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VIETNAM ACADEMY OF SOCIAL SCIENCE
GRADUATE ACADEMY OF SOCIAL SCIENCES

NGUYEN THUY LAN

INNOVATING THE MANAGEMENT OF CONSTRUCTION
INVESTMENT PROJECTS USING STATE BUDGET AT STATEOWNED SCIENCE AND TECHNOLOGY INSTITUTIONS

Major: Economic Management
Code: 62.34.04.10

DOCTORAL DISSERTATION SUMMARY

HANOI, 2016


This work is completed at:
GRADUATE ACADEMY OF SOCIAL SCIENCES

Supervisor: 1. ASSOC.PROF. DR. NGUYEN XUAN DUNG
2. ASSOC.PROF. DR. CU CHI LOI

Reviewer 1: PROF. DR. NGUYEN QUANG THAI
Reviewer 2: ASSOC.PROF. DR. TRAN ĐINH THAO

Reviewer 3: ASSOC.PROF. DR. PHAM XUAN ANH

The thesis will be defenced in the Commission for doctoral thesis evaluation of the
Graduate Academy of Social Sciences
At………..., on…………….2016

The thesis can be found at:
- The National Libary of Vietnam
- The Library of the Graduate Academy of Social Sciences


INTRODUCTION
1. The urgency of the research
Effective allocation of scarce resourcesin the management of public
investment projects generally and construction investment projects using state
budget particularlyis considered to be a major State’s policy. Currently, the State
has passed serveral policies aimed at gradually changing the mechanism of
financial management activities for the public service units, including the Science
and Technology business units, as well as investing in qualified facilities and
signing these facilties to management units, then determining the appropriate
depreciation according to the law, steadily giving these units control over their own
budgets and reducing financial assistance from the State’s budget. The State has
spent its budget on science and technology in general and scientific and
technological institutions of government in particular, which focus was equipment
for scientific research purposes. State budget investment capital has enhanced work
area as well as upgrading a number of specialized research institutes, laboratories,
information centers, library, etc. However, the implementation of the plan has thus
far been slow; Implementation process changes; business payment and settlement
was still at large; outdated models that does not fit the new regulations of the State
as well as unclear Project Management System,
For the reasons above, the issue of "Innovating the management of construction
investment projects using state budget at state-owned science and technology
institutions" is the author selected research topic for her doctoral dissertation,
majoring in in the field of economic management.
2. The purposes and tasks of the dissertation
2.1. Purposes of the dissertation:The thesis will examine the reality of

Construction Investment in the organization of government science and technology
in the period from 2006 to 2015, analyzing the accomplishments as well as the
drawbacks of the policies, deducing the reasons to the problem while at the same
time and proposing solutions in the upcoming periods
2.2.Tasks of the dissertation
- Literaturally reviewingstudies related to the chosen topic from some countries in
the area
- Introducing and clarifying concepts relating toconstruction investmentproject
management using the state budget.
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- Assessing the situation of the management of construction investment projects
using state budget at state-owned science and technology institutions, highlighting
and analyzing the main issues.
- Proposing some major solutions for improving and innovatingthe management of
construction investment projects using state budget at state-owned science and
technology institutions.
3. Subject and Scope of the Research
3.1. Subject of Research: Management of construction investment projects funded
by the state budget at science and technology institutions of the government.
3.2. Scope of Research
- Content:The process of organizing the management andimplementation
ofconstruction investment projectsusing funds from the state budget
- Scope: Construction Investment Projects held at State owned Science and
Technology Institution.
- Duration: From 2006 to 2015, oriented to 2020 and projected until 2030.
4. The methodology and research methods of the disseration
- Literature review research: Focusing on the theoretical framework of the subject
in questions; referencing past researches of the same caliber.

- Research Survey Methodology: Surveying government officials having worked or
currently working in the field of Project Construction Investment funded by state
budget (received 124 responses), in-depth interviews with five expert in the field of
organization of government science and technology. Using statistical methods,
combined with SPSS software to determine the frequency of the same comments as
a basis for evaluation.
- Using statistical analysis and comparative rate control: Using secondary data
collected from previous researches as well as primary data from surveys and
interviews to conduct ratio analysis to make comparisons to assess the situation and
clarify the cause of the problems.
- Analyzing and synthesizing systems:Observing the domestic and internatiomal
impact on science and technology in general, to project management in
governmental institutions in particular to propose solutions.
5. New scientific contributions of the disseration
- Formalizing some theoretical issues and practical project management with
capital construction investment budget, clarification of the nature of the
management of construction investment projectsusing the state budget,
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distinguishing the difference between the cost of capital construction investment
and construction investment.
- Proposing a system of project evaluation criteria through various stages: the
evaluation of projects approved for decision making; the implementation of the
project to assess the quality of management; the completion to evaluate the
effectiveness of project management.
- Assessing the situation of the state - budget construction investment project
management in the government science and technology organization using SWOT
analysis
- Proposing solutions for innovating construction investment project management

using state budget regarding to financial resources, implementation and
organization, organization structure and management process.
6.Theoretical and practical significance of the dissertation
-Theoretically, the research has managed to indicate following points: the nature of
the management of construction investment projects using the state budget,
difference between the cost and capital of construction investment.
- Practically, the thesis has proposed a number of solutionsto innovate the
management of construction investment projects using the state budget at the
government science and technology organizations including a system of evaluation
criteria and process management that could be appliedgenerally to public science
and technology organizations.
7. Structure of the dissertation:
The thesis is divided into four chapters as follows:
Chapter 1. Literature Review of research situation
Chapter 2.Theoretical and practical basis of the management of construction
investment projects using the state budget at state-owned science and technology
institutions
Chapter 3. Status of the management of construction investment projects using
the state budget at state-owned science and technology institutions
Chapter 4.Solution to innovate the management of construction investment
projects using the state budget at state-owned science and technology institutions.

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CHAPTER 1
LITERATURE REVIEW OF RESEARCH SITUATION
1.1. Studies of foreign scholars
1.1.1. The Relationship between State’s Budget and Government Spending
Generally, the authors focused on the importance of the budget in macroeconomic

management and budgeting priorities of the government as well as management of
the state budget according to the tasks divided. Many studies have shown the
relationship between public investment, budget and social policies, which refers to
the structure of capital expenditure in order to achieve high efficiency and limit
public debt and State budget deficit.
1.1.2. Investment Project Management and Pulblic Investment Management
Studies on project management was recorded fairly early on, for example the
research concerning the management of the progress and costs through horizontal
chart of Henry Gantt (1861-1919); Project analysis and management of national
target programs of Frederick Winslow Taylor (1856-1915); Project Management
tools: resource allocation, division of work over time, project progress along gloves
and CPM network diagram; MPM; Pert, etc.
In 1969 the Project Management Institution at the Georgia Institute of Technology
School of America was established. Later in 1983 their publication of"A Guide to
the Project Management Body of Knowledge- PMBOK Guide" became the
handbookfor researchers and managers in the process of implementation of the
project.
On the otherhand, the researches conducted by World Bank has provided
assessments of investment management for the Government, which consists of 8
basic characteristics: Orientation investment; Investment preparation; Project
evaluation; Independent evaluation; Estimating project; Organization of
implementation; Adjust the project (if neccessary); Monitoring from the grassroots;
Evaluation results via "A DiagnosticFramework for Assessing Public Investment
Management" (2010)
1.2. Studies of domestic scholars
1.2.1.Researches on Government Spending and Construction Investment
On a local scale, Trinh Thi Thuy Hong’s doctoral dissertation, named
"Management of state expenditure, investment in capital construction in the
province of Binh Dinh," (2012) mentioned the content, method of preparation of
cost estimates, executive expenses, settlement expenses in construction investment

4


utilizing Government’s funds.
1.2.2. Researches on managing construction investment projects
The authors have analyzed Project Management by looking at: Procurement
Management, which consists of managing progress, volume, quality, costs,
supplies, equipment, human resources, etc. For example, the research by Bui Ngoc
Toan as editor in 2006 titled "Organization management and implementation of
construction projects;" Trinh Quoc Thang‘s "Management of investment projects
construction" (2007); Do Dinh Duc and Bui Manh Hung’s "Management of
construction investment projects" (2012) Bui Manh Hung and Bui Ngoc Toan,
Bach Tung Dao, Tran Anh Tu, co-editor of the 2012"Managing resources projects
construction investment;"Dr. Thai Ba Can (2009), "Analysis and management of
investment projects;" Tu Quang Phuong’s"Curriculum management of investment
projects" in 2005. However, the on-site management approach did not manage to
distinguish much between cost management and capital managemen. Meanwhile,
these researches fail to analyze the process of annual planning, medium-term plan,
advance spending and advance recovery, etc. which implies the impraticality of
theseresearches with institutions that have no specialized construction unit.
Serveral authors examining State funded project management activities in various
Governmental branches, such as the construction and transportation sector, which
would imoly that those project evaluation criteria can not be applied (Tran Van
Khoi’s doctoral thesis (1999), "Innovating the process of managing investment
projects and ehancing equipment capacity of transportation construction firm;" Le
Thanh Huong’s doctoral thesis (2005) “The reality of managing of investmen
projects in the construction infrastructure sector of Vietnam,” etc.
1.2.3. Managing construction investment funds in project management
In this particular field, some studies propose solutions to prevent waste and
loss of state investment capital such as: Dr. Thai Ba Can (2003), "Financial

management in construction investment;"Nguyen Manh Duc (1994) "Improving
management mechanism in order to improve the efficiency of capital construction
investment capital in Vietnam;" Nguyen Ngoc Dinh (1996) "Managing and
improving the efficiency of capital use basic construction investment in VN,"etc.
Many authors approach capital management from the State authorities to establish
control and assuage outstanding debts in capital construction such as Le Hung Son
(2003)"Solutions to improve the quality of financial management of investment
projects
in
the
state
treasury
system
in
Vietnam;''
(2003)
Doctor-Associate Proffersor Nguyen Dinh Tai, Le Thanh Tu (2010) "Raising the
5


