LUẬN văn THẠC sĩ đề XUẤT GIẢI PHÁP HOÀN THIỆN CÔNG tác QUẢN lý đầu tư xây DỰNG nội NGÀNH tại hệ THỐNG KHO bạc NHÀ nước en

PROPOSED SOLUTIONS AND COMPLETION OF INVESTMENT
MANAGEMENT OF INTRA-INDUSTRY CONSTRUCTION IN THE
STATE TREASURY SYSTEM

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TABLE OF CONTENTS
FOREWORDS…………………………………………………………………………....1
CHAPTER

I:

BASIC

ISSUES

AND

MANAGEMENT

CONSTRUCTION

CONSTRUCTION INTERNAL MANAGEMENT EFFICIENCY IN THE STATE
TREASURY

1.1. INTERNAL CONSTRUCTION INDUSTRY IN THE STATE TREASURY
1.1.1. The State Treasury
1.1.2. Internal construction industry in the State Treasury
1.1.3. Features internal construction industry in the State Treasury
1.2.

INTERNAL

CONSTRUCTION

MANAGEMENT

IN

THE

STATE

TREASURY
1.2.1 The concept of intra-industry construction management in the State
Treasury
1.2.2. Internal content management construction industry in the State Treasury
1.2.3. Internal construction management experience in the French Treasury
1.3.CONSTRUCTION INTERNAL MANAGEMENT EFFICIENCY IN THE
STATE TREASURY
1.3.1. The concept of effective management of intra - industry construction at the
state treasury
1.3.2. The target expression effectively manage internal construction industry in
the State Treasury
1.3.3. The factors affecting the performance management
1.4. Lessons learned internal construction management at the French Treasury
CHAPTER

II.

PATTERNS

AND

MANAGEMENT

CONSTRUCTION

CONTRUCTION INTERNAL MANAGEMENT EFFICIENCY IN THE STATE
TREASURY

2.1. INTERNAL CONSTRUCTION INDUSTRY ACTIVITY IN THE STATE
TREASURY
2.1.1. Overview of the State Treasury
2.1.2. Intra-industry construction assembly Treasury time
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2.2. PATTERNS AND MANAGEMENT CONSTRUCTION CONTRUCTION
INTERNAL MANAGEMENT EFFICIENCY IN THE STATE TREASURY
2.2.1.The legal basis of the internal construction management in the State
Treasury
2.2.2. The internal construction management apparatus in the State Treasury
2.2.3. Management formulation, appraisal and approval of construction projects
2.2.4. Funding allocation process management and control construction costs
2.2.5. Inspection, control and settlement completed capital construction projects
2.2.6 Status of effective internal construction management in
2.2.7. Assess the situation effectively manage internal construction industry in the
State Treasury
CHAPTER III. PROPOSED SOLUTION STRENGTHENING MANAGEMENT,

COMPLETENESS PROCESS MANAGEMENT TO IMPROVE EFFICIENCY
IMPACTS

CONSTRUCTION

INTERNAL

MANAGEMENT

IN

STATE

TREASURY

3.1.CONSTRUCTION INTERNAL MANAGEMENT ORIENTATION IN STATE
TREASURY
3.2.

SOLUTION

PROCESS

STRENGTHENING

MANAGEMENT

TO

MANAGEMENT,

IMPROVE

COMPLETENESS

EFFICIENCY

IMPACTS

CONSTRUCTION INTERNAL MANAGEMENT IN STATE TREASURY
3.2.1. Improving the internal construction management organization in the State
Treasury
3.2.2. Improve the process of formulation, appraisal and approval of investment
projects in construction
3.2.3. To complete the process of funds investment and cost control 3.2.4. Improve
the process of testing, control and settlement of construction works completed
3.2.4. Application of information technology
3.3. RECOMMENDATIONS TO THE STATE
3.3.1. To improve the provisions on procurement activities
3.3.2. Complete compensation policy clearance
LIST OF ABBREVIATIONS

MOF: Ministry of Finance
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ODA: Official Development Investment Funds
LIST OF TABLES, DIAGRAMS

Table 2.1: Status of the construction work at the State Treasury in the
period 2009 - 2011

Table 2.2: Annual Capital arranged
Table 2.3: Results of new investment from 2007 to
Table 2.4: Investment Demand construction period 2010 - 2020

