Research On Investment Risk And Measures Of Civil Engineering Contracting Project Under PPP Mode In Vietnam

In recent years,Vietnam has signed bilateral trade agreements with many countries and regions.With the rapid development of its economy,the demand for infrastructure construction is becoming more and more urgent.The public financial expenditure has been continuously increased to transform the old railway and highway network.By attracting social capital to participate in project investment and construction,PPP model can not only bridge the government funding gap,but also transform government functions,becoming an important "hand" for countries to ease incremental debt and develop domestic infrastructure.However,PPP projects have a long cycle and many risks,which are greatly affected by political environment,legal system,economic conditions and market trends.Social capital is required to attach great importance to risk identification and control during investment decision-making,project construction,post-maintenance and operation.As a socialist country,Vietnam’s domestic political situation remains stable.It is a blue ocean in the field of infrastructure that Chinese enterprises have been actively exploring but have doubts about.Vietnam’s public financial burden is limited,and domestic enterprises lack the investment capacity of large amount of funds.In recent years,the PPP law has been continuously improved in order to widely attract international investors.Since 2015,Chinese construction enterprises have undertaken a number of PPP projects in Vietnam,but they are all focused on the higher-tech energy generation sector.Under the influence of local protectionism,low efficiency and long process of administrative examination and approval,insufficient transparency and stability of policies,strict environmental protection requirements,restrictions on foreign workers,geopolitics of China and Vietnam,as well as lack of deep understanding and one-sided understanding of PPP laws and policies in Vietnam,Chinese enterprises are faced with great uncertainty risks when they participate in the investment of civil engineering contracting projects in Vietnam under PPP mode,which requires Chinese enterprises to further improve the level of internationalization and the ability of risk identification and response.This paper introduces the concept and characteristics of PPP mode and international project investment risk,selects Vietnam as the research object,analyzes the relevant requirements of Vietnam’s new PPP method by reviewing domestic and foreign literature research results and studying practical cases,and identifies and classifies the key risks of Vietnam’s civil engineering contracting project investment risk under PPP mode by using checklist method and questionnaire survey method.This paper uses analytic hierarchy process(AHP)to evaluate the identified key risk factors,and obtains the political,economic,market,environmental,construction and operation risks faced by Vietnam PPP project investment projects,and carries out hierarchical ranking according to the risk weight value.Two highway PPP projects in Vietnam are used as positive and negative cases to verify the results,and the key risk weight ranking is consistent with the actual situation.Finally,according to the main risk points analyzed,six measures are put forward,such as making good use of policy guidance and compliance management,accurate financial evaluation and using financial institutions’ support,price fluctuation adjustment and exchange rate agreement to maintain value,paying attention to field survey and environmental protection,delimiting the construction work boundary and setting the minimum return period,and strengthening the self construction of enterprises,which can provide some reference for the risk identification and effective response of Chinese construction enterprises when they participate in Vietnam civil engineering PPP project investment.