Dinh Thi Thuy Hang

Nghe an College of Economics

Vietnam

hangnghia2001@yahoo.com

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”.

Received: April, 2017

1st Revision: September, 2017

Accepted: October, 2017

DOI: 10.14254/2071-8330.2017/10-4/15

JEL Classification: L32, L33

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