Evaluation of qualitative value for money of public-private partnership projects in Vietnam

Abstract

It is expected that in the period of 2011-2020 projects under the model of public- private partnership (PPP) in Vietnam will continue to increase in both number and volume of financing. Despite the substantial volumes of the already performed investments, many practitioners in the field question the viability of Vietnamese PPP projects, in the road sector in particular. Enhancing the viability of these projects is, therefore, vital in the context of the ongoing economic growth. This research is proposing a qualitative value for money assessment, in order to examine the factors influencing PPP projects’ viability in Vietnam. Employing the method of Structural Equation Modeling, the following two aspects will be included in the analysis: 1) financial performance & economic environment; 2) technical capacity & legal environment. The former encompasses “financial interest”, “profitability”, “economic policy” and “demand of service”; while the latter covers “service quality”, “flexibility of contracts”, “legal framework” and “statutory compliance”.

Keywords

• Public-private partnership (PPP)
• road sector
• viability
• Value for Money (VFM)
• Structural Equation Modeling (SEM)