efficiency of public investment in Vietnam;" the Ministry of Planning and
Investment research (2005), "Recommendations of to improving the efficiency
allocation of state budget investment;" Serveral studies and proposal to manage
investment capital from the state budget in areas such as Doi Quang Tuan’s
doctoral thesis (2009), "Towardsimprovement of the investment capital for basic
construction’s efficiency, managed by the city of Hanoi;" Le The Sau (2012)
"Effects of investment projects by state budget Bac Giang province," etc. However
these resreaches are not applicable to Science and Technology projects.
1.2.4. Research evaluation of investment projects construction
Some authors have proposed methods of cost analysis, assessment of financial

efficiency of investment projects, such as: Nguyen Hong Thang eds (2010),
"Evaluation of investment projects the public sector"; Luu Thi Huong (2004),
“Financial evaluation of project" ... The studies on Project Invesment Evaluation
lean towards the assessment of economic efficiency, not the benefits of said
projects on social welfare.
1.3. Research results and research questions
1.3.1. Research results
Both domestic and international researches about the state budget, public
investment project management are recorded very early on. They are also very
systematic, ensuring the rationale for construction investment project
implementation in general, the State capital construction investment project in
particular. However, these researches vary in economic and political differences.
1.3.2. Research drawbacks amd research questionsvà vấn đề đặt ra cần tiếp tục
nghiên cứu.
First,in terms of the system uses data and research methods: Most authors use
the system of secondary statistics (GSO, Ministry of Planning and Investment,
Ministry of Finance, Ministry of Transportation, MOIT ...) to analyze, which means
that the results may depend very much on the method of how the primary data was
collected. Through the system of secondary data and tabulated comparisons, the
authors will thus analyzie the research by qualitative methods instead of using
quantitative analysis (via sociological surveys, survey data, regression model SPSS
software, etc.) to identify the strengths and weaknesses of research subjects.
Second, the approach: The authors approach the research at at macro level and
there is no specific procedure for the management of the state budget on
construction project. There is also litlle to no mention about investment on
construction projects Project from the aspect of the state budget in the allocation
6


and management agencies directly implementing the project; Project Management

or Construction Investment research at a local from the state budget, a specific
field, the type of production and business projects, transport infrastructure, should
the investment policy, QDDT, project evaluation, organizing now, ... will have
management practices and how other organizations implement projects of public
service units, particularly units of public sector science and technology. .
Thus, despite there have been many studies about managing investment
construction run by state budget but there is by far no guide for the state owned
institutions in science and technology, which needs to be examined more closely.

CHAPTER2
THEORETICAL AND PRACTICAL BASIS OF THE
MANAGEMENT OF CONSTRUCTION INVESTMENT PROJECTS
USING STATE BUDGET AT STATE-OWNED SCIENCE AND
TECHNOLOGY INSTITUTIONS
2.1. Public investment andstate funded construction investment
2.1.1.Investment and public investment
According to the author, "investment is the use of resources (capital, physical
assets, intellectual labor, technology, ...) in order to conduct current operations
(create, exploit and use Its assets ...) to obtain beneficial results (increase of capital,
physical assets, intellectual, technological ...) in order to implement certain
objectives in the future. " Investment activities include private investment and
public
investment,
also
known
as
public
investment.
Public investment is the investment activities of the State in programs and projects
to build infrastructure and socio-economic investments in programs and projects

for socio-economic development (Law on Public Investment No. 49/2014 / QH13
dated 06/18/2014).
2.1.2. The concept and nature of construction investment by state budget
Capital investment in construction using the state budget according to the author
are: "the investment activities of the State in programs, projects include new
construction, repair and renovation of buildings to serve economic development
and social ". Capital investment in construction by nature is a form of state budget
funds for public investment activities in new construction, repair and renovation of
buildings to serve socio-economic development policy of the Party and the State. "
7


2.2. Capital formation resources, capital construction investment and investment
and construction project management
2.2.1 Capital
Author: The capital is full of material wealth exists in the form of a country,
business or household at a certain time to get used to the country's development,
operations enterprise and business or household to maximize profits.
2.2.2. The sources of capital
State funds include capital budget; SOE capital; The capital domestic borrowing
(bonds, equity bonds, preferential loans ...). Funds from the private sector include:
The savings of the population, the accumulated amount of the private enterprises,
cooperatives. Capital Markets: Channel attract idle capital of households,
businesses, financial institutions ... a large capital for the economy.
2.2.3. The cost of construction investment and construction investment
The cost of capital construction investment to achieve the purpose of construction,
including: preparation of investment; investment implementation; work is put into
exploitation and use and other costs related to the construction of the approved
ecommerce.
2.2.4. Management of construction investment projects by state budget

