CIRCULAR

REGULATIONS ON THE ESTABLISHMENT AND MANAGEMENT OF INVESTMENT COSTS FOR INFORMATION TECHNOLOGY APPLICATIONS, AND THE LEASING OF INFORMATION TECHNOLOGY SERVICES USING STATE BUDGET FUNDS

DECREE NO. 73/2019/ND-CP dated September 5, 2019 of the Government on the management of investment for information technology applications using state budget funds;

On the basis of Article 1. Amending and supplementing Level 1 Codes of agencies and organizations prescribed in Decision No. 20/2020/QĐ-TTg dated July 22, 2020 of the Prime Minister on electronic identification codes for agencies and organizations to facilitate data connection and sharing with ministries, sectors, and localities

Decree No. DECREE NO. 82/2024/ND-CP dated July 10, 2024 of the Government amending and supplementing certain articles of Decree No. 73/2019/ND-CP;

Decree No. DECREE NO. 48/2022/ND-CP dated July 26, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Information and Communications; DECREE NO. 82/2024/ND-CP dated July 10, 2024 of the Government amending and supplementing certain articles of Decree No. 73/2019/ND-CP;

Decree No. At the proposal of the Director of the National Digital Transformation Agency,

The Minister of Information and Communications issues this Circular to regulate the establishment and management of investment costs for information technology applications and the leasing of information technology services using state budget funds.

This Circular regulates the establishment and management of investment costs for information technology applications and the leasing of information technology services using state budget funds as stipulated in Decree No. 73/2019/ND-CP dated September 5, 2019 of the Government on the management of investment for information technology applications using state budget funds (referred to as Decree No. 73/2019/ND-CP), which has been amended and supplemented by Decree No. 82/2024/ND-CP dated July 10, 2024 of the Government amending and supplementing certain articles of Decree No. 73/2019/ND-CP dated September 5, 2019 of the Government on the management of investment for information technology applications using state budget funds (referred to as Decree No. 82/2024/ND-CP), including:

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. The method for initially determining the total investment ceiling as stipulated in Clause 2, Article 12 of Decree No. 73/2019/ND-CP (amended and supplemented in Clause 10, Article 1 of Decree No. 82/2024/ND-CP).

2. The method for determining the total investment ceiling as stipulated in Point d, Clause 4, Article 19 of Decree No. 73/2019/ND-CP (amended and supplemented in Point đ, Clause 13, Article 1 of Decree No. 82/2024/ND-CP).

3. The method for determining the budget estimate, establishing norms, unit prices during each period, and managing costs as stipulated in Point a, Clause 2, and Clause 3, Article 28 of Decree No. 73/2019/ND-CP (amended and supplemented in Clause 20, Article 1 of Decree No. 82/2024/ND-CP).

4. The content and method for determining administrative, operational, and maintenance costs as stipulated in Clause 4, Article 40 of Decree No. 73/2019/ND-CP (amended and supplemented in Clause 26, Article 1 of Decree No. 82/2024/ND-CP).

5. The method for determining the cost of leasing services according to specific requirements as stipulated in Point c, Clause 2, Article 55 of Decree No. 73/2019/ND-CP (amended and supplemented in Point b, Clause 33, Article 1 of Decree No. 82/2024/ND-CP).

This Circular applies to the subjects stipulated in Article 2 of Decree No. 73/2019/ND-CP.

Article 2. Applicability

Article 3. Principles for Establishing and Managing Costs

1. Ensuring compliance with the objectives and effectiveness of activities related to the application of information technology using state budget funds.

2. Costs must be calculated correctly according to the prescribed methods, covering all cost items for each activity related to the application of information technology.

3. The State manages costs through the issuance, guidance, and inspection of the implementation of legal regulations.

METHODS FOR INITIALLY DETERMINING THE TOTAL INVESTMENT CEILING,

Chapter II
TOTAL INVESTMENT CEILING, BUDGET ESTIMATE TOTAL INVESTMENT, ESTIMATES

Article 4. Method for Preliminary Estimation of Total Investment Cost

1. The components of the preliminary total investment cost include: construction and installation costs; equipment costs; project management costs; investment consulting costs; other costs; contingency costs.

2. The preliminary total investment cost is determined according to the methods prescribed in Clause 2, Article 12 of Decree No. 73/2019/ND-CP (amended and supplemented at Clause 10, Article 1 of Decree No. 82/2024/ND-CP). Detailed methods for determining the preliminary total investment cost are provided in Appendix No. 01 issued together with this Circular.

Article 5. Method for Determining Total Investment Cost

The total investment cost is determined according to the methods prescribed in Clause 4, Article 19 of Decree No. 73/2019/ND-CP (amended and supplemented at Point d, Clause 13, Article 1 of Decree No. 82/2024/ND-CP). Detailed methods for determining the total investment cost are provided in Appendix No. 02 issued together with this Circular.

Article 6. Method for Determining Budget Estimate

1. Determination of Construction and Installation Costs

Construction and installation costs are determined according to the guidelines set out in Section 1 of Appendix No. 03 issued together with this Circular.

2. Determination of Equipment Costs

a) Purchase and acquisition costs of information technology equipment

- Equipment costs are determined based on the quantity and type of equipment needed to be purchased and the market price of equipment, following the guidelines set out in Point a, Section 2.1 of Appendix No. 03 issued together with this Circular;

- Costs for building, developing, upgrading, and expanding internal software are determined according to the guidelines set out in Point b, Section 2.1 of Appendix No. 03 issued together with this Circular;

b) Costs for establishing databases; standardizing and converting data for database creation and data entry are determined according to the guidelines set out in Section 2.2 of Appendix No. 03 issued together with this Circular;

c) Costs for installing and configuring equipment; installing software; testing and adjusting equipment and software are determined according to the guidelines set out in Section 2.3 of Appendix No. 03 issued together with this Circular;

d) Training costs for using the equipment; training costs for administrative staff managing and operating the system (if applicable) are determined according to the guidelines set out in Section 2.4 of Appendix No. 03 issued together with this Circular;

đ) Transportation and insurance costs for equipment (if applicable and not included in the purchase and acquisition costs of equipment) are determined by preparing a budget estimate according to the guidelines set out in Section 2.6 of Appendix No. 03 issued together with this Circular;

e) Deployment, support, management, and operation costs for products or project components before final acceptance (if applicable) are determined by preparing a budget estimate according to the guidelines set out in Section 2.5 of Appendix No. 03 issued together with this Circular;

g) Other related costs (if applicable) are determined by preparing a budget estimate according to the guidelines set out in Section 2.7 of Appendix No. 03 issued together with this Circular.

3. Determination of Project Management Costs

Project management costs are the maximum costs for managing the project in accordance with the approved time frame and scope of work, determined based on cost standards or by preparing a budget estimate consistent with the project management costs within the approved total investment cost, project management form, implementation period, scale, and characteristics of project management tasks according to the guidelines set out in Section 3 of Appendix No. 03 issued together with this Circular.

4. Determination of Investment Consulting Costs

a) For investment consulting work that has cost standards based on percentages, the investment consulting costs are determined based on these cost standards.

In cases where the established standards are not suitable for the required consulting work, the investor is responsible for reviewing and deciding to prepare a budget estimate appropriate to the work content. The preparation of the budget estimate is carried out according to the method of determining costs based on experts' guidance set out in Appendix No. 06 issued together with this Circular;

b) For investment consulting work without cost standards based on percentages, the consulting costs are determined by preparing a budget estimate appropriate to the required work content. The preparation of the budget estimate is carried out according to the method of determining costs based on experts' guidance set out in Appendix No. 06 issued together with this Circular;

c) For some investment consulting work performed before the budget estimate is determined, the consulting costs are determined based on the estimated price or the approved tender price or the signed consulting contract in accordance with the provisions of the law.

5. Determination of Other Costs

Other costs include costs not specified in Clauses 1, 2, 3, and 4 of this Article, determined based on cost standards based on percentages or by preparing a budget estimate according to the guidelines set out in Section 5 of Appendix No. 03 issued together with this Circular.

6. Determination of Contingency Costs

Contingency costs for unforeseen work volumes are calculated as a percentage (%) of the total costs specified in Clauses 1, 2, 3, 4, and 5 of this Article.

Contingency costs for inflation factors are calculated based on the length of the investment period (measured in months, quarters, or years) of the project.

