Luận văn thạc sĩ UEB effect assessment of the national road maintence fund on vietnam road network

UPPSALA UNIVERSITÉT &

VNU UNIVERSITY OF ECONOM1CS & BUSINESS

UPPSALA ______________ _ VNU‘UCB,.

_ T ll/ —

UNIVERSITET

MASTER THESIS OF MPPM

EFFECT ASSESSMENT

OF THE “NATIONAL ROAD MAINTENANCE FƯND” ON

VIETNAM ROAD NETVVORK MA1NTENANCE SUB-SECTOR

Author: Hao, Khuc Thi Nguyet

Supennsor: Dr. Sven-Erik Svard

Local supervisor: Assoc.Prof Dr. Nguyet, Hoang Thi Thuy

Class: MPPM - INTAKE 7

Hanoi, January - 2015

ACKNOWLEDGEMENT

My first thank is for Uppsala University, Sweden and Economic College — Vietnam

National University who have collaborated to develop programs and organize a training course of

“Public Management - Master Degree) which is very exciting, useful and practical, especially to

the govemmental offícers, including me who are working for the Vietnamese govemmental

offìces. The lectures delivered by Professors and Doctors who have full experience in theory and

practice which brought leaming interest to the leaners. I, once again got chance to go to

university vvhere I had graduated as B.A Economist with university degree. Thereíore I decided

to choose this training course to improve my knovvledge.

I would like to express my sincere thanks to Proíessor Sven-Erick Svard who owns

valuable expenence via many years of lecturing in one of the most reputed European

universities. He has reserved wholehearted and thoughtful instructions towards us, the leamers.

Individually, I got my study and implement studv stages correctly oriented.

I also would like to reserve these sincere thanks to Associate Proíessor, Dr. Hoang Thi

Thuy Nguyet who has scientiíĩc style 'of lecturing to transíer leaming and studying motive and

excitement to us right on the fìrst days. I got very impressive in the way the Proíessor put

forward macro-matters but they were so close to daily life of her; and made extremely abstract

matters simple and easily understandable ones.

I express my sincere thanks to all officials of Ministry of Transport, Directorate for

Road of Vietnam and particularly National Road Maintenance Fund Office who have considerately

provided me important and necessary data and iníbrmation to be integrated into and made my thesis

clariíìed and lively.

Finally, this thesis writer permanently and highly appreciate the assistances vvith

enthusiasm from the CITE Center as well as great emotion from all the 7th course attendants

which greatly contribute into my completion of this thesis.

Yours Faithfull,

Ha Noi, January 2015

ABSTRACT

Name of the Study: Effect assessment of the “National Road Maintenance FuncT on Vietnam

Road Maintenance sub-sector.

Thesis Degree: Master

Date of Presentation: 6th December 2014

Presented by : Khuc Thi Nguyet Hao

Supervisors

- Dr. Sven-Erick Svard

- Assoc. Prof. Dr Hoang Thi Thuy Nựuyet

Objectives

Years ago, all of Vietnam road maintenance activities had been paid by the State budget,

which was very limited. The financed State subsidies was equivalent of about 20% to 29% with

the actual needs what are required by proposal of Directorate for Roads of Vietnam in order to

preserve exiting road system in a good

condition and to ensure smoothly o f transportation, in comparison.

Due to the above issues, Vietnam "National Road Maintenance Fund” was established

in December 2012 and officially activated on January 2013 by the Decision of Government with

the goals that the fund could meet a main part of existing demand by providing Capital collected

by annual fee of transportation vehicles.

This study is to assess the considerable changes in road network maintenance in

Vietnam, compared to road conditions before the road network was funded for maintenance by

the said Fund; Besides, this study considers other impacts of the "National Road Maintenance

Fund" such as changes on management method of

govemment agencies, application of Science and technology on road maintenance as

vvell as raisc in avvareness o f residents.

Research Method

The study applied 03 researched methods to clarify the impact of NRMF on

Vietnam road system, as bellovvs:

Firstly, the study analyzed statistical data over a period of 5 years from 2010 to the end

of December 2014 and divided into two speciíìc periods.

- Phase 1, from 2010 to the end of 2012 (03 years) is the period of road maintenance

activities in Vietnam operating under 100% o f the annual State budget.

- Phase 2, from January l st, 2013 until the end of 2014, which means 02 years since the

NRMF was established and has put into operation to manage all revenues which are collected of

transportation vehicle, associating with the annually additional State budget, in order to provide

funding for activities related to the road maintenance sub-sector.

AU using data are collected from reliable sources such as Ministry of Transportation.

Directorate for Roads of Vietnam and National Road Maintenance Fund including: (i) annually

actual funds using for road maintenance operations, particularly for the highway system; and

also the supported funding to the local before/after NRMF establishing; (ii) The number of road

and bridge has been maintenance by funding through NRMF; expenditure of applied Science and

technologies on road maintenance sub-sector which has been paid by the NRMF; and changing

of managemcnt method what is exccuted by State agencies in road maintenance sub-sector

through nevvly applied policy documents for project bidding and approval.

Based on the actual data collected above, comparison between the phase 1 with the

phase 2 was implemented in order to assess the NRM F’s impacts on road maintenance sub￾sector beíore and aíter its íormation and operation.

Secondly, the author also conducts intervievvs 03 ỵroups directly related to road

maintenance operation. They are: (i) Government Officials represent those who implement

State policy and Capital management under the Fund m echanism (ii) constructors and

consultant companies represent companies which directly carry out road maintenance

contraction as bid contract as vvell as Consulting firms who are

supervisors in construction site; (iii) transportation firms and local residents vvho benefited from

the quality of roads change rapidly due to NRMF investment.

Interviewing results of group (i) to clarify the impact of the NRMF changing the mode

of operation management and also policy applies of State agencies on the road maintenance

sub-sector.

After interviewing group (ii), it is discovered the fact that, apart from the traditional

state-owned company beĩore, but now the company carried out construction bid has included

many different economic sectors such as the private equity company, the limited liability

companies and joint stock companies with State Capital associated private participate. Thank

to suffícient and timely funding what is more attractive to companies on roads maintenance sub￾sector. leading vanous competitive environment and managers also has beneíited when having

the better road with lovver costs. The quality of construction is also increased when to

seek cost reduced measurements as applying Science and technology and newly

management practices.

Targets of interviexving group (iii) are íinding out proíìts what automobile

transportation companies benefited after reducing cost of fuel and depreciation of vehicle as

well as saving labor due to the smoothly operated road system. In addition, residents who use

road system everyday, particularly in poor locals have been excited of the upgrading quality of

the roads that were maintained by NRMF funding.

At last, SWOT analysis method was applied to recognize NRM F’s chances as well as

its obstacles in order to build a rational master plan in which management agencies could be

eníorced for NRMF development in the future.

Result and Conclusion

After analyzing the actual data collected from the Rovemment agencies on road

niaintenance operation and iníbrmation interviewed by questionnaire, it is found that NRMF

íòundation is the rational decision of Vietnam Government, adapting to the socio-economic

circumstances of Vietnam today. In addition, through positive results of the N R M F’s activities

brought back, one of the goals of Vietnam Government, which is oriented strategy on

development of maintenance sub-sector toward the step by step of full privatization, is clearly

supported prooís.