The author said: "Management of capital construction investment project using
the state budget is the process of planning, organization management, control and
supervision from the beginning to the end of the project to ensure the project
consistent with master plan development sectors, the State regulatory compliance,
completed on schedule, quality by design and within the approved budget. "
2.3. Project Management Cycle and content built with capital investment budget
2.3.1. Cycle implementation of investment projects in construction
The cycle includes: Preparation of investment; Investment implementation; Ended
investment.
2.3.2. Content management of construction investment projects by state budget
2.3.2.1. Project management scope
Manage project scope includes: management planning, plan (medium-term
and annual), ordering the project to implement rolling.
2.3.2.2.Preparation of investment management and formulation, appraisal and
approval of design
Identify investors, established approved investment policy; Invesment up; The
agreement with the State management agencies in planning, architecture,
environment, fire protection, not static (if any), infrastructure (electricity, water
8


supply, drainage, communications ...); Appraisal and approval of projects;
Formulation, appraisal and approval of design and cost estimates. Assessment
phase project under the following criteria:
- Identify investors, established approved investment policy; Invesment up; The
agreement with the State management agencies in planning, architecture,
environment, fire protection, not static (if any), infrastructure (electricity, water
supply, drainage, communications ...); Appraisal and approval of projects;
Formulation, appraisal and approval of design and cost estimates. Assessment
phase project under the following criteria:

- Group of economic -financial indicators: total investment index and density
structure of the construction costs (1); Investment capital unit cost indicator (2);
Payback period (3); The net present value (4); Internal rate of return IRR (5);
- Group of socio-economic indicators: Improvingd working conditions;
increasing user comfort and space of working area;
2.3.2.3.Procurement Management
The content of bidding management including procurement plan management;
Organization of bidding and contract negotiation. The authors evaluate the
effectiveness of proposed procurement management through criteria: Bidding
savings of each package in a project (6); Bidding savings rate of the project (7).
2.3.2.4.Quality Management
To be conducted during the following stages: Preparation for investment;
Project implementation; Handing come into use.
2.2.2.5.Progress Management
Identifing the relationships, order, time, cost each job; Drawing a diagram of
each activity and the gloves, timed reserves, duration of each activity, and the
entire project; Construction management plan and progress. Method: Line gloves;
Gantt charts; PERT network diagram; Mixed.
2.3.2.6.Cost Management
- Cost management: e-commerce and construction investment
- Capital Management: Management of advance and withdrawal, payment,
settlement To evaluate the effectiveness of capital management, the authors
propose the following criteria: Rate of disbursements during the year (8); The rate
of capital payment in the year(9); Coefficient of assets put in use (10).
2.3.2.7. Delivery of completed project Management
If the investor is the utilzer, then he will perform works reception. If the
investor is not the manager of the project, the investor needs to to hand over to the
9

user appropriate paperwork, including: Legal documents; The quality control
records; Settlement records (process operation instructions and maintenance work;
list of equipment, spare parts, supplies and replacement reserves; the value of fixed
assets in use).
2.3.3. Forms of project management
- Owner directly handles project management.
- Investor establishment of project management.
- Investor hire project management consultants.
- Project Management Unit project.
- Project management unit area, the project management specialization.- General
building contractors.
2.3.4. Factors affecting project management
2.3.4.1. Objective factors
- Environmental law: law system directly affected and indirectly affected.
- The natural environment, geological climate conditions
- Socio-economic environment and budgetary resources
- The State management agencies
2.3.4.2. Subjective factors
- Characteristics of the scale and nature of the investment project.
- Development planning sectors.
- Financial resources of the project.
- The organization of the personnel and operating procedures.
2.4. Lessons Learned Project funded by the State of some countries
2.4.1. Experience Project funded by the State of China and Korea
- Establish a legal framework for investment activities in the State capital.
- Development of strategy, planning, phased development Plan.
- Prepare carefully the investment project.
- Organization of project implementation and monitoring closely.
- Audit project.
- Attracting investment funds, non-state, public-private partnership (PPP).

2.4.2. Rationale
First, construction, control strategy, planning and plans for socio-economic
development in general, the field of Science and Technology in particular, the
appraisal managed from the capital, the agreement with the state agency on start
new public.
10


Second, full project management legislation, appropriate updates practices. Anticorruption laws stricter, contributed to curb corruption.
Third, the system construction norms in full DTXD, formed spreadsheets costs,
construction costs for the construction investment project according to market
space, contribute to ensuring project quality.
Fourth, the development of design consulting firm, supervision, project
management ... bidding centers, associations manage costs, quality, engineering
valuation, expert independent assessment; building information systems market
prices, the capacity of contractors, consultants ... to provide transparency of the
market.
Fifthly, close monitoring from all levels and branches through the investor's report,
the independent grading frame from the authorities to regulate and timely
treatment. Building community monitoring mechanism to detect the leakage
phenomenon, the territorial capital charges. Implementing responsible head.
Sixth, socializing investment resources in the form of PPP for infrastructure
construction such as science and technology laboratories, research centers as well
as diversifying fundings to ease the pressure on the State capital.
Evaluation formula system:
(1) Total investment TMĐT=CXD+CTB+CTV+CQLDA+CK+CGPMB+DP
In which : CXD: Cost of construction; CTB: Cost of equipment; CTV: Cost of
advisory; CQLDA: Cost of project management; CK: Other cost; CGPMB: Cost of
site clearing compensation; DP: Cost of redundancy;
(2) Investment capital unit cost indicator: S= CP/N In which:

