UPPSALA UNIVERSITÉT & VNU UN IVER SITY OF ECONOM1CS & BUSINESS UPPSALA UNIVERSITET _ _ T ll/ VNU‘UC B, — MASTER THESIS OF MPPM EFFECT ASSESSMENT OF T H E “ N A T IO N A L R O A D M A IN T E N A N C E FƯND” ON V IE T N A M R O A D NETVVORK M A 1N T E N A N C E SUB-SECTOR Author: Hao, Khuc Thi Nguyet Supennsor: Dr Sven-Erik Svard Local supervisor: Assoc.Prof Dr Nguyet, Hoang Thi Thuy Class: MP P M - I NT A KE Han oi, J a n u a r y - 2015 ACK N O W LEDG EM ENT My first thank is for Uppsala University, Sweden and Economic College — Vietnam National University who have collaborated to develop programs and organize a training course o f “Public Management - Master Degree) which is very exciting, useful and practical, especially to the govemmental offícers, including me who are working for the Vietnamese govemmental offìces The lectures delivered by Professors and Doctors who have full experience in theory and practice which brought leaming interest to the leaners I, once again got chance to go to university vvhere I had graduated as B.A Economist with university degree Thereíore I decided to choose this training course to improve my knovvledge I would like to express my sincere thanks to Proíessor Sven-Erick Svard who owns valuable expenence via many years o f lecturing in one o f the most reputed European universities He has reserved wholehearted and thoughtful instructions towards us, the leamers Individually, I got my study and implement studv stages correctly oriented I also would like to reserve these sincere thanks to Associate Proíessor, Dr Hoang Thi Thuy Nguyet who has scientiíĩc style 'of lecturing to transíer leaming and studying motive and excitement to us right on the fìrst days I got very impressive in the way the Proíessor put forward macro-matters but they were so close to daily life o f her; and made extremely abstract matters simple and easily understandable ones I express my sincere thanks to all officials o f Ministry o f Transport, Directorate for Road of Vietnam and particularly National Road Maintenance Fund Office who have considerately provided me important and necessary data and iníbrmation to be integrated into and made my thesis clariíìed and lively Finally, this thesis writer permanently and highly appreciate the assistances vvith enthusiasm from the CITE Center as well as great emotion from all the 7th course attendants which greatly contribute into my completion o f this thesis Yours Faithfull, Ha Noi, January 2015 A B ST R A C T N am e of the Study: Effect assessment o f the “National Road Maintenance FuncT on Vietnam Road Maintenance sub-sector Thesis Degree: Master Date of Presentation: 6th December 2014 P resented by : Khuc Thi Nguyet Hao Supervisors - Dr Sven-Erick Svard - Assoc Prof Dr Hoang Thi Thuy Nựuyet Objectives Years ago, all o f Vietnam road maintenance activities had been paid by the State budget, which was very limited The financed State subsidies was equivalent of about 20% to 29% with the actual needs what are required by proposal of Directorate for Roads o f Vietnam in order to preserve exiting road system in a good condition and to ensure smoothly o f transportation, in comparison Due to the above issues, Vietnam "National Road Maintenance Fund” was established in December 2012 and officially activated on January 2013 by the Decision of Government with the goals that the fund could meet a main part o f existing demand by providing Capital collected by annual fee o f transportation vehicles This study is to assess the considerable changes in road network maintenance in Vietnam, compared to road conditions before the road network was funded for maintenance by the said Fund; Besides, this study considers other impacts o f the "National Road Maintenance Fund" such as changes on management method o f govem m ent agencies, application o f Science and technology on road maintenance as vvell as raisc in avvareness o f residents Research Method The study applied 03 researched methods to clarify the impact o f NRMF on Vietnam road system, as bellovvs: Firstly, the study analyzed statistical data over a period o f years from 2010 to the end o f December 2014 and divided into two speciíìc periods - Phase 1, from 2010 to the end o f 2012 (03 years) is the period o f road maintenance activities in Vietnam operating under 100% o f the annual State budget - Phase 2, from January l st, 2013 until the end o f 2014, which means 02 years since the NRMF was established and has put into operation to manage all revenues which are collected o f transportation vehicle, associating with the annually additional State budget, in order to provide funding for activities related to the road maintenance sub-sector AU using data are collected from reliable sources such as Ministry of Transportation Directorate for Roads o f Vietnam and National Road Maintenance Fund including: (i) annually actual funds using for road maintenance operations, particularly for the highway system; and also the supported funding to the local before/after NRMF establishing; (ii) The number o f road and bridge has been maintenance by funding through NRMF; expenditure o f applied Science and technologies on road maintenance sub-sector which has been paid by the NRMF; and changing of managemcnt method what is exccuted by State agencies in road maintenance sub-sector through nevvly applied policy documents for project bidding and approval Based on the actual data collected above, comparison between the phase with the phase was implemented in order to assess the N R M F ’s impacts on road maintenance sub-sector beíore and aíter its íormation and operation Secondly, the author also conducts intervievvs 03 ỵroups directly related to road maintenance operation They are: (i) Government Officials represent those w ho implement State policy and Capital management under the Fund m echanism (ii) constructors and consultant companies represent companies which directly carry out road maintenance contraction as bid contract as vvell as Consulting firms who are supervisors in construction site; (iii) transportation firms and local residents vvho benefited from the quality o f roads change rapidly due to NRMF investment Interviewing results o f group (i) to clarify the impact o f the NRM F changing the mode o f operation management and also policy applies o f State agencies on the road maintenance sub-sector After interviewing group (ii), it is discovered the fact that, apart from the traditional state-owned company beĩore, but now the company carried out construction bid has included many different economic sectors such as the private equity company, the limited liability companies and joint stock companies with State Capital associated private participate Thank to suffícient and timely funding what is more attractive to companies on roads maintenance sub-sector leading vanous competitive environment and managers also has beneíited when having the better road with lovver costs The quality o f construction is also increased when to seek cost reduced measurements as applying Science and technology and new ly management practices Targets of interviexving group (iii) are íinding out prìts what automobile transportation companies benefited after reducing cost o f fuel and depreciation of vehicle as well as saving labor due to the smoothly operated road system In addition, residents who use road system everyday, particularly in poor locals have been excited o f the upgrading quality o f the roads that were maintained by NRMF funding At last, SWOT analysis method was applied to recognize N R M F ’s chances as well as its obstacles in order to build a rational master plan in which management agencies could be eníorced for NRM F development in the future Result and Conclusion After analyzing the actual data collected from the Rovemment agencies on road niaintenance operation and iníbrmation interviewed by questionnaire, it is found that NRMF íòundation is the rational decision o f Vietnam Government, adapting to the socio-economic circumstances o f Vietnam today In addition, through positive results o f the N R M F ’s activities brought back, one o f the goals of Vietnam Government, which is oriented strategy on development o f maintenance sub-sector toward the step by step o f full privatization, is clearly supported prooís With two years only, Vietnam 's road and bridge nehvork has been well preserved with longer life, also provided road users smooth traffic services, especially in the remote and isolated areas where annual State revenue is low Thereíore, with positive effects, it can be seen that in general, the National Road Maintenance Fund plays a vital role for the development o f transport sector in Vietnam Due to the extremeiy limited staie budget, which is not insufficient to sponsor the social welfare system such as maintaining the road network in goođ operation, the NRM F Capital, which contributed by resident is the íĩrst step in the privatization process o f road maintenance works With the íunding o f the NRMF, shorted Capital situation are overcome in part Road and bridge systems, after many years o f lacking fund for fragmented repair, with fund o f much higher from the Fund than from State budget beíore have their quality improved to ensure smooth movement on the roads for the people This is signiíĩcant to remote and isolated area vvhere the local State budget is low have created belieí to the people, brought into full play direct contribution by the people (according to audit report prepared by the Vietnam State Audit Office in September 2014) Enhancing accountability