Log in

Critical success factors for implementing PPP infrastructure projects in develo** countries: the case of Vietnam

  • Technical paper
  • Published:
Innovative Infrastructure Solutions Aims and scope Submit manuscript

Abstract

The success or failure of a Public–Private Partnership (PPP) project depends on various factors. This study aims to identify and assess critical success factors (CSFs) for PPP infrastructure project implementation. By a comprehensive review of prior studies, this study managed six primary categories extracting from 42 CSFs, such as public sector cluster (8 factors), private sector cluster (11 factors), procurement process cluster (7 factors), risk management (4 factors), project information (10 factors), and external cluster (2 factors). A theoretical structural equation model was formulated to signify the impacts of these clusters for PPP infrastructure project implementation. The necessary data was collected through an investigation with 216 PPP infrastructure professionals and practitioners. The findings indicated that the clusters of private sector, project information, and procurement process were the most influential affecting the success of the implementation of PPP infrastructure projects. By adopting the recommended strategies, public sector, private sector, and stakeholders participating in a PPP infrastructure project will be in better understand the success factors for these projects. As a result, this can improve project implementation efficiency in order to achieve the project’s objectives.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Abdel Aziz AM (2007) Successful delivery of public-private partnerships for infrastructure development. J Constr Eng Manag 133(12):918–931

    Google Scholar 

  2. Ahmadabadi AA, Heravi G (2019) The effect of critical success factors on project success in Public-Private Partnership projects: a case study of highway projects in Iran. Transp Policy 73:152–161

    Google Scholar 

  3. Akintoye A, Beck M, Hardcastle C (2008) Public-private partnerships: managing risks and opportunities. Wiley

    Google Scholar 

  4. Al-Saadi R, Abdou A (2016) Factors critical for the success of public–private partnerships in UAE infrastructure projects: experts’ perception. Int J Constr Manag 16(3):234–248

    Google Scholar 

  5. Alaloul WS, Liew MS, Zawawi NAW, Mohammed BS, Adamu M, Musharat MA (2020) Structural equation modelling of construction project performance based on coordination factors. Cogent Eng 7(1):1726069

    Google Scholar 

  6. Alteneiji K, Alkass S, Dabous SA (2019) Critical success factors for public–private partnerships in affordable housing in the United Arab Emirates. Int J Hous Mark Anal 13:753

    Google Scholar 

  7. Alteneiji K, Alkass S, Dabous SA (2020) A review of critical success factors for public–private partnerships in affordable housing. Int J Syst Assur Eng Manag 11(6):1192–1203

    Google Scholar 

  8. Babatunde SO, Perera S, Zhou L, Udeaja C (2016) Stakeholder perceptions on critical success factors for public–private partnership projects in Nigeria. Built Environ Project Asset Manag 6:74

    Google Scholar 

  9. Bryman A, Cramer D (2011) Quantitative data analysis with IBM SPSS 17, 18 and 19. Routledge

    Google Scholar 

  10. Byrne BM (2013) Structural equation modeling with Mplus: basic concepts, applications, and programming. Routledge

    Google Scholar 

  11. Chan AP, Lam PT, Chan DW, Cheung E, Ke Y (2010) Critical success factors for PPPs in infrastructure developments: Chinese perspective. J Constr Eng Manag 136(5):484–494

    Google Scholar 

  12. Chen YQ, Zhang YB, Liu JY, Mo P (2012) Interrelationships among critical success factors of construction projects based on the structural equation model. J Manag Eng 28(3):243–251

    Google Scholar 

  13. Cho K, Hong T, Hyun C (2009) Effect of project characteristics on project performance in construction projects based on structural equation model. Expert Syst Appl 36(7):10461–10470

    Google Scholar 

  14. Chou J-S, Pramudawardhani D (2015) Cross-country comparisons of key drivers, critical success factors and risk allocation for public-private partnership projects. Int J Project Manage 33(5):1136–1150

    Google Scholar 

  15. Chou J-S, Tserng HP, Lin C, Yeh C-P (2012) Critical factors and risk allocation for PPP policy: comparison between HSR and general infrastructure projects. Transp Policy 22:36–48

    Google Scholar 

  16. Chowdhury AN, Chen PH, Tiong RL (2011) Analysing the structure of public–private partnership projects using network theory. Constr Manag Econ 29(3):247–260

    Google Scholar 

  17. Chua DKH, Kog Y-C, Loh PK (1999) Critical success factors for different project objectives. J Constr Eng Manag 125(3):142–150

    Google Scholar 

  18. Debela GY (2019) Critical success factors (CSFs) of public–private partnership (PPP) road projects in Ethiopia. Int J Constr Manag. https://doi.org/10.1080/15623599.2019.1634667

    Article  Google Scholar 

  19. Dixon T, Pottinger G, Jordan A (2005) Lessons from the private finance initiative in the UK: benefits, problems and critical success factors. J Prop Invest Finance 23:412

    Google Scholar 

  20. Durdyev S, Ismail S, Kandymov N (2018) Structural equation model of the factors affecting construction labor productivity. J Constr Eng Manag 144(4):04018007

    Google Scholar 

  21. Field A (2013) Discovering statistics using IBM SPSS statistics. Sage

    Google Scholar 

  22. Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50

    Google Scholar 

  23. Götz O, Liehr-Gobbers K, Krafft M (2010) Evaluation of structural equation models using the partial least squares (PLS) approach. Handbook of partial least squares. Springer, pp 691–711

    Google Scholar 

  24. Grimsey D, Lewis M (2007) Public private partnerships: the worldwide revolution in infrastructure provision and project finance. Edward Elgar Publishing

    Google Scholar 

  25. Hair JF, Black WC, Babin BJ, Anderson RE, Tatham RL (1998) Multivariate data analysis. Prentice hall Upper Saddle River, NJ, vol 5, vol 3

  26. Hair JF, Ringle CM, Sarstedt M (2013) Partial least squares structural equation modeling: rigorous applications, better results and higher acceptance. Long Range Plan 46(1–2):1–12

    Google Scholar 

  27. Hair JF Jr, Hult GTM, Ringle C, Sarstedt M (2016) A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications

    Google Scholar 

  28. Hemming R, Anderson B, Alier M, Petrie M, Cangiano M (2006) Public–private partnerships, government guarantees, and fiscal risk. International Monetary Fund

    Google Scholar 

  29. Hu L, t., & Bentler, P. M. (1999) Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Struct Equ Modeling 6(1):1–55

    Google Scholar 

  30. Hwang B-G, Zhao X, Gay MJS (2013) Public private partnership projects in Singapore: factors, critical risks and preferred risk allocation from the perspective of contractors. Int J Project Manage 31(3):424–433

    Google Scholar 

  31. Ismail S (2013) Critical success factors of public private partnership (PPP) implementation in Malaysia. Asia-Pacific J Bus Adm 5:6

    Google Scholar 

  32. Jackson JE (1980) Principal components and factor analysis: part I—principal components. J Qual Technol 12(4):201–213

    Google Scholar 

  33. Jamali D (2004) Success and failure mechanisms of public private partnerships (PPPs) in develo** countries. Int J Public Sector Manag 17:414

    Google Scholar 

  34. Jefferies M (2006) Critical success factors of public private sector partnerships. In: Engineering, Construction and Architectural Management

  35. Jefferies M, Gameson R, Rowlinson S (2002) Critical success factors of the BOOT procurement system: reflections from the Stadium Australia case study. Eng Constr Archit Manag 9(4):352–361

    Google Scholar 

  36. ** XH, Doloi H (2008) Interpreting risk allocation mechanism in public–private partnership projects: an empirical study in a transaction cost economics perspective. Constr Manag Econ 26(7):707–721

    Google Scholar 

  37. Kavishe N, Chileshe N (2019) Critical success factors in public–private partnerships (PPPs) on affordable housing schemes delivery in Tanzania. J Facil Manag 17:188

    Google Scholar 

  38. Kline RB (2015) Principles and practice of structural equation modeling. Guilford Publications

    Google Scholar 

  39. Kwofie TE, Afram S, Botchway E (2016) A critical success model for PPP public housing delivery in Ghana. Built Environ Project Asset Manag 6:58

    Google Scholar 

  40. Li B, Akintoye A, Edwards PJ, Hardcastle C (2005) Critical success factors for PPP/PFI projects in the UK construction industry. Constr Manag Econ 23(5):459–471

    Google Scholar 

  41. Loehlin JC (1987) Latent variable models: an introduction to factor, path, and structural analysis. Lawrence Erlbaum Associates Inc

    Google Scholar 

  42. Meng X, Zhao Q, Shen Q (2011) Critical success factors for transfer-operate-transfer urban water supply projects in China. J Manag Eng 27(4):243–251