CP= CXD+CTB+CQLDA+CTV+CK; N: Capacity of the project as designed
(3)Payback period T=

In which:

T: Payback period (years); L: Annual expected profit;
depreciation; TMĐT: Total project investment
(4) Net present value NPV = PV (Cash inflow)- PV (Cahs outflow).
If NPV>0, the project is possible, If NPV<0 project is impossible.
(5) Internal rate of return

IRR  r1  (r2  r1 )

11

NPV1
NPV1  NPV2

K: Annual


IRR: Internal rate of return (%); r1: Lower discount rate at which NPV1> 0 is the
closest to 0; r2: Higher discount rate at which NPV2< 0 is the closest to 0; NPV:
Net present value; proper IRR (at which NPV = 0) should be between r 1 and r2.
(6) Bidding savings of each package in a project :

Δi:

Bidding savings of ith package ; GT(GT)i: Value of ith package
GT(TT)i: Value of ith wining bid . the larger Δi, the saver the ith bidding process is.

(7) Bidding savings rate of the project:
In which
HĐT:Bidding effeciency rate of a project of n packages, which will be better if the
value is closer to 1.
(8) Rate of disbursements during the year

In

which
βGN: Rate of disbursements in a year ; VGN: Disbursed project capital in a year;
VĐT: Investment funds allocated regarding to the cost estimates; Rate of
disbursements in a year demonstrates the rate of projected plan completion in each
year. The closer to 1 βGN is, the higher rate of project completion in a year is.
(9) The rate of capital payment in the year(:

In

which
: Rate of disbursements in a year ;

Capital paid in a year. The closer to 1

this indicator is, the higher rate of completed volume is, and the smaller the
advanced capital is.
(10) Coefficient of assets put in use H(QL)= TSCĐ In which
V

12

TSCĐ: The value of assets put in use after removing costs of the damage
and reconstruction that do not go into the settlement; V: total fund paid through
Treasury where the project account was opened.
CHAPTER 3
STATUS OF THE MANAGEMENT OF CONSTRUCTION
INVESTMENT PROJECTS USING STATE BUDGET AT STATEOWNED SCIENCE AND TECHNOLOGY INSTITUTIONS
3.1. An overview of state-owned science and technology institutions
3.1.1.State-owned science and technology institution
According to the Law on Science and Technology, the "Organization of
science and technology with the function mainly for scientific research, research
and development and technology development, service activities science and
technology, the government set up and implementation register activities prescribed
by law". Science and Technology Organization established by the Government and
the governmental has: Vietnam Academy of Social Sciences (VASS) and the
Vietnam Academy of Science and Technology (VAST).
3.1.2 Characteristics of State-owned science and technology instutions
First, is the interdisciplinary research unit, interdisciplinary social science and
humanities, the country's largest science and technology; Policy advice, technology
development, service of the Party, State, local, business; Training high quality
human resources for the XH.
Second, the heads of the institutions of the Government science and technology as
a leader, responsible before the State and the owner of the State capital, who
QDDT projects.
Third, task functions, organizational structure and powers of the institutions under
the Government MOST prescribed by the Government.
Fourth, the decision is only binding on the officials, employees and workers under
his unit.
3.1.3. Characteristics, classification projects using State budget construction
investment in Science and Technology Government organizations
3.1.3.1.Charateristics

First, the investor is not the owner of capital should be granted QD DT test,
monitoring of the content to limit discretion.
13


Second, the State Administration of comprehensive planning, capital allocation,
execution, settlement, handed over through the State Budget Law, Construction
Law, Investment Law, Procurement Law ... and the text direction other lead.
Third, the project comply with development plan of science and technology
institutions and government-sector planning by the host organization, which has
affected the development of science and technology in general, organizations KHSun in particular.
Fourth, the project is non-profit, it is difficult to apply current standards so
effectively evaluate project results to evaluate the project on bringing ensure
investment objectives, minimum cost, time most reasonable.
Fifth, the number of projects each plan less, investors are scientists, amateur PMU
thus limiting the executive management
.3.1.3.2. Classification
Divide into three groups: A; B; C
3.2. Status of State investment for science and technology in Vietnam
3.2.1. Current status of the State investment in Vietnam
The nature of the State's investment of public investment. From 2006 to present,
the proportion of investment in total social investment (accounting for 38.67%
2006-2010; 2011-2014 accounted for 39.46%) in the state budget that accounts for
the highest average 55, 47% in the 2006-2010 period decreased to 47.08% during
2011-2014). Investment in major contributions to economic growth, to create a
driving force for national development, economic restructuring towards
industrialization and modernization, attracting investment of economic
development and FDI. Limitations: The effect of low investment, high ICOR.
Overlapping planning, lack of long-term vision, not focusing on environmental
factors. Spread public investment, slow progress due to insufficient allocation of

