Revisiting the critical factors causing failure of construction projects in Vietnam

Date

2013

Authors

Nguyen, T.P.
Chileshe, N.

Editors

Smith, S.D.
Ahiaga-Dagbui, D.D.

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Conference paper

Citation

Association of Researchers in Construction Management (ARCOM) : proceedings of the 29th annual conference, 2013 / Smith, S.D., Ahiaga-Dagbui, D.D. (ed./s), vol.2, pp.929-938

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29th Association of Researchers in Construction Management annual conference (ARCOM 2013) (2 Sep 2013 - 4 Sep 2013 : Reading, UK)

Abstract

The Vietnam construction industry has considerably developed since 1986 as a result of "Doi Moi" or all-round renovation process, stepping in the general development trend and the process of gradual globalization and regionalization. However, despite the pace of economic reforms, obstacles and risks have continued to plague the construction industry. This paper attempts to elicit the perceptions of construction professionals by revisiting some of these critical factors causing the failure of construction projects in Vietnam. A triangulated data collection approach involving 10 interviews and 45 questionnaires was administered to construction stakeholders to elicit their perceptions on the 20 factors causing the failure of the construction projects. The quantitative response data was subjected to descriptive statistics such as frequency analysis whereas, content analysis was used for the qualitative (interviews data). The results revealed that the ten most critical factors causing the failure of construction project were as follows: (1) "disregard of the significance of project planning process and project planning", (2) "lack of experience in executing complicated project", (3) "poor design capacity and frequent design changes", (4) "lack of knowledge and ability in managing construction projects", (5) "lack of financial capacity of owner" (6) "poor performance of contractors"', (7) "lack of a systematic approach to managing the project and entire organisation", (8) "corruption and bribery in construction projects", (9) "the delays in payment", and (10) "economic volatility and high inflation". The originality and value of this study lies with the identification of the lessons which are necessary for enhancing understanding and improving the awareness of project risks. This provides an appropriate approach to risk management, thereby tackling and mitigating the impacts of negative events in managing construction projects in Vietnam. The study further provides insights on the factors contributing to the failure of construction projects across the Vietnam construction sector.

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Copyright 2013 Association of Researchers in Construction Management

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