Latest Dossier for asset management for road traffic infrastructure in Vietnam

Dossier for asset management for road traffic infrastructure in Vietnam​ (Image from Internet)

1. Dossier for asset management for road traffic infrastructure in Vietnam

According to Clause 1, Article 8 of Decree 44/2024/ND-CP, the Dossier for asset management for road traffic infrastructure in includes:

- Documents related to the formation and changes of road traffic infrastructure assets as stipulated in Decree 44/2024/ND-CP and relevant laws; legal documents regarding land attached to road traffic infrastructure (if any) in cases where land is allocated or leased by competent authorities or individuals as per the land laws.

- Declaration reports; management, usage, and exploitation reports of road traffic infrastructure assets as stipulated in Decree 44/2024/ND-CP.

- Data in the Database on road traffic infrastructure assets as stipulated in Decree 44/2024/ND-CP.

2. Regulations on accounting for road traffic infrastructure assets

According to Article 9 of Decree 44/2024/ND-CP, the regulations on accounting for infrastructure assets are as follows:

- Road traffic infrastructure assets with an independent structure or a system comprising multiple interconnected individual asset components for performing one or several specific functions are a subject to be recorded in accounting books.

In cases where a system is managed by multiple agencies, the accounting subject is the asset portion assigned to each agency.

- Asset management agencies have the responsibility to:

+ Open books and carry out the accounting for road traffic infrastructure assets (or general accounting based on detailed accounting of subordinate administrative organizations or public service providers delegated/authorized/assigned to perform accounting tasks as stipulated in Clause 2, Article 5 of Decree 44/2024/ND-CP) according to accounting laws and regulations in Decree 44/2024/ND-CP.

+ Report on the increase, decrease, and depreciation of road traffic infrastructure assets as required by laws.

- The original cost and remaining value of road traffic infrastructure assets as fixed assets are determined according to the principle:

+ For infrastructure assets purchased and newly constructed, put into use from the effective date of Decree 44/2024/ND-CP, the original cost recorded is the approved procurement or investment value.

In cases where the procurement or investment value is settled jointly for multiple assets or components (not itemized), the original cost of each asset or component shall be allocated based on appropriate criteria (quantity/detailed estimate/market value proportion...).

In cases not approved for final settlement, the provisional original cost is used for accounting records. The provisional original cost, in this case, follows the priority order: Audited settlement value; proposed settlement value; value determined from the A-B handover minutes; approved total investment or adjusted project estimate.

When approved for final settlement, the asset management agency adjusts the provisional original cost to the approved settlement value for accounting adjustments.

+ For infrastructure assets taken over by the asset management agency per decisions by competent authorities from the effective date of Decree 44/2024/ND-CP, the original cost, remaining value are based on the handover minutes.

In cases of handing over existing assets to the management agency per Chapter II of Decree 44/2024/ND-CP where the asset value is not recorded in the accounting books, the management agency collaborates with the managing entity to determine the original cost, remaining value of assets per the regulations in points a, b, and d, Clause 3, Article 19 of Decree 44/2024/ND-CP.

+ For infrastructure assets discovered in surplus during inventory checks, depending on the origin and usage time, their accounting book value shall be determined according to points a, b, and d, Clause 3, Article 19 of Decree 44/2024/ND-CP.

+ For road traffic infrastructure assets existing before the effective date of Decree 44/2024/ND-CP, the valuation for accounting records is done according to the regulations of the Minister of Finance.

- The original cost of road traffic infrastructure assets can be adjusted in the following cases:

+ Revaluation of infrastructure asset value when inventories are performed by the decision of the Prime Minister of Vietnam.

+ Upgrading or expanding the infrastructure assets per approved project by competent authorities.

+ Removing parts of infrastructure assets (in cases where the removed part's value is accounted for in the total asset’s original cost), except for removal during maintenance.

+ Adding new components to road traffic infrastructure assets, except in cases for maintenance replacement.

+ Partial loss or significant damage due to natural disasters, force majeure events, or other sudden impacts (excluding assets resolved through road maintenance laws or restored via insurance or compensations).

- The value of road traffic infrastructure assets specified in Decree 44/2024/ND-CP is used for accounting, declaration to update data in the Database on road traffic infrastructure assets, and other purposes as required by laws.

To Quoc Trinh

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