Quản lý nhà nước đối với dự án đầu tư xây dựng theo phương thức đối tác công tư tại việt nam TT TIENG ANH

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PREAMBLE
1. Research rationale
In Vietnam, the public-private partnership (PPP) method has been
shaped since 1993 when the Vietnamese government issued "investment
regulations under BOT contract method to apply for foreign investors.
Although this method formed such a long time ago in Vietnam, practicing
experiences through many practical projects and focusing on the BOT
method with transport engineering projects, this method still presents
shortcomings and limitations in application.
The role of the State in attracting and managing investment capital for
infrastructure development under the PPP method has not been clearly
identified. Lack of long-term master plan of the State, inadequate legal
corridor, limited capacity of officials of state management agencies (SMA)
are considered as the main reasons hindering projects applying the PPP
method in Vietnam. For the above reasons, the author has chosen the
dissertation title "State management of construction investment projects
under the mode of public-private partnership in Vietnam" for this Ph.D.
thesis, which is of practical significance in theory and practice.
2. Research purposes
The dissertation aims to building a scientific basis for proposing
solutions to improve the state management of construction investment
projects (CIP) under the PPP method in Vietnam. Furthermore, the
dissertation determines the criteria for evaluating state management (SM)
for construction investment projects according to the PPP method of the
competent state management agency.
3. Research
The dissertation studies the CIP under the PPP method to clarify the
contents of state management and the factors affecting the State
management, thereby proposing solutions to improve the state management
of construction investment projects according to the PPP method.

4. Research object and scope


2
-

The object of the study is the SM of CIP under the PPP method in both

theory and practice. In particular, SM activities include the law/policy
framework, the State's management methods, and tools, the organizational
structure model, the management capacity, and the State's inspection and
supervision.
-

Scope of the study: The dissertation conducts research and determines

the management contents in the CIP under the PPP method, focusing on
transport and energy.
5. Research approach and methods
5.1 Approach: The topic approaches research problems from the
theoretical and practical bases used consistently in the research process
of the dissertation, in the direction of looking at PPP projects from the
perspective of state management.
5.2 Research Methods: Due to the nature of the research object, the
dissertation uses the methodology of dialectical materialism and
historical materialism. The specific method is the combined method
(qualitative method, quantitative method); methods of analysis and
synthesis; inheritance method.
6. Research novelty
6.1 Contributions of the research results:

Firstly, the research results show that the SM of PPP construction
investment projects is an essential factor determining the success of the PPP
project;
Secondly, theoretically, the study gathered, systematized, and
supplemented issues such as concepts, contents, and characteristics of
construction investment projects under the PPP method;
Thirdly, the dissertation pointed out the factors affecting the SM of CIP
under the PPP method, thereby determining the contents of the assessment
of SM of CIP under the PPP method;


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Fourthly, it generalized the current state of SM of construction projects
under the PPP method in Vietnam recently, pointing out shortcomings,
limitations, and causes in the process of SM.
6.2 Novelty of the dissertation:
Firstly, it proposed the stages of a PPP project consisting of five stages
to match the progress of a PPP project to help SM activities be clearly and
timely adjusted in the management process.
Secondly, it developed four specific solutions, including criteria for
assessing SM for each stage of a PPP project, with evaluation contents and
evaluation methods and assessment objects.
Thirdly, it suggested six recommendations to improve SM for each
specific management content regarding to management tools, means, and
methods.
CHAPTER 1
OVERVIEW OF STUDIES ON STATE MANAGEMENT FOR
CONSTRUCTION INVESTMENT PROJECTS BY PUBLIC PRIVATE
PARTNERSHIP METHODS

1.1 Overview of studies related to the research topic
1.1.1 Domestic studies: By reviewing 28 domestic studies, these studies
only cover a few specific aspects of the activity in the process of a PPP
project, even research only for transport, water supply, or wastewater
industry, such as risk allocation, capital mobilization, SM ... there has not
been any systematic research on theory and assessment of the current
situation, shortcomings and limitations in SM of CIP under the PPP method
in Vietnam.
1.1.2 Foreign studies: Foreign studies (23 works) often provide guidelines
on PPP investment. Synthesis of studies abroad can summarize the main
factors affecting the success of PPP as follows: (1) The role of the


