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Legal Update

Guiding the Management of Costs of Urban Public Utility Services

3 July 2008
Mayer Brown JSM Legal Update
The Ministry of Construction issued Circular No. 06/2008/TT-BXD on 20 March 2008 providing guidelines for managing costs of public utility services in urban areas ("Circular 06"). Its purpose is to set up a framework for better management of the public utilities including better quality and efficiency.
Full Update 
The Circular addresses costs, which refer to the estimated costs of urban public utility services, coupled with general management expenses. It also gives a description of a type of public utility service contract. These are civil contracts entered into between a local competent authority and individuals/organisations providing public utility services.

Any disputes resulting from public utility service contracts are resolved in accordance with provisions found in the current laws.

Circular 06 takes effect as of 19 April 2008. 
For further information, please contact:
Dao Nguyen (;
Ephraim N. Wittman ( ); or
Hanh Bui ( )

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