Contingency costs are determined according to the guidelines set out in Section 6 of Appendix No. 03 issued together with this Circular.

7. The method for determining adjusted budget estimates is guided by Appendix No. 08 issued together with this Circular.

Article 7. Information Technology Application Norm System

1. The information technology application norm system includes economic-technical norms and cost ratio norms.

2. Economic-technical norms are the necessary consumption levels of materials, labor, machinery, and construction equipment, determined in accordance with technical requirements, technology, implementation measures, and the scope of specific work to complete a unit volume of work.

3. Cost ratio norms are norms expressed as a percentage (%). Cost ratio norms are used to determine the budgeted costs for certain types of work, costs in information technology application activities using state budget funds including general costs, pre-tax income, project management costs, investment consulting costs, and other costs.

4. Information technology application norms serve as the basis for establishing information technology application unit prices.

Article 8. Information Technology Application Unit Price

1. The information technology application unit price serves as the basis for establishing and managing costs in information technology application activities using state budget funds.

2. The information technology application unit price is determined based on norms and material, labor, machinery, and construction equipment prices, or other necessary cost factors, or published by competent state agencies, or according to the prices of similar completed projects, or through bidding. The method of determining the information technology application unit price based on norms is guided in Appendix No. 05 issued together with this Circular. The method of determining the information technology application unit price through bidding is guided in Appendix No. 07 issued together with this Circular.

Chapter III
CONTENTS AND METHODS FOR DETERMINING MANAGEMENT COSTS,OPERATING AND MAINTENANCE OF INFORMATION SYSTEMS, HARDWARE, SOFTWARE, DATABASESSOFTWARE, DATABASE

Article 9. Methods for Determining Management Costs, Operating and Maintenance of Information Systems, Hardware, Software, Databases

Management, operating, and maintenance costs for information systems, hardware, software, and databases are determined by preparing a budget estimate or based on supplier quotations as stipulated in Article 40 of Decree No. 73/2019/NĐ-CP (amended and supplemented in Clause 26, Article 1 of Decree No. 82/2024/NĐ-CP). Detailed methods for determining management, operating, and maintenance costs:

1. Budget Estimation Method

In cases where management, operating, and maintenance costs for information systems, hardware, software, and databases have established norms, they are estimated according to the guidance provided in Appendix No. 04 issued together with this Circular.

In cases where there are no established norms, management, operating, and maintenance costs for information systems, hardware, software, and databases are estimated according to the guidance provided in Appendix No. 09 issued together with this Circular.

2. Quotation Method

a) Determination of management, operating, and maintenance costs for information systems, hardware, software, and databases is based on at least three different quotations from organizations or individuals providing services (except in cases where only one or two organizations or individuals provide services on the market). During the pricing process, the agency or entity preparing the budget estimate is responsible for collecting the required number of quotations and selecting prices for the budget estimate;

b) The agency or entity preparing the budget estimate sends quotation requests to different organizations or individuals providing services or posts the quotation request on the electronic portal/information website of the supervising agency or the agency or entity preparing the budget estimate within a minimum period of ten days from the date the information is successfully posted;

c) The quotation request must include the following contents: objectives, scale, volume, and technical requirements (if any) for each management, operation, and maintenance task of information systems, hardware, software, and databases;

d) The agency or entity preparing the budget estimate is responsible for collecting quotations ensuring transparency and openness;

đ) Organizations or individuals providing quotations to the agency or entity preparing the budget estimate submit them within the same time frame specified by the agency or entity preparing the budget estimate and are responsible for the provided price information.

Article 10. Contents of management, operation, and maintenance work for information systems, hardware, software, and databases

1. The contents of management and operation work for information systems, hardware, software, and databases serve as the basis for determining the volume of management and operation tasks and are determined according to the guidelines set out in Appendix 11 issued together with this Circular.

2. The contents of maintenance work for information systems, hardware, software, and databases serve as the basis for determining the volume of maintenance tasks and are determined according to the guidelines set out in Appendix 12 issued together with this Circular.

Chapter IV
METHODS FOR DETERMINING COSTS OF LEASING SERVICESINFORMATION TECHNOLOGY ACCORDING TO SPECIFIC REQUIREMENTS

Article 11. Components of costs for leasing information technology services according to specific requirements

1. Costs for leasing information technology services according to specific requirements include all necessary expenses for leasing such services throughout the lease period, including service fees; management and operation costs of the service; maintenance costs of the service; and other related costs for providing the service.

2. Detailed components of costs for leasing information technology services according to specific requirements

a) Service fees are calculated based on the costs of constructing and developing the service, rental interest rates, and taxes and fees as prescribed by law. Among these, the costs of constructing and developing the service are the total anticipated costs to form the service according to specific requirements, including costs for construction, development, upgrading, and expansion of the information system, hardware, software, and database (installation and construction costs; costs for purchasing information technology equipment; installation costs of equipment; software installation; testing and calibration of equipment and software);

b) Management and operation costs of the service are all necessary costs to ensure that the service according to specific requirements operates smoothly without interruption throughout the lease period;

c) Maintenance costs of the service are all necessary costs for maintaining the information system, hardware, software, and database to ensure that the overall service according to specific requirements operates smoothly without interruption throughout the lease period (including activities to modify software to correct errors, improve performance or attributes, functions of the software, or make the software operate optimally in the operational environment based on initial system configuration adjustments; excluding activities of designing, constructing, developing, upgrading, and expanding the information system, hardware, software, and database);

d) Other costs related to service provision include costs for establishing databases; standardizing and converting data for data entry and database creation; performing data entry for the database; training and guidance on usage; training for system administrators and operators; and other costs (if any).

Article 12. Methods for determining costs of leasing services according to specific requirements

Costs for leasing services according to specific requirements are determined using one of the methods specified in point a, Clause 2, Article 55 of Decree No. 73/2019/ND-CP (amended and supplemented at point a, Clause 33, Article 1 of Decree No. 82/2024/ND-CP). Detailed methods for determining leasing service costs are provided in Appendix 10 issued together with this Circular.

Chapter V
IMPLEMENTING PROVISIONS

Article 13. Effectiveness and Transitional Provisions

1. This Circular shall take effect from February 14, 2025, and replace the following Circulars:

a) Circular No. 04/2020/TT-BTTTT dated February 24, 2020, issued by the Minister of Information and Communications on the establishment and management of project costs for information technology applications;

b) Circular No. 12/2020/TT-BTTTT dated May 29, 2020, issued by the Minister of Information and Communications guiding the determination of service costs for information technology using state budget funds based on cost calculation methods.

2. For information technology application investment projects and plans to lease information technology services approved before Decree No. 82/2024/NĐ-CP takes effect, subsequent steps shall be carried out according to the regulations on the establishment and management of project costs for information technology applications and leasing information technology services at the time of approval.

Article 14. Implementation Organization

1. Agencies, organizations, and individuals participating in or related to activities using state budget funds for information technology applications shall be responsible for implementing this Circular.

2. During implementation, if any issues arise or difficulties occur, agencies, organizations, and individuals shall report them to the Ministry of Information and Communications (National Digital Transformation Department) for examination and resolution./.

LIST ANNEXES
(Attached to Circular No. 18/2024/TT-BTTTT dated December 30, 2024, issued by the Minister of Information and Communications)

ANNEX NO. 01

PRELIMINARY TOTAL INVESTMENT ESTIMATION METHOD
(Annexed to Circular No. 18/2024/TT-BTTTT dated 30 month12 year2024 of the Minister of Information and Communications

The preliminary total investment is calculated and determined according to one of the following methods:

1. Comparative Method

In cases where there is a similar project already implemented or being implemented regarding classification, scale, nature of the project, and investment scope, the preliminary total investment is estimated from the data of the total investment cost of the similar project, adjusted to the calculation period, with necessary adjustments and supplements to other required costs. The agency or unit entrusted to organize the preparation of the feasibility study report, investment proposal report, or consulting firm preparing such reports (collectively referred to as the agency or unit preparing the investment proposal) is responsible for analyzing and evaluating the degree of similarity of the project.

2. Expert Method

Based on the objectives, scale, location, and investment scope of the project, the agency or unit preparing the investment proposal establishes a team of experienced experts with appropriate capabilities to determine the preliminary total investment.

