[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v65y2023icp339-350.html
   My bibliography  Save this article

Delivering transport infrastructure using state-owned enterprises (SOEs): A business history of Vietnam Expressway Corporation between 2004 and 2016

Author

Listed:
  • Mai, The Vinh
  • Casady, Carter B.
Abstract
Adopting a business history approach, this paper explores the role and evolution of Vietnam Expressway Corporation (VEC) as a state-owned enterprise (SOE) delivery model for five highway projects in Vietnam's first phase of network development between 2004 and 2016. It draws upon insights from the field of transaction cost economics and resource-based theory to explain why the Vietnamese government employed the SOE model instead of traditional public procurement (TPP) or public private partnership (PPP). The case study shows the government chose to use an SOE to achieve dual policy goals: (1) accelerate the preparation and construction of five priority highways and (2) reduce fiscal pressure on the state budget. As a toll-funded SOE responsible for both the lifecycle delivery of highway infrastructure and debt repayment, VEC effectively economised transaction costs and maximised financial resources from both government and market sources, including a mix of international loans from major development institutions. The SOE model's unique advantages were also difficult to imitate by TPP and PPP. More specifically, the public ownership and not-for-profit mandate of the SOE model gave the government flexibility to effectively mitigate the adverse impacts of unforeseen project-specific risks and macroeconomic uncertainty on project performance. Taken together, these findings contribute to growing academic interest in the role of modern SOEs as a delivery model for transport infrastructure.