FOREWORDS

1. The urgency of the subject
Construction intra-industry in the State Treasury is the investment and construction of
new buildings as well as renovation, repair, upgrade investment projects designed to
create the infrastructure facilities for the operation of the State Treasury. Internal
construction industry in the State Treasury is a very important task to create conditions
for the development activities of the State Treasury in accordance with the objective of
building the State Treasury modern, safe, efficient, sustainable development
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sustainable implementation of the state budget funds management functions and state
financial funds and the Government's debt management.
Internal funds are used in the construction industry in the State Treasury in Vietnam's
state budget funds. Although in recent years there have been many efforts to improve
and achieve certain achievements in improving the effective management and use of
funds. But when in-depth analysis on the specific active surface still shows the internal
construction industry in the State Treasury in particular and the general state budgetfunded construction in recent years, the state of irrational investors, losses, wastage
and negative in management remain fairly popular.It is worth noting that in the intraindustry construction activity, the State Treasury has is the subject of the investment
project at the same time is also the management practices used and control the
payment of capital construction funded advanced state budget to ensure efficient use of
capital, reduce losses and waste of state budget funds. Therefore, in order to create a
premise and foundation for the use and management control capital payment for the
basic construction projects as well as contribute to the reform and modernization of the
operational State Treasury to meet the development requirements and stabilize the

economy in the current period and the next year, internal capital management
construction industry in the State Treasury should be strengthened and enhanced on a
regular basis. Derived from the requirements above require urgent research topic:
"Proposed measures to improve the capacity and effectiveness of the internal
construction management industry in the State Treasury system" has been
selected for study.
2. Research purposes
* The system of fundamental theoretical issues about the internal construction
industry in the State Treasury, the use of intra-industry construction management in the
State Treasury and effectively manage internal construction industry in the State
Treasury.
* Analysis of the internal construction management situation in the State
Treasury of Vietnam, on the basis of which to evaluate and make comments on the
results achieved as well as the limitations on effective internal construction
management activities of the State Treasury in the past.
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* Research and recommend solutions to strengthen management, improve
management processes to influence management to improve the efficiency of the
internal construction industry in the State Treasury of Vietnam
3. The object and scope of the study
* The construction activities of the State Treasury include many areas, many
works, various investment projects funded from the state budget, but the object of the
thesis research is intra-industry construction activity in the state treasury and effective
construction management domestic industry in the State Treasury on the basis of the
legal basis as well as provisions relating to construction management activities for the
local branches of the State Treasury.
* Scope of the study: To study the internal construction management at the
State Treasury of Vietnam on the basis of the metric system, documents are

summarized in the period 2007 - 2011.
4. Research methodology.
To achieve the purpose of research, traditional research methods: synthesis,
analysis, comparison, Stats, dialectical materialism, historical materialism, statistics,
generalizations, abstraction, concretization be applied in a combination with economic
knowledge in the field of investment and construction activity spending state budget in
the process and completion of the thesis research.
5. The structure of the thesis
In addition to the introduction, conclusion, list of tables, list of abbreviations,
list of references, the content of the thesis is divided into three chapters, as follows:
Chapter I: The basics of construction management and effective internal
construction management in the State Treasury
Chapter II: Status of construction management and effective internal
construction management in the State Treasury.
Chapter III: Solutions to strengthen management, improve management
processes to influence management to improve the efficiency of the internal
construction industry in the State Treasury.

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CHAPTER I: FUNDAMENTAL PROBLEMS OF MANAGEMENT CC CC
INTERNAL MANAGEMENT EFFICIENCY AND
IN THE STATE TREASURY

1.1.INTERNAL

CONSTRUCTION

INDUSTRY

IN

THE

STATE

TREASURY
1.1.1.State Treasury
Along with the socio-economic development of the country, the state treasury
was established with the main function is to manage the state budget revenues and
expenditures; rare property; financial reserves - currency of the State. Today, although
there are many differences in history and economics, but most countries have state
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treasury offices. In developing countries, the state treasury was established quite early
and complete as the United Kingdom and the United States - 1789 - 1790; France 1800; Canada - 1867.
On the functions, tasks and organizational structure, the following the State
Treasury typical model:
+ Treasury is organized as a Department under the Government.This model is
popular in USA, UK, Canada, Australia ...In addition to the main task set monetary
balance sheet, issuing money, national debt management and other precious assets, the
State Treasury a number of countries also responsible for managing the state
employees payroll, insurance organizations presidential guard ...
+ State Treasury under the Ministry of Finance (or Ministry of Economy and
Finance) including most countries in Western Europe and Central Europe, notably
France, Germany, Italy and other countries in Southeast Asia such as Indonesia,
Malaysia , Thailand, Vietnam, ...Treasury also has other names such as public financial
management, Department of public accounting, including fund management business

