Case Studies
Nov 17, 2014

Critical Factors Affecting the Efficient Use of Public Investments in Infrastructure in Vietnam

Publication: Journal of Infrastructure Systems
Volume 21, Issue 3

Abstract

This paper examines the critical factors affecting the efficient use of public investments in infrastructure to support trade and economic development. Investments in infrastructure have increasingly been used to improve the infrastructure quality, thus stimulating trade and economic development in developing countries. Nevertheless, a number of infrastructure challenges faced by developing countries remains. This raises the question about the efficiency in the use of public investments in infrastructure. Based on the case of Vietnam, this paper identifies a number of deficiencies in the planning and policymaking process as well as in the implementation of infrastructure plans. This paper aims to show policymakers that the critical challenge faced by developing countries in infrastructure construction is thus not about the funding but should be more about effective planning and implementation for long-term benefits.

Get full access to this article

View all available purchase options and get full access to this article.

References

Agrawal, P. (1999). “Urban land consolidation: A review of policy and procedures in Indonesia and other Asian countries.” GeoJournal, 49(3), 311–322.
Ahmad, R. (2004). “KL fines contractor $35m for project delay.” The Straits Times, 21.
Arnold, M. (2011). “Infrastructure overview: The backbone of the global economy.” 〈http://campaign.etfsecurities.com/aem/clients/ETF001/images/InfrastructureMarch2011.pdf〉 (Oct. 17, 2014).
Asia-Pacific Economic Cooperation (APEC) Economic Committee. (1997). “Infrastructure development in APEC.” Proc., 1997 Public-Business/Private Sector Dialogue, APEC Secretariat, Singapore.
Brooks, D. H. (2008). Infrastructure and trade in Asia, Edward Elgar Publishers, Cheltenham, U.K.
Chan, N. (2003). “Land acquisition compensation in China—Problems and answers.” Int. Real Estate Rev., 6(1), 136–152.
Collier, P., and Venables, A. J. (2008). “Managing resource revenues: Lessons for low income countries.” African Economic Research Consortium Annual Conf., Oxford Centre for Analysis of Resource Rich Economies, Oxford.
Dabla-Norris, E., Brumby, J., Kyobe, A., Mills, Z., and Papageorgiou, C. (2011). Investing in public investment: An index of public investment efficiency, International Monetary Fund, Washington, DC.
Dang, T. H. G., and Low, S. P. (2011). “Role of construction in economic development: Review of key concepts in the past 40 years.” Habitat Int., 35(1), 118–125.
Davis H. A., Ed. (2008). Infrastructure finance: Trends and techniques, Euromoney, London.
Devarajan, S., and Swaroop, V. (1993). What do governments buy? The composition of public spending and economic performance, World Bank, Washington, DC.
Devarajan, S., Swaroop, V., and Zou, H. (1996). “The composition of public expenditure and economic growth.” J. Monetary Econ., 37(2), 313–344.
Do, H. L. (2006). “Quang Ninh: 40,000 DWT ships cannot enter Cai Lan Port.” Tuoi Tre Online, 〈http://tuoitre.vn/Chinh-tri-Xa-hoi/117850/Quang-Ninh-Tau-4-van-tan-khong-the-vao%C2%A0cang-Cai-Lan.html〉 (Oct. 17, 2014) (in Vietnamese).
Doing Business. (2010). “Trading across borders.” 〈http://www.doingbusiness.org/data/exploretopics/trading-across-borders〉 (Oct. 17, 2014).