Suggested Citation

  • Mai, The Vinh & Casady, Carter B., 2023. "Delivering transport infrastructure using state-owned enterprises (SOEs): A business history of Vietnam Expressway Corporation between 2004 and 2016," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 339-350.
    • Handle: RePEc:eee:streco:v:65:y:2023:i:c:p:339-350
    DOI: 10.1016/j.strueco.2023.03.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X23000371
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2023.03.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. G. Dudkin & T. Välilä, 2006. "Transaction Costs in Public-Private Partnerships: A First Look at the Evidence," Competition and Regulation in Network Industries, Intersentia, vol. 7(2), pages 307-331, June.
    2. Dejan Makovšek & Marian Moszoro, 2018. "Risk pricing inefficiency in public–private partnerships," Transport Reviews, Taylor & Francis Journals, vol. 38(3), pages 298-321, May.
    3. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2009. "Soft Budgets and Renegotiations in Public-Private Partnerships," Cowles Foundation Discussion Papers 1723, Cowles Foundation for Research in Economics, Yale University.
    4. Babatunde, Solomon Olusola & Perera, Srinath, 2017. "Analysis of traffic revenue risk factors in BOT road projects in developing countries," Transport Policy, Elsevier, vol. 56(C), pages 41-49.
    5. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    6. W. Kip Viscusi & Joseph E. Harrington & John M. Vernon, 2005. "Economics of Regulation and Antitrust, 4th Edition," MIT Press Books, The MIT Press, edition 4, volume 1, number 026222075x, December.
    7. Philippe Burger & Ian Hawkesworth, 2011. "How To Attain Value for Money: Comparing PPP and Traditional Infrastructure Public Procurement," OECD Journal on Budgeting, OECD Publishing, vol. 11(1), pages 91-146.
    8. Domberger, Simon & Jensen, Paul, 1997. "Contracting Out by the Public Sector: Theory, Evidence, Prospects," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(4), pages 67-78, Winter.
    9. Carter B. Casady & Stefan Verweij & Ingmar van Meerkerk, 2022. "Conclusions about the performance advantage of PPPs," Chapters, in: Stefan Verweij & Ingmar van Meerkerk & Carter B. Casady (ed.), Assessing the Performance Advantage of Public-Private Partnerships, chapter 9, pages 206-228, Edward Elgar Publishing.
    10. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    11. Hoang Linh Nguyen & Jin Duan & Guo Qin Zhang, 2018. "Land Politics under Market Socialism: The State, Land Policies, and Rural–Urban Land Conversion in China and Vietnam," Land, MDPI, vol. 7(2), pages 1-17, April.
    12. Carter B. Casady, 2022. "The public-private partnership market maturity research frontier," Chapters, in: A Research Agenda for Public–Private Partnerships and the Governance of Infrastructure, chapter 13, pages 259-274, Edward Elgar Publishing.
    13. Canıtez, Fatih & Çelebi, Dilay, 2018. "Transaction cost economics of procurement models in public transport: An institutional perspective," Research in Transportation Economics, Elsevier, vol. 69(C), pages 116-125.
    14. Valila, Timo, 2005. "How expensive are cost savings? On the economics of public-private partnerships," EIB Papers 4/2005, European Investment Bank, Economics Department.
    15. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    16. Carter B. Casady & R. Richard Geddes, 2019. "Private participation in US infrastructure: the role of regional PPP units," Chapters, in: Raymond E. Levitt & W. R. Scott & Michael J. Garvin (ed.), Public–Private Partnerships for Infrastructure Development, chapter 11, pages 224-242, Edward Elgar Publishing.
    17. Michael Opara & Fathi Elloumi & Oliver Okafor & Hussein Warsame, 2017. "Effects of the institutional environment on public-private partnership (P3) projects: Evidence from Canada," Accounting Forum, Taylor & Francis Journals, vol. 41(2), pages 77-95, June.
    18. Veronica Vecchi & Mark Hellowell, 2013. "Leasing by public authorities in Italy: creating economic value from a balance sheet illusion," Public Money & Management, Taylor & Francis Journals, vol. 33(1), pages 63-70, January.
    19. Jean-Etienne de Bettignies & Thomas W. Ross, 2010. "The Economics of Public–Private Partnerships: Some Theoretical Contributions," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 7, Edward Elgar Publishing.
    20. Katja Funke & Tim Irwin & Isabel Rial, 2013. "Budgeting and Reporting for Public-Private Partnerships," International Transport Forum Discussion Papers 2013/7, OECD Publishing.
    21. Carter B. Casady & Julián D. Parra, 2021. "Structural Impediments to Policy Learning: Lessons from Colombia’s Road Concession Programs," International Journal of Public Administration, Taylor & Francis Journals, vol. 44(5), pages 359-371, April.
    22. Massimo Florio & Fabienne Fecher, 2011. "The Future Of Public Enterprises: Contributions To A New Discourse," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(4), pages 361-373, December.
    23. Luc BERNIER & Eoin REEVES, 2018. "The Continuing Importance Of State‐Owned Enterprise In The Twenty‐First Century: Challenges For Public Policy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(3), pages 453-458, September.
    24. Robert J. David & Shin‐Kap Han, 2004. "A systematic assessment of the empirical support for transaction cost economics," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 39-58, January.
