To read the full version of this content please select one of the options below:

Investigating the significance of risks in BOT transportation projects in Vietnam

Phuong Thi Le (School of Natural and Built Environments, University of South Australia, Adelaide, Australia) (Department of Civil Engineering, The University of Danang - University of Technology and Education, Danang, Viet Nam)
Nicholas Chileshe (School of Natural and Built Environments, University of South Australia, Adelaide, Australia)
Konstantinos Kirytopoulos (School of Mechanical Engineering, National Technical University of Athens, Zografos, Greece) (School of Natural and Built Environments, University of South Australia, Adelaide, Australia)
Raufdeen Rameezdeen (School of Natural and Built Environments, University of South Australia, Adelaide, Australia)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 9 March 2020

Issue publication date: 22 June 2020

Abstract

Purpose

The Built Operate Transfer (BOT) model has been increasingly used in transportation investments in Vietnam. However, there is still an inadequacy of risk management applications in these projects and lack of research in this area. The study aims to improve the success of projects implemented through the BOT model in Vietnam.

Design/methodology/approach

The study followed a sequential design including interviews and a questionnaire survey to investigate the perception of stakeholders from public and private sector regarding the probability of occurrence and the severity of impact of risks in BOT transportation projects in Vietnam. Quantitative data from the survey was subjected to descriptive and inferential statistics to explore the priority of risks as well as the differences in the perception between the public and private sectors.

Findings

The results showed that the top five most significant risks in BOT transportation projects in Vietnam are: (1) problems with land acquisition and compensation, (2) inappropriate location of toll booths, (3) public resistance to pay, (4) high toll rate and (5) lack of cash flow. With the exception of “lack of cash flow,” there were no statistically significant differences in the rankings of individual risks between the public and private sector. In addition, there is a significant positive correlation in the overall rankings of all risks for both sectors.

Originality/value

This study contributes to the body of knowledge by exploring the probability of occurrence and the severity of the impact of risks in BOT transportation projects in a developing country like Vietnam which has not been extensively explored yet. Second, it provides an insight into the perception of stakeholders from the public and private sector regarding the level of risks which is very useful for potential stakeholders in making decisions when they intend to participate in such partnerships. Third, it enables the Vietnamese government to establish suitable policies related to such projects. These contributions are very important in improving risk management in PPPs in developing countries.

Keywords

Acknowledgements

The authors would like to thank the Australian Government's financial support through “Australia Awards Scholarships” for the study towards the fulfilment of the Master by Research in Project Management at the University of South Australia.

Citation

Le, P.T., Chileshe, N., Kirytopoulos, K. and Rameezdeen, R. (2020), "Investigating the significance of risks in BOT transportation projects in Vietnam", Engineering, Construction and Architectural Management, Vol. 27 No. 6, pp. 1401-1425. https://doi.org/10.1108/ECAM-08-2019-0439

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited