State management of construction investment projects under the mode of publicprivate partnership in Vietnam.

1
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;


3
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


4
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

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:

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

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.

and site clearance plan
-

2. Feasibility study

3. Investor selection and site clearance -

4. Execution and
management of
project contracts
and Project
monitoring and
evaluation

Comprehensive feasibility analysis;
Cost-benefit assessment (CBA);
Identify, allocate and share risks;
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;

-

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.


5. Operation and
transfer

-

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].

-

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


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


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


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

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


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


"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.


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


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


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.


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

Management apparatus
and personnel

Section
4.2.4

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.


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


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
2.2
2.3
2.4
2.5
2.6

Comprehensive analysis feasibility
Assessment of cost benefits (CBA)
Identify, allocate and share risks
calculate multi-benefit target
Index of investment capital
Plan for clearance

3.1
3.2
3.3
3.4
3.5

Complete records of bidding documents
Information disclosure and bidding
Dialogue with related parties
Organization of project clearance
Select investors / contractors

4.1
4.2
4.3
4.4

4.5
4.6

Management of project plans and contracts
Responsibilities for reporting and explanation
Supervision and evaluation work
Report content of subjects
Overall evaluate per project stage
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


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


4.2.4Building 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
Proposals

Criteria

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


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: