Vietnam: The cost of local garbage collection is not more than 55% of the labor fee

Duy Thinh

15:23, 09/01/2018

This is the new way to determine the cost estimate of urban public services mentioned in Circular No. 14/2017/TT-BXD issued by the Ministry of Construction of Vietnam on December 28, 2017.

When making estimates of general management costs of urban public services, daily-life solid waste collection costs are determined as a percentage of direct labor costs, and the maximum is not more than 55% for special urban areas.

In order classes of urban areas, the percentages are as follows:

- Class-I urban area: Not more than 53%;

- Class-II urban area: Not more than 50%;

- Class-III, IV urban area: Not more than 48%.

In particular, if costs of vehicles, machinery and equipment of an urban public service are greater than 60% of the direct cost, the general administration cost must not exceed 5% of the costs of vehicles, machinery and equipment.

View details at Circular No. 14/2017/TT-BXD of the Ministry of Construction of Vietnam, effective from February 15, 2018, replacing Circular No. 06/2008/TT-BXD.

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