state budget, public debt management ...
+ State Treasury under the Central Bank of Russia, China, Eastern Europe and
Africa. In the apparatus of the Central Bank has a unit responsible for managing the
Fund budget, in charge of monitoring and management to help the Ministry of Finance
State budget revenues, in collaboration with the State Budget Department of the
Ministry of Finance accounting tasks and the State budget settlement.
+ State Treasury under the Ministry of Government.This is a very special
model, exists in some countries in the Middle East and Central Asia ... in Turkey, in
addition to a number of ministries is called "super" as Finance, Foreign Affairs,
Defense, other agencies are classified into groups to form the 1, 2, Timer 3 of the
Government. According to this model, the first of the government including the State
Bank, Treasury, Commerce, Planning and Statistics ... As it can be seen that in the
State Treasury released pretty soon, most separated and development finance agencies,
specialized management lyngan book State.
In Vietnam, the State Treasury is an organization under the Ministry of
Finance, in performing the state management of the state budget funds, the financial

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reserve fund and other funds of the State assigned ; and to mobilize investment capital
for the state budget and development.
1.1.2.Internal construction industry in the State Treasury
Internal construction industry in the State Treasury is the active use of the
state budget for capital investment and new building construction or renovation, repair
and upgrade projects was the construction of the first phase in order to create the
facilities necessary for stable sustainable development objectives the State Treasury.
Compared with the basic construction investment general, internal
construction industry in the State Treasury a narrower scope, which is the internal
construction of Finance that is specific to the State Treasury. So, internal construction

industry in the State Treasury is the operation of capital for investment and
construction works, renovation, repair, upgrading and construction investment projects
in order to create the basis physical infrastructure for the operation of the State
Treasury.
Internal construction industry in the State Treasury, including the following:
+ Build new office building of the State Treasury, including local Central
State Treasury and the State Treasury.
+ Repair, maintenance and restoration of capacity utilization is the head office
of the State Treasury.
+ Repair, renovation and expansion of the working office of the State
Treasury.
+ Repair, maintenance and construction of ancillary items at the head office of
the State Treasury.
+ Purchase of equipment, machinery, products and new science and
technology for professional activities in the State Treasury.
1.1.3.Internal construction features branches in the state treasury:
Construction intra-industry in the State Treasury was first construction
activities, but it is intra-industry investment activities of the State Treasury so just
bring the common traits of the construction at the same time has its own
characteristics. as follows:

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1.1.3.1 The common characteristics with construction activities
First, a narrow range of construction, so that the internal construction industry
with the goal to develop new and improved infrastructure facilities for the operation of
the entire system by the State Treasury investment scale necessary and use a huge
investment and implementation time as well as using very long.Large capital and time
investment, long construction requires use policies, planning, proper investment plan

closely associated with the management of resources and the use of capital investment,
the disbursement according to the progress of the investment, make sure not to happen
the gaps between demand and disbursement at the same time avoid wasting capital
flows and incurred negative. In addition, this feature also requires the internal
construction management must also ensure investment principles focal point.
Second, the result of construction activities often take effect immediately at
the place of work and the project is created and the investment process as well as
operating time investment results influenced of natural factors, economic, social and
local (regions and provinces).Example: Investment in construction of office buildings
by the State Treasury at a local construction which is intra-industry in the State
Treasury, will be influenced by natural factors, economic, social and local. Thus, it is
necessary to choose a reasonable investment location - population density, traffic
density and favorable technical infrastructure, the ability to withstand the impact of
natural disasters, etc. To select the correct location of the investment should be based
on scientific grounds, based on a system of economic, political, social, environmental
and cultural. Need to build a system composed of different criteria and building many
different construction options to be able to compare and decide the right choice,
specific and reasonable, so that operators are maximum advantage of the space
investment, facilitate improving capital efficiency.
Third, the internal construction industry is also subject to high risk.Due to
large-scale investment, long term investment and operating time results as well as
long-term investment so the risk of intra-industry construction activity is usually very
high. Investment risks due to many reasons, including: (1) the subjective reasons from
investors such as poor management, the use of investment material elements of
inferior quality; (2) the cause objective as the prices of most raw materials increases
with time, the volatility of exchange rates, difficulties and costs of compensation and
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site clearance for the project, increase investment, etc. .. Therefore, to manage internal