Estache, A. (2006). “PPI partnerships versus PPI divorces in LDCs.” Rev. Ind. Organiz., 29(1), 3–26.
Fay, M., and Yepes, T. (2003). Investing in infrastructure: What is needed from 2000 to 2010, World Bank, Washington, DC.
Flyvbjerg, B. (2007). “Megaproject policy and planning: Problems causes, cures.” Environ. Plann. B: Plann. Des., 34(4), 578–597.
Flyvbjerg, B. (2008). “Public planning of mega-projects: Overestimation of demand and underestimation of costs.” Decision-making on mega-projects: Cost-benefit analysis, planning and innovation, H. Priemus, B. Flyvbjerg, and B. V. Wee, eds., Edward Elgar Publishers, Cheltenham, U.K., 120–144.
Hair, J. F., Black, W. C., and Babin, B. J. (2010). Multivariate data analysis: A global perspective, 7th Ed., Pearson, London.
Henisz, W. J., and Zelner, B. A. (2006). “Interest groups, veto points, and electricity infrastructure deployment.” Int. Organ., 60(1), 263–286.
Heravi, G., and Hajihosseini, Z. (2011). “Risk allocation in public-private partnership infrastructure projects in developing countries: Case study of the Tehran–Chalus toll road.” J. Infrastruct. Syst., 210–217.
Howes, R., and Robinson, H. (2005). Infrastructure for the built environment: Global procurement strategies, Butterworth-Heinemann, Oxford, U.K.
Kap, T. L. (2008). “Thu Thiem Tunnel: All four tunnel sections crack.” Tuoi Tre Online, 〈http://tuoitre.vn/Chinh-tri-Xa-hoi/274192/Ham-Thu-Thiem-Ca-4-dot-deu-nut.html〉 (Oct. 17, 2014) (in Vietnamese).
Kenny, C. (2007). Construction, corruption, and developing countries, World Bank, Washington, DC.
Khasnabis, S., Dhingra, S. L., Mishra, S., and Safi, C. (2010). “Mechanisms for transportation infrastructure investment in developing countries.” J. Urban Plann. Dev., 94–103.
Kohsaka, A. (2006). “Overview: Infrastructure development in the Pacific region.” Infrastructure development in the Pacific region, A. Kohsaka, ed., Taylor and Francis, London, 1–20.
LaFraniere, S. (2011). “Chinese officials blame design flaws in deadly train crash.” The New York Times, July 28, A10, 〈http://www.nytimes.com/2011/07/28/world/asia/28trains.html〉 (Oct. 17, 2014).
Le-Hoai, L., Lee, Y. D., and Lee, J. Y. (2008). “Delay and cost overruns in Vietnam large construction projects: A comparison with other selected countries.” KSCE J. Civ. Eng., 12(6), 367–377.
Ling, F. Y. Y., and Hoang, V. T. P. (2010). “Political, economic and legal risks faced in international projects: Case study of Vietnam.” J. Prof. Issues Eng. Educ. Pract., 156–164.
Long, N., Ogunlana, S., Quang, T., and Lam, K. (2004). “Large construction projects in developing countries: A case study from Vietnam.” Int. J. Project Manage., 22(7), 553–561.
Manila Bulletin. (2009). “High logistics costs hold back Vietnam’s economic development.” 〈http://www.mb.com.ph/node/198686〉 (Oct. 17, 2014).
Marques, R. C., and Berg, S. (2011). “Risks, contracts, and private-sector participation in infrastructure.” J. Constr. Eng. Manage., 925–932.
Memon, A. H., Abdul Rahman, I., Abdullah, M. R., Azis, A., and Asmi, A. (2011). “Assessing the effects of construction delays on MARA large projects.” Proc., Int. Conf. on Advanced Science, Engineering and Information Technology., Univ. Tun Hunssein Onn Malaysia, Malaysia.
Ministry of Planning and Investment. (2007). “About building development strategy.” 〈http://www.mpi.gov.vn/portal/page/portal/bkhdt/ptktxh/thptktxh/tctbvclpt?p_page_id=412546&p_cateid=353543&item_id=410714&article_details=1〉 (Oct. 17, 2014) (in Vietnamese).
Mody, A. (1997). “Infrastructure delivery through central guidance.” Infrastructure strategies in east Asia: The untold story, A. Mody, ed., World Bank, Washington, DC, 11–27.
Moore, C., Nguyen, T. T. H., and Saladini, M. (2010). Vietnam infrastructure, Italian Trade Commission and Mekong Research, Ho Chi Minh City, Vietnam.
Nguyen, V. T. (2007). Some comments on the Can Tho Bridge’s quality incident, Ho Chi Minh City Bridge and Road Association, Ho Chi Minh City, Vietnam.
Nguyen, X. T., and Dapice, D. (2009). Vietnam’s infrastructure constraints, Ash Institute for Democratic Governance and Innovation, John F. Kennedy School of Government, Harvard Univ., Cambridge, MA.
Nwankwo, S. (2000). “Assessing the marketing environment in sub-Saharan Africa: Opportunities and threats analysis.” Marketing Intell. Plann., 18(3), 144–153.
Ofori, G. (2000). “Challenges of construction industries in developing countries: Lessons from various countries.” Proc., Int. Conf. on Construction in Developing Countries, International Council for Research and Innovation in Building and Construction (CIB), Rotterdam, Netherlands.
Ofori, G. (2006). “Revaluing construction in developing countries: A research agenda.” J. Constr. Dev. Countries, 11(1), 1–16.
Ofori, G. (2012). New perspectives on construction in developing countries, Spon, London.
Phuong, A. (2008). “The implementation of state-funded infrastructure construction: ‘Old pain’ persists.” Sai Gon Giai Phong Online, 〈http://www.sggp.org.vn/chinhtri/2008/9/166031/〉 (Oct. 17, 2014) (in Vietnamese).
Pincus, J., and Nguyen, T. (2004). Poverty reduction and strategy process and national development strategies Asia: Country study Vietnam, Univ. of London, London.
Priemus, H. (2010). “Mega-projects: Dealing with pitfalls.” Eur. Plann. Stud., 18(7), 1023–1039.
Prime Minister’s Office of Vietnam. (2009). “Decision no. 12/2009/NĐ-CP on the management of investment and construction.” 〈http://www.moc.gov.vn/site/moc/legal?v=detail-doc&id=29485〉 (Oct. 17, 2014) (in Vietnamese).
Quang, C. (2011). “The Thu Thiem tunnel, the longest river tunnel in southeast Asia, officially opens.” Dan Tri, 〈http://dantri.com.0vn/su-kien/chinh-thuc-thong-ham-thu-thiem-ham-vuot-song-lon-nhat-dna-539989.htm〉 (Oct. 17, 2014) (in Vietnamese).
Raftery, J., Pasadilla, B., Chiang, Y., Hui, E., and Tang, B. (1998). “Globalization and construction industry development: Implications of recent developments in the construction sector in Asia.” Constr. Manage. Econ., 16(6), 729–737.
Raghuram, G., Bastian, S., and Sundaram, S. S. (2009). “Mega projects in India environmental and land acquisition issues in the road sector.” Indian Institute of Management, Ahmedabab, India.
Schwab, K., ed. (2008). “The global competitiveness report 2008–2009.” World Economic Forum, Geneva.
Schwab, K., ed. (2009). “The global competitiveness report 2009–2010.” World Economic Forum, Geneva.
Schweikert, A., and Chinowsky, P. (2012). “National infrastructure planning: A holistic approach to policy development in developing countries.” Proc., Engineering Project Organizations Conf., The Engineering Project Organization Society, CO.
Short, J., and Kopp, A. (2005). “Transport infrastructure: Investment and planning. Policy and research aspects.” Transp. Policy, 12(4), 360–367.
Tan, W. C. K. (2007). Practical research methods, 3rd Ed., Prentice Hall, Singapore.
