Public private patnership with government included demand risk a case study from viet nam
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Public private patnership with government included demand risk a case study from viet nam
Public private patnership with government included demand risk a case study from viet nam
Public-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam Bridge in Ho Chi Minh City (Vietnam) in a context of increasing private-sector participation in Vietnam's infrastructure sector. It analyzes the bridge's financial distress as the consequence of the public sector’s failure to deliver on its commitment to complete city’s ring road project on time. T Public private patnership with government included demand risk a case study from viet nam he papers model considers the private-sector investor and the government in a two-party interaction, where the government may overstate its capabilityPublic private patnership with government included demand risk a case study from viet nam
to deliver supporting infrastructure. If this is the case, the private sector party makes a loss to the extent that it is misled. Furthermore, even iPublic-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam sults call for more transparency as well as improved communication channels between the parties. Finally, the paper discusses other important issues of the project that the model voluntarily leaves out.Keywords: Vietnam, Phu My Bridge, Public-private partnerships, Demand risk1INTRODUCTIONOver the la Public private patnership with government included demand risk a case study from viet nam st decade, infrastructure has gathered renewed interest, especially from institutional investors given its particular characteristics as an investmentPublic private patnership with government included demand risk a case study from viet nam
(Sawant 2010). However, roads, bridges or aqueducts have been around for millennia, constructed by1 Université Paris-DauphinePlace du Maréchaỉ de LatPublic-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam the governing body, with time the private sector is increasingly called upon as well.On the other hand, as the ongoing AĨĨB (Asian Infrastructure Investment Bank) initiative is any indication, emerging markets and particularly Asia is where a significant portion of infrastructure demand will be. Th Public private patnership with government included demand risk a case study from viet nam is demand is estimated al USD 800 billion per year from 2010 lo 2020 (Bhaltacharyay 2010). Asian countries such as Vietnam are also massively turningPublic private patnership with government included demand risk a case study from viet nam
towards the private sector to finance their infrastructure.In this paper, the author has chosen to explore this link between infrastructure and emergiPublic-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam een one of the largest in Vietnam at the time of its construction. However, it is in financial distress for reasons detailed later in this paper. Understanding these reasons will therefore provide valuable lessons for Vietnam in enlisting rhe private sector in infrastructure development, and this is Public private patnership with government included demand risk a case study from viet nam the first reason that motivates this paper.From an academic standpoint, the Phu My Bridge is also worth considering. The paper will argue that the puPublic private patnership with government included demand risk a case study from viet nam
blic sector’s behavior may be interpreted as opportunistic and this has contributed to the bridge’s financial difficulty. For this, the paper will devPublic-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam r is organized as follows. Section 2 provides a background to Uns research. Section 3 develops a theoretical model to analyze the behavior of the government in this project. Section 4 points out the limitations of the model compared to real life and what we may learn from them. The final section con Public private patnership with government included demand risk a case study from viet nam cludes.22BACKGROUND TO THE STUDY2.1.Background on Vietnam2.1.1.Economic contextSince the country's opening up during the late 80s. Vietnam has made soPublic private patnership with government included demand risk a case study from viet nam
me great strides on creating a market economy. Real GDP growth averaged 6.9% from 1990 to 2013, according to the World Bank's data. In parallel, vast Public-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam estments (FDD in the region. FDI commitments amounted to USD 22.4 billion in 2013 (Báo Đầu Tir 2014).The private sector in Vietnam was also a big beneficiary of the sweeping reforms. The number of State-Owned Enterprises (SOEs) declined from 6545 in 1992 to about 3000 in 2010 and they only account f Public private patnership with government included demand risk a case study from viet nam or about 10% of the country's employment (Le Hoang Cuong. Helen and Ruhul 2014) The private sector's contribution to the national economy, on the othePublic private patnership with government included demand risk a case study from viet nam
r hand, rose to between 57% and 67% of the GDP (ADB 2005).2.1.2.Private participation in infrastructure developmentWhen the reforms began in Vietnam, Public-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam e spending, which now represents a significant percentage of GDP. According to Vietnam s General Statistics Office (GSO). the country spent on average 10.6% of its GDP on infrastructure from 2009 to 2011. This estimate is on the higher end of the regional range, as a research report showed none of V Public private patnership with government included demand risk a case study from viet nam ietnam s emerging neighbors in the ASEAN2 3 spent more than 10% of GDP (Goldman Sachs 2013).Faced with this intensifying need in infrastructure spendiPublic private patnership with government included demand risk a case study from viet nam
ng. Vietnam's government budget is currently under increasing scrutiny from the public and capital markets, and the budget deficit was estimated at 5.Public-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam om/abstract=2723132more difficult since 2008 with rates sometimes as high as 209». Foreign bank financing is also challenging due to more stringent international banking regulations. The Bank for International Settlement itself admitted emerging countries were "particularly concerned" about Basel Ti Public private patnership with government included demand risk a case study from viet nam l’s impact on the availability of funds (Bank for International Settlements 2011).Consequently, Vietnam is relying more and more on the private sectorPublic private patnership with government included demand risk a case study from viet nam
to keep up with infrastructure demand, something recognized very early by the government. The first amendment of the country’s Law on Investment in 1Public-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam eworks such as BT (Build-Transfer), BOO (Build-Own-Operate) or BTO (Build-Transfer-Own). Since then. 82 projects with private participation reached financial close in Vietnam until 2013, with a total cost of USD 11.6 billion (World Bank 2014).2.2.The Phu My Bridge2.2.1. The contextThe Phu My Bridge Public private patnership with government included demand risk a case study from viet nam connects Districts 2 and 7 of Ho Chi Minh City. Vietnam's economic powerhouse with 9°u of the national population and 20% of the national GDP in 2012.Public private patnership with government included demand risk a case study from viet nam
Al the time of its construction, the bridge had been one of the largest infrastructure projects ever undertaken in the city. After completion, it wouPublic-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu My Public private patnership with government included demand risk a case study from viet nam es a quick way to move from East to West of rhe city, and in the near future rhe bridge would link up two major sections of Vietnam’s 1800-km under-construction national expressway (Vn Express 201 1).A map of rhe Phu My Bridge’s location is provided below:srn.ee Public private patnership with government included demand risk a case study from viet nam Public-Private Partnerships with government-induced demand risk: A case study fromVietnamVinh-Thang HOANG IABSTRACTThis research considers the Phu MyGọi ngay
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