Abstract
Location selection is one of the most important aspects of feasibility studies in all types of businesses and construction fields. However, poor project location selection is one of the leading causes of project failure, adversely affecting the cost, schedule, and other benefits of investors. This paper proposes an evaluation framework for selecting a sustainable location for investing in public–private partnership (PPP) infrastructure projects in Vietnam. Nine success criteria are identified via a literature review and expert judgments. Then, the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method is applied to compute the success index and rank three alternatives: Southern (A1), Northern (A2), and Mekong Delta (A3) regions. Finally, a sensitivity analysis is conducted to examine the certainty and effectiveness of the model. The result indicates that alternative A1 is the best location for investing in the PPP form with a closeness coefficient (CCi) value of 0.555 and a sensitivity ratio of 11/13. This finding obtained using the proposed framework may be a helpful reference for practitioners and investors in selecting a sustainable location for PPP investment in Vietnam as well as other developing countries.
Highlights
Infrastructure development facilitates growth and stable macroeconomics in developing countries, where an effective business climate with positive macroeconomic and reasonable policy frameworks will attract more investment in infrastructure services [1]
The following question arises: Which place would be the best option for investment through the private partnership (PPP) model? PPP projects might be affected by factors of each location, such as population, living standard, culture, demand for service, and local policy
Many investors are seeking new opportunities for PPP projects in Vietnam, but they only participate in these projects when they find a stable investment environment that meets their expectations through commitments from the Vietnamese government
Summary
Infrastructure development facilitates growth and stable macroeconomics in developing countries, where an effective business climate with positive macroeconomic and reasonable policy frameworks will attract more investment in infrastructure services [1]. The public sector witnessed a lack of experience and expertise in developing infrastructure facilities [2] To address these issues, public–private partnership (PPP) emerged as an effective procurement method for delivering infrastructure and public services. Many PPP projects have failed in many countries (e.g., Australia, Thailand, Malaysia, and the Netherlands), owing to improper risk-sharing, insufficient demand, and unreasonable repayment structures [8,9] There is another cause that few studies have mentioned—project location selection. Attention in selecting the location of PPP implementation is scarce, especially from the perspective of developing countries To address this gap, the present paper aims to propose an evaluation framework for selecting a sustainable location for PPP investment in Vietnam, by evaluating the success index.
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