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Government; (2) Selection of a private partner; (3) Allocation of project
risks; (4) Funding structure of the PPP project.
1.2 Issues drawn from the studies and research gaps
From the overview of published research related to the topic presented
above, the author finds that there have been many scientific research works
on CIP under the PPP method, but there has not been a complete study on
SM. Therefore, the thesis should focus on clarifying:
- Factors affecting SM of PPP construction investment projects?
- How is the SM work being carried out according to the PPP method of
Vietnam?
- What does SM need to apply for a successful PPP construction investment
project?
1.3 Research direction of the dissertation
Faced with the current situation of organization and implementation
of PPP projects in Vietnam, What the thesis focuses on the content of SM
in PPP construction investment projects? What factors affect the SM?,

What needs to be done to make the SM of construction investment projects
under the PPP method effective and efficient?
In order to complete the SM of CIP under the PPP method in
Vietnam, the thesis makes the following hypothesis:
About state

1. Completing PPP policies and laws;

management

2. Solutions for monitoring and evaluation of SM;

tools:

3. Financial solutions for PPP projects;
4. Criteria for evaluating SM activities according to
project phases.

About the

1. Completing the SM apparatus on PPP;

means and

2. Strengthen decentralization of project decision-

methods of
SM:

making authority;

3. State support in all phases of the project;
4. Publicity and transparency through the National
Website.


5
1.4 Research framework
The thesis offers the following research framework: (i) Determining the
factors affecting SM, focusing on the contents of SM for CIP under the PPP
method; (ii) Determine the criteria for assessing SM, in order to complete
the contents of SM (Figure 1.1). SM activities are closely linked and unified
to achieve the objectives of the CIP under the PPP method.
Factors affecting SM of
CIP in the form of PPP
- The subjective factors
- The objective factors

- Criteria for evaluating
SM for CIP in the
form of PPP
- Validity
- Efficiency
- Sustainability
- Possibility

Contents of SM for
CIP in the form of
PPP
- Legal framework
on PPP

- Organization
management
apparatus
- Monitor, check
and evaluate the
project
- Handling
violations
- Reconcile arising
conflicts

SM objectives for
CIP in the form of
PPP
- PPP project
achieved socioeconomic
efficiency
- Reducing state
budget spending
- Increase resource
efficiency
- Improve service
quality
- Attract potential
investors

Figure 1.1: Theoretical framework of the dissertation
1.5 Research process of the dissertation
To achieve the research objectives, the thesis needs to be carried out in
order. The research process of the dissertation is conducted as follows:

Researching domestic and foreign published scientific works related to the thesis

Investigate the current
state of SM of PPP
projects in Vietnam

Statistical analysis of
SM of CIP in Vietnam

Determining factors
affecting SM of PPP
projects

Synthesize the theoretical
basis for the SM of PPP
projects in Vietnam

• Clarifying content of SM for PPP projects;
• Summary of factors affecting the SM of CIP in the form of
PPP on the basis of legal regulations of Vietnam

• Proposing solutions to improve SM of PPP construction
projects in Vietnam;
• Proposing a set of criteria for assessing SM by stage to
competent state agencies

Figure 1.2: Research process of the dissertation


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1.6 Research methods
(1) Combined method (Combining qualitative research and quantitative
research)
(2) Methods of analysis and synthesis: Dividing the research object into
parts, aspects, and elements that are simpler to analyze.
(3) Inherited method: From the results of previous studies, the thesis
selectively synthesizes documents according to each research group for
reference and use to supplement the analysis of the dissertation.
CHAPTER 2
THEORETICAL, LEGAL BASIS ON STATE MANAGEMENT OF
CONSTRUCTION INVESTMENT PROJECTS BY PUBLIC-PRIVATE
PARTNERSHIP METHOD

2.1 Construction investment projects and construction investment
projects under the mode of public-private partnership
2.1.1 Construction investment projects
The dissertation is limited to CIP, according to the definition of the
Law on Construction: “An investment project is a collection of proposals
related to the use of capital to conduct construction activities for new
construction, repair and improvement, creating construction works in order
to develop, maintain and improve the quality of works or products or
services within a definite time and cost.” [62].
2.1.2 Construction investment projects under the mode of public-private
partnership (PPP)
2.1.2.1 Concept of CIPs according to PPP method
2.1.2.2 Characteristics of the PPP method for CIPs
2.1.2.3 The role of the PPP method for construction investment projects
2.1.2.4 Methods of PPP contract for construction investment projects
2.1.2.5 Implementation process for PPP construction investment projects
For transparency in deciding on a PPP project, summarized as follows:

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Table 2.2: Perform process the working of PPP project
Stage
1. Prepare and
propose
investment policy

2. Feasibility study

Some main implementation contents
-

Project identification;

-

Project implementation planning;

-

Pre-feasibility analysis (if any);

-

Check the suitability of the project;

-

Investor interest;

-

Approval of investment policy.

-

Comprehensive feasibility analysis;

and site clearance plan
-

management of

monitoring and
evaluation

Multi-benefit target calculation;
Appraisal of construction agencies;

-

Site clearance plan;

-

Approved by competent state agencies.
Completing bidding documents;
Disclosure of information and invitation for bids;

-

Dialogue with stakeholders;

-

Organization of site clearance;

-

Evaluation and selection of investors.

-

Manage project implementation plans and contracts;

-

Appraisal of technical designs and cost estimates of
specialized construction agencies;

project contracts
and Project

Identify, allocate and share risks;

-

3. Investor selection and site clearance -

4. Execution and

Cost-benefit assessment (CBA);

-

Approving the technical design and cost estimate of
the investor;

-

Responsibility for reporting and accountability;

-

Overall assessment of each stage of implementation;

-

Manage output results (acceptance conditions).

-

Monitoring and checking the announcement of the
project.

-

Summarizing the implementation of investor

selection, negotiation, and signing of project
contracts.


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-

Summarize the implementation of the project
contract.

-

Check the observance of regulations on investment
management by the contracting parties to the project
contract in the performance of the contract.

-

Monitor and check other contents prescribed in
Articles 86 and 87 of the First Law on PPP [68].

5. Operation and
transfer

-

Management and operation mechanism;

-

Maintenance plan, maintenance;

-

Development

of

surrounding

services

(neighborhood);
-

Customer consent;

-

Finalize the contract and hand it over to the State.

Source: Researched and synthesized by the author [28, 30, 34]
2.1.2.6 Stages of construction investment projects under the PPP method
In order to ensure the regulations in the construction investment and
the contents of the CIP under the PPP method, in order for the SM of CIP
under the PPP method to achieve the objectives in the management process,
the thesis proposes that the life cycle of a PPP project consists of 5 phases
(1) Phase of an investment policy proposal and project preparation; (2)
Feasibility study phase and site clearance plan; (3) Stage of investor
selection and site clearance; (4) Stage of implementation, project contract

management and monitoring and evaluation and (5) Stage of operation and
transfer of works to the State under the project contract.
2.2 Overview of SM and SM of CIPs under the mode of PPP
2.2.1. Overview of state management
2.2.1.1 Concept of state management
2.2.1.2. Features of state management
2.2.2 State management over construction investment activities
2.2.2.1 Concept of state management for construction investment activities
2.2.2.2 Contents of state management of construction investment projects
2.2.2.3 State management tools and methods for CIPs


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State management tools and methods: State management tools are the
totality of tangible and intangible means that the State uses to influence all
subjects in society to realize management objectives. The SM method is the
way to perform the functions and tasks of the State apparatus, the way to
influence the management subject on the managed objects to achieve the
necessary behavior.
Law
Policy
Tools
Plan
National property

State management

Administration
Method

Economy
Education

Figure 2.2: State management tools and methods
Source: Research author and recommendations from [69, 70]
2.2.2.4 Factors affecting SM of construction investment projects
- Objective factors: (i) Natural conditions; (ii) Socio-economic conditions;
(iii) Conditions on science and technology; (iv) Resource capacity of the
budget and (v) influence of international economic policies related to
construction investment projects.
- Subjective factors: (i) Institutions and policies on the economy; (ii)
Organization of the management apparatus; (iii) Responsibility regime of
related parties; (iv) Management capacity of leaders and professional
qualifications of staff in the SM apparatus on construction investment.
2.2.3 State management of CIP under PPP mode
2.2.3.1 The concept of SM for investment projects under the PPP method