3. Quotation Method

a) The determination of the preliminary total investment is based on a minimum of three different quotations from organizations or individuals providing services (except in cases where only one or two organizations or individuals provide services on the market). During the quotation process, the agency or unit preparing the investment proposal is responsible for collecting and selecting the number of quotations needed to establish the preliminary total investment;

b) The agency or unit preparing the investment proposal sends quotation requests to organizations or individuals providing services or publishes the request on its official website or electronic information portal within a minimum of ten days from the date the request is successfully published;

c) The quotation request must include the following contents: objectives; scale; investment scope; location; time frame and progress; preliminary analysis and selection of technology, techniques, and conditions for supplying materials, equipment, raw materials, energy, services, infrastructure of the project (for feasibility study reports) or main technology options (for investment proposal reports), environmental protection solutions, and other relevant contents (if applicable);

d) The agency or unit preparing the investment proposal is responsible for collecting quotations in a transparent manner;

đ) Organizations or individuals providing quotations to the agency or unit preparing the investment proposal must submit their quotations within the same timeframe specified by the agency or unit preparing the investment proposal and are responsible for the accuracy of the provided price information.

4. Combination of Methods

Depending on the specific conditions and requirements of the project and available database sources, the methods outlined in Sections 1, 2, and 3 of this Appendix can be combined to determine the preliminary total investment.

5. Method Based on Approved Strategies, Plans, Programs, and Proposals

In cases where the project is mentioned and determined in approved strategies, plans, programs, proposals, and has anticipated funding, the preliminary total investment is determined based on that anticipated funding amount.

APPENDIX NO. 02

TOTAL INVESTMENT DETERMINATION METHOD
(Annexed to Circular No. 18/2024/TT-BTTTT dated 30Article 1. This Circular stipulates regulations on receiving citizens, handling and resolving complaints, reports, petitions, and reflections of the Ministry of Information and Communication including: citizen reception work; receipt, handling, and resolution of complaints, reports, petitions, and reflections; ensuring conditions for citizen reception, complaint resolution, petition resolution, reflection resolution; management of complaint and report resolution work and reporting systems.12 year2024 of the Minister of Information and Communications

The total investment is calculated and determined when preparing the feasibility study report according to one of the following methods:

1. Method Based on the Feasibility Study Report Design Basis

The total investment of the project is calculated using the following formula:

V = G_XL + G_TB + G_QLDA+ G_TV + G_K+ G_DP

Where:

- V: Total investment of the project (in dong);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_XL: Construction and installation costs (in dong);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_TB: Equipment costs (in dong);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_QLDA: Project management costs (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_TV: Investment consulting costs (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{signing and implementing Agreements}: Other costs (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_DP: Contingency costs (VND).

1.1. Determination of construction and installation costs

In cases where work or construction and installation items have established norms, the construction and installation costs shall be determined according to the method of determining costs based on volume and unit price as provided for in Appendix No. 04 issued together with this Circular. In cases where work or construction and installation items do not have established norms, the construction and installation costs shall be determined according to the method of determining costs based on quotation as provided for in Appendix No. 07 issued together with this Circular.

The volumes of major construction and installation works from basic design, other estimated volumes, and market prices of materials, equipment, and services are considered. In cases where specific volumes of construction and installation works cannot be determined, estimated volumes may be included in the total investment amount.

1.2. Determination of equipment costs

1.2.1. Costs of purchasing information technology equipment

Equipment requiring installation and setup, equipment not requiring installation and setup, auxiliary equipment, peripheral equipment, commercial software and accompanying support services (as required by the manufacturer), common software (including modifications and additions to certain functions, features, performance), and other equipment shall be calculated based on quantity, type, and corresponding equipment prices. Quantities, types of equipment are determined from the basic design. Equipment prices are determined according to the method of determining costs based on quotation as provided for in Appendix No. 07 issued together with this Circular; or the price of similar equipment in terms of capacity, technology, origin in completed projects; or based on information about the winning bid prices of similar equipment within a maximum period of 12 months prior to the date of project review and approval, adjusted appropriately to the calculation time point. During the determination of equipment prices, the agency or unit preparing the feasibility study report is responsible for collecting quotations ensuring transparency and fairness, deciding the number of quotations to collect, evaluate, and select prices to determine equipment costs; evaluating the similarity of equipment in terms of capacity, technology, origin when using data on similar equipment prices.

Costs for building, developing, upgrading, and expanding internal software are determined according to the methods prescribed in Clause 4, Article 19 of Decree No. 73/2019/ND-CP (amended and supplemented at Point d, Clause 13, Article 1 of Decree No. 82/2024/ND-CP). Detailed methods are provided in Point b, Item 2.1 of Appendix No. 03 issued together with this Circular.

For software modified, supplemented, or developed, upgraded, and expanded based on commercial software, open-source software, digital platforms, frameworks, or developed based on artificial intelligence (AI), blockchain, virtual reality (VR), augmented reality (AR), etc., the costs for modifying, supplementing, or developing, upgrading, and expanding software are determined according to the methods prescribed in Clause 4, Article 19 of Decree No. 73/2019/ND-CP (amended and supplemented at Point d, Clause 13, Article 1 of Decree No. 82/2024/ND-CP). In cases where the cost is determined by quotation method, the cost for modifying, supplementing, or developing, upgrading, and expanding software is determined similarly to the cost for building, developing, upgrading, and expanding internal software as provided for in Appendix No. 07 issued together with this Circular. The cost of commercial software, digital platforms, frameworks, etc., is determined according to the method of determining equipment costs as provided for in this Appendix.

1.2.2. Installation and setup costs for equipment; software installation; testing and calibration of equipment and software: Estimated based on similar ongoing or completed projects, or based on expert experience, or according to the method of determining costs based on quotation as provided for in Appendix No. 07 issued together with this Circular, or determined according to the method of estimating budget based on volume and unit price as provided for in Appendix No. 04 issued together with this Circular.

1.2.3. Costs for establishing databases; standardization and conversion for data entry and database establishment; implementation of data entry for databases: Estimated based on similar ongoing or completed projects, or based on expert experience, or according to the method of determining costs based on quotation as provided for in Appendix No. 07 issued together with this Circular, or determined according to the method of estimating budget based on volume and unit price as provided for in Appendix No. 04 issued together with this Circular.

1.2.4. Training costs for user guidance; training costs for system administrators and operators (if any): Estimated based on similar ongoing or completed projects, or based on expert experience, or according to the method of estimating budget based on volume and unit price as provided for in Appendix No. 04, or according to the method of estimating budget based on experts as provided for in Appendix No. 06, or according to the method of estimating budget based on quotation as provided for in Appendix No. 07 issued together with this Circular.

1.2.5. Deployment, support, management, and operation costs for products or project components before acceptance and handover (if any): Estimated based on similar ongoing or completed projects, or based on expert experience, or according to the method of estimating budget based on experts as provided for in Appendix No. 06, or according to the method of estimating budget based on quotation as provided for in Appendix No. 07 issued together with this Circular.

1.2.6. Transportation and insurance costs for equipment (if any): Estimated based on similar ongoing or completed projects, or based on expert experience, or according to the method of estimating budget based on quotation as provided for in Appendix No. 07 issued together with this Circular, or estimated.

1.2.7. Taxes and related fees: As prescribed by law.

1.3. Determination of project management costs, investment consulting costs, and other costs

Project management costs (G_QLDA), investment consulting costs (G_TVshall be determined according to the cost rate norms set out in Section 3 and 4 of Appendix No. 03 issued together with this Circular or by preparing a budget estimate based on the expert method as guided in Appendix No. 06 issued together with this Circular.

For certain consultancy works carried out prior to determining the total investment cost, the consultancy cost shall be determined based on the estimated price or the approved tender price or the signed consultancy contract in accordance with the provisions of the law.

Other costs (G_{signing and implementing Agreements}) shall be determined according to the cost rate norms set out in Section 5 of Appendix No. 03 issued together with this Circular or by preparing a budget estimate based on the expert method as guided in Appendix No. 06 or by the method of determining costs based on quotations as guided in Appendix No. 07 issued together with this Circular.

The total of these costs (excluding interest during the implementation period and initial working capital) shall not exceed 15% of the total construction cost and equipment cost of the project.

1.4. Determining Contingency Costs

Contingency costs (G_DP) shall be determined as the sum of inflation contingency costs during the project implementation period, quantity variation contingency costs, and provisional sums contingency costs (if any) according to the formula:

G_DP= (G_XL + G_TB + G_QLDA+ G_TV + G_{signing and implementing Agreements}) x K_dp

Where:        

- K_dp: the maximum contingency factor is 10%.