capital construction work in progress, slow wasteful use. More investment losses,
energy investors, consultants, contractors ... limited. Payment and settlement of
slow, prolonged arrears exploitation leading to low efficiency.
3.2.2. Current status of investment from the State budget for science and
technology
3.2.2.1.Funding from the state budget for science and technology
Sources of funding for scientific and technological activities, include: the state
budget; The business revenues; Other funding sources; Funding, grants, donations
from individuals and organizations domestically and internationally. However,
14


state budget plays a decisive role for the development of science and technology,
etc.
3.2.2.2. Current status of construction investment capital from the state budget for
science and technology
For 2006-2010: Total central budget is: 2,124,280 VND, of which
construction is 269 240 Capital expenditure billion (12.67%). During construction
269 240 billion central budget expenditures are spent on construction of science
and technology is 7604 billion (representing 2.824%); Spending on science and
technology institutions of government is 557 billion (accounting for 0.21%).
In 2011-2015: Total central budget is: 4,760,500 VND, of which: Accrued
investment in capital construction is: 494 400 billion (10.385%). In the central
budget expenditure 494 400 billion construction of science and technology is 18
264 billion (representing 3.694%); Spending on science and technology institutions
of government are 1.550 billion (accounting for 0.31%).
The data above shows, the last time investment for infrastructure development,
science and technology from the central budget is very modest, especially in the
construction of facilities for the organization of government science and technology
is very limited, not to match demand actual bridge location is the leading agency

for scientific research in the country.
3.3.Status of the management of construction investment projects using state
budget atstate-owned science and technology institutions
3.3.1. Manage scope, planning
The period 2006 to 2015, held under the Government Science and Technology
has 51 projects (group A: 2, B: 37; C: 12). 16 construction projects TN rooms; 03
projects to build research centers of high technology; 02 computer center analysis
and forecasting; The rest are building research facilities, training, libraries,
museums, warehouses keep raw ... The project is already in the planning approved
plan but low-quality planning, not to catch up with development strategies. State
investment capital allocated less only meet 50-70% under the proposed plan.
3.3.2. Preparation of investment management, appraisal and approval set design
3.3.2.1. Investment preparation management
When evaluating the project, due to the non-profit project to the evaluation criteria:
Payback T (3); Net present value NPV (4); Internal rate of return IRR (5) can not
be used because there is no output to quantify. Therefore, the evaluation and
assessment project using synthetic indicators: the total area in use; System
equipped with devices to ensure innovative, market updates; Consistent quality
15


eCommerce (1); Reasonable investment rate (2); and reasonable investment of time
prescribed project team.
3.3.2.1. Management formulation, appraisal and approval of design and cost
estimates
Quality of design, estimation of some projects not guaranteed, not realistic, as most
construction items have an increase or decrease, affecting the procurement
management, cost management and investment.
3.3.3. Management of procurement activities
There have been many measures to manage procurement activities through the

management of procurement planning, selection of contractors, organizes training
courses for personnel in implementing project management. From 2010-2014
through procurement savings: 19.84 billion in total 1451.51 billion bid package
prices, rate of 1.37% over the bid estimate, mostly due to savings game spacious
contractors. The Science and Technology of Government institutions have not used
the evaluation criteria in the report, such as through procurement savings of each
package (6) and procurement savings rate of the project (7). New procurement
report mentions the total savings.
3.3.4. Quality Management
The quality control projects were implemented: Acceptance of input materials,
structural obscure, material testing; Test running ... so most of the project put into
use quality basic. From 2006-2015, the project has not yet been lost to construction
safety. However: Some projects started not eligible; Not controlling subcontractors;
Execution is not guaranteed (leaky, seepage within the warranty period); Perform
quality records slow. Some projects put into operation without the acceptance of
the State management agencies.
3.3.5. Progress Management
During 2006-2015, there were 8/51 projects that have slow progress of
construction on the site (VASS 04; VAST 04). Also most of the projects are behind
schedule project completion settlement for at least 6 months 1 year average.
3.3.6. Cost management and investment
3.3.6.1. Investment management expenses
Most of the approved projects must be adjusted estimates, construction is due to
incorrect calculations (surplus or deficit), greater than the approved value; some
projects have to adjust eCommerce (05/51).
3.3.6.2. Management of capital construction investment from the state budget
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The percentage of disbursements is (8) over 99%; The rate of payment of the