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When referring to construction investment project management, the author
proposes the following concept: SM of CIPs under the PPP method is an
organized and regulated influence by the power of the State's laws by the
agencies. Therefore, competent state agencies implement the PPP mode of
investment.
2.2.3.2 SM objectives for PPP construction investment projects

Roles and
responsibilit
ies of the
state

Publicity
and
transparency
of the
project

The
feasibility of
the project's
effectiveness

Successful
PPP
project

entif an
s are ris s
appropriatel

Maximum
of state
support

Methods
and criteria
for selecting
investors

nvestor s

capacit

Figure 2.3: Successful conditions of CIPs under the PPP method
Source: Researched by the author and synthesized from [86,88,101,115,129]
2.2.3.3 Contents of SM for CIPs under the PPP method
2.2.3.4 State management process for CIPs under the PPP method
2.2.4 Decentralization of SM for CIPs under the PPP method
From the perspective of state management, it is crucial to define the
role and position of the Government. That is to identify the assignment of
powers of each level. The process at all levels in project management
depends on the fund scale and the size of each project. Therefore, a project
will be managed by which level and to what extent management is
appropriate.
2.3 Factors affecting SM of CIPs under the mode of PPP
There are many factors affecting the efficiency of SM, and according
to different criteria, to simplify the consideration of factors affecting SM of


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CIPs by the PPP method, the thesis focuses on explaining two groups of
influencing factors: objective factors and subjective factors.
2.3.1 The objective factors
2.3.1.1 Natural conditions and socio-economic conditions
2.3.1.2 Development of science and technology
2.3.1.3 Resource capacity of the budget
2.3.1.4 The capacity of the private partner
2.3.2 The subjective factors
2.3.2.1 Institutions and policies on the economy
2.3.2.2 Government support policy
2.3.2.3 Management capacity and professional qualifications of the staff

2.3.2.4 Rationality and transparency in risk-sharing
2.4 Criteria for evaluating SM activities for CIPs under the mode of PPP
SM results achieved is that the PPP project achieves the set goals, from
the investment preparation stage, the investment implementation stage, and
the operation phase throughout the project life cycle.
2.4.1 The effectiveness of state management
The effectiveness of SM is the level of compliance with legal
regulations.
2.4.2 The efficiency of state management
The level of achievement of the state management contents compared
with the state management objectives of the PPP project management
activities set out; Results of the State's orientation, law promulgation,
regulation and inspection, inspection and supervision activities against state
management objectives PPP projects.
2.4.3 The sustainability of state management
For the state management of construction investment projects under
the PPP method, the sustainability of SM includes the stability of legal
documents and minimizing the overlap in management between ministries
and branches.
2.4.4 The feasibility of state management


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The feasibility of state management is assessed on the compatibility
between the content of legal documents and the activities of the PPP project
cycle.
2.5 International experience in SM of CIPs under the mode of PPP
2.5.1 Experiences of some countries
2.5.1.1 Experience of the UK:
2.5.1.2 Canadian Experience

2.5.1.3 Experience of the French Republic
2.5.1.4 Korean experience
2.5.1.5 Experience of Indonesia
2.5.1.6 Experience of India
2.5.2 Lessons learned for Vietnam
Firstly, adequate, transparent, and stable policies and laws;
Second, PPP project development planning;
Third, the Government's support policy must be feasible;
Fourth, the SM apparatus for PPP projects is competent;
Fifth, effective risk allocation mechanism;
Sixth, strengthen publicity and transparency;
CHAPTER 3
ANALYSIS OF THE CURRENT STATUS OF STATE MANAGEMENT
FOR CONSTRUCTION INVESTMENT PROJECTS OF PUBLICPRIVATE PARTNERSHIP IN VIETNAM

3.1 Overview of the legal framework and investment situation under
the mode of public-private partnership in Vietnam from 1993 to 2020
3.1.1 The period from 1993 to 1997
This is the stage with the highest specific legal documents on PPP is
Decree No. 87/CP and Decree No. 77-CP, Law on Foreign Investment No.
04-HDNN08 dated December 29, 1987; This phase is the starting point for
BOT contracts with 2 Decrees [17, 18];
3.1.2 The period from 1998 to 2011


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This is the stage of expanding the types of PPP contracts and agreed
in a document in Decree No.62/1998/ND-CP dated August 15, 1998, on
investment regulations under BOT, BTO construction contracts, BT [19].
This is the first legal document in Vietnam that adds BTO and BT methods.