because management mode by a State administrative agency that is responsible for road maintenance is thereíore changed as the timely provided fund meeting progress As a result o f this, interest in participation in this íield is attracted by several economic sectors Road maintenance becomes more competitive, so bidding method to select contractor with high quality and low cost has been applied Application o f Science and new technology, which has been the first time to be supported by the Fund, changed previously subsidized construction process Companies are obligatory to be interested in studying and íĩnding out how to reduce cost o f materials and laboring increasing liíecycle for their constructed structures Awareness o f preserving public assets has been raised up because o f recognition o f practical and quick efficiency from annual contribution that they did The study also shows that, for the V ietnam ’s social economy, in which majority (70%) population live on agriculture and individual business is mainly, theròre, tax collection to meet social welfare is very diffícult and impossible As State budget relies mainly on export, which is very constrained and public debt is increasing, privatizing road network maintenance is an objective that Vietnam Government set up is fully reasonable Forming the Fund to directly manage revenue and allocate investment right in the fiscal year with transparent results shall generate belief o f the public in effìciency of their direct contribution Recommendations This studies show that, NRFM play a vital role in the transport sector in Vietnam, particularly in road maintenance sub-sector In the future, with the goal of sustainable development NRMF, I have some recommendations as follows: - The biggest constraint is seeking a developing íĩnancial source for NRM F to satisíy road maintenance works The Government should consider on other income sources such as collecting electricity inửastructure user fee, optical cable fee etc As reality shovvs that, Vietnam transport infrastructure are ìnvaded by power lines, vvater pipes and ĩiber optic cable a lot, especially in big cities Thereíore, said rented fees could be abundant revenues for further needs o f the NRMF Taking advantage o f study assistance o f the WB, MOT needs to assign consultant that build up a year road toll collection plan with the aim o f making use o f revenue from leasing inữastructure transport into communication and electncity - Government also early encourages various business modes, promote privatization process on road maintenance sub-sector in order to eliminate State abundant - Based on the positive support from the road users on the impressed results brought back by NRMF, to built up legal corridor for NRMF foIlowing direction of increasing revenue from road toll imposed on road vehicles in compliance with GDP growth and to look for other sources as well - For further construction projects, maintenance should be subjected to an item in the contract, guaranteed by the contractor for at least years after construction completion and handing over - Government should quickly develop other transportation modes such as: (i) railway transportation (this is under a study conducted by MOT) and (ii) continuing to build and develop sea favorable transportation routes, which run along the country - In order to achieve high efficiency in collecting fee, the Government should issue penalty regulations to vvell control road fee, particularly motorbike users - NRMF need to closely coordinate with WB funded consultants to early build up LRMF model nationwide to create consistency and control o f revenue and expenditure íavorably - MOT, NRMF should continue usiníỉ the media, educating and disseminating and building propaganda campaigns to direct beneíĩts brought back from NRMF against the road users’ contributions - Last but not least, Government needs to build a special mechanism on salaries o f the staíís working in NRM FO and other priority measures, which could be reduced corruption Above are my study and assessment that are so primary on impacts by NRMF in its years o f establishment and operation; and looking for measures in order to aífirm the roles of NRMF to Sub-section NRMF in particular and transport sector in general I wish to receive sincere comments from the tutors and mates Key words: Ministry o f Transport (MOT); Ministry of Finance (MOF); Ministry o f Planning and Investment (MPI); Road Maintenance Fund (RMF); National Road Maintenance Fund (NRMF); National Road Maintenance Fund Office (NRMFO) Local Roađ Maintenance Fund (LNRMF); Directorate for Road o f Vietnam (DRVN); World Bank (WB) TABLE OF CONTENTS ỈN T R O D U C T IO N 1.1 B ackground 1.2 Research questions and objectives 1.2.1 Objectives 1.2.2 Research questions 