A Comparative Study on the Risk Perceptions of the Public and Private Sectors in Public-Private Partnership (PPP) Transportation Projects in Vietnam

  • Veerasak Likhitruangsilp Chulalongkorn University
  • Sy Tien Do Ho Chi Minh City University of Technology
  • Masamitsu Onishi Kyoto University

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Abstract

Large transportation projects such as highways are expensive, complex, and dynamic in nature. Acquiring large investment capitals for these projects is always a major challenge for every nation. To solve this problem, Vietnamese government has called for the participation of private entities in the form of public-private partnership (PPP). Attracting private investors is a vital and challenging step for implementing PPP transportation projects in Vietnam. This paper examines the similarities and differences of risk perceptions of the public and private sectors for the investment of PPP transportation projects in Vietnam. Questionnaire surveys are used to collect data for assessing the likelihoods of occurrence and impacts of risk factors from 123 experienced professionals from both public and private entities. We found that the two most critical risk factors (CRFs) are land acquisition and compensation, and delay in project approvals and permits. The results from an independent sample t-test indicate the different risk perceptions of the public and private sectors for eight CRFs: (1) corruption, (2) change of project scope, (3) lack of transparency in bidding, (4) inflation, (5) payment issues, (6) inadequate feasibility study, (7) inappropriate allocation of responsibility and risk, and (8) fluctuation of interest rate. These eight CRFs are categorized into three major groups: the tendering process, commercial problems, and payment issues. These results can be used for establishing appropriate public policies to promote private investments in PPP transportation projects. Meanwhile, private investors would also have a better understanding of PPP transportation project development in Vietnam.

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Author Biographies
Veerasak Likhitruangsilp

Department of Civil Engineering, Faculty of Engineering, Chulalongkorn University, Bangkok 10330, Thailand

Sy Tien Do

Faculty of Civil Engineering, Bach Khoa University, Ho Chi Minh, Vietnam
Department of Civil Engineering, Faculty of Engineering, Chulalongkorn University, Bangkok 10330, Thailand

Masamitsu Onishi

Department of Planning and Management Systems, Kyoto University, Kyoto, Japan

Published
Vol 21 No 7, Dec 29, 2017
How to Cite
V. Likhitruangsilp, S. Do, and M. Onishi, “A Comparative Study on the Risk Perceptions of the Public and Private Sectors in Public-Private Partnership (PPP) Transportation Projects in Vietnam”, Eng. J., vol. 21, no. 7, pp. 213-231, Dec. 2017.

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