    25. Stefan Verweij & Ingmar van Meerkerk & Carter B. Casady, 2022. "The performance advantage of public-private partnerships: does it exist or not?," Chapters, in: Stefan Verweij & Ingmar van Meerkerk & Carter B. Casady (ed.), Assessing the Performance Advantage of Public-Private Partnerships, chapter 1, pages 1-26, Edward Elgar Publishing.
    26. Casady, Carter B. & Gómez-Ibáñez, José A. & Schwimmer, Emily, 2020. "Toll-managed lanes: A simplified benefit-cost analysis of seven US projects," Transport Policy, Elsevier, vol. 89(C), pages 38-53.
    27. Manabu Nose, 2017. "Enforcing Public-Private Partnership Contract: How do Fiscal Institutions Matter?," IMF Working Papers 2017/243, International Monetary Fund.
    28. Mike W. Peng & Garry D. Bruton & Ciprian V. Stan & Yuanyuan Huang, 2016. "Theories of the (state-owned) firm," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 293-317, June.
    29. Fatih Canitez, 2019. "Urban public transport systems from new institutional economics perspective: a literature review," Transport Reviews, Taylor & Francis Journals, vol. 39(4), pages 511-530, July.
    30. Timothy C. Irwin, 2007. "Government Guarantees : Allocating and Valuing Risk in Privately Financed Infrastructure Projects," World Bank Publications - Books, The World Bank Group, number 6638.
    31. Jones, Geoffrey & Zeitlin, Jonathan, 2009. "The Oxford Handbook of Business History," OUP Catalogue, Oxford University Press, number 9780199573950.
    32. Athena Roumboutsos & Aristeidis Pantelias, 2015. "Allocating Revenue Risk in Transport Infrastructure Public Private Partnership Projects: How it Matters," Transport Reviews, Taylor & Francis Journals, vol. 35(2), pages 183-203, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marques, Rui Cunha, 2017. "Why not regulate PPPs?," Utilities Policy, Elsevier, vol. 48(C), pages 141-146.
    2. Peters, Frank, 2018. "The business of video games is a multi-player game : Essays on governance choices and performance in a two-sided market in the cultural industries," Other publications TiSEM 886b3148-4bbb-4ea4-b666-0, Tilburg University, School of Economics and Management.
    3. Lechosław Rojewski, 2008. "Contracting and Transaction Costs in the Public-Private Partnership. A Conception in the Light of the New Institutional Economy," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 21.
    4. Galilea, Patricia & Medda, Francesca, 2010. "Does the political and economic context influence the success of a transport project? An analysis of transport public-private partnerships," Research in Transportation Economics, Elsevier, vol. 30(1), pages 102-109.
    5. Jean-Etienne de Bettignies & Thomas W. Ross, 2010. "The Economics of Public–Private Partnerships: Some Theoretical Contributions," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 7, Edward Elgar Publishing.
    6. Paul H. Jensen & Robin E. Stonecash, 2004. "The Efficiency of Public Sector Outsourcing Contracts: A Literature Review," Melbourne Institute Working Paper Series wp2004n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    7. Iossa, Elisabetta & Martimort, David, 2016. "Corruption in PPPs, incentives and contract incompleteness," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 85-100.
    8. Boudreaux, Christopher, 2019. "Do private enterprises outperform state enterprises in an emerging market? The importance of institutional context in entrepreneurship," MPRA Paper 93039, University Library of Munich, Germany.
    9. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 37141.
    10. Kenneth A. Small, 2009. "Private Provision of Highways: Economic Issues," Transport Reviews, Taylor & Francis Journals, vol. 30(1), pages 11-31, July.
    11. Ralph Chami & Connel Fullenkamp & Sunil Sharma, 2010. "A framework for financial market development," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(2), pages 107-135.
    12. Geoffrey M. Hodgson, 2010. "Limits of Transaction Cost Analysis," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 28, Edward Elgar Publishing.
    13. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    14. Jean-François Hennart & Dylan Sutherland, 2022. "International business research: The real challenges are data and theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2068-2087, December.
    15. Andrey Shastitko & Claude Ménard, 2017. "Discrete institutional alternatives: Theoretical and policy issues (Celebrating the 80 th anniversary of Ronald Coase's “Nature of the Firm”)," Post-Print hal-04011898, HAL.
    16. Ménard, Claude & Kurdin, Alexander & Shastitko, Andrey, 2020. "Out by the door, in through the window: Politics and natural gas regulation in Russia," Utilities Policy, Elsevier, vol. 64(C).
    17. Nicolas Bédu & Olivier Brossard & Matthieu Montalban, 2024. "Proximity relations and the fate of VC-backed startups: Evidence from a global 33-year-long dataset," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 429-464, April.
    18. Carayannopoulos, Sofy & Auster, Ellen R., 2010. "External knowledge sourcing in biotechnology through acquisition versus alliance: A KBV approach," Research Policy, Elsevier, vol. 39(2), pages 254-267, March.
    19. Christian Jaag & Urs Trinkner, 2011. "A General Framework for Regulation and Liberalization in Network Industries," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 3, Edward Elgar Publishing.
    20. Dimas de Castro e Silva Neto & Carlos Oliveira Cruz & Joaquim Miranda Sarmento, 2017. "Understanding the patterns of PPP renegotiations for infrastructure projects in Latin America," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 271-296, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:65:y:2023:i:c:p:339-350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.