Public-private partnership: the critical factors considered for Vietnam metro projects

Public-private partnership (PPP) model has been widely used all over the world for several decades due to its significant benefits. However, the number of urban rail PPP projects seems to be less than other kinds of infrastructure projects, such as road, bridge, or energy. In recent years, urban railway projects have developed in low-income countries such as Vietnam and applying PPP is seen as an appropriate way to reduce financial burden for government. This research aimed to identify critical factors (CFs) that Vietnamese government must pay more attention to before implementing urban rail PPP projects to contribute to their success through employing both qualitative and quantitative methods. To determine the key critical factors (CFs) and assess their significance, the study employed an integrated approach combining both qualitative and quantitative techniques. The results show that 24 CFs were identified, in which variable P4 - Management ability of public sector was placed at the first position, which accounted for 4.24 of mean value and P1 - Stable political and social environment got the lowest rank with the importance score of 3.71. Based on the empirical results of using explanatory factor analysis and multiple regression technique, five groups that contribute positively to the success of Vietnam Metro PPP projects were revealed. The group of “Legal” factors has the strongest impact, followed by the group of factors “Scope, technology, and construction”, “Finance”, “Politics, socio-economic and business environment”. Meanwhile, the group of “Risk” factors is believed to have the weakest impact on the success of the urban railway PPP projects. The results of this study have certain contributions in reviewing and preparing legal, financial, economic, and social conditions to ensure success when applying the PPP model to urban railway projects in Vietnam.