project in a year (9) is improved. From 2010 to 2015, capital payment aretwice
higher than the advanced capital of disbursements. The organization of
Government science and technology has invited independent auditors to audit all
completed projects, after the settlement is approved, the implementation of asset
increase and decrease to manage according to regulations. However, some projects
are not detecting errors such as incorrect volume and unit price, hence, being paid
out much by the State audits which causing a number of projects have delayed
settlement .
3.3.7. Managing the conclusion of the investment
The majority of projects have been completed under the new regulatory acceptance
handover. However, due to urgent work area, the project is still in use before some
items not yet been tested safe. Many projects are not well controlled contractors
warranty period, no established maintenance procedures.
3.4. Overall Assessment
3.4.1. Accomplishments
- Serious implementation plan, approved plan.
- Compliance with the order of execution of investment preparation.
- Manage procurement activities into order.
- Management of construction quality more trying.
- Manage the progress made progress compared to the previous period.
- Management and investment costs are concerned.
- Diversification of Project forms.
3.4.2. Drawbacks
- Passive in construction plans, seeking financial resources.
- Project Implementation awkward, slow progress; Term investment preparation,
some stages have not paid adequate attention; Tender quality of some projects is
not good; The quality control activities of some projects is limited; Project
implementation schedule (especially settlement completed) has been slow; Cost
management and capital projects not close; Management apparatus lacks,
mandates, overlapping and outdated management model; No system of indicators

to evaluate the effectiveness of management and unified management processes.
3.4.3. Causes
3.4.3.1. Objective factors
Inadequate state regulations; Changes in standards, rules and norms;
Macroeconomic instability, inflation (salaries, cost of materials, supplies,
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equipment, etc.). The innovation policy, open economy, international economic
integration as varied in type, price, technology of building materials; Less
investment from the state budget, should demand more investment segment despite
still being extended to projects without resources.
3.4.3.2. Subjective Cause:
Project staff is weak and lackluster; Innovation Project Management Organization
slower than specified; Coordinating relations between the parts are not
synchronized because no process management coordination between the PMU,
contractors and specialized agencies of the QDDT; Check, less frequent
monitoring.
CHAPTER 4
SOLUTION TO INNOVATETHE MANAGEMENT OF CONSTRUCTION
INVESTMENT PROJECTS USING STATE BUDGET AT STATE-OWNED
SCIENCE AND TECHNOLOGY INSTITUTIONS
4.1. International and Domestic Context
4.1.1. International Context
4.1.2. Domestic Context
4.2. Perspective, developing target institutions of government science and
technology in the future
4.2.1. Development perspective
"Prioritize and focus national resources on science and technology
development. State responsible investment, encourage all economic sectors to

participate in infrastructure development, enhancing the potential synchronization
of Social and humanities, natural sciences, engineering and technology "...
(Resolution No. 20 / NQ-TW of the Central Conference 6 (XI).
4.2.2. Development Orientation
"Synchornizing the development of Social and humanities, natural sciences, of
technical sciences and technologies; bring science and technology to become a key
driving force, meet the basic requirements of an industrialized country towards
modernization". stressed: "Focus invest in developing Vietnam Institute of science
and technology, Vietnam Academy of Social sciences into two scientific
organizations and leading technology and ASEAN countries." (Strategy for
development of science and technology 2020)
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4.2.3. Developmemt Goals
"Investing in building technical infrastructure, modern equipment according to
international standards to cater efficiently research, training and policy advice of
the Vietnam Academy of Social Sciences and the specialized institutes, including
the Institute of Social priority in the region should strengthen research capacity and
deployment "and" Investment in construction, renovation and technical upgrade of
the Institute of Science and technology CSVC Vietnam and systems the basis of
scientific research and technology deployment, museums, experimental facility,
stations, experimental farms of Vietnam science and technology Institute in the hitech park and the provinces and cities directly under the Central Government to
meet the requirements of scientific research and technological development
"(development plan VASS and approved by the Government VAST).
Table4.1.Total mid-term capital of the governmental science and technology
institute from 2016-2020
Unit:Million VND
No

Institution

Total
Funds Granted
Amount of
To be funded
by 2015
Investment

1

VAST

2.047.883

570.477

1.477.406

2

VASS

805.513

352.368

452.945

2.853.396

922.845

1.930.351

Total

4.3. Innovative solutions to manage projects in the organization of science and
technology under the Government
4.3.1. Solutions related to financial resources
4.3.1.1. Improving the quality of operations planning and allocation of the State
budget estimates of capital construction investment
- Organized planning: Transparency, focused on the categories: medium, every
year in the overall development strategy of the unit and of the country.
- Distribution, delivery and immediately adjust the state budget estimates in
January every year. Remove difficulties, actively adjust the estimates on the
project.
4.3.1.2. Diversification of investment capital outside the State budget - Organize
office according to the provisions, auction off facilitiies that are no longer of use;
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develop forms of cooperation and association with organizations and individuals in
the country to tap international investment funds (TPP).
4.3.2. Solutions related to the project implementation
- Strengthening the review of the units used, shortening the preparation time of
investment, improve the quality of the design, evaluation
Project evaluation should take into account the criteria; Total investment, the
proportion of the cost structure DTXD (1); Investment rate (2); Design life (3).
- Strengthening procurement activities, tight legal framework for an increase or