construction industry to implement effective risk management measures include:
Identification the risks, measure the level of risk assessment and develop measures to
prevent and combat risk.
1.1.3.2 The internal characteristics of the construction industry in the State
Treasury
In addition to the general characteristics of construction activity, internal
construction industry in the State Treasury separate the characteristics as follows:
First, the investment process.Although a whole, intra-industry construction
process in the State Treasury also includes three stages: (1) Preparation of
construction; (2) Execution of construction projects; (3) End of construction put the
project into operation. However, due to the internal construction of the State Treasury
for the operation of the State Treasury should in every step of the construction process
has its peculiarities.
Investment preparation phase: This is the stage where the cost density is not
large compared with the total investment of the project or projects, but the stage is
very important, it determines the content, purpose and requirements of the process.
Investment preparation process including:
+ The need for investment in research and investment size.
+ Investigate, survey construction and siting;
Make the feasibility report
+ Evaluation of projects for investment decisions;
Including project planning, project evaluation is the most important, this
process helps the investor (the Central State Treasury or the State Treasury of the
provinces and cities directly under the Central Government) and the investment
decision (the Central State Treasury ) selection of the best and most effective
investment, cost savings ...
Implementation of the construction phase: This phase is funded with the
largest scale and proportion of the total investment in the entire investment process
and decision implementation phase content, purpose of investment projects. Good
management of this phase will contribute to cost savings, combat waste and losses in

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construction and decided to go to the quality and effectiveness of the project or
projects put into operation and use.
The content of the project implementation stage investments include:
+ Xin land or lease under the provisions of the State;
+ Organization of compensation and ground clearance, site preparation for
construction;
+ Selection of survey consulting, design, technical expertise and quality of
work;
+ To evaluate the design, the total cost estimate;
+ Organization of procurement of equipment, construction;
+ Sign a contract with the contractor to carry out the project;
+ Construction and installation works;
+ Subscribe to examine the performance of the contract;
+ Investment capital settlement construction after completion of installation
and commissioning of the project into operation.
During this period the strict management of the stages have important
implications to the capital savings, limited waste, special negative construction is the
construction by the state budget funding.
Completion of construction phase project put into operation to use: This is the
final stage of the construction process of implementation, the cost of this stage small
proportion of the total investment.This phase includes the following specific tasks:
+ Hand over the project to the State Treasury; handover completed, put into
storage by law for state storage.
+ End of construction, return borrowed or leased temporarily for construction.
+ Warranty work;
+ Project Operations: after delivery of the works, the investor (the Central

State Treasury and the State Treasury of the provinces and cities directly under the
Central Government) is responsible for the exploitation and improvement of the
organization and management methods in order to promote adequate and effective
technical-economic indicators have been set out in the investment projects.
Second, capital investment.Internal construction industry in the State
Treasury funds allocated from the state budget. In Vietnam, Decision number
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101/2008/QD - TTg on the issuance of the financial management and payroll
processing to the State Treasury from 2009 to 2013 states: "Every year, the State
Treasury used source State budget funds to cover investments to modernize, strengthen
infrastructure, construction of warehouses, office buildings and transactions, purchase
specialized equipment, repair, purchase of assets in service process professional
services. " The management and use of funds in construction activities, annual State
Treasury is responsible for drafting the state budget to the Ministry of Finance for
consideration and review to the Ministry of Finance, Ministry of Planning and
Investment and theconcerned in accordance with the provisions of the State Budget
Law and guiding documents.
Based on the state budget expenditure estimates assigned by the Prime
Minister, Ministry of Finance expenditure estimates for the state treasury in
accordance with current regulations.
1.2.INTERNAL CONSTRUCTION MANAGEMENT IN STATE TREASURY
1.2.1.The concept of intra-industry construction management in the state
treasury
Management in general, is the intended impact of the subject to the object
management in order to achieve the management objectives set out. Investment
Management is a continuous effect, an organized, goal-oriented investment process
(including preparation of investment, the investment and operating results of the
investment) and other factors investment, by a uniform system of measures of socioeconomic, technical institutions and other measures in order to achieve effective

results and the highest investment in physical conditions and on the facility to
creatively apply objective rules and specific rules of investment. From internal
construction management industry in the State Treasury is narrower contents of
investment management including management object is the basic construction in the
State Treasury. Thus, the construction manager at State Treasury is also continuous
interaction, organized, goal-oriented process of internal construction industry in the
State Treasury, with a system synchronization measures of socio-economic,
organizational and technical measures to achieve the highest efficiency of investment.

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For intra-industry construction activity in the State Treasury, management
objectives include the following:
First, the internal construction industry in the State Treasury must be
consistent with operational objectives and strategies developed by the State Treasury.
Second, the investment management to achieve efficiency in construction
activity, which is reflected in the comparison between the results of the investment and
the cost incurred to achieve that result.
Particularly for operating the internal construction sector in the State Treasury
to use funds from the state budget, the investment efficiency is only achieved when
cost, against loss, waste and debt reduction in construction activity.
1.2.2.Internal content management construction industry in the State
Treasury system
Internal construction management at the State Treasury include the following:
First, strategy, investment plans.Strategies and investment plans must be
consistent and strategic service planning activities of the State Treasury. The strategy
and investment plan construction plan in the State Treasury include the number of
construction projects, investment plan implementation process, detailed plans of
investment projects ....