3.1.3 The period from 2012 to 2020
For the first time, the term "Public-Private Partnership - PPP"
appeared, specifically "Improving mechanisms and policies to encourage
investment in the form of PPP, BT, BOT... with appropriate mechanisms
an policies to attract investment in t e fiel s of infrastructure” [41]. T is
is when the state management agencies and investors begin to innovate
about PPP methods, and it is also the time to attract the most investment in
PPP methods.
3.2 SM status of CIPs under the mode of PPP in Vietnam
3.2.1 The process of implementing CIPs according to the PPP method
The process that has been decentralized by the Law on PPP to approve
investment policies has gradually become clear to investors and state
management agencies. However, with the above implementation process
an actual implementation not as regulate , “T e polic of ecentralization
and decentralization of powers between the central and local governments
and among local government levels has not been implemented
synchronously and t oroug l accor ing to t e requirements set out” [69].
3.2.2 Project development planning under the mode of PPP
Recently, the problem of planning and developing PPP projects in
Vietnam has not been proactive. While many PPP projects have been
launched, the PPP project planning strategy has not kept pace with
development needs. Furthermore, it is not suitable and attractive to
investors. Most of the PPP projects implemented recently from the
investor's side are proposed by investors, and almost implemented PPP
projects are under BOT contracts in the transport sector from 2013- 2015.
3.2.3 Policies and regulations on public-private partnership


14
"Although the public investment law and the Investment Law have

regulation for the form of PPP investment, they are still very general. The
highest legal document specifies specified, detailed about the new PPP
investment method to stop at the decree-level, has not had separate laws. In
addition, many regulations are scattered in specialized laws, so it still exists
law gaps. The system of legal documents is still lacking in synchronously
from the deployment of the implementation, completion and put into
utilization, unassigned Impacts on affected subjects" [67].
3.2.4 State management apparatus on public-private partnerships
Also working part-time: "At the implementation level, most
ministries and People's Committees of provinces /cities have assigned their
attached units to as a PPP's focal point, mainly the unit in charge of plans
and finance at the Department of Planning and Investment. In addition, a
few agencies have established a specialized unit of PPP, such as the
Ministry of Transport (establishment of PPP Department) and some cities,
such as Hanoi and TP. Ho Chi Minh (PPP Room under Department of
Planning and Investment) " [36].
3.2.5 Staff and human resources in state management of PPP methods
According to current regulations, only establishing the steering
committee, officials are taken from other places, and having excellent
experts in the SM apparatus for PPP is very difficult. "PPP civil servants
and civil servants implementing PPP in ministries, branches and localities
mainly working in a part-time regime" [36].
3.2.6 Monitoring and evaluating projects for PPPs
According to current regulations, besides competent state agencies,
many other SM agencies participate in monitoring projects. Therefore, too
many subjects from the state agency lead to unclear responsibility. In
addition, there are no criteria for assessing state management activities.
3.2.7 Capacity of private partners participating in the project
Without detailed regulations, binding investors must demonstrate
specific financial capacity and quantification for project implementation.

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This means in choosing investors with good financial potential; this is also
committed to binding responsibility for investors to recover investment
capital and increase income for the project.
3.3 Assessing the SM for CIP according to the method of PPP in
Vietnam
3.3.1 The content assesses the effectiveness of state management
Legal policies on PPP in recent times have many problems that are
difficult to implement, such as overlapping between investment project
laws, separate regulations on new PPP at the decree level (by 2020),
Continuous change in Applying the PPP method.
3.3.2 The content assesses the efficiency of state management
"Study on detailed audit 40 projects show: Put into the financial plan
Some contents have not yet stipulated to calculate the payback time, set up
a short-term financial plan ...; The state audit has proposed a reduction in
the payback time of 40 projects of 120 years compared to the initial
financial plan and the reduced investment value of VND 1,467.3 billion"
[50]. This shows that the effectiveness of SM in the past is minimal.
3.3.3 The content assesses the sustainability of state management
State management about PPP has no guarantees "stable and
synchronous", especially in the period from 1998-2011, there are
continuous "amendments and supplements", It can be found that policy
capacity is still very limited, If the overall process of forming the PPP
method so far, an average of 2.5 years has a change and rightful inheritance.
3.3.4 The content assesses the feasibility of state management (SM)
Regulations on planning, land acquisition, state capital participating
with the project, about financial plans are not suitable for practicality. Since
then, the project has ensured profit for investors while reducing the risk that