Tien, N., and Huong, L. (2009). “Dozens of new leaks in the Kim Lien road tunnel Dan Tri.” 〈http://dantri.com.vn/c0/s0-341620/hang-chuc-diem-ro-ri-moi-trong-ham-duong-bo-kim-lien.htm〉 (Oct. 17, 2014) (in Vietnamese).
Todaro, M., and Smith, S. (2003). Economic development, 8th Ed., Addison Wesley, Boston.
Toor, S. U. R., and Ogunlana, S. (2008). “Problems causing delays in major construction projects in Thailand.” Constr. Manage. Econ., 26(4), 395–408.
Tran, T. (2009). “Sudden surge in FDI and infrastructure bottlenecks: The case in Vietnam.” ASEAN Econ. Bull., 26(1), 58–76.
Tuan, Q. (2010). “Quality of construction works.” Nhan Dan, 〈http://www.nhandan.com.vn/cmlink/nhan-dan-i-n-t/th-i-s/chinh-tr/cung-suy-ng-m/ch-t-l-ng-cong-trinh-xay-d-ng-1.270054#9xsO47MTdKJK〉 (Oct. 17, 2014) (in Vietnamese).
Vo, T. T. (2007). “Challenges, prospects and strategies for CLMV development: The case of Vietnam.” Development strategy for CLMV in the age of economic ingegration, C. Sotharith, ed., Economic Research Institute for Association of Southeast Asian Nations (ASEAN) and East Asia, Jakarta Pusat, Indonesia, 497–515.
Vo, T. T., and Nguyen, A. D. (2009). “Vietnam after two years of WTO accession: What lessons can be learnt?” ASEAN Econ. Bull., 26(1), 115–135.
Vo, V. T. (2008). “Infrastructure development: Unnecessary bureaucracy causes huge waste.” Tuoi Tre Online, 〈http://tuoitre.vn/Chinh-tri-Xa-hoi/279793/Dau-tu-xay-dung-co-ban-Thu-tuc-ruom-ra-gay-lang-phi-lon.html〉 (Oct. 17, 2014) (in Vietnamese).
Vu, T. (2008). “Quality incident in the Thu Thiem tunnel.” Giao Thong Van Tai, 〈http://www.giaothongvantai.com.vn/Desktop.aspx/News/Dau-tu-xay-dung-ha-tang-giao-thong/Su_co_cong_trinh_ham_Thu_Thiem/〉 (Oct. 17, 2014) (in Vietnamese).
Warlters, M. (2006). Vietnam’s infrastructure challenge—Infrastructure strategy: Cross-sectoral issues, World Bank, Washington, DC.
Waterston, A. (2006). “Development planning: Lessons of experience.” Comparative public administration, research in public policy analysis and management, E. E. Otenyo and N. S. Lind, eds., Vol. 15, Emerald Group, Bingley, U.K., 427–431.
Widhiarto, H. (2011). “Land acquisition remains a tough nut to crack.” The Jakarta Post, 〈http://www.thejakartapost.com/news/2011/04/25/land-acquisition-remains-a-tough-nut-crack.html〉 (Oct. 17, 2014).
Womack, K. C. (2008). “Infrastructure renewal: The need for political leadership.” Leadersh. Manage. Eng., 297–300.
World Bank. (1994). World development report 1994: Infrastructure for development, Washington, DC.
World Economic Forum. (2012). Strategic infrastructure steps to prioritize and deliver infrastructure effectively and efficiently, Geneva.

Information & Authors

Information

Published In

Go to Journal of Infrastructure Systems
Journal of Infrastructure Systems
Volume 21Issue 3September 2015

History

Received: Feb 11, 2014
Accepted: Oct 13, 2014
Published online: Nov 17, 2014
Discussion open until: Apr 17, 2015
Published in print: Sep 1, 2015

Permissions

Request permissions for this article.

Authors

Affiliations

Dang T. H. Giang [email protected]
Research Scholar, Dept. of Building, School of Design and Environment, National Univ. of Singapore, 4 Architecture Dr., Singapore 117566 (corresponding author). E-mail: [email protected]; [email protected]
Low Sui Pheng [email protected]
Professor, Dept. of Building, School of Design and Environment, National Univ. of Singapore, 4 Architecture Dr., Singapore 117566. E-mail: [email protected]

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share