Tóm tắt Luận án Studying critical success factors for road traffic infrastructure x projects under BOT form in Vietnam

1.2.2. Factors related to project implementation capacity 1.2.2.1. Sufficient (comprehensive) legal framework The legal environment where projects operate often affects to a great extent willingness of private sector involved in infrastructure project development cooperation. Cuttaree and Mandri-Perrott (2010) emphasized that the necessity of a sufficient and comprehensive legal environment is a necessary factor to ensure success of PPP projects. Llanto (2008), in the research on experience of Philippines in using BOT in developing infrastructure, pointed out that the government should establish the laws on BOT and institutional framework applying BOT in infrastructure construction. Zhang (2005), Li and collaborators (2005a) argued that the success of public private partnership depends much on whether a sufficient legal framework is or not (Cheung and Chan, 2009; Shrestha, 2011; Emanuel, 2014; Yusof and Salami,2013) 9 1.2.2.2. Technically feasible project An infrastructure construction project that is considered technically feasible is often evaluated whether necessary technology and resources (materials and human resources) for project implementation are available or not (Li and collaborators, 2005c). Li and collaborators (2005c) viewed that the success of PPP contract depends on technical feasibility of the project. Ismail (2013) and Jiaju Yang and collaborators (2017) also indicated that technical feasibility of projects is an important factor that determines the success of BOT projects in China. 1.2.2.3. Appropriate risk allocation among participants Kwak and collaborators (2009) indicated the outstanding point of infrastructure construction projects under PPP form is high level of risk mainly due to long franchise time and diversification of participants in the partnership. Therefore, a core principle in PPP implementation is appropriate risk allocation among participants in order to minimize risks and control them in a best manner (Efficiency Unit, 2003). In other words, appropriate risk allocation is one of the factors determining success of PPP/BOT projects (Li and collaborators, 2005c, Hammami and collaborators, 2006 and Nisar, 2007, Jiaju Yang and collaborators, 2017). 1.2.2.4. Public - private commitment compliance According to the US Department of Transport (2007), public - private commitment compliance by the parties is a necessary condition to make a PPP project successful. Reijniers 10 (1994), Esther Cheung and collaborators (2012), Ismail (2013) indicated that public - private commitment compliance is one of 5 critical success factors for PPP/BOT project. 1.2.2.5. Investor’s capacity Kwak and collaborators (2009), Esther Cheung and collaborators (2010), Li and collaborators (2005c) pointed out that the compliance of investor’s capacity with general objective of PPP project plays an important role in the success of PPP projects. Many other researchers (Jefferies and collaborators, 2002; Tiong, 1996; Birnie, 1999, Kwak and collaborators, 2009) also agreed with such opinions. Recently, Jiaju Yang and collaborators (2017) showed that strong development of private groups (investor’s capacity) is one of the most important factors determining the success of BOT project in China. 1.2.3. Government’s commitment 1.2.3.1. State support for PPP/BOT projects State support for the policy for implementing public infrastructure construction projects under PPP from is important for the success of such projects (Qiao and collaborators, 2001; Zhang and collaborators, 1998). Cheung and Chan (2009) found that in the past, Hong Kong lacked the government support for private sector in project implementation, which led to delay or even cancel and according to the US Department of Transport (2007), the lack of State support for PPP projects may lead to failure of a project. 11 1.2.3.2. Government guarantee and support According to Cesar and Ada (2008), to intensify attraction of PPP projects for private investors, the Government should provide specific supports and/or franchise to investors in exploiting the projects in a certain period. Alternative sources of income and financial opportunities (such as real estate development along roads, another project in the future, etc.) will be chances for the Government to make up for private investors (Abdul-Rashid and collaborators, 2006, Corbett and Smith, 2006, Li and collaborators, 2005. Nijkamp and collaborators, 2002, Qiao and collaborators, 2001, Tam and collaborators, 1994, Tiong, 1996, Zhang, 2005). Recently, Khalid Almarri and Halim Boussabaine (2017), Jiaju Yang and collaborators (2017) also showed that Government guarantee and support is one of the most 5 critical success factors for PPP/BOT projects. 1.2.4. Factors related to bidding 1.2.4.1. Bidding transparency Ong'olo (2006) argued that bidding transparency mentions designing, planning, organizing and carrying out projects. Previous researches pointed out that bidding transparency is necessary for minimizing transaction cost and shortening negotiation time, completing agreement in PPP project implementation (Corbett and Smith, 2006, Gentry and Fernandez, 1997, Jefferies and collaborators, 2002, Jefferies, 2006, Li and collaborators, 2005, Qiao and collaborators, 2001, Zhang, 2005). 12 Babatunde and collaborators (2012) indicated that bidding transparency and clear public - private decentralization are critical success factors for PPP projects. In light of this viewpoint, Alinaitwe and Ayesiga (2013) concluded that bidding transparency is one of 5 critical success factors for PPP project in Uganda. 1.2.4.2. Competitive bidding procedures The success of road traffic infrastructure construction projects under PPP/BOT form depends much on selecting the most appropriate private partner for project construction, operation and exploitation. Miller (2000) suggested that a competitive and fair bidding process between investors/private enterprises is a necessary condition for attracting private sector in implementing PPP/BOT projects. In light of this viewpoint, Hodges and Dellacha (2007), Meng and collaborators (2011), Alinaitwe and Ayesiga (2013) showed that competitive bidding is one of 5 critical success factors for PPP/BOT projects. 