Second, the organization set up investment projects.In the preparation stage
investment, the investment management activities of the State Treasury made from the
construction project ideas to the stage of pre-feasibility and feasibility projects.
Third, the organization and management of the implementation phase of
investment construction and operation of investment results.Content management in
the implementation of the construction phase is essentially bidding for contractor
selection, contract signing, construction management, cost management. Including
construction management construction and management costs are considered very
important content.
Management

of

construction

projects

including

construction

quality

management, management of construction progress, the volume of construction work,
labor safety management on construction, environmental management construction
up ...
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Progress of construction management construction: construction schedule

must be consistent with the progress of the project has been approved.For building
large-scale and long construction period, the construction schedule must be made for
each period, month, quarter, year. Treasury, building contractors, consultants and
monitoring related parties are responsible for monitoring and supervising the progress
of construction works and adjust the progress in the case of the construction progress
in some prolonged period but do not affect the overall progress of the project. Case of
the overall progress of the project was prolonged, the State Treasury to adjust the
overall progress of the project. Encouraged to accelerate the construction on the basis
of the quality assurance work. Where accelerate bring greater efficiency to the project,
the construction contractor be considered for contract award. Where prolonged
construction schedule causing damage, the breaching party must pay damages and
fined for breach of contract.
Volume of construction management projects: the construction works must be
carried out according to the volume of the approved design. Workload is calculated,
confirmation between the investor, the construction contractor and supervision
consultant or construction phase and time to be matched with the approved design
volume as a basis for testing , payment under the contract.When mass arising out of
the design, construction estimates approved, the investor and contractors must consider
the treatment.Volumes arising approved by the State Treasury as a basis for payment,
settlement works. Prohibits declaring, declaration increase volume or collusion
between the parties led to the wrong payment amount.
Labor safety management on construction: construction contractors to
establish safety measures for people and works on a construction site, and construction
contractors must be combined with the State Treasury and the parties regular
inspection and supervision of safety procedures on site labor.Upon detection of
violations of occupational safety shall suspend construction.
Management of the built environment: construction contractors to implement
the environmental safeguards for workers on the construction site and surrounding
environment including protection measures against dust, noise, waste treatment waste
and clean up the scene; same time combined with the investor test, monitoring the

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implementation of environmental protection building, next to which must be under the
control and supervision of state environmental management agencies school.
Construction cost management: the cost of construction investment projects is
determined by the work in accordance with the design and construction steps is
represented by the total investment, total cost estimates, cost estimates construction.
Cost of construction projects in the State Treasury to be established and managed on
the basis of the system of economic and technical, cost norms in construction
activities, construction price system and policies related by competent state agencies
for promulgation. And total investment for construction projects in the State Treasury
is limited to the maximum cost the state treasury be used for investment in capital
construction.
In the operation phase, the basic content of construction management is to carry
out regular maintenance of construction ...
Fourth, payment and settlement management (payment through control of
capital construction funded by the State budget through the State Treasury).
Control the payment of capital construction funded by the State budget
through the State Treasury represented by the following:
* Payment control capital expenditures for construction work funded by the state
budget:
All capital expenditures for construction of state budget funds are the State
Treasury for payment control before paying.The control of the Treasury on the basis of
records, documents, conditions that then make state budget funds for payment to
beneficiaries.
The control of payment:
+ Check the completeness, legality and validity of the project documents and
payment vouchers on the contents of the number of records and documents; forms of

documents prescribed form not, full content, signature, stamp of the organization and
individuals in accordance with the hierarchy of legislation on the management of
capital construction or not; examine the subject in economic contract, the principal of
economic contracts; examine the logic of the project in record time, payment vouchers
phased implementation of the project ...

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+ Controlling the execution sequence of investment and construction, unit
prices and the policies prescribed by the state: the expenditures comply with the
construction sequence have adequate procedures for investment and construction;
expenses in the preparation of investment must be approved investment estimate
preparation, expenses for the package construction and purchase of equipment in the
early stages of the project must be determined project approval, the approved total cost
estimate to bidding or contractor under the provisions of the procurement law ... each
expenditure control through payment vouchers on the unit price of each job made
against the unit price of the job is approved by the competent authority or by the bid
price; expenses incurred in the process of implementing additional approved the
project, the case adjust the project, design, policy regime change project salary
increases, reducing capital expenditures for construction work funded by the state
budget ...
+ Time to control expenses according to the content above requirements of
the State Treasury within the time prescribed by law for the construction (no more than
5 working days after receiving complete and valid dossiers).No congestion control
process on payment, does not affect the progress of construction works and does not
cause inconvenience to the beneficiaries budget ...
Control process payments through the State Treasury specified sequence,
content, scope control, payment of investment capital.
Derived from the request allocation method for construction work in