In cases where the project is implemented across multiple locations or abroad, the costs specified in Points 1.1, 1.2, and 1.3 of this section shall include additional costs for relocating equipment and labor force. These relocation costs shall be estimated according to the guidance provided in Point 1.2.6 of Section 1 of this Appendix.

2. Method of Determination Based on Data from Similar Completed Projects

In cases where the basis for cost data of similar projects already completed only allows for the determination of construction costs and equipment costs of the project, these costs must be converted to the time of project preparation. On the basis of these converted construction costs and equipment costs, project management costs, consultancy costs, other costs, and contingency costs shall be determined similarly as guided in Points 1.3 and 1.4 of Section 1 of this Appendix. The project investor, agency, or unit assigned to prepare the feasibility study report, and the consultancy unit preparing the feasibility study report shall be responsible for analyzing and evaluating the degree of similarity of the project.

3. Combining Methods to Determine the Total Investment Cost

Depending on the specific conditions and requirements of the project and the available database, the methods in Sections 1 and 2 of this Appendix shall be combined to determine the total investment cost of the project.

ANNEX NUMBER 03

ESTIMATING METHOD
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

The project estimate is determined according to the following formula:

G_DT = G_XL + G_TB + G_QLDA + G_TV + G_{signing and implementing Agreements} + G_DP

Where:

- G_DT: Project Estimate (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_XL: Construction and installation costs (in dong);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_TB: Equipment costs (in dong);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_QLDA: Project management costs (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_TV: Consultancy cost for applying information technology (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{signing and implementing Agreements}: Other costs (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_DP: Contingency costs (VND).

The project estimate is compiled according to Table 3.1 of this Appendix.

1. Determining Construction Costs (G_XL)

1.1. In cases where construction work or items have established norms, construction costs shall be determined according to the method of determining costs based on volume and unit prices as guided in Appendix No. 04 issued together with this Circular. Among which:

1.1.1. The volumes of construction work are determined based on detailed design, requirements, and tasks to be performed in accordance with the list and content of construction work.

1.2.1. Unit prices for construction may be incomplete unit prices (including material unit prices, labor unit prices, machinery and equipment unit prices) or complete unit prices (including material unit prices, labor unit prices, machinery and equipment unit prices, general expenses, and pre-tax income).

1.2. In cases where construction work or items do not have established norms, construction costs shall be determined according to the method of determining costs based on quotations as guided in Appendix No. 07 issued together with this Circular.

2. Determining Equipment Costs (G_TB)

Equipment costs are determined according to the following formula:

G_TB= G x M_MS + G_CSDL + G_LD + G_ĐT + G_TK + G_VC + G_{signing and implementing Agreements}

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_MS: Costs for purchasing IT equipment including installation and setup equipment, non-installation and non-setup equipment, auxiliary equipment, peripheral equipment, commercial software and accompanying support services (as required by the manufacturer), internal software, and other equipment; transportation and insurance costs for equipment (if included in the equipment purchase costs); taxes and related fees.

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_CSDL: Costs for creating databases; standardization, conversion for data entry, creation of databases; performing data entry for databases.

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_LD: Installation and setup costs for equipment; software installation; testing and adjustment of equipment and software.

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{JOINT CIRCULAR}: Training and usage guidance costs; training costs for system administrators and operators (if any).

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_TK: Deployment, support, management, and operation costs for products or project components before final acceptance and handover of the entire project product (if any).

- G_VC: Transportation and insurance costs for equipment (if any and if not included in the equipment purchase costs).

- G_{signing and implementing Agreements}: Other related costs (if any) of equipment costs.

2.1. Costs for Purchasing IT Equipment

a) Costs for installation and setup equipment, non-installation and non-setup equipment, auxiliary equipment, peripheral equipment, commercial software and accompanying support services (as required by the manufacturer), common software (including modifications and additions to some functions, features, performance) and other equipment are determined based on the quantity and type of equipment to be purchased and the supplier's or manufacturer's quotation according to the following formula:

Where:

- Q_{international}: Quantity or number of equipment item i (i = 1÷n);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{international}||| The price for one unit of volume or quantity of device i (i = 1÷n), including the purchase price of the device at the buying place (place of production, manufacture, or equipment supply location in Vietnam) or the price to the Vietnamese port (for imported devices); Transportation costs; Storage costs at warehouses, yards, containers; Preservation and maintenance costs at the deployment site; Insurance costs and taxes (excluding VAT)||| (excluding VAT)||| and fees (if any).

- T_{international}^{||| VAT-Rate}||| : The rate of VAT applicable to device type i (i = 1÷n).

||| For devices whose prices cannot be determined, they may be estimated based on the prices of similar devices regarding capacity and technology on the market at the time of calculation or similar devices from ongoing projects.

||| As for modifications, additions to some functions, features, performance of commonly used software (if any), the budget for modifications and additions shall be determined according to the quotation provided by the supplier or manufacturer.

||| b) Construction, development, upgrade, expansion costs of internal software

||| The construction, development, upgrade, and expansion costs of internal software shall be determined according to one of the following methods:

||| - Cost calculation method:

||| The construction, development, upgrade, and expansion costs of internal software shall be calculated using the following formula:

||| In which, the direct construction, development, upgrade, and expansion costs of internal software shall be determined according to the guidelines of the Ministry of Information and Communications.

||| - Quotation method:

||| Determination of construction, development, upgrade, and expansion costs of internal software shall be carried out according to the guidelines set forth in Appendix number 07 issued together with this Circular.

- ||| Expert method:

||| Based on the specific nature of the software business, scope, scale, and technical complexity, the project sponsor or consulting unit proposes to establish a team of experienced experts to determine the construction, development, upgrade, and expansion costs of internal software.

- ||| Comparison method:

||| If there are similar software projects that have been or are being implemented with comparable scope, scale, nature, and process workflow (implementation steps, participants in the process workflow, technical complexity, environment, information security level), then the construction, development, upgrade, and expansion costs of internal software can be estimated from the cost data of similar software, adjusted to the calculation period. The project sponsor and consulting unit are responsible for analyzing and evaluating the degree of similarity of the software.

- signing and implementing Agreements||| Combined methods:

||| Depending on the specific conditions and requirements of the project and available database, the above methods can be combined to determine the construction, development, upgrade, and expansion costs of internal software.

2.2. ||| Costs for establishing databases; standardization, conversion for data entry and database establishment; implementation of data entry for the database: Determined according to the quantity-based budgeting method guided in Appendix number 04 or the quotation-based budgeting method guided in Appendix number 07 issued together with this Circular.

||| 2.3. Installation, setup costs of equipment; software installation; testing and calibration of equipment and software: Determined according to the quantity-based budgeting method guided in Appendix number 04 or the quotation-based budgeting method guided in Appendix number 07 issued together with this Circular.

||| 2.4. Training costs for usage guidance; training costs for system management and operation staff (if any) are determined according to the following formula:

G_ĐT = G_{||| DTDM} + G_DT

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{||| DTDM}||| : Training costs calculated based on economic and technical norms (VND).

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_DT||| : Training costs calculated through budgeting (VND).

||| Training costs are determined based on the norms and unit prices guided in Appendix number 04 issued together with this Circular.

||| Training costs calculated through budgeting are determined according to the expert-based budgeting method guided in Appendix number 06 or the quotation-based budgeting method guided in Appendix number 07 issued together with this Circular.

||| 2.5. Deployment, support, management, and operation costs of products or project components before final acceptance and delivery (if any): Determined through budgeting according to the expert-based budgeting method guided in Appendix number 06 or the quotation-based budgeting method guided in Appendix number 07 issued together with this Circular.

||| 2.6. Transportation and insurance costs for equipment (if not included in the equipment procurement costs): Determined according to the quotation-based cost determination method guided in Appendix number 07 issued together with this Circular or through budgeting.

||| 2.7. Other related costs (if any) of equipment: Determined according to the quotation-based cost determination method guided in Appendix number 07 issued together with this Circular or through budgeting.

||| Equipment costs are summarized in Table 3.2 of this Appendix.

||| 3. Determining project management costs (G_QLDA)

||| 3.1. Project management costs are determined according to the following formula:

G_QLDA= G_{||| THQLDA} + G_{||| GSDDT}

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{||| THQLDA}||| : Costs for organizing and implementing project management from the investment preparation stage to completion, acceptance, and handover, and putting the project product into operation (collectively referred to as project management implementation costs) (VND);||| (referred to collectively as project management implementation costs)||| (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{||| GSDDT}||| : Supervision and evaluation costs (VND).

||| In cases where consultants are hired to implement these tasks, their management shall be managed like consultant costs.

||| 3.2. Project management implementation costs are determined according to the following formula:

G_{||| THQLDA}||| = T x (G_{||| XLtt} + G_{||| TBtt})

Where:

||| - T: Normative cost ratio (%) for project management costs;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{||| XLtt}||| : Pre-tax construction and installation costs (VND);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{||| TBtt}||| : Pre-tax equipment costs (VND).