the State must compensate.
3.4 Analysis of factors affecting the capacity of state management for
construction investment projects under the mode of public-private
partnership in Vietnam


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According to the PPP method, state management capacity for
construction investment projects under the PPP method is the
administrative apparatus's ability to perform the management function of
construction investment projects. The factors that makeup state
management capacity include:
- The administrative organization system is established based on clearly
delineating functions and authority among agencies, organizations, and
levels in the administrative system;
- The system of institutions and administrative procedures is promulgated
with scientific and reasonable grounds, creating a legal framework and
asynchronous, rhythmic, quick and smooth operating mechanism of the
State's administrative apparatus;
- Human resources, with political qualities, ethics, qualifications and skills,
are structured and standardized to meet specific requirements of the
performance of official duties;
- Overall necessary and sufficient material, technical and financial
conditions to ensure effective public service activities.
3.5 General assessment of the state management of construction
investment projects under the mode of PPP in Vietnam
3.5.1 Main successes
Decree No. 63/2018/ND-CP is a legal document that is important for
investment by PPP method. Compared to previous regulations related to
PPP, Vietnam's infrastructure capacity has been significantly improved in

a shorter time than the State monopoly model in infrastructure construction
investment did.
3.5.2. Shortcoming, limitations, and causes
3.5.2.1 Shortcoming and limitations
There are no overall strategies for construction investment by PPP;
Guiding documents not promptly;
3.5.2.2 Causes


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Lack of synchronization in legal regulations; unclear instructions for
implementation; lack of monitoring mechanisms and penalty policies for
investors; no participation of investors and the community during the
project selection process.
CHAPTER 4
SOLUTIONS TO IMPROVE STATE MANAGEMENT FOR
CONSTRUCTION INVESTMENT PROJECTS ACCORDING TO THE
METHOD OF PUBLIC-PRIVATE PARTNERSHIPS IN VIETNAM

4.1 The domestic and international context affects the SM of
investment projects according to the method of PPPs in Vietnam
4.1.1 Domestic background
The Vietnam Economic Background has had high growth compared
to other countries in the same area in the past years. For example, Vietnam
has an increased income per capita, so it reaches a middle-income country.
That means the loan source ODA for infrastructure development will
decrease.
4.1.2 International background
The world economy continues to face many uncertainties, and the
economies have signs of slow growth. American - Chinese trade tensions;

Affect the global economy.
4.1.3 Opportunities and challenges in the coming time
(a) Opportunities and advantages
The development of science and technology provides advances in
managing and creating effective tools for the State in managing and
monitoring investment activities according to PPP methods.
(b) Identification of challenges, difficulties
The period from 2020 to 2030 is the stage of completing the
commitments of the FTA. That will face directly and extensively to the
country's economy, localities, and businesses, increasing competition
pressure significantly.


18
4.2 Proposing solutions to improve SM for construction investment
projects according to the method of PPP in Vietnam
State management
of PPP

PPP policy and
law

Project monitoring
and evaluation

Section 4.2.1
and Section 4.3

Section 4.2.3

Information
system about PPP

Section
4.2.4

Management apparatus
and personnel

Section 4.2.2

Figure 4.1: Proposal to improve state management for PPP method
4.2.1 Developing and announcing the overall national strategy on
Investment by PPP
- The Government directs the formulation and publication of an overall
national strategy on investment under the PPP method in each period under
the country's socio-economic development strategy.
- Ministries, ministerial-level agencies, and government-attached agencies
shall, within their respective jurisdictions, issue regulations and guidelines
on investor selection for construction investment projects suitable to their
respective management specialties. Disclosure on the website as proposed
in Section 4.2.4.
- Objectives of national master planning: To be a tool of state management
in the management of socio-economic development, in order to mobilize,
allocate, effectively and rationally use national resources for sustainable
development of the country.
4.2.2 Completing the organization of the SM apparatus on the PPP method
As analyzed above, the management apparatus is critical in the process
of managing PPP projects, a suitable management apparatus with a
competent authority and responsibility to resolve the problem will decide

on a PPP project's success.


