Abstract
Vietnam has become a major market for construction enterprises from East Asian countries, especially from China, to participate in international project contracting, but serious schedule delays have important adverse effects on local government and foreign investment companies. Based on international engineering contracting mode of Vietnam highway BOT construction projects, we discussed the drive financial factors of schedule delays, using the methods of exploratory factor analysis and questionnaire survey, and evaluated the effects of various factors which are through regression analysis. The empirical results show that the five categories of financial factors, including the policy change, slow payment, financial mismanagement, financial market changes and lack of fiscal, have significant effects on schedule delay. Furtherly, we suggested that strengthening policy research and improving financial management ability should be used to reduce the influence of relevant financial factors on schedule delay, to improve the profitability of international businesses and the motivation of foreign enterprises to participate in Vietnam highway project.
Highlights
In recent years, with economic globalization, countries energetically strengthen infrastructure construction, es-How to cite this paper: Vu, H.-A., Wang, J.Q., Min, L.X. and Nguyen, T.-N. (2015) Impacts of the Financial Factors on Schedule Delays Risk of the International Contracting Projects: Evidence from Highway BOT Projects in Vietnam
Pecially the developing countries and regions, such as the Association of South-east Asian Nations (ASEAN), which becomes the main market of international engineering contracting, and is the main goal of the foreign enterprises to participate in the international engineering contracting business
Before 2002, there was no highway in Vietnam, the government introduced a series of preferential policies to attract domestic and foreign funds and to encourage investment in various construction methods, especially the form of BOT which promoted the development of highway construction
Summary
With economic globalization, countries energetically strengthen infrastructure construction, es-. Especially the international contracting project, has many participation main bodies and project subcontracts; the complexity of project is far more than other general project, which involves many specific financial factors, and has strong correlation between the various factors, and further aggravates the construction schedule delays. It is necessary to investigate the specific financial factors of delaying highway construction schedule systematically to help Vietnamese government and foreign construction companies take effective measures. These measurements could improve the project financial management level, avoid risk of construction schedule due to the financial shortage and promote the foreign enterprises to participate in Vietnam highway project engineering contracting more actively, to raise the level of the highway project construction in Vietnam
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