In the case where the project sponsor manages the project themselves, if the management costs determined according to the guidance in this section are not suitable for the project management tasks to be calculated, the project sponsor shall be responsible for reviewing and deciding on establishing a budget that is appropriate to the content of the work to be carried out.

In the case where project management consultancy services are hired, the management costs are determined by establishing a budget based on the content and volume of project management work. The method of establishing a budget according to the cost determination method by experts is guided in Appendix No. 06 issued together with this Circular. The project management consultancy unit may undertake to perform part or all of the project management contents as prescribed.

The total management costs for the portion of work already performed by the project sponsor and the management costs for the portion performed by the project management consultancy shall not exceed the approved management costs within the total investment ceiling.

3.3. The costs for monitoring and evaluating investment are determined in accordance with the laws on monitoring and evaluating investment.

3.4. The management and use of project management costs shall be implemented in accordance with the Ministry of Finance's guidelines on managing and using project management costs for projects funded by state budget funds.

4. Determining the cost of investment consulting (G_TV)

Investment consulting costs are determined according to the following formula:

Where:

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_{international}: The investment consulting cost item i calculated according to the cost standard ratio (i=1÷n) (VND);

- D_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: The investment consulting cost item j calculated by preparing a budget (j=1÷m) (VND);

- T_{international}^GTGT-TV: The current VAT rate applicable to the investment consulting cost item i calculated according to the cost standard ratio;

- T_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}^GTGT-TV: The current VAT rate applicable to the investment consulting cost item j calculated by preparing a budget.

For investment consulting work that has cost standards according to ratios, the investment consulting costs are determined based on the cost standard ratios.

If the established standards are not suitable for the consulting work to be calculated, the project sponsor shall be responsible for reviewing and deciding on preparing a budget that is appropriate to the content of the work to be carried out. The preparation of the budget is carried out according to the cost determination method by experts as guided in Appendix No. 06 issued together with this Circular.

For investment consulting costs calculated by preparing a budget: Follow the cost determination method by experts as guided in Appendix No. 06 issued together with this Circular.

5. Determining other costs (G_{signing and implementing Agreements})

Other costs are determined according to the following formula:

Where:

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_{international}: Other cost item i calculated according to the cost standard ratio (i=1÷n) (VND);

- D_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Other cost item j calculated by preparing a budget (j=1÷m) (VND);

- E_k: Other related cost item k (k=1÷l) (VND);

- T_{international}^GTGT-K: The current VAT rate applicable to the other cost item i calculated according to the cost standard ratio;

- T_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}^GTGT-K: The current VAT rate applicable to the other cost item j calculated by preparing a budget.

For other costs that have cost standards according to ratios, they are determined based on the cost standard ratios. If the established standards are not suitable for the work to be calculated, the project sponsor shall be responsible for reviewing and deciding on preparing a budget that is appropriate to the content of the work to be carried out. The preparation of the budget is carried out according to the cost determination method by experts as guided in Appendix No. 06 issued together with this Circular.

For other costs determined by preparing a budget: Follow the cost determination method by experts as guided in Appendix No. 06 or the cost determination method by quotation as guided in Appendix No. 07 issued together with this Circular.

For testing or trial operation costs, they are determined according to the following formula:

In which, direct testing costs are determined according to the guidance of the Ministry of Information and Communications.

6. Determining contingency costs (G_DP)

Contingency costs (G_DP) shall be determined as the sum of inflation contingency costs during the project implementation period, quantity variation contingency costs, and provisional sums contingency costs (if any) according to the formula:

G_DP= (G_XL + G_TB + G_QLDA+ G_TV + G_{signing and implementing Agreements}) x K_dp

Where:        

- K_dp: The maximum contingency factor is 07%.

- In the case of preparing an economic and technical report, the maximum contingency factor K_dp is 05%.

In the case where the project is implemented across multiple locations or abroad, the costs specified in Items 1, 2, 3, 4, and 5 of this Appendix shall be increased by equipment and labor force relocation costs. Relocation costs are calculated based on standards set by specialized management agencies or by preparing a budget.

TABLE 3.1: SUMMARY OF ESTIMATES

Unit of measurement: dong

TABLE 3.2: SUMMARY OF EQUIPMENT COSTS

                                                                        Unit of measurement: dong

ANNEX NO. 04

METHOD OF DETERMINING COSTS BY QUANTITY AND UNIT PRICE
 (Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

The method of determining costs by quantity and unit price is used to determine the following costs:

1.1. Regarding the determination of the total investment amount and project budget estimate:

- Construction and installation costs;

- Costs for establishing databases; standardization, conversion to facilitate data entry, database creation; implementation of data entry for the database for items with economic-technical norms;

- Installation and software setup costs; testing and calibration of equipment and software for items with economic-technical norms;

- Training and usage guidance costs; training costs for administrative and operational staff (if applicable) for training items with economic-technical norms;

- Other costs in the total investment amount and budget estimate for items with economic-technical norms.

1.2. Regarding the determination of management, operation, and maintenance costs for the project's products when the cost item has economic-technical norms.

1.3. Regarding the determination of other costs related to providing services according to specific requirements when the cost item has economic-technical norms.

2. Determination of the budget estimate based on volume and unit price

The cost (G) is determined by the following formula:

Where:

- Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Main work volume j of the project (j=1÷n);

- DG_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Unit price of main work j.

The unit price may be an incomplete unit price or a full unit price (including direct costs and common costs, pre-tax income) as per Table 4.1, Table 4.2 of this section;

- T^VAT: Value-added tax rate prescribed for the corresponding work content.

TABLE 4.1: SUMMARY OF COST ESTIMATE BASED ON INCOMPLETE UNIT PRICE

Where:

+ Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Work volume j;

+ : Material unit price for work j.

+ : Labor unit price for work j.

+ : Construction machinery unit price for work j.

+ Ratio for calculating common costs as specified in Table 5.3 and pre-tax income as specified in Section 3 of Appendix No. 05 issued together with this Circular.

TABLE 4.2: SUMMARY OF COST ESTIMATE BASED ON FULL UNIT PRICE

Unit of measurement:...

Where:

+ Q_{international}: Project work volume i (i=1÷n);

+ : Full unit price (including direct material, labor, construction machinery costs, common costs, and pre-tax income) to perform work i of the project;

+ G_No.: Pre-tax cost;

+ T^VAT: Current value-added tax rate

+ G: Post-tax cost.

ANNEX NO. 05

UNIT PRICE DETERMINATION METHOD
 (Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

The unit price in the management of investment costs applying information technology (referred to as unit price) is an economic-technical indicator, including all necessary direct costs regarding materials, labor, construction machinery, and equipment to complete one unit of work volume.

The unit price can be a full unit price (including material unit price, labor unit price, construction machinery and equipment unit price, common costs, and pre-tax income) or an incomplete unit price (including material unit price, labor unit price, construction machinery and equipment unit price).

1. Basis for determining the unit price

- List of works for which the unit price is determined;

- Economic-technical norms according to the list of works requiring unit price determination;

- Material prices (excluding value-added tax) at the site;

- Labor prices;

- Construction machinery and equipment rental prices (or construction machinery and equipment rental prices).

2. Determination of incomplete unit price

2.1. Determination of material unit price (DG^KH)

The material unit price is determined by the formula:

Where:

- D_{international}: Quantity of material waste i (i = 1÷n) for one unit of work volume in economic-technical norms;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;^vl_{international}: Price of one unit of material i (i = 1÷n) determined in accordance with technical standards, type, and quality of materials required for the project and calculated to the site. The price of one unit of material i is determined based on selecting a suitable price level among quotations from manufacturers or suppliers or similar quality materials currently in use at other projects and calculated to the site.