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The Government directly directs the Central PPP Office, controlling
and supervising through "State Audit" and the Ministry of Evaluation
criteria in section 4.2.3.

Government

Specialized
ministries

National PPP
Center

Local PPP office

National PPP
project

Local PPP
project

State audit

Figure 4.2: Proposing the model of organization of SM of PPP
4.2.3 Proposing a set of criteria to assess the SM of construction
investment projects under the mode of PPP
In order to quickly assess the level of SM, the author proposes a PPP

project consisting of 5 phases, in each phase, there are essential contents
for the successful implementation of the PPP project. Furthermore, within
specific implementation activities, there are the criteria for evaluating the
management process of a PPP project (focusing on the state management
function).
The specific evaluation criteria that have been established for each
project. It is necessary to determine the weight of the importance of each
criterion. Within each criterion at each evaluation stage, the evaluation can
be designed on a scale of 100 or 1000. In this thesis, the author illustrates
the evaluation method on a 100-point scale.
In order to help supervisory agencies evaluate construction projects by
the PPP method to establish a system of project evaluation criteria for each


20
stage, the author proposes a standard evaluation criteria framework for each
stage. evaluation, shown in tables: 4.1, 4.2, 4.3, 4.4 and 4.5
(In this summary, the thesis introduces Table 4.1, the following stages
from Table 4.2 to Table 4.5 are similar in structure to Table 4.1, but the
evaluation content depends on each stage. evaluate).
Assess stage
State 1:
Stage proposing investment
policy and project
preparation

Phase 2:
Feasibility study and site
clearance plan

Stage 3:
Select investors and make
clearance

Stage 4:
Implementation and
management of project
contracts and evaluation
monitoring

Stage 5:
Operating and transferring
projects to the State under
the project contract

Assess content
1.1 Select and identify projects
1.2 Planning and decentralization of project
management
1.3 Feasibility before analysis (if any)
1.4 Check the appropriate level of the project
1.5 Attention of investors
2.1 Comprehensive analysis feasibility
2.2 Assessment of cost benefits (CBA)
2.3 Identify, allocate and share risks
2.4 calculate multi-benefit target
2.5 Index of investment capital
2.6 Plan for clearance
3.1 Complete records of bidding documents
3.2 Information disclosure and bidding

3.3 Dialogue with related parties
3.4 Organization of project clearance
3.5 Select investors / contractors
4.1 Management of project plans and contracts
4.2 Responsibilities for reporting and explanation
4.3 Supervision and evaluation work
4.4 Report content of subjects
4.5 Overall evaluate per project stage
4.6 Conditions to bring the project to use
5.1 Project management and operation mechanism
5.2 Exploit plan, maintenance and maintenance
5.3 Development of adjacent services projects
5.4 Users are ready to use the service
5.5 Remove problems, conflicts arise
5.6 Project contract settlement and handover to the
State

Figure 4.3: The proposed model for the assessment of the SM of PPP


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Table 4.1: State management assessment criteria for phase 1
Evaluation for phase 1:
Stage proposing investment policy and project preparation
1.1 Selection and

Weight

scores

1

100

The right investment goal

identify

Construction position must be suitable

projects

Technical requirements meet
General economic development of the
region/industry
Approval of the user

1.2 Planning and

Project implementation cycle

decentralization

Time for each stage

of project

Decentralization for appraisal/approval

management

Select management methods
Direct management organization

1.3 Analysis before

Budget mobilization ability

feasibility (if

Plan to pay for capital and profit

any)

Science and technology applied
Development market benefits
Commercial ability to meet

1.4 Check the

Planning specialized / region / area

appropriate

Technical feasibility

level of the

Allocation of capital for the project

project

Response of investors
Impact and environmental affect

1.5 Investors'
interest

Favorable project accessibility
Clearly and transparent project
information
Level criteria for many investors
State of support policies
Guarantee consistency of law