accordance with the characteristics of the construction industry and building products,
meeting the requirements of adequate capital for project implementation process,
ensure the quality and quantity of work in accordance with the approved design and
cost estimates, construction investment can be allocated in the following ways:
+ Allocation of investment capital in order to spend money: financial agencies
based on the quarterly spending plans up payment orders require fund management
agencies state budget State budget funds transfer directly into open deposit accounts of
the State Treasury for capital expenditures construction.Treasury on the basis of the
project's funding plan and implementation schedule of the project, the procedure
works to make payments to beneficiaries. For this allocation method, the time of state
budget funds and the time of implementation of the state budget has a relatively large
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time gap. On the other hand, the state budget funds for construction is usually very
large, making the regular budget under stress as demand and expenditures of the state
budget requires outstanding capital of the state budget still on construction spending
account.
+ Allocation of investment capital: Quarterly financial agencies make
informed investment limit sending State Treasury, it is up to the State Treasury capital
expenditures during the quarter.Treasury on the basis of the project's funding plan and
implementation schedule of the project works to process payments to beneficiaries.
For this allocation method, the time of state budget funds the time of implementation
of the state budget is overlap and overcome the limitations of the method to allocate
investment capital in order to spend money but still restrictions that limit capital
investment by investment, so can not use the limit of funds to pay for the project using
the limit of capital, leading to the time of the mass execution of pending projects
money due to lack of investment limits.
+ Allocate estimates: State Treasury based on the expenditures of the state
budget allocated to the project work making payments to the beneficiaries according to

the progress of the project.NS estimates of the project was divided for allocation on a
quarterly basis and details for each item. This allocation method has superiority over
the two allocation methods mentioned above and overcome the limitations of the
method of allocation of expenditures and investment capital. But to make the
allocation method according to the estimates, the formulation, the annual budget
allocation for the project must be accurate and provide long-term stability.
+ Allocation of revenue and expenditure in the form of record investment:
This is a method of allocating specific characteristics compared with the three methods
used for payments in kind, paid by day labor for projects , more capital investment by
official development assistance (ODA) for the project works.Based on the amount of
materials, labor days used on the work and approved by the market price or the amount
of capital investment funded by official development assistance disbursed to the
project work, the financial institutions up command for revenue and payment orders
sent in the State Treasury to account for revenues budget, payment allocation for
capital works projects.

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About payment: Treasury paid directly to the beneficiaries of the state budget,
capital construction expenditures of the state budget funds are paid directly to the State
Treasury the government's real debt by bank transfer, reduce the amount of cash in
circulation.
Of operating funds: the State Treasury to ensure timely meet the needs of
investment spending by year capital plan estimates the annual allocation for the
project.Where the cash balance the state budget does not meet the temporary solvency,
Treasury Financial b immediately shirt agencies to deal with, when necessary
temporary loan financial reserves to guarantee payment of expenses when the focus is
revenue to repay the financial reserve fund under the regime.
* Accounting, capital settlement construction funded by the state budget:

Capital construction accounting process funded by the state budget is the
State Treasury made notes, accurate accounting and timely payments according to the
regulations, the accounting centralized billing account and accounting accrual.
+ Centralized billing account of the State Treasury are one or more open
accounts held by the State Treasury at the central bank and the commercial state to
centralized sources of revenue and the payment of expenses of government (local
authorities), the essentially the revenues and expenditures of the state budget.
+ Accrual accounting: reflecting the overall financial situation of the state,
fully reflects the situation and the volatility of the asset, the capital.Accrual accounting
allows information about the activities of a unit is expressed in the language of
finance. The information on activities, use of property and debt situation are available
to provide the leadership according to standardized criteria and systematic. So that,
when the appropriate systems, leaders can assess the impact of the activities and
expected impact of future activities, monitoring and control changes and students in
the operation of the unit.
The capital settlement construction process is funded by the state budget
process synthesis, analysis and evaluation of the state budget expenditures have been
made in the annual capital plan or estimate, for financial agencies make the final
budget for the year.
* The apparatus control the payment of capital construction funded by the
State budget through the State Treasury:
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Treasury organize relevant departments to carry out management tasks and
control capital expenditures for construction of state budget funds to ensure effective
allocation and payment, the regime, according to the progress of the project works .
Requirements of the organizational structure of control payment of capital
construction funded by the State budget through the State Treasury is compact, little
clue, consistent with the scheme and route administrative reform of agriculture.Clear