- k^vl: Corresponding material waste norm for the work in economic-technical norms.

2.2. Determination of labor unit price (DG^NC)

The labor unit price is determined by the formula:

DG^NC = B x g^nc

 Where:

- B: Quantity of labor consumption measured in working days directly according to the average grade for one unit of work volume in the budget estimate;

- g^nc: Price of a working day for direct labor.

2.3. Determination of construction machinery and equipment unit price (DG^MTC)

The construction machinery and equipment unit price is determined by the following formula:

Where:

- M_{international}: Quantity of construction machinery shift consumption of primary machinery and equipment i (i = 1÷n) for one unit of work volume in economic-technical norms;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;^mtc_{international}: Price of construction machinery shift of primary machinery and equipment i (i = 1÷n).

- k^mtc: Corresponding construction machinery and equipment consumption norm for the work in economic-technical norms.

2.4. Determination of incomplete unit price

DG^KDD = DG^KH+DG^NC+DG^MTC

TABLE 5.1: INCOMPLETE UNIT PRICE

3. Determination of full unit price

A full unit price includes material unit price, labor unit price, construction machinery and equipment unit price, common costs, and pre-tax income.

- Direct costs include material unit price, labor unit price, and construction machinery and equipment unit price of the full unit price, determined according to the guidelines in Section 2 of this Appendix.

- Common costs are calculated by multiplying the labor cost in the unit price by the ratio. The ratio of common costs is guided by Table 5.3 of this Appendix.

- Pre-tax income is calculated as 6% of the direct costs and common costs in the unit price.

TABLE 5.2: FULL UNIT PRICE

TABLE 5.3: RATIO OF COMMON COSTS

Common Costs

ANNEX NO. 06

EXPERT COST DETERMINATION METHOD
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

The expert cost determination method is used to determine the following costs:

- Costs for training on usage guidance; costs for training staff responsible for managing and operating the system (if applicable) for training items without established economic-technical norms;

- Costs for deployment, support, management, and operation of the product or project work item before final acceptance and handover of the entire project product (if applicable);

- Project management costs (in cases where project management consulting is hired);

- Investment consulting costs;

- Other costs (in cases where the budget estimate is prepared based on expert determination).

2. Formula for determining costs based on experts

C_DT TTĐ_CG(VND) from direct and indirect power plants participating in the electricity market;_MG(VND) from direct and indirect power plants participating in the electricity market;_{signing and implementing Agreements}+ TN + VAT

Where:

ĐMT_DT: Cost of the work requiring budget estimation;

ĐMT_CG: Direct expert cost;

ĐMT_MG: Management cost;

ĐMT_{signing and implementing Agreements}: Other costs;

+ TN: Pre-tax income;

+ VAT: Value Added Tax.

3. Method for Determining Cost Components

a) Direct expert cost (C_CG): This is the direct cost of the expert performing the work requiring budget estimation, determined based on the number of experts, working hours of the experts, and their salaries.

b) Management cost (C_MG): This is the general management activity cost including costs related to the operations of the management department, organizational management (salaries of the management department), maintenance costs of the organization, office expenses, purchasing insurance for professional liability, and other management costs related to the organization's activities.

Management costs are determined based on a ratio of the direct expert cost. The ratio is determined according to the instructions in Table 6.2 of this Appendix.

c) Other costs (C_{signing and implementing Agreements}): These include travel and accommodation costs (if applicable); office supplies, information, communication costs; depreciation of equipment; scientific and technological application costs, system information management costs; conference and seminar costs, and other costs (if applicable). These costs are determined based on the anticipated needs of each advisory task.

d) Pre-tax income (TN): Determined as 6% of the total direct expert cost, management cost, and other costs.

đ) Value Added Tax (VAT): Determined according to the regulations for each type of work.

TABLE 6.1: COMBINED BUDGET ESTIMATE

TABLE 6.2: MANAGEMENT COST RATIO

Common Costs

ANNEX NO. 07

COST DETERMINATION METHOD BASED ON QUOTATION
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

The quotation-based cost determination method is used to determine the following costs:

1.1. Costs within the total investment ceiling, project budget estimate:

- Construction and installation costs (for works, installation items without established norms);

- Costs for purchasing IT equipment;

- Costs for installing, setting up equipment; software installation; testing, adjusting equipment and software;

- Costs for establishing the database; standardizing, converting to serve data entry, database establishment; implementing data entry for the database;

- Costs for training on usage guidance; costs for training staff responsible for managing and operating the system (if applicable);

- Costs for deployment, support, management, and operation of the product or project work item before final acceptance and handover of the entire project product (if applicable);

- Transportation and equipment insurance costs (if applicable);

- Other related costs (if applicable) of equipment costs (when preparing the budget estimate based on quotations);

- Other costs of the total investment ceiling, budget estimate (when preparing other cost estimates based on quotations).

1.2. Costs for managing, operating, and maintaining the project product.

1.3. Costs in the activity of renting IT services according to specific requirements:

- Costs for renting services according to specific requirements;

- Other costs related to service provision.

1.4. Unit price for IT application.

2. Determination of budget estimate costs based on quotations

2.1. The determination of budget estimate costs is based on at least three quotations from different organizations or individuals providing them (except in cases where there is only one or two organizations or individuals providing on the market). During the price determination process, the agency or unit preparing the budget estimate is responsible for collecting the required number of quotations and selecting prices for the budget estimate.

2.2. The agency or unit preparing the budget estimate sends quotation requests to organizations or individuals providing quotations or posts the request for quotations on the portal or website of the agency or unit preparing the budget estimate for a minimum period of 10 days from the date the request for quotations is successfully posted.

2.3. The quotation request must include at least the following contents:

a) For costs of purchasing IT equipment

- Equipment name.

- Analysis and selection of technical and technological options, including analysis and selection of options ensuring connectivity, interoperability, and data sharing with related information systems, hardware, software, and databases.

- Description of the overall model, logical model, physical model of the system or components of the system (if applicable).

- Statistics on the quantity, types, technical specifications of the equipment.

- For internal software construction, development, upgrade, and expansion costs:

+ Functional requirements: Business processes that need to be computerized (organization and operation of the process, products of business processes, transaction processing activities of the business process); Participants in the business process and their relationships (people, resources serving for business process handling, other supporting factors); List of user requirements; Analysis and description of software functions;

+ Non-functional requirements: Requirements to be met for the database; Information security requirements; Requirements to be met regarding processing time, complexity of processing of various software; Requirements for installation, infrastructure, transmission lines, operational safety, exploitation, and use; Constraints on the system including environmental constraints, dependence on platform systems; Requirements for fault tolerance against syntax programming errors, logical errors in data processing, input data correctness control errors; Requirements for aesthetics and technical standards of program interfaces; Requirements for the capabilities of staff involved in software construction, development, upgrade, and expansion; Other non-functional requirements.

- For popular software (including modifications and additions of some functions, features, performance): Name of the popular software; Basic technical functions of the popular software; Modified and added functional, feature, and performance requirements.

b) For information technology service rental costs according to specific requirements, the quotation request must include the following contents:

- Name of the information technology service;

- Main items to be rented; objectives, contents, scale, scope, location, agency, unit using the service;

- Quality requirements for information technology services;

- Technical requirements to meet quality service requirements;

- Requirements for connectivity and interoperability with other applications and information systems;

- Description of requirements to be met by internal software;

- Requirements for information and data security;

- Other requirements.

c) For other costs (installation equipment costs; software installation costs; testing, calibration of equipment and software; creation of databases; standardization, conversion for data entry and database creation; implementation of data entry for the database; training and guidance on usage; training costs for system management and operation staff; deployment, support, management, and operation of project products or work packages before final acceptance and handover; transportation, insurance of equipment): Fully reflect the content, volume of work, quality requirements, and other requirements determined by the budget preparation unit.

2.4. The quotation of organizations and individuals must ensure the determination of the budget and adjustment, supplementation of the budget (if any).

2.5. The agency or unit preparing the budget shall be responsible for collecting quotations ensuring transparency and fairness.

2.6. Organizations and individuals providing quotations to the agency or unit preparing the budget within the same period specified by the agency or unit preparing the budget and shall be responsible for providing price information for equipment, goods, and services consistent with their supply capacity and must ensure that the provision of quotations does not violate competition laws, dumping prices, or artificially inflating prices.