1.2.3 Research Scope FRAME OF REFER EN C E .5 2.1 Theoretical basis on road network management and m aintenance 2.1.1 Concepts o f road network m ain ten ance 2.1.2 Roles o f road network m aintenance 2.1.3 Factors affect road maintenance activities 2.2 Model of Road Maintenance Fund 2.2.1 Objective of NRMF establishment 2.2.2 Revenues o f Road Maintenance F un d 2.2.3 Road Maintenance Fund Management U n it 2.2.4 Fund allocation amongst road management agencies 2.3 Vietnam National Road Maintenance F u n d 10 2.4 Literature rev iew 13 STUDY M E T H O D 13 3.1 Methods o f collecting and analyzing D ata 14 3.2 SWOT A n a ly s is 15 DATA A N A L Y S IS .15 4.1 Analyze secondly data 15 4.1.1 Assessment o f effects by “ Road Maintenance Fund” to Capital investment o f road maintenance for the road maintenance fund beíore and after NRMF íoundation 15 4.1.1.1 Investment for road maintenance before having N R M F 16 4.1.1.2 Investment on road maintenance from N R M F 16 4.1.2 Changing o f managem ent mechanism o f govemment agencies on Road maintenance before and aíter N R M F was established 19 4.1.2.1 Contractors selection m ethodof national road management and maintenance unit: From 2012 backM ard: 19 4.1.2.2 Contractors selection method o f national road management and maintenance unit after N R M F was established: 20 4.1.2.3 E v a lu a tio n 1\ 4.1.3 Apply Science and Technology in Maintenance Fund beíore and after having fmancing o f N R M F 22 4.1.3.1 Reality o f maintenance activities before having íĩnancing o f NRMF22 4.1.3.2 Applying Science and technology when NRM F vvas íormed and put into o p e tio n 23 4.1.3.3 E v alu atio n ">3 4.2 Analysis o f primary data (base on results o f interv'iews) 23 4.2.1 Impressed encreasingly fưnding leads to management m ethods 24 4.2.2 Applying csience and teach o n lo g ies .25 4.2.3 Road transport system greatly im p ro v e s 25 4.3 SW O T analysis for next years (2015-2020) 25 4.3.1 C h allen g es 26 4.3.2 O p po rtun ities 4.3.3 S treng ths 29 4.3.4 W eaknesses 30 C O N C L U S IO N 30 R E C O M M E N D A T IO N 31 28 - The locals in the whole country have not had ửie general models of the funđ management, which leads to the diíficulties of the control of the center as well as creates ửie congruence of operatìon - Vietnamese citizens with ứie main means of transportation bemg motorbike are hard to administer the ìncome and expenditure of yearly fees because there is not enough íunctional íòrce to examine and supervise In local, the punishment sanction is not íĩerce so the eíBciency is not high - The majority of Vietnam resident is íamiliar with the subsidization of the govemment and has not understood ứieứ duties as well as the purpose, benefits of paying fees, especially, protests ứie new policies because điey think that they have to pay taxes and fees 4.3.2 Opportunities - Vietnam govemment has sped up the policy o f socializing the road-traffic maintenance; thereíore, it is essential to consolidate and establish some related policies in order that the fund deveiops better and is one of the govem m ent’s priorities - The fund has been concerned and supported by sonie intemational orgamzations The policy o f promoting V R A N T 25 regulation o f WB has been deployed and anticipated the choice of the investors at the end o f 2014 in order to assist the fund to build up the software system of monitoring the plan-making, collect and deliver the connection from the Central fund to the local one An aim given is to build up the fund model for the w hole country and look for another fund to supplement the fund - Vietnam is a developing country with 70% agriculture as well as small and retail businesses; the income fee for social welfare is not íeasible Consequently, the policy o f collecting the fee o f road aspect is accessible to the awareness o f citizens and easier to carry out Thereíore, at least 20 years later, the Government should concem the fund model - Being a newly íounded institution and no precedent in Vietnam, every regulation of the fund is easily implemented and experimented without any obstacles and time vvasting to prove the reasonableness of the appropriate authorities and society :í Vietnam Road Assets Management Project 29 - In years o f the operation, the fund show ed the consequences that through the income fee and the budget, the operation expense increased 3-5 times This is a potential income, which is a premise for searching for the other capitals to abolish the budget o f the govemment - Through the means of transportation, the citizens understand the beneíĩts o f the yearly Capital o f the fund and create the belief o f the society Accompanied with paying the fee for road-traffic maintenance, the awareness o f keeping the public properties of the citizens is