TY - GEN
T1 - Revisiting the critical factors causing failure of construction projects in Vietnam
AU - Nguyen, Tan Phat
AU - Chileshe, Nicholas
PY - 2013
Y1 - 2013
N2 - 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.
AB - 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.
KW - Construction industry
KW - Critical factor
KW - Performance
KW - Project failure
KW - Risk management
KW - Vietnam
UR - http://www.scopus.com/inward/record.url?scp=84981364161&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84981364161
T3 - Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013
SP - 929
EP - 938
BT - Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013
A2 - Smith, S.D.
A2 - Ahiaga-Dagbui, D.D.
PB - Association of Researchers in Construction Management
T2 - 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013
Y2 - 2 September 2013 through 4 September 2013
ER -
