The new investment model and its application for a case study in Vietnam

Abstract

This thesis introduces a new investment model for infrastructure projects in developing countries (Vietnam, Cambodia, Lao, Argentina,…), which really want to attract more investment fund from some developed countries like EU, USA, Japan, Korea,…In Vietnam, because of fast speed of the national economy, many foreign investors are jumping into infrastructure section. Hundreds of project has been processing along the country in last decades. Various investment models which are based on Public-Private Partnerships basic have been developed and transformed to compatible form as Vietnamese condition. However, in some recent years, due to the instability of the international economy, developed countries had reduced their owned money for helping developing countries. Finding more other capital is a mandatory trend which Vietnam government has to do in order to keep the infrastructure development. The citizen in Vietnam hold the big amount of saving money and especially gold. But many of them still finding the properly way to increase their own assets. Many people tend to keep gold as a safe investment channel. But within some years, unstable gold price made people get much trouble. Actually, gold can be transformed into capital for infrastructure and that must be a huge source of investment. This leads to demand that we need to find better investment model so that we can attract more people choosing it as an attractive channel. Citizen-Build-Operate-Transfer (CBOT), which is proposed in this dissertation, is a new model that can satisfy expectation from government and residents. Based on CBOT, many people will have chance to invest directly into government’s projects and receive better interest rate, even much higher than banking rate. The CBOT model has some advantages and it is considered to be better than BOT or other models on some certain details: reduces corruption, increases clearance ability, attracts human resource, brings better profit for resident,…It can help the government utilizes the backlog capital in the citizen community and reduces the dependent on the loans of big sponsors like Japan and EU. Moreover, national macroeconomic system tends to be healthier and more stable just in some years and most residents will benefit from it. In order to show the advantages of CBOT, a case study “Ha Noi – Lao Cai Expressway” (Vietnam) has been analyzed as an example to test the model in many aspects. The thesis conducted a survey in three provinces and two cities directly affected by this project to check ability and readiness of residents to support for the new model. Many people, as represent for their money, are asked on their attitude over the new model and also their expectation in some aspects. After collecting data and doing analysis, some ideas have been recommended for the government to apply the new model successfully.

This thesis introduces a new investment model for infrastructure projects in developing countries (Vietnam, Cambodia, Lao, Argentina,…), which really want to attract more investment fund from some developed countries like EU, USA, Japan, Korea,…In Vietnam, because of fast speed of the national economy, many foreign investors are jumping into infrastructure section. Hundreds of project has been processing along the country in last decades. Various investment models which are based on Public-Private Partnerships basic have been developed and transformed to compatible form as Vietnamese condition. However, in some recent years, due to the instability of the international economy, developed countries had reduced their owned money for helping developing countries. Finding more other capital is a mandatory trend which Vietnam government has to do in order to keep the infrastructure development. The citizen in Vietnam hold the big amount of saving money and especially gold. But many of them still finding the properly way to increase their own assets. Many people tend to keep gold as a safe investment channel. But within some years, unstable gold price made people get much trouble. Actually, gold can be transformed into capital for infrastructure and that must be a huge source of investment. This leads to demand that we need to find better investment model so that we can attract more people choosing it as an attractive channel. Citizen-Build-Operate-Transfer (CBOT), which is proposed in this dissertation, is a new model that can satisfy expectation from government and residents. Based on CBOT, many people will have chance to invest directly into government’s projects and receive better interest rate, even much higher than banking rate. The CBOT model has some advantages and it is considered to be better than BOT or other models on some certain details: reduces corruption, increases clearance ability, attracts human resource, brings better profit for resident,…It can help the government utilizes the backlog capital in the citizen community and reduces the dependent on the loans of big sponsors like Japan and EU. Moreover, national macroeconomic system tends to be healthier and more stable just in some years and most residents will benefit from it. In order to show the advantages of CBOT, a case study “Ha Noi – Lao Cai Expressway” (Vietnam) has been analyzed as an example to test the model in many aspects. The thesis conducted a survey in three provinces and two cities directly affected by this project to check ability and readiness of residents to support for the new model. Many people, as represent for their money, are asked on their attitude over the new model and also their expectation in some aspects. After collecting data and doing analysis, some ideas have been recommended for the government to apply the new model successfully.