obviously improved, typically, some transporting enterprises undertook the closeness o f loading capacity which is one íactor causing the death at the present time 4.3.3 Strengths Looking back the overview o f the development as well as the essential impacts of road traffic, particularly, Vietnam road-traffic maintenance along with the íoundation and operation of Fund o f road-traffic maintenance, it can be realized that: Because NRMFB is a board consisting o f 14 members from MOT, MOF, MPI, all beíore the execution has adopted any N R M F 's investment decisions, therefor openness and transparency o f the ÍTinding source are confirmed - I he staffs in the office o f the fund (the offíce assists the board o f directors) are those who are got a transfer from Department o f Staffs o f MOT, MOF, DRVN They have deep specialized knovvledge, considerable experiences with above 10 years of working in the ĩield o f Communications and Transportation and have access to the training o f the developed countries, 7/12 people have certiíìcates o f Master Art Thcy are at the age o f from 35 to 45, with the experiences and education leveỊ they are at the period o f devotion; thereíore, they have a large motivation, energy and effort capacity to work and devote - The NRMF Board is the deputy ministers o f MOF, MOT and MPI vvhich are some major ministries carrying out the govemment management in terms of economic and social development The Chairman o f the fund is one o f some ministers who are judged to be of a venturesome spirit Besides, some members come from some other transporting businesses The Board passes every decision, thereíore, it is highly objective, the priorities o f investment are some exact choices, which bring high effíciency o f economy and guarantee the social security 30 4.3.4 VVeaknesses - Actual salaries o f staffs working at the NRMFO are very low in comparison with private business because o f VietnarrTs lavvs and regulations while they manage a fund's activities in which is very large Capital Thus, corruption w ill be an issue for consideration - N R M F O ’s staffs have been assigned ío manage a wealthy funđ with borth revemue and allocating, supervise L R M F ’s disbusement o f 63 provinces in the whole country However, it is limited staffs with only 10 people lead to their works overloaded - As mentioned in Section 2.3 (description o f the N R M F ’s operation mechanism) 35% Capital divided into 63 provinces o f Vietnam without clear rules, leading uníair situation among locals Thereíore, it is also a weakness prone to corruption when the division of funds which is submited by NRMFO staffs for NRMFB approval is not purelv objective ratio R E S Ư L T S A N D C O N C L U S I O N ìer analyzing the actual data collected from the govemment agencies on road maintenance operation and iníormation interviewed by questionnaire, it is found that NRMF foundation is the rational decision o f Vietnam Government, adapting to the socio-economic circumstances of Vietnam today In addition, through positive results o f the N R M F 's activities broughl back, one o f the goals of Vietnam Government, which is onented strategy on development o f maintenance sub-sector toward the step by step of full privatization, is clearly supported evidence With two years only, Vietnam ’s road and bridge network has been well preserved with longer life, also provided road users smooth traffic services, especially in the remote and isolated areas where annual State revenue is low Thereíore, it can be seen that road maintenance fund plays vital role for the development o f transportation sector in Vietnam in general, toward the step by step o f full privatization o f road maintenance activities in particularly contributing to eliminate the State budget Due to the extremely limited State budget, which is not insufficient to sponsor the social welfare system such as maintaining the road netvvork in good operation, 31 the NRMF Capital, which contributed by resident is the íĩrst step in the privatization process o f road maintenance works With the funding of the NRMF, shorted Capital situation are overcome in part Road and bridge systems, after many years o f lacking fund for fragmented repair, with fund o f times higher from the Funđ than from State budget before, have their quality improved to ensure smooth movement on the roads for the people This is signiíìcant to remote and isolated area vvhere the local State budget is low, have created belief to the people, brought into full play direct contribution by the people (according to audit report prepared by the State auditor in September 2014) Enhancing accountability because o f management mode by a State administrative agency that is responsible for road maintenance is theròre changed as the timely provided