General results


22

4.2.4 Building website on the Government's Orthodox PPP
For the Operation PPP method to achieve the expected results, it is
necessary to establish a system of information related to PPP issues, as a
database and reference for the State (Gorvernment officers) and investors
on a PPP project's decision-making process.
Policy
Project
planning

Contact
Info

Project
evaluation

Object

Information
about PPP
Criteria

Proposals

Contract
type

Finance

Contract
structure

Risk
allocation

Figure 4.5: PPP management information
4.3 Some recommendations on SM for CIPs according to the PPP
4.3.1 Completion of policies and laws by PPP method
Continue to improve the policy framework and laws on investment
and investment projects according to the more specific PPP methods that

the Investment Law by the Public Public Partner has approved and
completed the current legal provisions Involved in investment by PPP
method. Therefore, it is necessary to research to improve the current legal
provisions related to investment in PPP methods.
4.3.2 Financial implementation of the project by PPP method
On the state capital, it is possible to study the centralized budget capital in
the Central dedicated to PPP projects selected for each period, in line with
the Public Investment Plan and short Financial Planning and long term;
4.3.3 Decentralization decisions and investment sectors
Many projects decisions have affected the implementation progress,
losing investment opportunities of investors. Therefore, decentralization of


23
management and investment decisions on PPP projects according to the
project size, both in line with the capacity of management levels and the
proposed model in Section 4.2.2
4.3.4 Recommendation to support from the Government
The primary support and incentives are considered, including (1) Land
acquisition; (2) funding and other financial support methods; (3)
Guaranteed revenue; (4) Ensuring foreign currency; (5) Tax incentives; (6)
Guaranteed loan.
4.3.5 Recommended related to the private sector
The State can support through several solutions: (1) training; (2)
Provide project accessibility, can through the website as proposed above;
(3) Provide financial capabilities.
4.3.6 Some issues to harmonize the benefits between the parties
Some contents: (1) Strengthen the supervision of people and related
agencies; (2) Satisfactory compensation mechanisms; (3) identify risks,
analyze, manage and distribute risks;

CONCLUSIONS
The result of the dissertation has contributed to clarifying some of the
following essential contents:
1. In theory: The dissertation has synthesized the process of forming and
developing Vietnam's PPP method, clarifying, supplementing, and
developing theory basis and legal basis for SM for CIPs According to the
PPP method. Objective analysis The advantages/disadvantages of each
stage, in order to show the existences, limitations, and causes of SM for
CIPs according to the PPP method last time.
2. In reality: The dissertation has analyzed the status of SM activities for
CIPs according to the method of PPP through a number of domestic projects
and international experiences, thereby determining the existence and
limited and the main cause of SM for CIPs according to the method of PPP
has been shown, which is:


24
(1) Lack of synchronization in law provisions by PPP method;
(2) Lack of overall strategy on construction investment by PPP method;
(3) SM organization about PPP is not professionally and fully competent;
(4) The supervision and evaluation of SM activities is unclear;
(5) Lack of publicity, transparency, and interaction with stakeholders.
3. Research novelty: Based on the research on the shortcomings and
limitations of SM on PPP projects, the thesis proposes 04 specific solutions
and 06 recommendations to improve the SM for CIPs under the PPP method
and a set of evaluation criteria. SM activities according to the phases of
CIPs under the PPP method.
Limitations of the dissertation
Firstly, research is only implemented in some specific industries.
Meanwhile, the Government of Vietnam wants to apply PPP methods to all

infrastructure and public service projects.
Secondly, the research results are in terms of state-of-the -age state
management; while the new PPP law is passed, this result may supplement
the theoretical basis for documents to guide PPP's laws to be completed.
The future research direction of the dissertation
From the analysis, the above proposals and recommendations have
contributed to some of the state management work. However, it is necessary
to have further research to clarify and more specifically, that is:
-

Studying in detail the Ministry of state management criteria for each

specific sector/field, according to the activities of the industry/field, the
weight assessment for each evaluation criteria;
-

Analyzing and evaluating the contents and the management process,

gathering and posting on the Government's PPP website entirely, roots
understand and implement;
- Research to establish the PPP project management structure refers to those
who play a different responsible role in that structure, managing and
operating to bring the best results to the project.