division of responsibilities between the parts in the process of performing the task,
ensure openness, mutual inspection and control and to avoid duplication
Organizational structure is an important content of the decision process to
control the payment of capital construction work funded by the State budget through
the State Treasury.
Fifth, coordination, inspection, control, evaluate construction activities in the
State Treasury and of each project, each project in particular.
1.3.EFFECTIVE INTERNAL CONSTRUCTION MANAGEMENT IN
STATE TREASURY.
1.3.1.The concept of effective internal construction management in the
State Treasury
There are many concepts of effective management.This general point of view
comes from the category of outcomes and cost management: "Effective management is
the category of scientific expression comparison between the results of the
management and administrative costs must spent to obtain the result that in a certain
period of time "*.If the concept of performance management is "effective internal
construction management in the State Treasury is the category of expression
comparison between the results of the internal construction management activities in
the state treasury than the target plans set out in the the internal construction industry ".
However, the concept has not shown the effective use of capital or performance of
construction. and effectively manage internal construction industry in the State
Treasury only really effective when the internal state budget funds for the construction
industry in the State Treasury to be used most effectively.
Management is the intended impact of the subject to the object management
in order to achieve the management objectives set out.So can introduce the concept of
performance management as follows: "Effective management is a category of
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scientific expression comparison between the results management subjects achieved

compared with other management objectives Management has set a "*.(* Documents
fostering State Administration - State Institute of Public Administration, 2011).
As analyzed above, the internal construction management objectives in the
State Treasury, including two contents: First, the internal construction industry in the
State Treasury must be consistent with operational objectives and strategy
development of the State Treasury system; Second, investment management to achieve
efficiency in construction activity, which is shown in the comparison between the
results of the investment and the cost to dispose to achieve that result.
Therefore, effective management of internal construction industry in the State
Treasury expression comparison between the results obtained from intra-industry
construction activities at the State Treasury (the quantity and quality of the
construction, completion schedule construction, the volume of investment made)
compared to the

proposed management objectives (operational objectives,

development strategy of the State Treasury, investment performance ...)
Principles of construction performance assessment:
+ It comes from investment goals.Construction activities can not be
considered effective when not achieve the target set. For intra-industry construction
activity in the state treasury, investment objectives must be consistent with the
strategic objectives and activities developed by the State Treasury, which is shown
very clearly in the legislation by the enacted regulations, development strategy of the
State Treasury in a certain period.
+ When evaluating the performance of construction to use a system of
indicators to assess and to determine the criteria to evaluate the efficiency, as
efficiency is a measure of standard implementation of the objectives of the operation
investment.
+ Note to delay the investment in time to accurately reflect the results
achieved and the cost spent to make the investment.

+ Make sure the science and practice when evaluating the effectiveness of
investment activities.
1.3.2.Effective indicators show the internal construction management in
the State Treasury
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As analyzed above, the introduction of a system of indicators rated as one of
the important factors contributing to accurate assessment and true construction
management efficiency.
Typical system of effective internal construction management group at State
Treasury include the following criteria:
First, the group only represents the investment performance include:
+ The number of new office buildings are built and the number of office
buildings be renovated and upgraded in the State Treasury system includes the Central
State Treasury and the State Treasury (provinces and cities directly under the Central
Government; districts, provincial cities).Compared with the figures given in the
legislation provisions on strategic development of the State Treasury system in a
specific period.
+ The quality of the construction work.This indicator reflects the effective
management of capital construction investment at the project appraisal stage, the
selection of construction contractors, construction management, construction.
However, this criterion is difficult to assess for the first time of the operation,
exploitation and is mainly based on qualitative assessment, so need to have a certain
amount of time to review and evaluate .
+ Progress of the construction work, this criterion is expressed in the number
of projects completed on schedule and the number of delayed projects.
+ Occupational safety norms is reflected in the number and severity of
occupational accidents.
+ Built Environment, this criterion represents costs incurred to implement

environmental protection measures such as: noise, dust, waste treatment and clean up
the scene.
Second, the group only represents the investment performance
+ Volume investment implementation compared to the total investment cost
estimates.Volume of investment made is the total amount spent to carry out
construction activities including: construction costs, the cost of procurement and
installation of equipment, administrative costs and other expenses in accordance with
of design and estimates stated in the approved investment estimates.
In which:
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Construction costs include: the cost of construction projects, work items
under the project; break costs and dismantling the old structures; construction costs
leveling; construction costs temporary and ancillary works for construction (roads,
electricity, water, etc.), temporary housing for dwelling and construction management
(if any).
The cost of procurement and installation of equipment including: the cost of
procurement of technological equipment, the cost of training and technology transfer;
transportation costs from the port and place of purchase, costs of storage, store beach
at Vietnamese ports (for imported equipment), maintenance costs, maintenance storage
site; tax and insurance costs for equipment; installation costs of equipment and
experiments.
Project management costs and other expenses include:
+ Cost of the overall project management; implementation costs compensation
process clearance are the responsibility of the investor; appraisal costs or design
verification; total estimated cost, construction cost estimates works; costs of making
their bids, bidding documents, analysis and evaluation of bids, the bidding documents;
monitor construction costs, construction survey and monitoring equipment
installation ; the cost of inspection and certification of conformity of quality