fund meeting progress As a result of this, interest in participation in this íĩeld is attracted by several economic sectors Road maintenance becomes more competitive, so bidding method to select contractor with hieh quality and low cost has been applied Application o f Science and new technology, which has been the fĩrst time to be supported by the N R M F ’s funding, changed previously subsidized construction process Companies are obligatory t o b e interested in studying and fínding out how to reduce cost o f materials and laboring, increasing liíecvcle for their constructed structures Awareness o f preserving public assets has been raised up because of recoỉinition o f practical and quick effĩciency from annual contribution that they did The study also shovvs that, for Vietnam economy with mạjority (70%) population live on agriculture and individual business is mainly, thereíore, tax collection to meet social welfare is very difficult and impossible As State budget relies mainly on export, which is very constrained, and public debt is increasing, privatizing road network maintenance is an objective that Vietnam Government set up is fully reasonable Forming the Fund to directly manage revenue and allocate investment right in the íìscal year with transparent results shall generate b elief o f the public in effíciency o f their direct contribution RECOMMENDATIONS This studies show that, NRFM plays a vital role in the transport sector in Vietnam, particularly in road maintenance sub-sector In the future, with the goal of sustainable development NRMF, I have some recommendations as follows: 32 - The biggest constraint is seeking a development íĩnancial source for NRMF to satisfy road maintenance works The Government should consider other resources such as collecting electricity inírastructure user fee, optical cable fee, etc As reality shows that, Vietnam transport infrastructure are invaded by power lines, water pipes, fiber optic cable a lot, especially in big cities Thereíbre, said rented fees could be abundant revenues for furlher needs o f the NRMF Taking advantage o f study assistance o f the WB, MOT needs to assign consultant that build up a year road toll collection plan vvith the aim of making use o f revenue from leasing inírastructure transport into communication and electricity - Government also early encourages various business modes, promote privatization process on road maintenance sub-sector in order to eliminate State abundant - Based on the positive support from the road users on the impressed results broimht back by NRMF, to built up legal corridor for NRM F following direction of increasintì revenue from road toll imposed on road vehicles in compliance with GDP grovvth and to look for other sources as well - For further construction projects, maintenance should be subjected to an item in the contract, guaranteed by the contractor for at least years after construction completion and handing over - Government should quickly develop other transportation modes such as: (i) rail\vay transportation (this is under a study conducted by MOT) and (ii) continuing to build and develop sea favorable transportation routes, which run along the country - In order to achieve high efficiency in collecting fee, the Government should issue penalty reaulations to well control road fee, particularly motorbike users - NRM F need to closely coordinate with WB íunded consultants to early build up provincial road maintenance fund (PRMF) model nationvvide to create consistency and control o f revenue and expenditure íavorably 33 - MOT, NRMF should continue using the media, educating and disseminating and building propaganda campaigns to direct beneĩits brought back from NRMF against the road users’ contributions Above are my study and assessment that are so primary on impacts by NRM F in its years o f establishment and operation; and looking for measures in order to affìrm the roles o f NRMF to Sub-section NRM F in particular and transport sector in general I wish to receive sincere comments from the tutors and mates REFERENCES Annual Report and Documents from Ministry o f Transport, The Directorate for Road o f Vietnam and National Road Maintenance Fund o f Vietnam Asian Development Bank (2002), “TA SRI 3110 Re-engineering o f Road Sector Institutions, Final Report, Volume A Analysis” Asian Development Bank (2003), “An Asian Perspective, Road Funds and Road Maintenance” Circular N o.l0/2010/TT-BGTVT dated 19 April 2010 issued by Ministry of Transport o f Viet Nam Circular NO.197/2012/TT-BTC: Circular guiding regulation on collection, payment, management and use charges by unit o f vehicle, Hanoi November 15, 2012; Circular No.230/2012/TTLT-BTC-BGTVT: Joint circular, guiding regime of management, use, payment and settlement o f Road