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? Research rationale Road infrastructure plays an important role in the socio-economic development of each country While the State budgets 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 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 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 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 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 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 New contributions An inappropriate mechanism and weak capacity may lead to failure (Yescombe, 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 (DBFM) 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 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 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 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 3.94 569 projects for PPP deviation 62 4,02 0,665 62 3,63 0,854 62 3,48 0,901 62 4,94 0,807 62 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 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 = 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 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 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 19 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 20 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 21 framework It is necessary to set up a results-based monitoring and evaluation system for 22 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 23 24 ... 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... 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... 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