    Google Scholar 

  43. Molenaar K, Washington S, Diekmann J (2000) Structural equation model of construction contract dispute potential. J Constr Eng Manag 126(4):268–277

    Google Scholar 

  44. Muhammad Z, Johar F (2019) Critical success factors of public–private partnership projects: a comparative analysis of the housing sector between Malaysia and Nigeria. Int J Constr Manag 19(3):257–269

    Google Scholar 

  45. Ng ST, Wong YM, Wong JM (2012) Factors influencing the success of PPP at feasibility stage–a tripartite comparison study in Hong Kong. Habitat Int 36(4):423–432

    Google Scholar 

  46. Ong HC, Lenard D (2003) Can private finance be applied in the provision of housing. International Congress Washington, D.C. USA, April 19–26, 2002

  47. Osei-Kyei R, Chan AP (2015) Review of studies on the critical success factors for public–private partnership (PPP) projects from 1990 to 2013. Int J Project Manage 33(6):1335–1346

    Google Scholar 

  48. Osei-Kyei R, Chan AP (2017) Implementing public–private partnership (PPP) policy for public construction projects in Ghana: critical success factors and policy implications. Int J Constr Manag 17(2):113–123

    Google Scholar 

  49. Rockart JF (1980) The changing role of the information systems executive: a critical success factors perspective. Sloan Manag Rev 24(1):3–18

    Google Scholar 

  50. Roumboutsos A, Anagnostopoulos KP (2008) Public–private partnership projects in Greece: risk ranking and preferred risk allocation. Constr Manag Econ 26(7):751–763

    Google Scholar 

  51. Roumboutsos A, Macário RM (2013) Public private partnerships in transport: theory and practice. Built Environ Project Asset Manag 3:160

    Google Scholar 

  52. Soekiman A, Pribadi K, Soemardi B, Wirahadikusumah R (2011) Factors relating to labor productivity affecting the project schedule performance in Indonesia. Procedia Eng 14:865–873

    Google Scholar 

  53. Tang L, Shen Q, Skitmore M, Cheng EW (2013) Ranked critical factors in PPP briefings. J Manag Eng 29(2):164–171

    Google Scholar 

  54. Van Tam N (2021) Scientometric Review of Research Trends on Public Private Partnership (PPP) for Infrastructure Projects From 2000 to 2020. Vol. 4, vol 1

  55. Van Tam N, Diep TN, Quoc Toan N, Le Dinh Quy N (2021) Factors affecting adoption of building information modeling in construction projects: a case of Vietnam. Cogent Bus Manag 8(1):1918848

    Google Scholar 

  56. Van Tam N, Huong NL, Ngoc NB (2018) Factors affecting labour productivity of construction worker on construction site: a case of Hanoi. J Sci Technol Civ Eng (STCE)-NUCE 12(5):127–138

    Google Scholar 

  57. Van Tam N, Le D-L, Toan NQ, Huong NL (2020) An analysis of value chain in Vietnam Construction Industry. https://www.researchgate.net/publication/344026154_An_Analysis_of_Value_Chain_in_Vietnam_Construction_Industry

  58. Van Tam N, Toan NQ, Van Phong V, Durdyev S (2021) Impact of BIM-related factors affecting construction project performance. Int J Build Pathol Adapt. https://doi.org/10.1108/IJBPA-05-2021-0068 (ahead-of-print)

    Article  Google Scholar 

  59. Zhang S, Chan AP, Feng Y, Duan H, Ke Y (2016) Critical review on PPP Research—a search from the Chinese and International Journals. Int J Project Manag 34(4):597–612

    Google Scholar 

  60. Zhang X (2005) Critical success factors for public–private partnerships in infrastructure development. J Constr Eng Manag 131(1):3–14

    Google Scholar 

  61. Zouggari M (2003) Public-private partnership: Major hindrances to the private sector’s participation in the financing and management of public infrastructures via delegated management. Int J Water Resour Dev 19(2):123–129

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dinh Tuan Hai.

Ethics declarations

Conflict of interest

All authors declare that they have no conflicts of interest.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Hai, D.T., Toan, N.Q. & Van Tam, N. Critical success factors for implementing PPP infrastructure projects in develo** countries: the case of Vietnam. Innov. Infrastruct. Solut. 7, 89 (2022). https://doi.org/10.1007/s41062-021-00688-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s41062-021-00688-6

Keywords

Navigation