quản lý Nhà nước đối với dự án đầu tư theo hình thức đối tác công- tư trong xây dựng hạ tầng giao thông đường bộ Việt Nam (2)

INTRODUCTION

the form of PPP in road infrastructure construction in Vietnam?
(iii) How to improve the state management for PPP road projects in Vietnam in
the integration condition?

1. Research rationale
Road infrastructure plays an important role in the socio-economic
development of each country. While the State budgets do not fully meet the
needs for road infrastructure development, public-private partnership (PPP) is
regarded as an effective tool to attract private investment and improve
investment efficiency.
With the state budget limits and decreasing ODA for a middle-income country,
seeking funds from private investors for the road infrastructure is urgent for Vietnam.

3. Research methodology
3.1. Theoretical framework
State management for PPP road
projects
-Planning for PPP road projects
-Policies, regulations and legal
framework for PPP road projects
-Organizing for state management
for PPP road projects
-Monitoring and evaluating PPP
road projects

PPP road projects
-PPP road projects process
-Resources for PPP road
projects

-Activities of PPP road
projects

Objectives of state management for
PPP road projects
-Raising the participation of the
private sector in PPP road projects
-Increasing the efficiency of the state
budget
- PPP road projects follow the right
direction, obey the law and reach the
set objectives

PPP road projects were institutionalized step-by-step. However, the lack of master

Figure 1.1. Theoretical framework for the State management for PPP road

plans, insufficient legal framework and capacity limitations of the State officials have

projects

been dismissing PPP road projects development. The improvement of state
management for PPP road projects is necessary to achieve the objectives of
investment in road infrastructure in the form of PPP in Vietnam. For the above

3.2. Research process
Study secondary data
Anket interview

reasons, I – the thesis author- choose the topic "State management for investment

projects in the form of public-private partnership in road infrastructure construction

Survey companies

Investigate the contents of the state
management for PPP road projects
-Analyze PPP road projects in Vietnam
-Analyze and assess the state management
for PPP road projects

Recommend
on
how to improve the
state management
for
PPP
road
projects

in Vietnam" to study.
Figure 1.2. Research process

2. Researh objectives
Research objectives of the thesis are to investigate the contents of state
management for investment projects in the form of PPP in road infrastructure
construction; to analyze the situation of state management for PPP projects; and to

3.3. Data collection and processing methods
To collect primary data, the authors conducts interviews for experts and
surveys for companies engaged PPP road projects.

give recommendations on the improvement of state management for PPP road

Interviewees are 30 professionals and state officials working in the field of PPP

projects in Vietnam. To achieve the research objectives, the thesis answers the

and road sector. The interview objectives are to collect in-depth information and
multidimensional assessment of state management for PPP road projects, and to

following questions:
(i) What are the contents of state management for investment projects in the
form of PPP in road infrastructure construction? What are the creteria for assessing
the state management for PPP road projects?
(ii) What is the real situation of state management for investment projects in
1

recommend on how to improve state management for PPP road projects relevant to
the context of Vietnam. The interview content is the state management functions for
PPP road projects in Vietnam and recommendations on the improvement of state
management for PPP road projects.
Surveyees are companies engaged in PPP road projects nation-wide. The
2


questionnair was sent to 75 companies, among which, 10 companies were

The thesis systematizes and adds theoretical background, contributes to

directly surveyed by the author, and questionnaires were sent via e-mail to other

studies in the state management for PPP investment projects; identifies the

65 companies. The number of returned answers was 64, the response rate was

evaluation criteria for state management for PPP road projects, finds out key

85%.

factors affecting state management for PPP road projects in Vietnam. The thesis,
The purpose of the survey was to collect information from companies to

based on the functions of state management for PPP projects, gives

analyse and assess the real situation and recommend on how to improve the state

recommendations on how to improve the state management for PPP road projects

management for PPP road projects.

relevant with the conditions of Vietnam.

The survey contents are included of the real situation of PPP road projects,
assessment of the state management for PPP road projects in Vietnam, and

CHAPTER 1: LITERATURE REVIEW
1.1. Liturature review from researches abroad

recommendations on how to improve the state management for PPP road projects in

From theoretical view, studies have identified the characteristics of PPP (ADB,
2008; Young et al., 2009), types of PPP (Yescombe, 2007) References and further

Vietnam.
SPSS20.0 is employed for data processing. Cronbach Alpha coefficient was

reading may be available for this article. To view references and further reading you

used to examine the reliability of the measurement of criteria for assessing the state

must purchase this article., motivation of actors in PPP (ADB, 2008), and factors

management. Analytical results show that Cronbach alpha coefficient of effectiveness

affecting PPP development (Young et al., 2009). From practical view, studies

is 0.869; of efficiency is 0.792; of relevance is 0.741; and of sustainability is 0.728;

investigate and assess the situation then give policies recommendations on PPP in

all of which satisfy the requirements of Cronbach Alpha> 0.7. This result shows that

public service provision and infrastructure construction in the conditions of

the measurement has high reliability and can be used to assess the state management

developed and developing countries.
1.1.1. Researches in PPP road projects

for PPP road projects.

4. Object and scope of the research
The research object of the thesis is the state management for PPP projects
for road infrastructure construction in Vietnam.

PPP road projects are involved by the state, private investors, beneficiaries and
stakeholders. Young et al (2009) point out four factors affecting PPP projects,
including the state, franchising selection, project risks and project financing.

Scope of the study: The thesis investigates state management process for

Many authors have paid much attention to PPP projects in developing

PPP road projects. The PPP road projects to be studied include those under the

countries and emerging economies and indicated their characteristics. Ward, J.L. and

Ministry of Transport and provincial People's Committees, almost of them are

Sussman, J.M. (2005) pointed out the causes of the failure of PPP road construction

roads and bridges construction projects. Regarding area, the thesis studies the

projects in Malaysia including limitation of the government's capacity to support,

state management for PPP road projects in Vietnam. The thesis analyzes the state

insynchronous policies, political instability and intransparency in the selection of

management for PPP road projects in the period of 2010- 2015, and proposes

investors and low toll.

recommendations for the period 2016- 2020.

1.1.2. Researches in the State management for PPP road projects
The State plays an important role in developing and managing PPP projects.

5. New contributions

An inappropriate mechanism and weak capacity may lead to failure (Yescombe,
3

4


2007; Maluleke, KJ (2008). The state’s functions are to create favorable conditions

Road infrastructure can be assessed by the criteria as follows: scale, capacity,

for investors to participate in PPP, provide an attractive investment environment, set

outputs, synchronism, modernity, economic efficiency, consistency, traffic safety,

up sufficient policies and legal framework, and establish mornitoring and cooperation

land area, environment, capital and state management for the road. In addition, road

agencies. The states have undertaken reforms in PPP (ADB, 2008) such as improving

infrastructure can be evaluated according to quantitative criteria (length, density,

policy, regulation and legal framework, stabilizing macroeconomic environment, and

proportion of roads at different levels) and qualitative criteria (synchronism,

developing financial market (Li, B. and Akintoye, A., 2003), selecting capable

connectivity, international competitiveness, relevance, and management capacity,

private investors (Birnie, 1997). The contents of state management for transport

etc.) (Tran Minh Phuong, 2012).

infrastructure investment has been analyzed by Maluleke (2008), including policy

2.1.2. PPP and PPP projects

formulation, planning, environmental protection, ownership taking, financing and

2.1.2.1. Concepts of PPP and PPP project

operation management.

PPP is a partnership between the public sector and the private sector in the

1.2. Liturature review from researches in Vietnam

form of projects in which resources, risks, responsibilities and benefits are shared

Studies in PPP in road infrastructure in Vietnam have approached from the

between the two sides to achieve common goals.

view of the State, the private sector and beneficiaries, namely MoT (2009), Dinh

Investment projects in the form of PPP is a cooperation agreement between the

Kien (2010), Bui Thi Hoang Lan (2010), Dang Thi Ha (2013), Nguyen Thi Ngoc

public sector and the private sector to invest medium to long term to carry out

Huyen (2013), Nguyen Thi Binh (2013), Ta Van Khoai (2009), Ho Hoang Duc

investment activities in a set period of time in specific locations where resources,

(2005) and Tran Van Hong (2002).

risks, responsibilities and benefits are shared between the two sides to achieve

1.3. Conclusions from liturature review
The studies came up with a comprehensive overview of PPP and state
management for PPP road projects, researched into some aspects of state
management of PPP projects, but not to analyze the state management

common goals.
2.1.2.2. The State motivation in PPP
ADB (2008) pointed out the state motivation in PPP, including: the attraction of
private investment capital, the increase of resource use efficiency and sector reforms.

compehensively: factors affecting PPP projects, content of state management process

2.1.3. Characteristics of PPP road projects

for PPP road projects, evaluation criteria for state management for PPP road projects.

PPP road projects have the characteristics associated with investment projects,

This should be studied for PPP road projects in the context of Vietnam.
CHAPTER 2: THEORETICAL BACKGROUND OF THE STATE
MANAGEMENT FOR PPP ROAD CONTRUCTION PROJECTS

road construction activities, state budget funds and PPP.
2.1.4. Types of PPP road projects
PPP road projects are classified by the form of project contracts including

2.1. PPP road construction projects

build-operation-transfer (BOT), build-transfer-operation (BTO), build-transfer

2.1.1. Road infrastructure

(BT), build-own-operation (BOO), build-transfer-leasing (BTL), build-leasing-

Road infrastructure is defined as infrusturture works for road transport and

transfer (BLT), operation and management (OM), design-build-finance-maintain

road corridors, used for the movement of people and economic exchanges on road.
5

(DBFM).
6


2.1.5. Conditions for the application of PPP road projects

by Chiavo-Campo and Sundaram (2003), the author identifies four groups of

Young et al (2009) defined the conditions for the success of PPP road projects.

evaluation criteria for state management for PPP road projects as follows:

.

Effectiveness:
Role and
responsibilities
of the state

Selection of
private investors
(selection methods
and criteria)

HL2: The increase in the number of PPP road projects
HL3: The compliance of PPP road projects with the state directions and policies
HL4: The extent of reaching goals of PPP road projects

PPP project
success

Risks of PPP
(Risk
identification
and allocation)

HL1: The increase in the private capital for road infrastructure construction

Efficiency:
PPP financing
(Financial
strategy; the state
support)

HQ1: PPP road projects have higher benefits/ economic value compared to state
funded projects
HQ2: The contribution of PPP road projects to local socio-economic development

Figure 2.2: Conditions for PPP project success
2.2. The nature of state management for PPP road projects

HQ3: The waste in the state budget in PPP road projects
Relevance:

2.2.1. Concept of state management for PPP road projects

PH1: The consistency of directions for PPP road projects development with the

State management for investment projects in the form of PPP in road

directions for the transport and road sectors development

construction is the organized and by-the-law impacts of the state on the formulation,

PH2: The relevance of policies and regulations for PPP road projects

implementation and operation of projects through planning for PPP projects

PH3: The relevance of the state organizational structure for PPP road projects

development, making and implementing policies, regulations and legislation for PPP

PH4: The relevance of the monitoring and evaluation for PPP road projects

projects, organizing for state management for PPP projects, and monitoring and

Sustainability:

evaluating PPP projects in order to achieve the set objectives of the state management

BV1: The equality in distributing benefits and risks among partners involving PPP

for PPP road projects.

road projects

2.2.2. Objectives and evaluation criteria for state management for PPP road
projects

BV2: The stability of policies and regulations for PPP road projects
BV3: The capacity enhancement of partners in PPP road projects

2.2.2.1. Objectives of state management for PPP road projects

BV4: The increase in the contribution of PPP road projects to road infrastructure

The general objectives of the state management for PPP road projects are to

development

mobilize and use resources for road infrastructure construction and develop road
infrastructure.

2.2.3. Principles of state management for PPP road projects
State management for PPP road projects has to comply with principles:

2.2.2.2. Evaluation criteria for state management for PPP road projects

ensuring harmonic obligations and interests of parties, ensuring value for money for

Based on the concepts and criteria for evaluating public management systems

the state, output-oriented, publicity and transparency.

7

8


2.3. Contents of state management for PPP road projects

pollution in the process of land acquisition, construction and operation, to use

Based on the administration management theory by Fayol, H. (2013) which

natural resources economically and to facilitate the implementation of

divides management process into relatively independent functions, the contents of
state management for investment projects in the form of PPP in road infrastructure

environmental legislation.
2.3.2.2. Making legal framework

construction are identified, including planning for PPP projects development, making

The legal framework for PPP road projects is the expression of policies and

and implementing policies, regulations and legislation for PPP projects, organizing

regulations for PPP projects in legal documents. Countries may issue a law for PPP

for state management for PPP projects, and monitoring and evaluating PPP projects.

for all sectors or a law especially for the road sector, or a law for each PPP project.

2.3.1. Planning for PPP road projects development

The legal framework for PPP road projects should be complete, timely, synchronous,

Planning for PPP projects development is included of view-points, objectives,

consistent, and scientific.

measures and key resources for developing PPP road projects demonstrated in

2.3.2.3. Implementing policies and regulations

strategies master plans and other plans of the country, the region and the sector.

Implementing policies for PPP road projects is the process to put the policies into

The objectives of PPP road projects development are to increase private
capital, the number of private investors involved in PPP, the proportion of road works
built in the form of PPP, the scale and number of projects, and the capacity of PPP
project stakeholders.

practice, including preparation phase, implementation phase and evaluation and
adjustment phase.
2.3.3. Organizing for state management for PPP road projects
State management apparatus for PPP road projects is an integral part of the

2.3.2. Making and implementing policies, regulations and legislation for

state apparatus. Normally, the management apparatus for PPP road projects are not
established separately but integrated into state management apparatus for PPP and for

PPP road projects
2.3.2.1. Making policies and regulations

the road sector. Management of PPP projects requires the involvement of state

a. Policies and regulations for investment promotion are activities and measures

management agencies, state- authorized units and project companies. In this thesis,

to promote and attract private investors to participate in PPP projects by identifing

the author studies the state management apparatus for PPP projects which includes

investment potentials and opportunities, communicating investment projects, and

the state management agencies only.

supporting investors.

2.3.4. Monitoring and evaluating PPP road projects

b. Policies and regulations for finance are to mobilize and use financial resources

Monitoring and evaluation of PPP road projects are included of overall activities of

efficiently for projects and the value for money for the state through regulations and

state management agencies in order to promptly identify and handle the problems as well

financial support for PPP projects.

as opportunities of the project to ensure that the project's activities comply with the set

c. Policies and regulations for land are to ensure the project construction ground
and the use of land in a right purpose and increases the value of land through investment

in road construction.

directions and development goals.
2.3.4.1. Subjects and contents of monitoring and evaluation
Subjects of monitoring and evaluation for PPP road projects include the central

d. Policies and regulations for environment are to reduce environmental
9

government, the ministry in charge of road management, local governments, the
10


national PPP committee, the state audit agency, and the State Treasury.

CHAPTER 3: ANALYSIS OF THE STATE MANAGEMENT FOR PPP ROAD
PROJECTS IN VIETNAM

2.3.4.2. Methods of and tools for monitoring and evaluation

3.1. An overview of PPP road projects in Vietnam in the period of 2010-

Results- based monitoring and evaluation system is used for PPP road projects,
including such tools as results chain, logical framework, monitoring and evaluation

2015
3.1.1. Road infrastructure in Vietnam

framework, and financial reports, etc.
2.3.4.3. Monitoring and evaluation process

Vietnam road network was about 300,000 km in lengths in 2014, including

Monitoring and evaluation for PPP road projects includes setting up results

national highways, intra province, district, village road, service roads and nearly

chain, defining criteria and indicators, setting targets, monitoring to collect data,

5,000 bridges. Vietnam road network has a low rate of density; highway density

comparing results, evaluating based on creteria, and recommending on improvement.

reached 0.053km/km2 and 0.21km/1,000 population. Proportion of high technical

2.4. Factors affecting the state management for PPP road projects
2.4.1. Factor group from the state side
This factor group is included of the views of the role of the state, the capacity
of state officials, and institutional capacity of the state.
2.4.2. Factor group from external environment side
This factor group is included of the world development trends, the country’s
socio-economic development level, the political and legal environment, and the
development level and capacity of the private sector.
2.5. Foreign experience on the State management for PPP projects
2.5.1. Foreign experience

standard roads is also low (7.51%).
3.1.2. PPP road projects in Vietnam
By the end of 2015, there have been 79 PPP road projects in Vietnam with a
total investment capital of VND 227,515 billion; this figure is approximately VND

186,660 billion for the period of 2011-2015. PPP road projects have large-scale and
long-time agreement, are in the form of BOT and BT contracts, and attract both
domestic and foreign investors.
3.2. The situation of the State management for PPP projects in Vietnam
3.2.1. Planning for PPP road projects development in Vietnam
Vietnam does not have a particular strategy, master plan and development
plans for PPP road projects. The State of Vietnam encourages the development of

Experience in state management for PPP road projects in England and Canada
(very first and successful countries in PPP), South Korea (a PPP pioneer in Asia) and
China (a transition economy with similar conditions to Vietnam).

PPP road projects, and the orientation for PPP road projects development is
consistent with the development directions for the road and transport sectors.
The objectives of PPP road projects development in Vietnam are to attract

2.5.2. Lessons for Vietnam

capital in road infrastructure and mobilize maximum resources from all economic

Planning for PPP projects development is a prerequisite for successful PPP

sectors.

projects. Policy and legislation should be comprehensive, transparent, stable, and

3.2.2. Policies, regulations and legislation for PPP road projects

pilot before being issued. State management agencies for PPP projects should be

3.2.2.1. Policies and regulations for investment promotion

capable of playing a double role as a state authorities and a project partner. A results-

The investment promotion for PPP road projects is regulated in the Regulation on

based monitoring and evaluation system for PPP projects should be established,

State management for investment promotion activities. Investment promotion activities

increasing the participation of stakeholders.
11

12


for PPP road projects are included of assessing investment potential and opportunities,
communicating investment opportunities, and supporting investors.

Decentralization: The state management for PPP road projects is decentralized
(in the Ministry of Transport and provincial People's Committees) in the period 2010-

3.2.2.2. Policies and regulations for finance

2015, centralized (in the Ministry of Planning and Investment) later and now re-

Financial policies aims to ensure financial recouses for PPP road projects,

decentralized (in the Ministry of Transport and provincial People's Committees).

attract private capital, ensure value for money for the state and profits for investors.

Coordination: The coordination between the Ministry of Planning and

Tax incentives, guarantees, project financing structure, and project investment

Investment and the Ministry of Transport, between theses ministries and provincial

capacity are regulated in the Investment Law, the Decree No. 15/2015/ND-CP on

People’s committes is loose, insynchronized and irregular.

investment in the form of PPP and other legal documents. However, value- formoney analysis has yet to be applied.

3.2.3.2. Human resource for organizational structure
Human resources for the state management for PPP projects are stills

3.2.2.3. Policies and regulations for land
Regulations on land for PPP road projects are provied in the Law on Land, the
Law on Roads Traffic, the Law on Investment, and the Decree No.15/2015/ND-CP

insufficient to take their responsibilities.
3.2.4. Monitoring and evaluating PPP road projects
3.2.4.1. Subjects of monitoring and evaluation

on investment in the form of PPP, which regulate land recovery, land for

There are too many actors monitoring and evaluating PPP road projects such as

construction, land ownership, land use, cost for land recovery and use, land use

the Ministry of Transport, Ministry of Planning and Investment, Ministry of Finance,

periods, and land incentives provided for PPP road projects.

Ministry of Construction, the State Bank, the Government Inspectorate, the State

3.2.2.4. Policies and regulations for environment
Environmental regulations for PPP road projects are applied in stages of the

Auditor, etc.), leading to unclear and overlapping tasks.
3.2.4.2. Contents of monitoring and evaluation

project life cycle, as shown in the Environmental Protection Law, the Law on Roads

Monitoring and evaluation lacks necessary contents.

Traffic, the Law on Investment, Decree No. 29/2011/ ND-CP, Decree No. 15/2015/

3.2.4.3. Tools for monitoring and evaluation

ND-CP, and Circular No. 09/ VBHN-BGTVT of the Ministry of Transport.

Tools used for monitoring and evaluation are incomplete and inefficient. A

3.2.3. Organizing for state management for PPP road projects

monitoring and evaluation framework has yet to be set up. Monitoring and evaluation

3.2.3.1. Organizational structure of the state management for PPP road projects

reports submitted by investors and state authorities are delayed and do not have

Specialization: Many state officials hold two or more posts concurrently thus

appropriate contents.

they have a low level of specialization.

3.3. Assessment on the State management for PPP projects in Vietnam

State management apparatus: State management apparatus for PPP road

3.3.1. Assessment by criteria for State management

projects includes the National Assembly, the Prime Minister, the PPP Steering

a. Effectiveness

Committee, the Ministry of Planning and Investment, the Ministry of Transport,

HL1: The increase in the private capital for road infrastructure construction

Ministry of Finance, Ministry of Justice, Ministry of Natural Resources and
Environment, the State Bank, State Audit Office, and local governments, etc.
13

In the 2010- 2015 period, the total investment capital from non-State sector for
road infrastructure construction is VND 186,660 billion, accounting for 90% total
14

capital mobilized to date. Interviewed companies have a positive assessment about

No.of

the statement "Directions for PPP road projects development is contributing to raising

observation

investment capital from the private sector for road infrastructure construction" (Mean

PPP road projects involved by the

= 4.08).

company reached common goals

HL2: The increase in the number of PPP road projects

PPP road projects involved by the

Table 3.6. Directions for PPP road projects contributing to the increase of PPP
road projects and the number of private investors involving PPP
No.of
observation

company reached financial goals
PPP road projects involved by the

Min Max Mean

Standard

company reached time goals

for PPP

road projects

company reached quality goals

contributed to the increase of PPP road

62

3

5

3.94

.569

projects
for PPP

deviation

62

1

6

4,02

0,665

62

2

5

3,63

0,854

62

2

5

3,48

0,901

62

2

6

4,94

0,807

62

3

6

4,53

0,918

PPP road projects involved by the
company

Directions

Standard

deviation
PPP road projects involved by the

Directions

Min Max Mean

road projects

reached

socio-economic

development goals

contributed to the increase of private

62

2

5

3.60

.712

investors involving road construction

Source: The author’s survey results
b. Efficiency

Source: The author’s survey results

HQ1: PPP road projects have higher benefits/ economic value compared to

The number of PPP road projects increased rapidly from 22 projects in 2010
to 79 projects in 2015 (an increase of 2.6 times). Companies highly appreciate the
increase in PPP road projects (Mean = 3.94 for question No 3.4 - Directions for

state funded projects
Most of the surveyed companies believe that PPP road projects have higher
benefits/ economic value compared to state funded projects (Mean = 4,79).

PPP road projects have contributed to the increase of PPP road projects).

(I) Strongly disagree

HL3: The compliance of PPP road projects with the state directions and

(II) Somewhat disagree

policies

(III) Disagree

Mean = 4,08 for question No 3.6 (PPP road projects comply with the

(IV)

directions for road infrastructure development).

Agree

(V) Somewhat agree

HL4: The extent of reaching goals of PPP road projects

(VI) Strongly agree

Mean = 4,02 for question No 2.17 (PPP road projects involved by the company
Figure 3.10. PPP road projects have higher benefits/ economic value

reached common goals).
Table 3.7. PPP road projects results

compared to state funded projects
Source: The author’s survey results

15

16


HQ2: The contribution of PPP road projects to local socio-economic
(I) Strongly disagree

development

(II) Somewhat disagree

Interviewed companies have a positive assessment on the statement "PPP road

(III) Disagree

projects contribute positively to local socio-economic development" (Mean = 4. 34).
HQ3: The waste in the state budget in PPP road projects

(IV) Agree

Companies rated at 3.77 for the statement "State capital invested in PPP road

(V) Somewhat agree
(VI) Strongly agree

projects is not used wastefully". However, a majority of in-depth interviewed state
officials agreed that the State capital in PPP road projects is used wastefully.

Figure 3.11. The state organizational structure for PPP road projects is

c. Relevance

relevant

PH1: The consistence of directions for PPP road projects development with
the directions for the transport and road sectors development

Source: The author’s survey results
PH4: The relevance of the monitoring and evaluation for PPP road projects

The consistence of directions for PPP road projects development with the

Regulations on monitoring and evaluation of the State for PPP road projects in

general directions for the transport and road development is considered a hightlights

Vietnam are not consistent. There are many actors involved in monitoring and

in the state management for PPP project. Companies rated at 4.76 for the statement

evaluation of projects, resulting in tasks overlapping. The tools used for monitoring

"The directions for PPP road projects development is consistent with the directions

and evaluation are insuffficient. 40.3% of the interviewed companies disagreed and

for the transport and road sectors development.

6.5% strongly disagreed with the statement "State agencies implementing monitoring

PH2: The relevance of policies and regulations for PPP road projects
Companies rated at 3.87 for the statement “The policies and regulations for
PPP road projects is relevant”. In which, policies and regulations for investment
promotion 3.58%, policies and regulations for finance 3.35%, policies and
regulations for land 3.66%, and policies and regulations for environment 4.66%.

and evaluation for PPP road projects are appropriate".
d. Sustainability
BV1: The equality in distributing benefits and risks among partners involving
PPP road projects
Companies rated at 3.98 for the statement "Policies and regulations for PPP

PH3: The relevance of the state organizational structure for PPP road projects

road projects equalize the benefits of the state and investors”, and at 3.68 for the

Companies rated at 3.63 for the statement “The state organizational structure

statement "Risks are allocated appropriately among projects stakeholders”.

for PPP road projects is relevant”. 40.32% of interviewed companies dissagreed with

BV2: The stability of policies and regulations for PPP road projects
The issuance of three legals documents for PPP in a short period of time (5

this statement.

years) showed significant changes in the state’s policies. Companies rated at 3,31 for
the statement "Policies and regulations for PPP road projects are stable”.
BV3: The capacity enhancement of partners in PPP road projects

17

18


management for PPP road projects. Monitoring and evaluation of the State for

Table 3.10. The capacity of partners in PPP road projects being enhanced
No.of
observation
The capacity of partners in PPP road
projects are enhanced

Min

Max Mean

Standard
deviation

3.3.2.2. Limitations
There is lack of determination and a clear political commitment of high-

62

2

6

4,66

0,922

ranking leaders of the Party in the development of PPP. Vietnam has yet to make
a clear strategic direction for the development of road PPP project, to set long

Directions for PPP road projects
contribute to capacity enhancement of

PPP road projects is fully regulated and implemented for all project phases.

62

2

6

4,48

0,919

term objectives and to make long term national master plans on PPP. Policies and
regulations on investment promotion, finance, land and environment are not

partners in PPP road projects

different compared to state- funded investment. There is lack of law and circulars

Source: The author’s survey results
Companies rated at 4.66 for the statement "The capacity of partners in PPP
road projects are enhanced". This is consistent to companies’ asessement on the
statement “Directions for PPP road projects contribute to capacity enhancement of

regulating PPP. State officials have a low degree of specialization while the
coordination between state agencies and levels are weak and inconsistent. Human
resources are insuficient to take on the role of state management for PPP
projects. There is also lack of a monitoring and evaluation framework for PPP

partners in PPP road projects”, at 4.48.
BV4: The increase in the contribution of PPP road projects to road

road projects.
3.3.2.3. Causes of the limitations

infrastructure development
The increase in the number of PPP road projects, the number of private
investors and the amount of private investment capital for construction of road
infrastructure (criteria HL1, HL2) lead to an increase in the number of PPP road
projects and the direct and indirect contributions of PPP projects to the economy
(criteria HQ2).
3.3.2. Assessment of successes, limitations and causes of the State
management for PPP projects

The main causes of the limitations are that PPP project is a quite new
concept to Vietnam while the capacity of the state officials and institution and of
the private sector is still low.
CHAPTER 4: RECOMMENDATIONS ON THE IMPROVEMENT OF THE
STATE MANAGEMENT FOR PPP ROAD PROJECTS IN VIETNAM
4.1. The viewpoints on the improvement of the State management for PPP
road projects
The State management for PPP road projects should comply with general

3.3.2.1. Successes
The State of Vietnam has advocated the development of PPP road projects,
embodied in strategies and plans of the State. The State has set up a relatively
complete policy and legal framework for PPP road projects by issuing

the

Decree No. 15/2015/ND-CP on investment in the form of PPP and relating legal
documents. State management apparatus for PPP projects has decentralized to
professional units and division with specific functions and tasks to perform state
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principles of state management for PPP projects (ensuring harmonic obligations and
interests of the parties, ensuring value for money for the state, results oriented,
publicity and transparency), ensure the accountability of the government in providing
public services and infrastructure, separate the functions of state management
agencies from the functions of state authorities in PPP projects.
4.2. Recommendations on the improvement of the State management for
PPP road projects in Vietnam
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4.2.1. Recommendations on the improvement of planning for PPP road

4.2.2.3. Policies and regulations for land
- The state authorities should take the responsibility of land avalability and pay

projects development
- Identify clear strategic direction for PPP road projects development in
Vietnam’s strategies and plans for the transport and road sector.
- Make long term and consistent plans for transport and road sectors.
- Develop a national plan for PPP in road infrastructure investment.
4.2.2. Recommendations on the improvement of policies, regulations and

damages to investors to ensure the project progress. Land acquisition and budget for land
acquisition should be separated from PPP projects.
- The State sets up and manages national information system on land as a basis for
development planning and implementation of PPP road projects.
4.2.2.4. Policies and regulations for environment
To achieve the objectives of environmental policies for PPP road projects in

legislation for PPP road projects
4.2.2.1. Policies and regulations for investment promotion

Vietnam and protect the road’s sustainable ecosystem, environmental regulations

- Policies for investment promotion should be specifically regulated for the

need to be complied with throughout the project life cycle. There should also be

investment in the form of PPP, and investment promotion should be added in Decree

environmental regulations for the project operation phase; The environment factor

No. 15/2005/ ND-CP.

should be a criterion for the selection of contractors in the operation phase.

- Clearly define the types of support for investors involving PPP road projects.
- Strengthening communication on PPP road projects.
- The functions of promotion for PPP road projects should be assigned to
provincial Department of Planning and Investment.

4.2.3. Recommendations on the improvement of organizational structure of
state management for PPP road projects
State management apparatus for PPP road projects should be improved towards
increasing decentralization, specialization and collaboration. The ministries and

4.2.2.2. Policies and regulations for finance

provincial People's Committees and their authorized units have served as State

- Decree No.15/2015/ND-CP should clearly identify financial incentives for

management agencies, and at the same time, as State authorities. These two functions

PPP projects

should be clearly separated in the state management for PPP projects.

- Regulations on financial incentives should cover throughout the project life
cycle with additional incentives: tax exemptions applied to imported equipments, raw

4.2.4. Recommendations on the improvement of monitoring and evaluation
for PPP road projects

materials and components (in the construction, operation and maintenance of road

4.2.4.1. Recommendations on the subjects of monitoring and evaluation

works), tax refunds for investors who use profits to reinvest into new infrastructure

The monitoring and evaluation function should be decentralized in the Ministry

construction projects in the country, reduction of taxable income for certain costs for

of Transport and provincial People’s Committees for the formulation and approval of

electricity, water, transport in the operation phase of the project.

a list of investment projects and the examination of feasibility study reports and

- Apply financial incentives for projects in disadvantaged conditions to ensure
financial viability.

project proposals for project at A, B and C levels.
4.2.4.2. Recommendations on a results-based monitoring and evaluation

- Apply value-for-money method for financial analysis of PPP projects.
- Issue a Circular for PPP road projects by the Ministry of Transport.
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framework
It is necessary to set up a results-based monitoring and evaluation system for
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PPP road projects which includes (1) the results chain; (2) the logical framework for

- Based on secondary data and primary data collected from survey, the thesis

monitoring and evaluation, and (3) procedures for monitoring and evaluation of PPP

analyzed the state management for PPP road projects in Vietnam by criteria including

road projects.

effectiveness, efficiency, relevance and sustainability

4.2.4.3. Recommendations on the contents of results-based monitoring and
evaluation

- Based on studies in international experience and assessment of the state
management for PPP road projects, the author recommended on the improvement of:

Monitoring should cover throughout all phase of the project life cycle.

(i) planning for PPP projects development, (ii) making and implementing policies,

Assessment of PPP projects should ensure the analysis of the relevance, the

regulations and legislation for PPP projects (iii) organizing for state management for PPP

feasibility and the impact of projects.

projects; and (iv) results- based monitoring and evaluating PPP projects.
- For furthur improvement of the state management for PPP in the road sector,

4.3. Other suggestions
4.3.1. Suggestions for the State

the author would suggest furthur studies on the state policies on PPP projects; PPP

The State plays a key role in the development of PPP projects, including

development strategy; and monitoring and evaluation for the investment in the form

initiating PPP, being a partner in PPP project contracts, supporting private investors,

of PPP.

and managing the development of PPP projects.
4.3.2. Suggestions for private investors
Private investors should enhance their financial, technical and management
capacity.
4.3.3. Suggestions for related stake- holders
Pushing the rights of PPP road users in mornitoring activities. Enhancing the
role and responsibilities of individuals and organizations using PPP road works.
CONCLUSIONS
Following the research objectives set out at the beginning, the thesis has
clarified the issues as follows:
- Overview of previous studies related to the state management for PPP road
projects; develop theoretical background for the state management for PPP road
projects.
- The thesis has systematized and clarified the concept, characteristics, types
and process of PPP road projects, identified objectives and creteria for assessment on
state management for PPP road projects, identified the contents of state management
process for PPP road projects.
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