ANNEX NO. 08

METHOD FOR DETERMINING ADJUSTED BUDGET
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

The adjusted budget applies to cases where detailed design adjustments are made as prescribed. For contracts already signed, the determination of the adjusted budget only applies to new work that requires budgeting according to contract management regulations and must comply with the agreed contents in the contract.

Depending on the specific conditions of each project, if it is deemed that determining the adjusted budget according to the guidelines in Sections 1, 2, and 3 of this Annex is complex, the Project Owner may consider preparing the adjusted budget according to the guidelines in Annex No. 03 of this Circular.

The adjusted budget (G^DC) is determined by adding (or subtracting) the value increase (or decrease) (G^PD) ) to (or from) the approved budget (G^PDC). The adjusted budget (G^DC) is determined by the following formula:

G^DC = G^PD ± G^PDC

The adjusted budget is determined based on two factors: changes in quantity (increase, decrease, new work) and price fluctuations.

Where:

- : The portion of the adjusted budget due to changes in quantity;

- : The portion of the adjusted budget due to price escalation.

1. The portion of the adjusted budget due to changes in quantity

1.1. The construction and installation cost adjustment due to changes in quantity () is determined by the following formula:

Where:

- Q_{international}: Changed quantity of construction and installation work (increase, decrease, new work);

- D_{international}: Unit price of construction and installation corresponding to the changed quantity at the time of adjustment,

1.2. The equipment cost adjustment due to changes in quantity () is determined by the following formula:

Where:

- Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Changed quantity of equipment type (increase, decrease, new work);

- D_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Price of equipment corresponding to the changed quantity at the time of adjustment.

2. The portion of the adjusted budget due to price fluctuations

2.1. Determination of construction and installation cost adjustment ()

2.1.1. Determination of material cost adjustment (VL^DC)

Adjusted material cost (VL^DCVL

Of which

+ Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Work volume j;

+ : Adjusted unit price of material j for work j.

The adjusted unit price of material j is determined by the following formula:

- D_{international}: Consumption rate of material i (i=1÷n) per unit of work volume in the economic-technical norm;

- : Price difference of one unit of material i at the time of adjustment compared to the approved budget price or the winning bid price before signing the contract;

The price of materials at the time of adjustment is determined in accordance with technical standards, types, and quality of materials required for the project and taking into account the site conditions. The price of one unit of material is determined based on selecting an appropriate price level among quotations from manufacturers or suppliers of materials or the price of similar materials with the same standards and quality currently being used in other projects and taking into account the site conditions.

2.1.2. Determination of labor cost adjustment (NC^DC)

Adjusted labor cost (NC^DCVL

Of which

+ Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Work volume j;

+ : Adjusted labor unit price for work j.

The adjusted labor unit price for work j is determined according to the following formula:

- B: Quantity of labor consumption measured in working days directly according to the average grade for one unit of work volume in the budget estimate;

- : The difference in labor cost value of work i at the adjustment time compared to the approved budget estimate or the winning bid price before signing the contract (i=1÷n).

2.1.3. Determining the adjusted construction machinery cost (MTC)^DC )

The adjusted construction machinery cost (MTC^DCVL

Of which

+ Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Work volume j;

+ : Adjusted construction machinery unit price for work j.

The adjusted unit price of material j is determined by the following formula:

          

- M_{international}: The amount of machine shift consumption of main construction machinery type i (i=1÷n) for one unit of work volume in the economic-technical norm;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{international}^MTCĐC: The difference in machinery cost value of unit i at the adjustment time compared to the machinery cost in the approved budget estimate or in the winning bid price before signing the contract;

The adjusted construction machinery cost at the adjustment time is determined according to current regulations.

The adjusted construction cost is summarized as follows:

TABLE 7.1: ADJUSTED CONSTRUCTION COST ESTIMATE

2.2. Determining the adjusted project equipment cost

The adjusted project equipment cost is determined by the total of the costs for purchasing adjusted project equipment; installation costs; software installation; inspection, calibration of adjusted equipment and software; other adjusted costs.

2.2.1. Cost of purchasing adjusted project equipment

Where:

- Q_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Quantity of equipment;

- D_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: The difference in equipment cost at the adjustment time compared to the equipment cost in the approved budget estimate or in the winning bid price before signing the contract.

2.2.2. Installation, software installation, inspection, calibration costs of adjusted project equipment and software are determined like the adjusted construction cost.

3. Determining the adjusted project management cost, adjusted consulting cost, and other adjusted costs (applicable in case of quantity adjustment)

The adjusted project management cost, adjusted consulting cost, and other adjusted costs (applicable in case of quantity adjustment) are determined as guided in Appendix number 03 issued together with this Circular. In which, the quantity (construction cost, equipment cost) to be calculated and determined is the quantity after adjustment.

APPENDIX NUMBER 9

METHOD FOR DETERMINING MANAGEMENT AND OPERATING COSTS AND MAINTENANCE COSTS BY ESTIMATION METHOD
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

1. Estimation formula

C_DTTTĐ_CG(VND) from direct and indirect power plants participating in the electricity market;_MG(VND) from direct and indirect power plants participating in the electricity market;_{signing and implementing Agreements}+ TN + VAT

Where:

ĐMT_DT: Cost of the work to be estimated (VND);

ĐMT_CG: Direct expert cost (VND);

ĐMT_MG: Management cost (VND);

ĐMT_{signing and implementing Agreements}: Other costs (VND);

+ TN: Taxable income before tax (VND);

+ VAT: Value Added Tax (VND).

2. Method for determining cost components

a) Direct expert cost (C_CG): This is the direct cost of the expert performing the work requiring budget estimation, determined based on the number of experts, working hours of the experts, and their salaries.

b) Management cost (C_MG): This is the general management activity cost including costs related to the operations of the management department, organizational management (salaries of the management department), maintenance costs of the organization, office expenses, purchasing insurance for professional liability, and other management costs related to the organization's activities.

The management cost is determined by the ratio standard of the direct expert cost. In which, the ratio standard is determined according to Table 9.2 of this Appendix.

c) Other costs (C_{signing and implementing Agreements}): These include travel and accommodation costs (if applicable); office supplies, information, communication costs; depreciation of equipment; scientific and technological application costs, system information management costs; conference and seminar costs, and other costs (if applicable). These costs are determined based on the anticipated needs of each advisory task.

d) Pre-tax income (TN): Determined as 6% of the total direct expert cost, management cost, and other costs.

đ) Value Added Tax (VAT): Determined according to the regulations for each type of work.

TABLE 9.1: SUMMARY OF ESTIMATES

TABLE 9.2: MANAGEMENT COST STANDARD

Common Costs

APPENDIX NUMBER 10

METHODS FOR DETERMINING SERVICE RENTAL COSTS AS PER SPECIFIC REQUIREMENTS
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

Service rental costs as per specific requirements are calculated and determined during the planning phase of IT service rental according to one of the following methods:

1. Comparative Method

If it is considered that there is an IT service already rented or being rented with similar scope, scale, and quality requirements, then it can be used as a basis to determine the service rental cost as per specific requirements. The entity responsible for renting services as per specific requirements and the consultant preparing the rental plan must bear responsibility for analyzing and evaluating the degree of similarity and comparability of the project.

2. Expert Method

Based on the objectives, scale, location, and scope of service rental as per specific requirements, the entity responsible for renting services as per specific requirements establishes a team of experienced experts suitable to determine the service rental cost as per specific requirements.

3. Quotation Method

Determine the service rental cost as per specific requirements using the quotation method as guided in Appendix number 07 issued together with this Circular.

4. Cost calculation method

The service rental cost as per specific requirements is determined according to the following formula:

G_t= G_tdv+ G_v+ G_bt + G_k

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: Service rental cost as per specific requirements (VND)

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_tdv: Service cost (VND)

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_v: Service management and operation cost (VND)

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_bt: Service maintenance cost (VND)

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_k: Other costs related to service provision (VND)

4.1. Determining the service cost (G_tdv)

4.1.1. The service cost is determined according to the following formula:

G_{tdv =}G_dv* n

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_dv: The service cost per payment period is determined according to item 4.1.2 of this Appendix.

- n: Number of payment periods during the service rental period as per specific requirements.

4.1.2. The service cost per payment period is evenly paid at the end of each period, determined according to the following formula:

Where:

- T_đ: Construction and development cost of the service before VAT (VND). The construction and development cost of the service is calculated according to Article 6, Clause 1, 2 of this Circular.