1.2.4.3. Good management The Government plays an important role in developing and managing PPP projects. Inadequate involvement by the government or the government’s powerlessness in managing PPP projects may lead to the failure of projects (Kwak 2002). Many other authors (Abdul-Rashid and collaborators,2006; Corbett & Smith 2006; El-Gohary and collaborators, 2006; Jamali 2004; Kanter 1999; Li and collaborators. 2005c; Tarn, Li and Chan 1994; Tiong 1999; Zhang 2005) showed that to make PPP projects successful, the 13 Government should maintain control methods for quality, progress and capacity of investors and project contractors. On the other hand, the Government should keep control in implicit case and be ready to participate and supply services again if necessary. Therefore, it can be judged that good management is an important factor for the success of PPP/BOT project (Ismail, 2013; Khan and collaborators, 2008). 1.2.4.4. Capacity of State authority Ong'olo (2006) said that the most efficient public management is through a PPP operation unit/center within the Government to supervise the whole process and operation of the project completed under PPP form. Cuttaree and Mandri- Perrott (2010) also suggested establishing professional organizations or agencies to support, a PPP unit may help to resolve capacity limits of the Government and contribute to controlling quality. Babatunde and collaborators (2012) and Yusof adn Salami (2013) also supported such argument because their research outcome pointed that capacity of the State authority is one of 5 critical success factors for PPP/BOT projects. 1.2.4.5. Social unanimity According to Li and collaborators (2005c), social unanimity is an important element in bidding under PPP form. The lack of social unanimity may lead to public discontent, and even strikes or riots (Li and collaborators 2005c). Social unanimity is regarded as a critical success factor for PPP/BOT projects by some researchers such as Frilet society (1997), Qiao 14 and collaborators (2001). However, the research by Jiaju Yang and collaborators (2017) disagreed with other researches on this viewpoint when their research outcome showed that social unanimity is the least important factor for the success of BOT projects in China. 1.2.4.6. Clear public - private decentralization Nelson and Zadek (2000) argued that PPP showed action cooperation both for public sector and private sector towards the general success. Therefore, when public sector and private sector should work together, there should be specific regulations, purposes, working programs and coordination between the parties in an open and clear spirit in project implementation as well as long-term cooperation between two parties. In light of such viewpoint, Li and collaborators (2005c) saw that clear decentralization between public sector and private sector is an important element for effective bidding, thereby determining the success of PPP projects. 1.2.4.7. Comprehensive evaluation on cost and benefit Li and collaborators (2005c) recommended that before projects proceed with bidding process, the benefits of the government and the people that are gained when the project is constructed and operated should be regarded as an evaluation criterion on the project feasibility. Zhang (2005) and Li and collaborators (2005a) argued that the success of public - private partnership focuses on the ‘value for money - VFM’ bidding strategy. 15 Moralos and Amekudzi (2008) defined VFM as one of the leading tools for public managers to evaluate the value of pursuing the project through PPP compared with traditional bidding. Sarmento (2010), Fitzgerald (2004), VFM can be distributed through transferring risks, renovating, using greater assets and integrating synchronous management. The role of private sector in PPP projects is proved only when the participation of private sector improves value without extra costs compared with the form of entire project completion by the State agency. 1.2.5. Other related factors 1.2.5.1. Adequate franchise time Franchise time is the one given by the government to private sector, in which private sector is responsible for sponsoring, building and operating BOT projects. This is a common form when the infrastructure leading agency of the Government sets permissible time of the projects franchised to private sector and requires the franchisee to bid in terms of fees and other aspects of projects (Zhang, 2009). Alhumoud and collaborators (2010) studied the BOT contract implementation by a local company to sponsor, design, build and operate an advanced wastewater treatment plant in Sulaibiya in Kuwait. They realized that it was ultra-filter using costs that lasted franchise time for 30 years in order to cover costs and bring about adequate benefits for the contribution by private company in involvement in BOT projects. 16 1.2.5.2. Support from related objects According to Li and collaborators (2005c), the support from related objects emphasized that the attitude of related parties in PPP projects affects output quality. The interaction between project participants is an important factor in project management. Interaction processes include project planning, communication, supervision and control and organization to facilitate efficient coordination throughout project life cycle. Mohsini and Davidson (1992) argued that the conflicts among organizations in a construction project often exert bad influences on the project efficiency. Jacobson and Choi (2008) determined that open communication and trust, working towards compromise and cooperation, and respect are important factors to make PPP projects successful. This is supported by Innes and Booher (2004), who emphasized necessity for building up trust among related parties of the project and solving conflicts before they become complicated. The project success can be ensured if the participants work together as a group with general objectives (Larson, 1995). 1.2.5.3. Technology transfer According to Robinson and collaborators (2004), PPP projects related to long-term cooperation and connection between the project participants. Therefore, the transfer of knowledge and knowledge management tools is viewed to some extent to create sharing and help the parties better understand one another during project implementation. Therefore, Dahir (2012) pointed out that the Government should provide 17 technology transfer policies and strategies in BOT agreements to related parties. Baba Shehu Waziri and collaborators (2017) attempted to find out CSF for BOT projects in Nigeria. With 45 factors, the research group indicated that technology transfer plays the 5th important role for the success of BOT projects in Nigeria. However, Jiaju Yang and collaborators (2017) showed that such factors as harmonious determination of interests of the parties, technology transfer, technology transfer and social unanimity are less important for the success of BOT projects in China. 1.3. Overview of methods applied in researching CSF for PPP/BOT construction projects Inheriting overall outcome of Osei-Kyei and Chan (2015), combined with recent researches on critical success factors for PPP/BOT construction projects accessible by the author, the author realizes that, upon studying CFS for PPP/BOT construction projects, there are 3 main research methods, namely case study, questionnaire and mixed research. In particular, most researches using questionnaire method and mixed research method (survey via questionnaire and interview, case study) inherit factors included in CSF research of previous researches and adopt average score ranking technique, combined analysis by Kendall to indicate order/rank of critical success factors. For these very analyses, the thesis will adopt mixed research method (through questionnaires and in-depth 18 interview) and average score ranking technique, combined analysis by Kendall to indicate successful factors. 1.4. Theories related to critical success factors for road traffic infrastructure construction projects under BOT form − Corenes theory on the regulating role of the State in market economy: road traffic infrastructure is public goods of public sector (According to Pham Van Van and Vu Cuong, 2005) and to develop road traffic infrastructure construction projects, there must be the State intervention and regulation. Specifically, the State must maintain investment bridge and work out policies (tax policy, investment policy, etc.) to attract and promote the involvement of private economic sector in road traffic infrastructure construction projects. − The theory of “participants”: In road traffic infrastructure construction under BOT form, the participants include the Government (franchisor), the investor (franchisee), the Lender (credit issuer) and the public. − Theory of Public Private partnership )PPP) 1.5. Research gap and research direction of the thesis From the above contents, the author sees that with different research approaches, objectives and objects, researchers indicated that CSF for PPP/BOT projects has similarities and differences. In Vietnam, there have been no researches on CSF for road traffic infrastructure construction projects in Vietnam - This is the research gap and the thesis will aim at narrowing such gap. The thesis will use the questionnaire made by Li (2003) to investigate the perception of public sector 19 and private sector on critical success factors for road traffic infrastructure construction projects under BOT form in Vietnam. CHAPTER 2: THEORETICAL BASIS 2.1. Overview of road traffic infrastructure construction projects According to the Road Traffic Law (2008), road traffic infrastructure includes road works, coach stations, parking lots, stops and other auxiliary works on roads serving traffic and road safety corridor. Among them, road works are the most important element. Road works include roads, stops on roads. Road is the main element in road works. Rodd includes normal road, overpass, tunnel and road wharf. Under article 46, the Road Traffic Law (2008), it can be seen that road traffic infrastructure construction project is investment and construction, upgrading and improvement of road traffic infrastructure. Among them, road traffic infrastructure construction must satisfy road transport plan approved by competent authorities; observe construction investment management sequence and other regulations; ensure road technical level, landscape, environmental protection. Vietnamese and foreign organizations and individuals are entitled to invest in building, trading and operating road traffic infrastructure under the laws. 20 2.2. General theoretical basis on the role of the State for development and investment of technical infrastructure in general and road traffic infrastructure in particular of national economy • The State serves as the public service supplier • The State serves as the manager of technical infrastructure development investment of national economy • The State serves as the technical infrastructure developer and investor of national economy • The State serves as the controller over technical infrastructure investment development. 2.3. Role of private economic sector for the development of road traffic infrastructure The participation of private economic sector in road traffic infrastructure development brings about socioeconomic benefits, contributes resources to the road traffic infrastructure development, thereby improving operation efficiency of the State sector in supplying public service, facilitating the economy. Generally, private economic sector participates in developing road traffic infrastructure under some forms: (i) investment under PPP form; (ii) investment under capital contribution, share acquisition, purchase of equity capital in the State-owned enterprises in road traffic infrastructure construction investment; (iii) investment under business 21 cooperation contract in road traffic infrastructure. In these forms, investment under PPP form is the most common and adopted by many countries. 