Quản lý hiệu quả dự án đầu tư phát triển đô thị theo hình thức đối tác công tư ở việt nam tt tiếng anh

MINISTRY OF EDUCATION

MINISTRY OF

AND TRAINING

CONSTRUCTION

HANOI ARCHITECTURAL UNIVERSITY

----------------

HOANG ANH TUAN

EFFECTIVE MANAGEMENT OF INVESTMENT
PROJECT IN URBAN DEVELOPMENT BY PUBLIC
PRIVATE PARTNERSHIP METHOD IN VIET NAM

MAJOR: CONSTRUCTION AND URBAN MANAGEMENT
CODE 62.58.01.06

DOTORAL THESIS SUMMARY
CONSTRUCTION AND URBAN MANAGEMENT

HA NOI – 2019


THE THESIS IS COMPLETED AT
HANOI ARCHITECTURAL UNIVERSITY

Science instructor:

1. Associate Professor PhD. Le Anh Dung
2. PhD. Tran Van Khoi

Reviewer 1: ..........................................................................
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Reviewer 2: ..........................................................................
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Reviewer 3: ..........................................................................
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The thesis shall be defensed against the doctoral thesis evaluation
council at Ha Noi Architectural University at … dated … 2019

The thesis can be found at:
Library of Hanoi Architectural University.
National Library.


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INTRODUCTION
1. The necessity of the Thesis
Urban development (UD) plays a very important role in the socioeconomic development of each country, the capital from the public sector
do not always meet the investment needs of the country thus and Public
private partnership (PPP) is an effective tool to promote investment from
private sector.
In Vietnam, the demand for capital in UD has been increasing
overtime, while limited public capital is remained as the major challenge of
the country. Recently, Viet Nam has successfully implemented many PPP
projects, however, many of those are considered as ineffective, especially in

Urban Technical Infrastructure (UTI). The effectiveness of PPP projects
depend on many factors, especially project management. The completion of
theoretical basis in line with appropriate assessment of the real situation
thereto propose suitable solutions for practical use shal be an important
basis for effective PPP project management (PM) in the future. Therefore,
the author chose the topic: "Effective management of investment projects in
urban development by PPP method in Vietnam".
2. Research purposes
Clarification and improvement of existing issues on theoretical basis,
apply international management experience, thereby properly assess the
management status, and propose effective solutions to effectively manage
PPP projects in UD in Vietnam to 2025, vision to 2030, concurently build a
logical framework for management of PPP projects in UD in Vietnam.
3. Subjects and scope of research
Study subjects: The thesis studies the contents related to effective
management of PPP projects in UD in Viet Nam.
Scope of research: Regarding the content, the thesis studies the
management contents of the entities under the public sector, private


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investors who affect the effectiveness of PPP projects in UD, with focus
UTI projects. Regarding space and time, the thesis studies and assesses the
actual status of PPP PM in UD in Vietnam for the period of 2010 up to
now; propose solutions for the period to 2025, with vision to 2030.
4. Research Methodology
General methods include: logic, statistics, analysis and synthesis,
inheritance, exclusion, comparison etc.
Methods according to the research process: on-desk study; expert
interview; survey by questionnaire.

5. The scientific and practical value of the thesis
The thesis provided supplement researches to improve the
methodology on management of PPP project in UD through project
management stages to achieve practical benefits.
The thesis helps entitties, related to the PPP project management in
Vietnam, to understand the nature of management contents affecting the
project effectiveness.
The thesis helps management entities to recognize and appropriately
evaluate the situation, foresee the shortcomings, limitations and causes of
existence, limitations and factors affecting effective management of PPP
projects in UD in Vietnam.
Research results of the thesis are references for managers in the
policy making process, implementation of management activities; investors
and consulting organizations in project proposals and management; and
reference source in teaching and learning at training institutions.
6. New contributions of the thesis
Nowadays, PPP is a new investment method which is dynamically
being implemented in Vietnam. Previous studies have mostly touched upon
each individual issue of PPP PM whereas there is no clear linkage or
sustaintial connection among these studies.


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The first new point is the thesis has synthesized theoretical basis for
PPP PM in UD (especially UTI) of the main entities associated with the
pillar contents, the main factors affecting the effectiveness of project for the
whole project life cycle with the aim to ensure that the project outcomes are
practically achieved, based on the systematization of theoretical bases and
PPP management experience in countries with similar conditions to
Vietnam.

The thesis clarified the role, management contents and main factors
affecting the management activities of entities in the public sector, private
investors to ensure the effectiveness of the projects.
The second new point is the thesis idetified the core issues that need
to be addressed in order to ensure that PPP projects in UD in Vietnam shall
be effective base on the harmonization of on-desk study, expert interview
and survey by questionnaire (the author built the survey forms which
attached the contents, pillar elements, management criteria to the main
entities of the management process) with the organizations and individuals
related to PPP projects in UD.
The third new point is the thesis proposed solutions on core
management contents in order to achieve the effectiveness in each
management stage of the project life cycle, linked with each major
management entity and the relationship between these entities (the solutions
are designed to cleary clarify the contents, conditions for implementation,
how to implement and the results of the solutions). The proposed solutions
ensure the suitability and feasibility to be able to apply and implement for
practical use.
The fourth new point is the thesis has developed and instructed the
use of logical framework on the main contents, impact factors, criteria for
evaluation of management performance, there support each entity to
improve management efficiency in practice.


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7. Structure of the thesis
In addition to the introduction, conclusion and recommendations,
references, appendices, the thesis consists of 4 chapters:
- Chapter 1: Overview on the management of urban development
projects by public-private partnership method in Vietnam.

- Chapter 2: Scientific basis for effective management of urban
development projects by public-private partnership method.
- Chapter 3: Analysis and evaluation on the current effectiveness
management of urban development projects by public-private partnership
method in Vietnam.
- Chapter 4: Solutions for effective management of investment
projects in Vietnam urban development by public-private partnership
method to 2025, vision to 2030.

CHAPTER I. OVERVIEW ON THE MANAGEMENT OF URBAN
DEVELOPMENT PROJECTS IN THE FORM OF PUBLICPRIVATE PARTNERSHIP IN VIETNAM
1.1. Overview of the asctual context related to the thesis’s research contents
1.1.1. Vietnam udrban development status
Table 1.1: Urban development status from 2015-2018
Year/Criteria

2010

Number of city

2015

2016
787

2017
802

2018
813

828

Urbanization rate

30%

35,7%

36,6%

37,5%

38,4%

Urban population

25, 37.106

32,987.106

33,31. 106

33,795.106

34,014.106

45.446

46.913

46.970,3

47.030,8

Urban land (km2)

Sourse: Consolidated by author
Viet Nam's urban system has grown rapidly in both quantity and
quality (Table 1.1), resulting to unplanned urban expansion and overloading
of UTI system (Table 1.4).


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Table 1.4: Reponsiveness of the UTI system of the country on average
to 2018
UTI system

Capaciry

Rate

8.5.106 m3/day
890.103m3/day
6.500 ton/day

Clean water supply
Waste water treatment
Solid waste treatment

84.5 %
12-13%
83%.

Source: 2018 Summary Report, Technical Infrastructure Department- MOC
1.1.2. Viet Nam’s urban development status
For the period of 2009-2020, there were 3,978 planned UD projects
with a total estimated investment of VND 4,470,942 billion, and an estimated
investment of about US $ 16.7 billion for the period of 2020-2025.
1.1.3. History and the implementation status of PPP project in urban
development in Viet Nam
1.1.3.1. History of PPP investment
PPP was originated from the USA during the 1950, which was then
adopted globally in 1980. Viet Nam has adopted PPP since 1997.
1.1.3.2. Implementation status of PPP project in urban development in Viet Nam
Table 1.5: Number of PPP project in Viet Nam till January 2019
NO
1
2
3
4
5
6
7

Field/ Sector

Amount

Transportation

Resettlement houses and domitories
Work offices
Energy
Water supply, drainage, environment
Health, culture, sport
Education, market…
Total

220
32
20
18
18
11
17
336

Total Investment Cost
(billion dong)
672.345
12.356
39.793
857.209
21.716
4.632
1.284
1.609.335

Source: Government report No. 25/CP-CN dated 30/1/2019
1.1.4. Conclusion drawn from practical review

The rapid urbanization rate leads unplanned UD, overloading of the
UTI system. While the demand for UD is significant, the investment from
the public sector is very limited. PPP has affirmed its role as an effective


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tool to mobilize private investment resources to participate in UD in
Vietnam, however, regarding the UTI sector, the invested amount is
deemed too small in comparision with other sectors; many projects have not
been effectively implemented.
1.2. Overview of studies related to the thesis topic
1.2.1. International studies
1.2.1.1. General studies on PPP
Studies from a theoretical perspective have introduced the concept,
characteristics and type of PPP (Young et al., 2009; Yescombe, 2007),
advantages of PPP (ADB, 2012; ESCAP, 2011), motivation for PPP
(Cristina, 2007; Fay M., 2006), from a practical perspective provided
viewpoints and objectives for PPP in each country (ADB, 2008; Hong
Kong Efficiency Unit, 2008; Infrastructure Australia, 2008; OECD, 2012).
1.2.1.2. Studies on investment projects in the form of PPP
Studies on factors affecting PPP success and failure (Akintoye, 2003;
Cutaree, 2008; Johan, 2011; Michell, 2003; Mohammed, 2012; Nikolay, 2011),
risk and risk allocation in PPP, considering risk as a disadvantage (Akintoye,
2003), the concept of risk is an opportunity, (Ke, 2010c; Li, 2005b).
1.2.1.3. Studies on mangagement of PPP projects
Studies on PPP PM targets (ADB, 2008; Wong, 2005), management
roles of the public sector (Garvi, 2010; Hardcastle, 2005; Koch, 2001;
Mohammed, 2012), management content (Ali, 2011; Charles, 2015;
Maluleke, 2008; Nikolai, 2013).
1.2.2. Studies in Viet Nam

1.2.2.1. Studies on urban and urban development
Studies to clarify the nature, content, principles of urban management,
investment projects in UD (Bui Manh Hung, Le Anh Dung, 2018; Nguyen
To Lang, 2017; Pham Trong Manh, 2013; Nguyen Hong Tien, 2012).


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1.2.2.2. Studies on resources mobilization for urban development
Studies on mobilization of resources for PPP investment (Nguyen
Anh Duc, 2010; Ngo The Vinh, 2015).
1.2.2.3. Studies on application of international experience on PPP in Vietnam
Studies of PPP experiences in several countries (Bui Hoang Lan,
2010; Hoang Manh Phuong 2011; National Assembly Economic
Committee, 2013), PPP management role of the public sector (Nguyen
Dang Truong, 2014).
1.2.2.4. Studies on investment projects in the form of PPP
Research on risk identification and risk allocation for PPP (Than
Thanh Son, 2015), success and failure factors of PPP (Nguyen Duc Canh,
2017; Dinh Kien, 2010; Nguyen Hong Thai, 2008).
1.2.2.5. Studies on management and management of investment projects in
the form of PPP
Studies on project management contents, principles for determination
of project effectiveness (Mai Van Bai, 2008; Bui Manh Hung, 2017;
Nguyen Van Phuc, 2008; Tu Quang Phuong, 2013; Ta Van Khoai, 2009),
state management of PPP (Nguyen Thi Hong Minh, 2016).
1.2.3. Conclusion drawn from the research review
The overal studies related to the topic provided an overview of PPP,
PPP Investment Projects and PPP PM. The studies have mostly touched
upon each individual issue of PPP PM whereas there is no clear linkage or
connection between management entities with the pillar contents, main

factors affect the project effectiveness during the project life cycle,
especially the PPP projects in UD. Thus, this is the content required further
study in the thesis regarding PPP PM in UD to ensure the practical
effectiveness of the project.


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CHAPTER II. SCIENTIFIC BASIS FOR EFFECTIVE
MANAGEMENT OF URBAN DEVELOPMENT PROJECT by
PUBLIC-PRIVATE PARTNERSHIP METHOD
2.1. Urban development and investment in urban development
Urban development
From the most common understanding of urban, the concept of "UD”
might be interpreted as a comprehensive development of urban economy,
culture, social, space as well as living environment, UD including material and
non-material development.
Investment in urban development
2.1.2.1. Concept of investment in urban development
Based on the concepts of investment in UD from different perspectives,
under the scope of this thesis, investment in UD is percieved as the process of
utilizing resources for current UD activities to create products and intellectual
property in the form of facilities in UD areas to achieve UD objectives.
Resources here are perceived as capital, land, labor, equipment and natural
resources.
2.1.2.2. Principle of investment in urban development
Investment UD should ensure the following key principles: consistent
with urban planning; synchronization of UTI, social infrastructure; efficient
use of resources; create a good living environment for the people and
benefits for the public sector; sustainable development.
2.2. Urban development projects by PPP method

Concept of urban development projects by PPP method
Systematization of the relevant concepts on investments in UD,
invesment projects and PPPs thereby introduce in the thesis concept of
invesment project in UD by PPP method which is a form of equal/fair
cooperation between the public sector and the private sector through clear
contract’s binding responsibilities, benefits and risk sharing between the two


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parties to ensure the necessary resources and costs to implement the overall
planned activities in a fixed schedule with defined timeline and location for
new construction, expansion or renovation of a construction work or a complex
of construction works under the UD area approved and announced by the
competent authorities in order to realize the investment objectives of UD.
The role of PPP in investments of urban development
Từ bản chất PPP, có thể thấy đối với đầu tư PTĐT Việt Nam, PPP có vai
trị chủ yếu gồm: bổ sung nguồn lực cho khu vực công; quản lý rủi ro hiệu quả;
nâng cao hiệu quả đầu tư công, chất lượng dịch vụ công.
Base on the nature of PPP, regaring investments in UD in Vietnam, PPP
plays key role in: supplementing resources for the public sector; effective risk
management; improve the efficiency of public investment and quality of public
services.
Characteristics of investment projects in urban development by PPP method
Roles and
responsibilities of
the state
Investor
capability and
selection

Support from the
public and people
Successful PPP
Project

PPP risk
identification and
allocation

Finance and
sponsor
mechanism

Chart 2.1. Key pillars for the sucessful of PPP Project
Source: Consolicated by author


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Investments in urban development by PPP method
PPP implementation through contract that legally bind the
relationship, responsibilities, allocation of benefits and risks between the
public and private sector.
2.3. Theoretical basis for effective management of investment projects
in urban development by PPP method
General effective management concept
Logic hóa các khái niệm về hiệu quả và quản lý, có thể hiểu quản lý
hiệu quả là các hoạt động quản lý của các chủ thể nhằm đạt được kết quả so
với mục tiêu đề ra.
Through logicalization of concepts on effectiveness and
management, effective management could be intepreted as the management

activities of the entities to achieve the expected results per objectives.
Effective management of investment projects in UD by PPP method
By assessing project management through project implementation
process, assign the objectives and management contents to the management
entities and systemize the related concepts investment project, UD, PPP and
effective management, it can be intepreted as "Effective management of
investment projects in UD by PPP method is the continuous, organized and
targeted impacts on the investment process (preparation, implementation,
operation) and investment factors of management entitiess to form,
implement and utilize investment projects in UD by PPP method, by
appropriate measures and tools system per each management function of
management entities to optimize the use of the available resources in order
to achieve results that meet the general project objectives and the
effectiveness levels set by each entity".
Principles for effective managemen of investment projects in UD by PPP
method
Effective management of investment projects in UD by PPP method
should ensure the main principles include: ensuring uniformity of interests,


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harmonization of obligations and benefits between the parties; ensure the
value of money for the goverment; apply project output oriented method;
ensure public and transparency.
Criteria for evaluation of the effectiveness of management activities to
ensure the effectiveness of investment projects in urban development by
PPP method
The study results related to management have provided the criteria
for evaluation of management activities per management entitiess in
different fields/sectors, for PPP PM in UD to ensure project effectiveness;

the thesis used criteria including: effectiveness criteria; efficiency criteria;
suitability criteria; sustainability criteria.
The contents of effective management of investment projects in urban
development by PPP method
Management content can be determined based on general
management functions of each entity or field/sector. Based on this
approach, the main management contents affecting the effectiveness of PPP
projects in UD include: policies and laws; project development strategies
and plans; management structure; project monitoring and evaluation;
project selection, project listing; project formulation and appraisal; investor
selection; project contract; risk management; quality, schedule, and cost
management; operation management.
2.4. Legal basis for effective management of investment projects in
urban development by PPP method in Vietnam
Effective management of PPP projects in UD in Vietnam is governed
by many different Laws, including legal policies on UD and other laws that
directly or indirectly governed PPP investment activities.
2.5. Factors affecting effective management of investment projects in
UD by PPP method
Group of objective factors
Summary of studies’ results has provided 9 objective factors.


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Group of subjective factors
Summary of studies’ results has 74 subjective factors affecting the
success and failure of PPP projects in UD.
2.6. International experience on effective management of investment
projects in urban development by PPP method
International experiences

The thesis studied experiences of countries include: England,
Australia, Korea, Philippines.
Lessons learned for Vietnam
For successful implementation of PPP project, attention should be
paid to the following factors: project development strategy and planning;
project selection; suitability of project outcomes; policies and laws; risk
sharing mechanism; government support for projects; organization of
management structure.


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CHAPTER 3. ANALYSIS AND EVALUATION ON THE CURRENT
EFFECTIVENESS MANAGEMENT OF URBAN DEVELOPMENT
PROJECTS BY PUBLIC PARTNERSHIP METHOD IN VIETNAM
Base on the scientific contents related to the previous completed
topics, the author implemented the research process by the following steps:
on desk research to provide assumptions on the status of effective project
management in each project stage, thereby conduct expert interviews,
compare with certain specific projects and conduct survey by questionnaires
to re-examine the assumptions provided.
The thesis interviewed 30 experts with PPP experience and collected
116 valid survey forms from organizations and enterprises participating in
PPP projects in UD. The questions in the questionnaire are designed in the
form of closed questions, with a scale of 5 levels (disagree, disagree,
neutral, agree, agree), which were tested and build base on the assumptions
drawn from the synthesis and analysis of documents, reports, thereby
discussed with experts and compared with actual practice for improvement.
Actual analysis results include the following main contents:
3.1. Analyze the status on effective management of investment projects in
urban development by PPP method in Vietnam from 2010 to present

Develop strategies, planning and development of PPP projects in urban
development
Analysis of the situation showed that the development direction for
PPP projects in UD is consistent with the direction of UD however the
quality of planning is inadequate, lack of criteria on appropriate directions
for mobilizing resources.
Regarding development of mechanisms, policies and laws on
management of investment projects in urban development by PPP method
Apart from the direct regulations governed PPP (currently the Decree
No. 63/2018/ND-CP) PPP projects in UD are also subjected to the
overlapping governed of provisions under the relevant Laws. Specific
provisions are deemed to be inadequate.


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Regarding the organization of management structure for investment
projects in urban development by PPP method
The functions and tasks of the state management structure on PPP are
unclear; there is overlap between the state management responsibility,
sector/field management responsibility, and responsibility as one party of
the project contract. The management level of PPP project is currently
lacking of professional.
Regarding urban development project investment and implementation
supervision by PPP method
Analysis of the situation showed that the legal regulations on supervision
responsibilities are inadequate, lack of coordination; sanctions are not strictly
enforced, and not specificially regulated to each agency. The law allowed
Project Company to perform self management and supervision which was in
accordance to international practice however it created many gaps in the
monitoring process thereto unable to guarantee the project quality.

Regarding project selection and Listing of investment projects in urban
development by PPP method
Most ministries, branches and localities do not develop List of
projects; or have a list of projects but only for formality purpose, lack of
thorough researches; or have a List of PPP projects but lacking of principles
and priority order for implementation.
Regarding the formulation, appraisal and approval of feasibility study
reports of investment projects in urban development by PPP method
Feasibility study report (FS) of PPP projects in UD is developed in pursuant
to constrution law and regulations which is not always suitable with the specific
characteristics of PPP; low quality of financial analysis with inappropriate funding
structure. The appraisal process of some projects is still inaccurate, selected
technologies that are not suitable with Vietnamese conditions.
Regarding the selection of investors for investment projects in urban
development by PPP method
Review on the implementation of PPP projects showed that most PPP
projects in UD are direct contracting with investors, several projects


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implemented procurement but only for formality purpose with lack of
publicity and transparency.
Regarding contract management of investment projects in urban
development by PPP method
In general, the contents of contracts have not been sufficiently and
specifically defined, especially PPP projects in UD are highly unique;
nonetheless so far there is no guidance or standard form of contracts for these
particular projects. The contractual issues are mainly about financial
mechanism, technology requirements, payment schedule and service price etc.
Regarding the risk management of investment projects in urban

development by PPP method
The current legal system of Vietnam has no regulations on risk
transfer, in fact many risk factors are improperly allocated. The key risk
factors of PPP projects in UD in Vietnam include: changes in the legal
framework; delayed site clearance; investor selection; project service price
and fee etc.
Regarding quality, progress, costs, safety and environmental sanitation
management during the implementation process of investment projects in
urban development by PPP method
The current project management model is specifically regulated in
terms of roles and responsibilities; lack of detail regulations in each phase
of the project; coordination between state agencies is still inadequately
stipulated. Quality and cost management in many projects had many
violations and had not complied with regulations.
Regarding the operation of facilities under investment projects in urban
development by PPP method
The management on collection of the public urban's service fee has
not ensured objectivity and transparency. Expert emphasized that the
application of PPP shall not, by any means, mitigate the role and
responsibility of the state authorities.


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3.2. Current state assessment on effective management of Investment
Project in Vietnam Urban Development by PPP method from 2010 till now
Current state assessment of management activities to ensure the
effectiveness of PPP investment projects in urban development in
Vietnam base on management criteria
3.2.1.1. Validity criteria
Evaluation results based on these criteria are only at upper average

level for the state and lower average level for private investors. Statistics
showed that the investment capital mobilized for PPP has increased steadily
on yearly basis (Figure 3.17), except for the case of UTI which is deemed to
be limited. Among PPP projects that are currently operating, the profits
gained from the project are not always satisfied by investors.

Chart 3.12: Capital utilization for PPP
Source: Consolidated by author
3.2.1.2. Evaluation of management activities to ensure the effectiveness of
investment projects in urban development by PPP method base on
efficiency criteria
These criteria are highly evaluated for the public sector but only at
average level for private investors. In fact, PPP projects in UD have had a
positive impact on stimulating economic growth, improving the lives of
urban people, stimulating demand for urban construction, creating
investment opportunities and income for private investors.


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3.2.1.3. Evaluation of management activities to ensure the effectiveness of
investment projects in urban development by PPP method base on
appropriate criteria
The evaluation result of these criteria is at average level for both public
and private investors. Analysis from the reports showed that there are too many
overlapping of laws and unclear regulations. The structure of state management
showed overlapping of functions and mandates. The process of quality
management, cost schedule and project management etc. is still weak.
3.2.1.4. Evaluation of management activities to ensure the effectiveness of
investment projects in urban development by PPP method base on
sustainability criteria

Assessment on sustainability criteria through the balance in the
distribution of benefits and risks. The evaluation results of these criteria are
very low. Current state analysis showed that the government achieved the
public investment targets, ensures the value of money, and the investors,
while expanded the investment market and increased jobs, had received
uncommensurate profit.
Current state assessment of the factors affecting the effective management of
investment project in Vietnam urban development by PPP method

Chart 3.13: Influence level of the impact factor
Source: Survey and consolidated by author


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Assessment of success, limitations and causes of limitations regarding
effective management of investment projects in Vietnam urban
development by PPP method
3.2.3.1. Success
Through PPP, the government has attracted private investment capital
to participate in UD, contributing to create motivation for socio-economic
development. The State management system on PPP has been established
with relatively adequate management tools and in line with international
practices; investors have practical experience in project management.
3.2.3.2. Limitation
The quality of state management, administration of investors, project
companies in order to ensure the effectiveness of PPP projects in UD had
not meet the requirements due to the following limitations: there is no longterm development direction and strategy; the legal framework on PPP is
overlapping with different laws, and detail regulations are still limited; the
state management organizational structure are not clearly defined, with
insufficient professionalism; it is lacking of planning, principles and

priority order during the project selection process; the quality of project
formulation, appraisal and approval process is insufficient; identification
and allocation of risks that is in inappropriate and had not been prescribed
in the legal system; the selection of investor is still limited; the project
contract still lacks of specific instructions/guidances; project quality,
construction schedule and cost management still contained many violations;
project monitoring responsibilities are unclear; lack of transparency in
project operation; lack of tools for project implementation, monitoring and
scientific evaluation.
The objective cause of these limitations is that there is lack of
implementation experience in Vietnam UD. The major subjective reason is
that PPP project management in UD in Vietnam had not clarified the main
management contents associated with each management entity throughout
the project implementation process.


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CHAPTER 4. SOLUTIONS FOR EFFECTIVE MANAGEMENT
OF INVESMENT PROJECTS IN VIETNAM URBAN
DEVELIOMENT BY PUBLIC-PRIVATE PARTNERSHIP METHOD
TO 2025, VISION TO 2030
4.1. Perspective for improvement of the management effectiveness for
investment projects in Vietnam urban development investment by PPP
method
Based on the directions, policies, related scientific studies and
practical conditions of Vietnam, the thesis provided six perspectives for
improvement of the effective management contents of PPP project in UD.
4.2. Solutions for effective management of PPP projects in Vietnam
urban development
The proposed solutions in the thesis are general and unified between

state management activities, project management activities associated with PPP
characteristics, project unique characteristics and practical conditions in
Vietnam. Project effective management activities must be implemented for the
entire project life cycle. The thesis proposes the following groups of solutions:
Group of solutions for effective management of investment projects in
urban development by PPP method base on management contents
4.2.1.1. Improve the quality of formulating strategies and master plans for
development of investment projects in urban development by PPP method
4.2.1.2. Imrpove mechanisms, policies and laws on the management of
invesment projects in urban development by PPP method
4.2.1.3. Renovate the organizational model, enhance the capacity of
management oppicials in invesment projects in urban development by PPP
method
4.2.1.4. Improve the quality of fomulation, appraisal and approval of
proposals for invesment projects in urban development by PPP method
4.2.1.5. Improve the quality of investor selection for invesment projects in
urban development by PPP method


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4.2.1.6. Improve the quality of risk management of invesment projects in
urban development by PPP method
4.2.1.7. Improve the management efficiency of process, costs, quality, safety
and environment of invesment projects in urban development by PPP
method
4.2.1.8. Improve the content of the contract and the quality of contract
management for invesment projects in urban development by PPP method
4.2.1.9. Improve the efficiency of management and operation of project
public services
4.2.1.10. Ensure harmonization between mobilization and management of

capital sources for investment projects in urban development in the PPP form
Each solution on the effective management content of PPP projects in
urban development is associated with both management function of each
entity and management function of different entities.
The solutions from 4.2.1.1 to 4.2.1.3 are related to the state
management functions of agencies under the National Assembly, the
Government, ministries and ministerial-level agencies, People's Committees
at all levels, which affect all stages of the project life cycle and determin the
project implementation activities of competent state authorities, investors,
project companies to ensure the success and effectiveness of the project.
The proper implementation of this group of solutions is the essential
foundation for the competent authorities in charge of project development
plan thereto select quality PPP projects in UD that are consistent with the
sector and local planning; eliminate the overlapping between laws and
inappropriate provisions to implement PPP projects in urban development
to achieve the expected objectives; eliminate the lack of clarity on the
functions of the state authorities in PPP projects, improve the effectiveness
of the goverment and investors supervision works.
The solutions from 4.2.1.3 to 4.2.1.10 are associated with the
management entities under state authorities, private investors and project
companies.


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Proper implementation of this group of solutions will improve the
quality of project proposals, improve project feasibility; ensure the selection
of a capable private investor; minimize the risk and its associated damage;
improve the quality, progress, costs, environment and safety of project
facilities; increase the validity of project contracts; ensure efficiency in
operation of project facilities; ensure balance between mobilization and

management of investment resources.
Group of solutions for effective management of investment projects in
urban development by PPP method base on management criteria
4.2.2.1. Control the content to ensure the validity criteria
4.2.2.2. Control the content to ensure effective criteria
4.2.2.3. Control the content to ensure appropriate criteria
4.2.2.4. Control the content to ensure sustainability criteria
This group of solutions affects all management activities of all
entities in the public sector, private sector in the whole project life cycle.
Proper implementation of this group of solutions ensure the project
implementation shall follow the right directions and policies, increase the
private sector's investment capital in UD; increase the return on investment
of the project, improve the socio-economic efficiency for the locality;
improve the appropriateness in the orientation, policies, laws and the
rationality of the state management structure for PPP projects in UD and the
conformity of the investors' development and investment direction. Balance
the distribution of benefits and risks between the goverment and private
investors.
Solution to build a logical framework for effective management of
investment projects in urban development by PPP method
This solution provides a system of management tools to support
policymakers in clearly identifing the project inputs, outputs, results,
impacts and potential risks, provide the management entities with tools to
monitor and evaluate the project performance throughout the
implementation process; and this is a essential tool for project evaluation.


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4.3. Discussion on the research topic of the thesis
Should the three groups of solutions proposed by the thesis, with high

scientific and practical basis, are properly implemented then it shall bring
valuable contribution to actual practices. Each solution aims to achieve its
own goals and objectives, though the optimal goal of these solutions is to
achieve the effective management of PPP projects in urban development.
4.3.1. Group of solutions for effective management of investment projects
in urban development by PPP method base on management contents
These solutions are meant to help management entities in the public
sector, private investors, project companies to comprehensively understand
about the core issues that need to be resolved to achieve the project goals,
however it is importnatn to clearly define the ker role of the government in
harmonizing the various objectives of the stakeholders.
4.3.2. Group of solutions for effective management of invesment projects
in urban development by PPP method base on management efficiency
criteria
This group of solutions is meant to assist management entities to
better understand the criteria for evaluation of management activities and
the underlying for improvement of management effectiveness thereto affect
the effectiveness level of the project.
4.3.3. Solution to build a logical framework for effective management of
invesment projects in urban development by PPP method
This solution support the management entities to understand the
essential contents related to their management activities, the factors
affecting the success of the project in order to save time and focus on the
most important content to progress and solve each core problem in a most
logical manner.


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CONCLUSION AND RECOMMENDATION
1. Conclusion

Base on the initial goals, the thesis has focused on research and
achieved the following results:
- Systematize and improve the theoretical basis for effective
management of investment projects in UD by PPP method. Whereas, the
thesis has clearly specified the objectives, contents, evaluation criteria and
factors affecting the effective management of PPP projects in UD for the
whole project life cycle.
- Studying experiences in countries with similar conditions to
Vietnam, whereby to draw lessons on effective management of PPP
projects in UD in Vietnam.
- Appropriatly assess the status quo and the main factors affecting the
management process, identify the shortcomings, limitations and causes of
the limitations in the management process of investment projects in UD by
PPP method in Vietnam with regard to the two main groups of entities
which are public and private sectors.
- Proposed key groups of solutions for effective management of
investment projects in UD by PPP method in Vietnam in the coming future;
especially the thesis has developed and provided guidance on the use of a
logical framework of the core contents for the whole process of project
preparation, implementation, handover and operation of investment projects
in UD by PPP method in Vietnam.
Thus, the thesis has achieved the purpose of research for
improvement and clarification of issues on theoretical basis and basic
theoretical framework, appropriate assessment of the current management
context, propose an effective solution system to effectively manage
investment projects in UD by PPP method in Vietnam until 2025, vision to
2030; at the same time build a logical framework on the core issues related
to the management of investment projects in UD by PPP method in