PUBLIC PRIVATE PARTNERSHIP (PPP) IN TRANSPORT INFRASTRUCTURE FINANCING : SUITABILITY AND CRITICAL SUCCESS FACTORS FOR SUCCESSFUL APPLICATION IN VIETNAM

Topics: Investment, Public sector, Capital Pages: 629 (28516 words) Published: October 29, 2013
PUBLIC PRIVATE PARTNERSHIP (PPP) IN TRANSPORT
INFRASTRUCTURE FINANCING : SUITABILITY AND CRITICAL
SUCCESS FACTORS FOR SUCCESSFUL APPLICATION IN VIETNAM

Submitted in partial fulfilment of the requirements of the award

MASTER OF BUSINESS ADMINISTRATION

BOLTON BUSINESS SCHOOL

Sept, 21st 2012

1

ABSTRACT
In recent years, the strong economic development of Vietnam, along with the fast urbanization has placed a huge demand upon the infrastructure required by society. This place a big pressure to the Government to seeking private sector participation in financing, constructing, operating and owning facilities. Therefore, this research focuses on the main issues of Public Private Partnership identifying the positive and negative factors and risks that affect PPP applications for Vietnam transport infrastructure. Through the empirical questionnaire survey undertaken with seventy three respondents,

who are

considered to have expertise related to infrastructure financing, viewpoints of significance about these factors and risks were revealed. The SPSS software and Pearson‟s correlation coefficient and Cronbach‟s Alpha reliability coefficient and Exploratory Factor Analysis are used to analyze the collected data. The findings show that the most positive aspects of PPP application are “optimum risk allocation”, “fill the financial gap”, “value for money”. In contrast, the most negative factors and risks that affect PPP application in Vietnam are “land acquisition”, “Government intervention”, “contract risks”, “legal risks” and the least impact are “design risks” and “culture fit”. In order to overcome and mitigate the negative factors and risks and promote advantages of PPP scheme, some critical success factors (CSFs) are recommended. The critical factors that were identified to assist with a successful application of PPP scheme for Vietnam transport infrastructure project are risk sharing mechanism between the parties, effective risk management, stable political system and legal framework, transparent environment, anti-corruption, high capacity on finance and technical experience of private enterprises, shared authority and responsibilities between public and private sectors, government security package. Last but not least, one factor that will help to ensure that a project successfully comes to happy ending, is the commitment of public and private sectors. This research will form the initial steps for the author to further study about PPP practice in Vietnam. The intention being that the findings, will be used as reference for Consultant companies, Clients and Government for their general consideration to further apply to specific projects that may utilize PPP schemes for financing .

2

TABLE OF CONTENTS
Title page …………………………………………………………………….

1

Abstract ………………………………………………………………………

2

Table of Contents ………………………………………………………….

3

List of Tables ……………………………………………………………….

8

List of Figures ………………………………………………………………

11

Abbreviations ……………………………………………………………….

13

Acknowledgements …………………………………………………………

14

CHAPTER 1 – GENERAL OVERVIEW ………………………………….

15

1.1.

Overview of Social-economic factors …………………………….. 15

1.2.

Overview of the Vietnam transport infrastructure ……………….

17

1.2.1. Current situation ……………………………..………………..

17

1.2.2. Capital demand for transport infrastructure …………………

18

1.2.3. PPP models in Vietnam ……………………………………….

20

1.3.

The need for studying PPP application in Vietnam ……………..

20

1.4.

Objectives ……………………………..…………………………….

21

1.5.

Scope of the study ……………………………..…………………..

22

1.6.

Structure of the dissertation ……………………………………….

23

1.7.

Limitation ……………………………..……………………………..

24

1.8.

The contribution of the study ………………………………………

25

CHAPTER 2 – LITERATURE REVIEW …………………………………

26

3

Definition of Public – Private Partnerships (PPP) ………………

26

2.1.1. Concept...

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