- r: Rental interest rate per payment period (%). r is determined:

N: Average interest rate of domestic commercial joint-stock banks' deposit interest rates for a one-year term and the corresponding term of the service rental period as per specific requirements (if there is no corresponding term, take the nearest lower term) published within six months prior to the approval of the service rental plan as per specific requirements.

k: Number of payment periods in a year of service rental as per specific requirements.

- S: The residual value of the asset constituting the service provided by the lessor at the end of the service rental period according to specific requirements after depreciation and amortization in accordance with the regulations on management system, calculation of depreciation and amortization of fixed assets at agencies, organizations, units and state-owned fixed assets entrusted to enterprises for management (excluding the state capital component in enterprises) (using the straight-line method) (VND).

- GTGT: Value-added tax.

4.2. Determining administrative and operational costs of the service (G), maintenance costs of the service (G), and other related costs for providing the service (G)._v), SERVICE MAINTENANCE COSTS (G_btand_k)

4.2.1. Administrative and operational costs and maintenance costs of the service are determined in accordance with the methods prescribed in Article 9 of this Circular.

4.2.2. Other related costs for providing the service are determined according to one of the following methods:

a) According to the quotation method as guided in Appendix No. 07 issued together with this Circular;

b) According to the cost calculation method based on volume and unit price as guided in Appendix No. 04 issued together with this Circular;

c) According to the cost determination method by experts as guided in Appendix No. 06 issued together with this Circular;

d) Combination of methods.

5. Combination of Methods

Depending on the specific conditions and requirements of the individual service rental activities and available data sources, the methods in Sections 1, 2, 3, and 4 of this Appendix may be combined to determine the costs of individual service rentals.

APPENDIX NO. 11

CONTENTS OF ADMINISTRATIVE AND OPERATIONAL WORK FOR INFORMATION SYSTEMS, HARDWARE, SOFTWARE, AND DATABASE MANAGEMENT
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024, of the Minister of Information and Communications)

I. General Guidelines

1. The guidance contents below are the main contents of the administrative and operational activities for information systems, hardware, software, and databases. During the implementation of administrative and operational activities, the managing agency or unit shall consider and select to apply some or all of these contents and supplement or update them as appropriate.

2. In cases where information technology services are rented, the renting entity shall compare with the guidance contents in this Appendix to determine the administrative and operational tasks of the service and define the responsibilities of the renting entity and the service provider for each administrative and operational task.

II. Contents of Work

1. Tasks to ensure the implementation of administrative and operational activities

- Arranging and deploying human resources for administrative and operational activities.

- Arranging and deploying resources (infrastructure, electricity, water, hygiene, network security, transmission, security...) for administrative and operational activities.

- Other tasks necessary for the implementation of administrative and operational activities, depending on the actual situation of the information systems, hardware, software, and databases managed by the agency or unit.

2. Application Management Operations

- Implementing application operation or management procedures.

- Checking the results of application operations or monitoring system activity logs.

- Identifying causes of application errors or potential errors.

- Proposing solutions or supervising the resolution of incidents occurring during application operations.

- Proposing solutions to optimize application operations, functions, or groups of functions.

- Checking and determining support requirements to identify application errors or newly arising requirements or provide usage guidance.

- Checking and determining support requirements to ensure information security during administrative and operational activities.

- Checking the results of error resolution and information security issues.

- Performing data correction when there are tools and solutions available.

- Building data extraction tools or commands as required.

- Conducting regular information rescue drills (if applicable).

- Other necessary tasks.

3. User Application Management

- Collaborating to establish and improve regulations on user permissions and usage monitoring.

- Creating or updating user information, account locks, and permissions as prescribed.

- Monitoring and reporting compliance with user permission regulations.

- Monitoring and reporting user activities on the system.

- Other necessary tasks.

4. Data Control and Reconciliation

- Implementing data control and reconciliation using available tools and solutions.

- Other necessary tasks.

5. Accepting, Checking, and Supporting Non-Data Update Requests

- Accepting, checking, and supporting requests for usage guidance on application functions or data verification.

- Accepting, checking, and supporting requests for guidance on data retrieval from application functions.

- Accepting, analyzing, checking, and supporting requests for application access issues due to system, database, or network problems.

- Rechecking applications after resolving system, database, or network issues.

- Other necessary tasks.

6. Accepting, Checking, and Supporting Data Processing Requests

- Accepting, checking data of a user as requested.

- Updating data using available tools or commands as requested.

- Summarizing data review results and transferring them to specialized departments for processing.

- Other necessary tasks.

7. Preparing Reports, Documentation, or Common Guidance Procedures

- Preparing reports related to support work.

- Developing documentation for handling common situations during support.

- Other necessary tasks.

8. Building Tools or Commands to Extract Data from Unavailable Templates

- Accepting, analyzing, and building tools or commands for data extraction.

- Other necessary tasks.

9. System Operation

- Accepting, analyzing, classifying, and implementing support for incident resolution.

- Accepting, proposing solutions, and updating data as requested.

- Regularly checking the system daily, weekly, monthly, and as required to assess its operational status, conducting analysis, and proposing solutions.

- Implement security incident handling for information systems, hardware, software, and applications (web pages, web services, online transaction applications...).

- Support system downtime recovery, restore information systems, respond to targeted attacks...

- Digitize relevant documents related to support requests.

- Establish a knowledge base for support and troubleshooting activities.

- Ensure information security during operation.

- Other necessary tasks.

ANNEX 12

CONTENTS OF INFORMATION SYSTEM MAINTENANCE WORK, HARDWARE, SOFTWARE, DATABASE
(Issued together with Circular No. 18/2024/TT-BTTTT dated December 30, 2024 of the Minister of Information and Communications)

I. General Guidelines

1. The guidance contents below are the main contents of information system maintenance, hardware, software, database activities. During the implementation of maintenance, agencies and units shall consider and select to apply some or all of these contents and supplement and update other contents as appropriate.

2. In case of hiring information technology services, the service provider shall compare with the guidance contents in this Annex to determine the maintenance tasks for the service.

II. Contents of Work

1. Tasks to ensure the implementation of maintenance

- Arrange and organize human resources for maintenance.

- Arrange and organize resources (infrastructure, electricity, water, cleaning, security, network, security...) for maintenance.

- Other tasks ensuring the implementation of maintenance depending on the actual conditions of the information system, hardware, software, database determined by the agency or unit.

2. General work content

- Regular, periodic, and ad hoc inspections to serve maintenance.

- Ensure network information security.

- Maintenance according to the annual maintenance plan.

- Optimize and configure the information system to ensure system performance, ensure network information security; repair the information system periodically and ad hoc if there is an incident or upon request.

3. Main content of hardware maintenance work

- Clean equipment.

- Check peripheral device connections, power connections, network connections, system connections of devices.

- Check operating environment, humidity, temperature, cooling system.

- Retrieve system operation logs (data logs), check warning lights.

- Run computer and server performance testing programs to check the operational status of the equipment.

- Check the list of permitted software running on computers and servers and remove unauthorized software from computers and servers.

- Inspect the entire system within the scope of maintenance and record the current status for subsequent maintenance periods.

- Check and update new versions, patches (if possible).

- Replace or repair newly occurring faulty equipment during the maintenance period that is out of warranty (if any).

- Other necessary tasks.

4. Main content of software maintenance, updating, and copyright renewal work

- For commercial software: The content of software maintenance, updating, and copyright renewal work shall be carried out in accordance with the provisions of the supplier or the requirements of the agency or unit responsible for managing and using the information system.

- For internal software:

+ Monitor and track the operational status of internal software;

+ Periodically back up databases and source code, upgrade software when incidents occur; Check the integrity of databases after backup; Check and repair database errors, regularly back up data;

+ Fix software errors within the existing functions of the software; support updates of new versions and patches;

+ Check the performance and load capacity of the software;

+ Optimize the database of the software;

+ Provide technical support for software installation;

+ Check and update patches and security vulnerability patches for the operating system, database management system, web server (webserver), and other components of the software system;

+ Other necessary tasks.

5. Contents related to ensuring network information security

- Check and evaluate the effectiveness of information security measures according to the approved information security assurance plan.

- Detect malware, vulnerabilities, weaknesses, and conduct penetration testing of information systems in accordance with legal regulations on network information security.

- Maintain, renew, upgrade products and services for network information security to meet information security assurance requirements.

- Other necessary tasks.