construction, testing costs, settlements, new investment capital and management costs.
+ Cost of construction surveying, construction design costs, cost of architectural
contests.
+ Cost of commencement, inauguration, propaganda and advertising.
+ Cost of traffic safety evaluation, the cost of setting up the unit price.
+ Project appraisal fee (including basic design), construction permits (if any);
insurance costs; audit costs, examination and approval of the settlement of investment
capital.
When the difference between the total amount of capital investment made and
the total cost estimate at small shows good cost effective management; vice versa,
when this difference to a large extent reflected in construction cost management also
inadequate.
+ Debt outstanding of internal construction industry in the State Treasury.There are
two main reasons to unsolved of internal construction industry in the State Treasury.
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First, the debt situation occurred comes from the State Treasury investment decision of
the project cost is too large and exceeds the funding provided by the state budget.
Second, there are many investment projects not yet been passed, but the investor (the
State Treasury of the provinces, cities and localities) proceed with the investment
process: construction contractor selection, construction ...
+ Statistics of wastage and losses in the internal construction industry in the
State Treasury.This is considered a common condition in the construction activity in
general and especially for construction projects using state budget. Although the
country has issued many legal documents requested by competent state agencies to
strengthen inspection and supervision to limit situation, however, the phenomenon of
waste in construction is still at the level of high, has caused great losses to the state
budget. For construction activities the financial sector in general and in the State
Treasury in particular, wasting condition mainly due to the following activities:

ground-breaking organization, start, opening offices, home made the city in nature,
form, wasting; festival, gifts, flowers to organize the ground-breaking sessions, start,
opening offices, office buildings and works other construction projects ....
1.3.3.The factors affecting the performance management
1.3.3.1. Objective factors
First, the regulations of the State, is expressed in the normative framework of
the general construction law and on internal construction industry in the State Treasury
in particular.When the legal system of budget-funded construction activities in full
detail and consistency, will be the basis for legal help managers improve the efficiency
of management activities.
Construction activities related to many areas due to the requirement for
consistency in the legislation between the fields are placed on top.Land Law,
Construction Law, the Law on State Budget, decrees, decisions, circulars and
instructions of the Government, ministries, sectors and localities have the consistency
of the rules regarding construction. When the text is not consistent with one another,
will cause difficulties in the investment process as well as make it difficult to manage
(in the absence of clear grounds, be sure to cite in the management process) .
Completeness and detail the general requirements for all legal documents, not
only with respect to the construction of legal documents on the issue. However, this is
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intra-industry construction activity at a particular agency (State Treasury) using state
budget therefore requires the detailed legal provisions, more particularly specific
documents issued by the agency directly managing the State Treasury. Where the State
Treasury of Vietnam under the Ministry of Finance, so the Ministry of Finance should
issue the documents specified construction activities in the State Treasury.On that
basis, the management of the Central State Treasury and the State Treasury will offer
strategies and plans for construction work in their units. Besides, there should be a
mechanism to monitor and specify the sanctions forms of abuse in the management of

construction projects.
Second, the natural conditions of weather and climate affect the progress of
construction: weather, climate, difficulties in the clearance process ...One of the basic
characteristics of construction products is conducted outdoors, much influenced by the
weather. Therefore, the construction of the bad weather conditions especially rainfall,
storms will affect greatly to the progress of construction. This is a matter of force
majeure, it is difficult to give a measure for effective management.
For the process of compensation and ground clearance: this is a major
problem in the construction.When clearance process convenient, quick will help speed
up the execution time of the implementation works. However, in many cases, this
process encountered major obstacles. The reason is, the compensation process,
pending clearance of the relationship between the State's rights and land use rights
recognized by law; unresolved relationship between the public interest the interests of
investors and the interests of the people whose land is recovered; does not comply with
the provisions of the State on the order and procedures for land acquisition,
compensation, assistance, resettlement ... .
Third, the price fluctuation prices of major commodities in the world and
domestic changes, especially the prices of major construction materials will increase
greatly affect the management of construction for it will change the estimate, the total
investment changes, to take further the process of adjustment, additional long-time
implementation of the construction.
1.3.2.2. Subjective factors
First, the quantity and quality of human resources.As analyzed above, the
construction investment management in the State Treasury is the continuous impact,
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