Mr. Tran Thanh Liem wanted to study the project management life cycle in new residental deveplopment project in Vietnam and the most serious proplems arising from every stage of project life cycle.
The objective of his study were to: (1) identify project tasks and activities for accomplishment and find out proplems affecting the project time; (2) propose strategies to effectively eliminate or mitigate major risks; and (3) propose solutions that identify and prevent risks for the sister projects.
Conclusions
The investment in real estate sector in Vietnam is currently out with a difference. Applying the expertise of professional knowledge and ability to finance is unlikely to succeed when investing in Vietnam.
The case study revealed a practical implementation in the early stages of residential development policy of Dong Nai province in particular and Vietnam in general. The author introduced a project with very nice location in the center of Bien Hoa city which is belong to Company D2D (a Vietnamese company which is knowledgeable on laws and policies in Vietnam and capable of performing the procedures quickly) and Joint venture company Berjaya D2D (having capacity on the implementation of procedures, adequate financial capacity, investment experience and professionalism in the field of real estate investment).
This project has all the favorable factors for success. Currently it is also one of the most successful projects of the company D2D, but the schedule shows that the project still face a lot of problems (risks), which mostly concerned to the management and policies of the government.
The report may not offer the most complete risk factors in various stages of project implementation, but clear description of the risk factors affecting the schedule of most projects in Vietnam are well established such as clearance problem and progress delay. In addition, the author proposed appropriate strategies to mitigate these major risks.
Recommendations
The author had clarified the stages in the life cycle of a project and the main works done at each stage. He also determined main risks causing delay in the implementation of D2D residential projects, its secondary project in particular and all investment projects in the field of real estate in Vietnam in general.
This study proposes some recommendations for each delay problem as shown in the tale below:
When implementing real estate projects in Vietnam, anticipate that there are many negative issues in the system of policies and regulations and have to set the elimination risks that causing uncontrollable delays.To reduce the delay problems for similar projects in the future, this study proposes some guidelines as follows:
1. To find out carefully the system of Vietnam's policies and continuously update the change of policies during the time of project execution in order to timely adjust work flow at various stages of the project life cycle; identity sufficient risk of external and internal environment of the project in accordance with reality.
2. Together with changing policies, the corruption in Vietnam is an ominous issue and investors even consultants can not understand all the issues for investment. However, the costs for Vietnamese consultants is so cheap compared with other countries, sometimes it is necessary to pay more payola for direct consultant from administrative official.
3. To implement the procedures while waiting for the approval of governments.
4. To survey, evaluate and recommend appropriate solutions for compensation and ground clearance in order to ensure the interests of the parties and minimize delays in this stage.
5. To set up land use planning appropriate with the project requirements in each stage and progress of the mobilization of capital investment
6. To research the plan for construction planning in order to ensure compliance with long-term development strategy, to take factors fluctuations in policy and plan for appropriate preventive.
7. To train or mobilize experts with full experience in the concerned fields such as planning, design, construction techniques and finance and to set up competence project team for the best implementation.
8. To conduct activities in order to control and limit the adverse impact of risks to ensure the project in time. Risk control plan should be implemented in conjunction with several measures from the active standby to deal with the risks, actively avoid and share the risk, promptly response when risks occur.
9. To establish early warning systems and handle risk.
10. To develop a plan for mobilizing capital to response the progress of the project.
11. Risk management should be considered as an important part of project management and construction law , urban planning law, housing law or government decrees.
12. To focus on the initiation stages : Investment report, Feasibility Study, Project planning and Detail Design.
His thesis abstract is copied and posted.
Abstract
Vietnam has just been developing in recent years. Together with urban development, real estate and construction market are growing rapidly. The speed of economic development is growing rapidly but substandard managerial capacity has not satisfy the actual requirements, so great urban areas of Vietnam are now facing with complicated issues of urbanization process and urban development such as migration, accommodation, labor, career, traffic jam, flood, environment pollution.
The real estate and construction fields have reputation of the most opportunity, risk, expensiveness and challenge. The implementation of construction also requires long time with huge investment capital and various participating components.
Besides, there are so many unsound problems, for example government policies in real estate market and construction industry are usually amended and overlapped among authorities. Therefore; the implementing process of project will be usually changed, risks would easily arise and we will meet difficulties in estimation, appreciation and control… All these will make project not completed as expected.
