designs. 

The serving capacity or capability by designs of works is the capability of manufacturing or utilizing works based on designs determined by appropriate measurement units. 

The average of investment rates is announced nationwide. When applying investment rates to works in zones prescribed below, the coefficients for zones announced in Part 4 of Decision No. 816/QD-BXD dated August 22, 2024 shall be applied. Zones with announced coefficients include: 

- Zone 1 includes: 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, and Bac Giang.

- Zone 2 includes: Quang Ninh, Bac Ninh, Ha Nam, Hai Duong, Hung Yen, Hai Phong City, Nam Dinh, Ninh Binh, Thai Binh, and Vinh Phuc.

- Zone 3 includes: 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, and Binh Thuan.

- Zone 4 includes: Kon Tum, Gia Lai, Dac Lac, Dac Nong, and Lam Dong.

- Zone 5 includes: Binh Phuoc, Binh Duong, Dong Nai, Tay Ninh, and Ba Ria-Vung Tau.

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

- Zone 7: Hanoi City. 

- Zone 8: Ho Chi Minh City. 

The investment rates announced together with Decision No. 816/QD-BXD dated August 22, 2024 are one of the bases for references used for determining estimated total investment and total investment and determining and managing investment costs in the stage of preparation for projects on specific works and common construction investment projects.  

Investment rates are calculated using the price levels of the fourth quarter of 2023. Regarding works involving the use of USD, the foreign currency costs shall be converted to VND based on the average exchange rate in the fourth quarter of 2023, 1 USD = 24.378 VND, according to the announcement of exchange rates of the Joint Stock Commercial Bank for Foreign Trade of Vietnam.

See more details in Decision No. 816/QD-BXD dated August 22, 2024. 

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE