An Investigation Into the Major Factors Affecting Project Completion of Upgrading the Infrastructure System in Vietnam

Topics: Construction, Project management, Architect Pages: 12 (3698 words) Published: October 16, 2010
Rationale: The purpose of this paper is to analyse some causes constraining the construction process in Vietnam in recent times, and therefore, to recommend a number of solutions.

1. Introduction
1.1. Background
Since economic reformation in the mid 1980s, Vietnam has made efforts to develop market economy, and therefore, this country has achieved many significant goals, especially in the industrial and service sectors. Besides these successes, it cannot be denied that the construction industry has played an important role by contributing a large proportion in the national economy. The General Statistics Office of Vietnam (2007), for instance, showed that capital invested into construction was approximately 21,136 billion VND (1 $US = 16,132 VND), with an improvement of 30% compared with the previous year’s statistics. Moreover, in the same period, the Vietnam Government spent 107,440 billion VND on fundamental construction, accounting for 26.9% of budget. Concurrently, the Vietnam Government also determined developing the infrastructure system, the basic physical and organisational structures or services and facilities needed for economical and social applications, as a momentous factor for national economy soaring. According to Thanh and Dapice (2009), after the financial crisis in Southeast Asia in 1997, investments into infrastructure were 10% of GDP on average, assisting Vietnam in becoming one of the most East Asian economies renown for its expenditure in upgrading infrastructure. On the other hand, although attracting a vast amount of money, the construction industry has not utilised effectively this investment. Many construction projects both in the state-run sector and private ones have faced a series of problems in execution that affected not only cost but also quality of works. Together with other frequent matters such as cost overrun, reduction in profit margin and loss of public belief in state-funded projects, delay is one of the most serious issues threatening all parties of projects. As a result, detecting main factors influencing projects time is one of the most important tasks for experts of construction area. This paper focuses on recognising the roots causes of delay appearing in phases of upgrading infrastructure system projects, the part accounting for the majority of investment in the construction industry in Vietnam. Then, a number of recommendations will be provided as consultation, assisting management staffs in using efficiently money adequate to levels of investment. 1.2. Objectives of Academic Research Paper

In content of this paper, the first objective that will be reviewed is to identify and to categorise main causes of delays. Thereafter, consequences of delays will be identified, and causes will be ranked in terms of serious degree. Hence, a number of professional advices to parties relating to projects will be provided. 2. Major reasons causing delay in Vietnam upgrading infrastructure system projects 2.1. Literature review

Theoretically, in perfect condition, when the contractors calculate to carry out their work in an orderly, projects can be finished on time, and therefore, overrunning cost or other negative consequences can be evaded. In the reality of the marketplace, the time period during which a number of parts of the construction projects have been extended beyond originally planned schedules due to unanticipated situations is called delay.

Considered as a potential risk in construction management, delay is a common factor that has been studied by a large number of experts, especially in developing countries. Toor and Ogunlana (2008) claimed that designing without suitable standards as well as the lack of contractor’s experience are top problems. In an investigation into the construction industry in Libya (Tumi, Omran and Pakir, 2009), improper planning and ineffectively negotiable skills are main factors affecting project time completion. Another study...
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