2.4. Public - private partnership in road traffic infrastructure construction investment project implementation Decree No. 63/2018/NĐ-CP on investment under PPP form provided more specific and clearer stipulations: Investment under PPP form is a method of investment based on project contract between the State competent authority and project investor to build, renovate, operate, trade and manage infrastructure, provide public services. At present, in the world, common forms of public private partnership in projects (including road traffic infrastructure construction project) are as follows: (i) Service contracts; (ii) Management contracts; (iii) Lease contracts or sublease contracts; (iv) Construction - business - transfer (BOT) agreements or similar agreements; (v) Franchise; (vi) Joint venture 2.5. Theoretical basis on critical success factors for road traffic infrastructure construction project under BOT form Decree No. 63/2018/NĐ-CP dated 4/5/2018 on investment under public private partnership stipulated that: BOT contract is the one signed by and between the State competent authority and the project investor or enterprise to build infrastructure; after completing the works, the project investor or enterprise is 22 entitled to trade in the works in a certain time; beyond such time, the project investor/enterprise transfers such works to the State competent authority. Success and advantage of BOT application in these places were recorded fully. However, not all BOT projects are all successful. Based on the viewpoint of McCabe (2001), critical success factor (CFS) is very important for managers to improve their organization because these factors show them relevant progress in specific fields. Therefore, the author thinks that the determination of critical success factor for the countries newly adopting BOT like Vietnam is necessary and helps to minimize risks for all related parties when participating in BOT projects. Critical success factors for road traffic infrastructure construction project under BOT are understood as some factors with very important role for the common success of the project. 23 CHAPTER 3: RESEARCH METHOD 3.1 Research design The research method adopted in the thesis is mixed research method with qualitative research (desk research, in- depth interview) and quantitative research (survey through questionnaire). Based on overall research outcome and the summary of critical success factors for PPP/BOT projects, the author realizes that the use of questionnaire (the factors for evaluating their influence on the success of PPP/BOT projects) depends much on the objective of research and context of research. Therefore, the questionnaire form designed by Li (2003) will be used in this research and the author doesn’t add any factor to such questionnaire because: - First, value of the questionnaire designed by Li (2003) has been acknowledged by many CFS researches of PPP/BOT projects. - Second, the thesis is aimed at indicating CFS for road traffic infrastructure construction project under BOT in Vietnam through surveying perception of the respondents. This satisfies the questionnaire designed by Li (2003) and has been adopted by many researches with similar objective. - Third, by adopting the questionnaire designed by Li (2003), the author can compare research outcome in Vietnam with that in the countries with similarities such as Malaysia, China, Hong Kong and successful countries in adopting PPP/BOT such as the UK and Australia. 24 Table 3.1. Critical success factors adopted in the questionnaire CSF Success factors CSF 1 Stable macroeconomic conditions CSF 2 Sufficient (comprehensive) legal framework CSF 3 Good (healthy) economic policy CSF 4 Loan mobilization capacity from financial market CSF 5 Harmonious determination of benefits of the parties CSF 6 Appropriate risk allocation among participants CSF 7 Public - private commitment compliance CSF 8 Investor’s capacity CSF 9 Good management CSF 10 Technically feasible project CSF 11 Clear public - private decentralization CSF 12 The State support for PPP/BOT project implementation policy CSF 13 Social unanimity CSF 14 Capacity of the State authority CSF 15 Competitive bidding CSF 16 Bidding transparency CSF 17 Government guarantee and support CSF 18 Comprehensive assessment on cost and benefit Source: Li (2003) 25 3.2. Research sample Research sample means the individuals involved in managing and implementing road traffic infrastructure construction projects under BOT in Vietnam and these individuals have sufficient experience (who have been involved) in road traffic infrastructure construction projects under BOT form in Vietnam. Therefore, it will be adequate and reliable when the respondents are those who have experience and deep knowledge through cooperation/participation in BOT projects and those who have standing in project areas. For this very reason, intentional sampling method is more suitable in this research and scope of 94 samples is not big but acceptable for this research. 3.3. Data collection and analysis technique Data collection is conducted by direct survey method. By this method, the author collected 52 valid questionnaires from the State authority staff and 39 valid questionnaires from private staff. By entering data on Excel, the author entered 2 groups of research objects separately, each into 1 sheet, and then matches 2 sets of data in 1 sheet to gain a general data set for analysis and putting forth research outcomes. Through summarizing documents, the author realizes that, with this research on critical success factors for road traffic infrastructure construction projects in Vietnam, the author mainly uses average scor