Maintenance Fund, use, payment and settlement o f Road Maintenance Fund, Hanoi December 27 2012 Cừcular No.52/2013/TT-BGTVT issued by MOT dated 12/12/2013 Decree No.31/2005/NĐ-CP dated 11/3/2005 by the Government on production and supply public Products Deuree N ol8/2012/NĐ -CP issued by Pnm e Minister o f Vietnam in 13 March 2012 on Road Maintenance Fund 10.Heggie lan G and Piers Vickers (1998), “Commercial Management and Financing o f Roads”, the World Bank Technical Paper No 409, May 1998 lU e n n a r o B Odoki and Paulina AgyekumBoamah (2012), “Optimal Fund Allocation for Road Maintenance”, University o f Birmingham 2012 12.Kcnneth M Gwilliam&ZmarakM.Shalizi, “Road Funds, User Charges and Taxes” World Highvvays, Vol 9, No 7, October 2000 “ Second Generation Road Funds: The Way Ahead” 13.Law on Road Traffic approved by Vietnam National Assembly in 13 November 2008 14.0ffĩcial letter NO.430/UBATGTỌG-VP dated 16 November 2011 by Offĩce of National Traffíc Safety Committee 15.S N Malkanthi and T Matsumoto (2012), “Study o f Effectiveness o f Road Fund as a Solution for Maintenance Problem in Sri Lanka”, ACEPS 2012 16 The research o f PADECO Consultant for Ministry o f Transport (2011) 17 Transportation development strategy to 2020, Vision to 2030 has been approved by the Prime Minister under Decision No.35/2009/QD-TTg dated 3rd March 2009 APPENDIX QUESTIONAIRES FOR DEEP INTERVIEVV Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government which aims at creating fund via roađ vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, gradually, for heading total socialization o f road maintenance to reduce national budget burden In order to contribute to the more and more effective road fund operation, deep interview to State road maintenance management agencies to seize effects from Road Maintenance Fund to road maintenance vvorks etc so that íĩnancial management mechanism for the fund shall be períected and more efficient and so on Thereíore, we wish to receive support by Madam/Sir in providing iníbrmation as stated in the following table Thank you very much for your cooperation! All iníbrmation received from the inten iew shall be used for the above-mentioned purpose only General iníbrmation No DESCRIPTION AI Province/City: Ha noi A2 Full name o f the interviewer: A3 Date o f intervievv Full name o f the interviewed person: Mr.NGUYEN HONG A4 A5 A6 A7 TRUONG O f offíce/agency: MIN1STRY OF TRANSPORT Address o f the offíce/agency: 80 Tran Hung Dao Street, Hanoi, Vietnam Title: Vice Minister Tel: A8 HP: Overview o f road maintenance in Vietnam compared on periods before and aíterload fund mechanism Assessing on the positive and negative changes that Road Maintenance Fund affects road maintenance in Vietnam after years of implementation o f operation o f the road fund 3.1 Changes on mechanism, policies and procedures to road maintenance works and road maintenance management 3.2 Changes o f investment sources in road network maintenance and mechanism on collecting and managing allocation o f Road Maintenance Fund 3.3 Changes on quality o f road and bridge system, especially in remote areas and provincial areas 3.4 Renovation in application of Science and technology in order to increase efficiency o f implementation and saving human resources in road maintenance work Awareness o f the road users Thank you very much! APPENDIX QƯESTIONAIRES FOR DEEP INTERVIEVV Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government vvhich aims at creating fund via road vehicle toll together with annual S ta te budget allocation for road maintenance which has ever been so constrained; and, cradually, for heading total socialization o f road maintenance to reduce national budget burden In order to contribute to the more and more effective road fund operation, deep interview to State road maintenance management agencies to seize effects from Road Maintenance Fund to road maintenance works etc so that ĩinancial management mechanism for the fand shall be períected and more efficient and so on Thereíore, we wish to receive support by Madam/Sir in providing iníormation as stated in the following table Thank you very much for your cooperation! All iníormation received from the interv iew shall be used for the above mentioned purpose only General iníormation DESCRIPTION No AI Province/City: Ha noi A2 Full name o f the interviewer: A3 Date o f interview A4 Full name of the interviewed person: A5 O f office/agency: VIETNAM AUTOM OBILE TRANSPORT ASSOCIATION A6 Address o f the office/agency: Street, Hanoi, Vietnam A7 Title: Chairman Tel: A8 HP: How many members are there in VATA and the form o f participation and operation? The positive and negative changes that Road Maintenance Fund affects directly to the VATA 3.1 Effects by mechanism, policies and procedures on production and operation after the establishment of Road Maintenance Fund; and effects by road toll to the corporate revenue? 