focus public bidding, online bidding, package deal. Calculation of indicators:
Savings through bidding of each package (6) and procurement savings rate of all
projects (7) to evaluate the effectiveness of procurement and rewarded annually.
- Strengthen monitoring activities in quality management, conducting regular
inspections and unscheduled
- Use modern tools to manage project progress
4.3.3. Management innovation project finance
4.3.3.1. Cost Management
Increased use package contract forms to contractor should calculate carefully
detailed in the tender process.
4.3.2.2. Capital Managment
Advance operations: allocate adequate funding according to schedule
contractors to avoid blame inadequate funding lasting progress.
- Payment activity: Revoke all bidders in advance before reaching 80% of the
volume under contract for capital adequacy. 80% payment on receivables dossiers
(legal, quality profiles ...) promote settlement.
- Settlement activity: Finalization year investment of each project annually,
additional evaluation criteria such as: Rate disbursements (8) and the rate paid (9)
of the project in years . For investment capital settlement items and completed
projects should "Open it done yet" and assess the effectiveness of the project
management process when settlement through asset calculation coefficient in use
(ten).
- To manage the funds unified, networked financial unit from level 1 to the
Management Board to facilitate monitoring, inspection, monitoring, reporting
updates. Cost accounting of joint projects in the accounting system of the unit, not
accounting once the project ends.
4.3.4. Solution for human resources organization structure
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4.3.4.1. Strengthening the organisational structure of construction investment
activities
Separation of duties of the specialized agencies of the investor and the investor into
two independent levels. At the agency's expertise and financial planning
committee: should hold diverging towards professional, specializing in managing
each project with the investor an.Doi sort innovative project management model
4.3.4.2. Innovation project management model
Consolidate project management a project for Group A projects, especially
important projects; Model building process balcony area and project management
center project. Using the model of project management consultants for projects
with foreign investment of the budget so as not to add more project managers.
Apply general contracts with small-scale projects. Organize training of project
management activities
4.3.5. Solutions related to innovation process management and monitoring
4.3.5.1. Develop and issue management process
Constructing a system of management process to implement consistently including:
1. Project management process: as proposed by the author

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2.

Qui trình quản lý đấu thầu

4.4. Proposals
4.4.1. Proposing theGovernment
- Establish criteria for assessment of public investment; Socialization of
resources invested in construction investment project on science and technology
stories; Promulgate standards and norms for investment projects pulsed fields of

science and technology; Guide salaries, allowances project management. Adjust
spending on appraisal consulting, procurement, etc.
- Focus on an evaluation focal adjustment fund projects unit to avoid reporting
clues.
- Focus on investment of 5-7 years for the organization of government science and
technology in particular, and on science and technology in general.
4.4.2. Proposing State-owned science and technology institutions
Make recommendations to the scientific and technological institutions of
government
- Sort, renewing the Management Board in order to comply with current
regulations. To separate evaluation unit with direct management department
project.
- Disclosure project on electronic portal of the unit to facilitate community
supervision; Create separate media receiver, answer the special comments from
interested persons; Issuing management processes to perform consistent unit;
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Develop criteria for evaluating outputs to quantify the cost of change, as a basis for
evaluating the effectiveness of activities in general and in particular the Project
Management Construction Investment.
- With the plan of arrangement VASS office has been approved, need each content
deployment, roadmap and implementation stages to avoid affecting other
operations. With VAST, urgently working with subject departments approved the
plan of arrangement built headquarters.
CONCLUSION
In the period 2006-2016, funded by the state budget Project Construction
Investment in science and technology institutions of government has made certain
contributions to the modernization of facilities for research and scientific training.
However, this activity also certain limitations. Therefore, the thesis was to address

some of the following issues:
- Researching overview of domestic and foreign situation, evaluating the
results, the limitations, and thereby drawing the lessons for the management of
investment projects funded by the State.
- Formalizing some theoretical issues and practical project management of
capital construction investment using the state budget, to clarify the nature of
capital investment in construction using the state budget, pointing out the
difference between the cost of investment in building and construction investment,
interpreting the concept of project management using the state budget construction
investment in science and technology institutions of government.
- Proposing criteria for evaluating project phases: Evaluation of projects to
make the decision for approval; Implementation of the project to assess the quality
of management; Finish the project to evaluate the effectiveness of management
systems with quantitative criteria.
- Assessingthe situation with the state budget construction investment project
management in the organization of government science and technology, pointing
out strengths and weaknesses and analyze the causes.
- Proposing some innovative project management solution built with capital
investment budget: 1 / Group of solutions to financial resources; 2 / Group of
solutions to project implementation; 3 / Group of solutions to organizational
structure of the apparatus (3); and 4 / Solutions related management processes,
23