Risk Factors In Resettlement Project Project: A Case Study Of Binh Khanh Development Project

In recent years, Vietnam’s construction industry has improved. However, many projects which invested by the government are still meeting some problems like cost overrun and schedule delay, which are caused not only by weak project management but also complicated legal procedures.

Ho Chi Minh City is one of the centers of Vietnam with a rapid growth in economic. However, the urban projects development in Ho Chi Minh City is not synchronic and slow because problems happened in investment process. The main reason is the land clearance and resettlement. Resettlement projects were built without profit for moving vulnerable people before the main project were deployed.

Mr. Le Minh Dang made a case study to research and find out the risk factor occurs in each stage of a resettlement development project, and then analysis impact of some typical risk factors, and propose effective method to mitigate them and ensure project objectives. The objectives of his study were to: (1) identify risks create in resettlement development project in each stage and find out risk factors effect to project finance, implementation; (2) propose strategies to effectively eliminate or mitigate major risks; and (3) propose solutions that identify and prevent risks in similar projects and improve management of Resettlement development project.

Conclusions

The case in this report described a special project implementation of urban development in Ho Chi Minh City, and obviously revealed high-risk factors that can seriously affect the success of the project. Actually, the government has enormous efforts to overcome policy and reduce the cumbersome procedures in investment, but investors still face a lot of problems (risks) when implementing project.

The report may not define all problems in various stages of project implementation because the author only analyzed main problems that may affect the efficiency of the projects such as: progress delay and project costs incurred compared to initial estimates. Based on the analysis, the author proposed appropriate strategies to mitigate these major risks and problems as shown in the table below.

Recommendations

In scope of this report, the author just emphasized major problems effecting on Binh Khanh project objective. The findings of this study are expected to contribute to identify major risks and more effective project management process in project. To achieve this objective, this study proposed some recommendation:

1. Researched carefully feasibility study, legal procedures, investment policies to ensure compliance with long-term development strategy, taking factors fluctuations in policy and plan for appropriate preventive.

2. To train or recruit experts with full experience in the concerned fields, such as planning, design, construction techniques, financial ... to set up competence project team for the best implementation.

3. Investigate and research risk factors of project, impact of risks to the investment effectiveness of the project. Setup the risks control plan to minimize impact of risks to project, especially in project finance.

4. Setting up risk monitor plan for opportune action such as dealing with the risks, actively avoid and share the risk, promptly response when risks occur.

5. Develop a plan to mobilize capital to meet the progress of the project.

6. Propose and persuade Director Board to approve risk management and risk management cost.

7. Especially focus on the initiation stage: Investment report, Feasibility Study, Project planning and Detail Design.

8. The Investors should monitor to changing of investment policies to avoid the risk factors effect to project planning.

9. Design&Build contractor must be selected by biding. The contractor must have appropriate capacity management and experience in Design&Build method.

His thesis abstract is copied and posted below.

Abstract

Social projects that change patterns of use of land, water, and other natural resources can cause a range of resettlement effects. Resettlement losses most often arise because of land acquisition, through expropriation and the use of eminent domain or other regulatory measures, to obtain land. Housing, community structures and systems, social networks, and social services can be disrupted. Productive assets, including land, income sources, and livelihoods can be lost. Cultural identity and potential for mutual help may be diminished. Loss of resources for subsistence and income may lead to exploitation of fragile ecosystems, hardship, social tensions, and impoverishment. In urban areas, displaced people might swell a growing squatter population. The people affected have no option, and must try to rebuild their lives, incomes, and asset base elsewhere.

To ensure that some people are not disadvantaged in the process of development, the Government tries to avoid or minimize resettlement effects by Real estate law.
The law stipulated the rate of land for resettlement and business. The investor have to develop the resettlement projects for vulnerable people.
So, the management of resettlement projects is an important issue for the investor because the resettlement projects are always low benefit and affect to time schedule and cost of the main project.

The purpose of management of resettlement project is identify all problems before they occur so that management may be planed and mitigate adverse impacts on achieving objectives. To effectively manage the resettlement project, it is necessary for organizations to identify important issues in time, cost, quality and safety , then provide a suitable method to manage in each stage of resettlement project life cycle and suggest the effective solution methods as minimized, shared, transferred, avoided or accepted but can not be ignored.