3.2 3.3 Economic benìts to the corporate, such as the smooth traffĩc on road and bridge system, reduction of traffíc congestion, easy movement of traffíc and saving of human resources, time and fuel consumption General assessment on economic benìt and loss against gained benĩts and costs Recommendations by the VATA to Road Maintenance Fund and the Government Thank you very much! APPENDIX QƯESTIONAIRES FOR DEEP INTERVIEVV Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government which aims at creating fund via road vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, gradually, for heading total socialization o f road maintenance to reduce national budeet burden In order to contribute to the more and more effective road fund operation, deep interview to State road maintenance management agencies to seize effects from Road Maintenance Fund to road maintenance works etc so that íĩnancial management mechanism for the fund shall be perfected and more efficient and so on Thereíore, we wish to receive support by Madam/Sir in providing iníbrmation as stated in the following table Thank you very much for your cooperation! All iníbrmation received from the interview shall be used for the above mentioned purpose only General iníormation DESCR1PTION No AI Province/City: Ha Noi A2 Full name of the interviewer: A3 Date o f interview A4 Full name o f the interviewed person A5 O f office/agency A6 Address o f the office/agency: Street, Hanoi, Vietnam A7 Title: CEO A8 Tel: HP: At present, how many companies, you think, are there who take part in road maintenance in Vietnam; apart from the traditional road maintcnance companies, are there any other economic sectors who also take part in road maintenance? Assessing changes in mechanism and policies on selecting contractors participating in road maintenance works aíter the existence o f íìnance from Road Maintenance Fund The positive and negative changes that Road Maintenance Fund affects directly to the corporate operation and production Economic benìts to the corporate, (such as quick circulation and rotation o f the corporate's Capital, in-time disbursement that meet construction progress for acceptance and no bad debt because o f the stable fund from Road Maintenance Fund General assessment on economic benefits and disadvantage ìer investment in and application o f Science and technology on management to raise competitive capacity when bidding for Road Maintenance Contract Recommendation of the association to the Road Maintenance Fund and the Government Thank you very much! A P P E N D IX QUESTIONAIRES FOR DEEP INTERVIEW Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government which aims at creating fund via road vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, gradually, for heading total socialization of road maintenance to reduce national budget burden In order to contribute to the more and more effective road fund operation, deep intervievv to State road maintenance management agencies to seize eíĩects from Road Maintenance Fund to road maintenance works etc so that íĩnancial management mechanism for the fund shall be períected and more eữĩcient and so on Thereíbre, we wish to receive support by Madam/Sir in providing iníormation as stated in the following table Thank you very much for your cooperation! All iníòrmation received from the intervievv shall be used for the above mentioned purpose only General information DESCR1PTION No AI Province/City: Ha noi A2 Full name o f the interviewer: A3 Date of intervievv A4 Full name of the interviewed person: A5 O f office/agency: RESIDENTS A6 Address of the office/agency: Street, Hanoú Vietnam A7 Title: A8 Tel: HP: How you think of the quality of roads in your local area? Is there any change in recent years? Do you support govemment policv as NRMF was established using transportation fee in order to provide for road maintenance? Are you willing to paid annual motorbike fee what may be slightly increasing in the future and then it will be used for the road maintenance in your province Thank you verv much! ... in road network maintenance in Vietnam, compared to road conditions before the road network was funded for maintenance by the said Fund; Besides, this study considers other impacts o f the "National. .. (MPI); Road Maintenance Fund (RMF); National Road Maintenance Fund (NRMF); National Road Maintenance Fund Office (NRMFO) Local Roađ Maintenance Fund (LNRMF); Directorate for Road o f Vietnam. .. for road rehabilitation, upgrading, improvement and new road construction; taking fund for national road maintenance alone, it is equal to only 11% o f fund for Capital construction, including road