Factors Influencing Benefits Of Projects: A Case Study Of Petrovietnam Hotel Complex Project

From architects’ and engineers’ dream to the final coat of paint, construction is responsible for many of our noblest works and for some of our most humble. The scope of the industry today is immense: from suburban homes to 100-story skyscrapers; from city sidewalks to dams and tunnels for irrigation and hydroelectric power etc. For better or worse, the constructed environment is among the most ubiquitous and pervasive factors in our lives.

Most construction projects begin with recognition of a need for a new facility. Long before designers start preparing drawings and certainly well before field construction can commence, considerable thought must go into broad-scale planning. Elements of this phase include conceptual analyses, technical and economic feasibility studies, and environmental impact report.

For example, location is fundamental to planning for a new industrial plant. Where can the plant can be located to provide desirable, nearby employment for an adequate supply of skilled and productivities workers? What are the present and projected costs and customs associated with the labor force? Depending on the natural of its raw materials in put and its products, will the plant have access to the most appropriate and economical forms of transportation, be they air, water, highway, rail or pipeline? Does the local provide access to raw material and to market? Are there adequate sources of energy, including gas, oil, and electricity; and are there convenient communication facilities? What political or institutional factors may ease or impede development and operation of facility? What will be the sociological and economic impact of this plant on the community? What will be environment impact? What do all these factors taken as a whole, mean for the technical and economic feasibility of the project? Perform the feasibly study to ensure the effectively of the project.

Mr. Dang Viet Cuong made a study which addressed the limited factors affecting the economic efficiency in the work of the project feasibility study and proposals, solutions to ensure effective project. Including the issues such as the following:
 Select location and content requirements of the Project Owner
 Market Research Project
 Solutions of design
 The related costs

His study deeply analyzed how the plans of design influence to efficiency of the project and make appropriate recommendations, adjustments to ensure the economics of the project. The purpose of his research was to systematize the implementation of setting up the investment projects started from the selection of location, market research, solution design and construction measures for the purpose of ensuring economic efficiency project.

Conclusion

Based on the market studies of the project, requirements of investors as well as the solution design, the difficulties and advantages of the project are evaluated as follows:

 Difficulties:
- The efficiency of hotel investment project is low
- The Scale of works is large and complex. So process requires well-organized of security, sanitation, management.
- Features links between building blocks reduce privacy and about the process for green to win.
- The costs of maintaining the fitness center, swimming pool and sauna will be very high: Costs of swimming pool maintenance, costs of sanitary pipe, personnel costs of continuous inspection and maintenance of sanitation in areas.

 Advantages:
- Characteristics of the population: there is area of developed community, higher living conditions.
- Large scale projects will help to achieve a better deal and reduce maintenance costs per unit area.
- The ability to combine and save costs if we use and share the system control, security, administration ... between the works together.
- To ensure the economic efficiency of the project, we should focus on two main issues as follows:

Development orientation of the project:
- It’s necessary to have a scientific and long-term orientation for the entire project in accordance with the assessment, analysis of market demand to avoid given the subjective, impulsive orientation.
- This project is only made the security design and costing investment but not to set up the business plan and for the restore process. This is very important and must be been studied from the beginning to achieve synchronism for project.

Research the safety design

1. The Underground:
- Redistribute the land boundary between the office block, apartment, hotel (from basement to ground floor) and determine the use of each function areas.
- Review technical planning area, M & E.
- Divide the number of parking spaces to fit over the block.

2. The Hotel:
- Change of use from hotels to apartments to suit the needs of the market.

3. The Office:
- Necessary to determine a standard office class A or B in order to have adequate choice in types of materials complete
- Adjust the design to increase the use of performance floor – Office area with the aim of achieving the efficiency 85%.

4. The Apartment:
- Adjust the design to increase the use of performance floor - Apartments aiming to achieve the efficiency 85%.
- Adjust the structure, proportion and number of apartments to suit the market demand. Specifically reduce the number of large apartments, increase the number of apartments under 120m2 to suit the large segment of the market.
- Decrease the investment rate to reduce the price, which increase the liquidity to meet the needs and generate greater attention for the product of apartment projects

ABSTRACT

The major task in Hanoi’s plan is concentrated to the investment, construction and development of the Capital to be a civilized urban, including basic completion of ring roads No.3, three big bridges crossing Red river, construction of some urban railways, continuous development of new and modern urban areas to the South, investment of new urban areas on the West West Lake and improvement of old apartment buildings. Furthermore, the construction of new urban areas on the North of Red river, development of water drainage plan, phase II shall also be taken into account. Five concentrated urban sewage treatment plants shall also be constructed and set into operation.

Beside above-mentioned important projects, Hanoi shall also concentrate on developing the service branches and fields as: tourism, trading, finance, banking, science and technology, public health, education and training, public transport and consulting services.

Developing solution: preparing to implement the service commitments within framework of ASEAN - WTO; constructing the development project of 4 types of markets including: capital market, stock market, real estate market, science and technology market and labor market; constructing cooperation mechanism between Hanoi and central, provincial organs and cities in the whole countries; to provide favorable conditions in terms of administrative procedures, investment policies for enterprise to develop their services.

The city is calling the foreign investment to high quality services, to meet more than FDI-funded 30% capital; to utilize efficiently the investment, trading and tourism promotion activities through great International events which are organized in the capital and cooperation programs of Hanoi with big cities in the world to extend the high quality service market and transfer of technology and human resource training.

The City is implementing the support policy, cost cutting, enhancement of competitive capacity of businesses; to help the businesses to construct, develop and broadcast the trademark; to encourage and honor the enterprises with effect business. The periodical dialogue between City and enterprise leaders shall be committed to annually organize to solve the difficulties in investment, to meet the development requirement of the Capital.

Some major development criteria to 2010:
+ Annual average GDP growth speeds from 2006-2010: reaching 11-12%.
+ The export turnover growth speed: from 15-17%/year.
+ Social investment growth: 17-20%/year.
+ Telephone density: 85-95 telephone/100 people.
+ Scale of population: from 3.6 million to 3.7 million people.
+ The rate of pour decrease to below 1%.
+ Averagely urban residence 9-10m2/person.
+ Urban fresh water supply 140-160 liter/person/day-night.
+ Public transport meeting 30-35% people’s demand.

Hanoi is proud to be a wealthy economy, with young & active human resources having great aspiration of their city and country, as well as an environment with more and more increasing encouragement policy though it is still on development.

In the stable economics and consumption development, the need on properties is more and more increasing with remarkable speed. Due to the increasing income, the demands on better accommodation, commodities and recreation goods also increase. The interest of foreign foreign enterprises in making business in Vietnam also more and more increases, especially when Vietnam has become a WTO member. As a result, it leads to the urgent and great demand on high-quality Office, Residence and Hotel.

Therefore, the development of high-grade International-standard senior Hotel, Office and Apartment in Hanoi is very essential and with economic efficiency. By this way, it contributes to bring the comfort to foreign investors to Vietnam, meeting the necessary demand to social life. Concurrently, project also contributes to develop the Vietnam tourism, enhances the cultural exchange between Vietnam and Countries all over the world, as Vietnamese Government’s opinion, to widen both domestic and foreign exchanging and cooperation relationship. Moreover, the participation of foreign enterprises in general and project in particular will contribute an income to State budget and provide work opportunity for Vietnamese labors, and indirect contribution to social stabilization.
This thesis will address the limited factors affecting the economic efficiency in the work of the project feasibility study and proposals, solutions to ensure effective project.