Recently, the oil and gas prices increase day by day which makes difficulties for developing countries like China, India and Vietnam to have a stable economic condition. The demand of oil and gas consumption all over the world is increasing, therefore the services required in developing new offshore facilities for oil and gas exploration also increases.
Developing the facilities for an offshore oil and gas field such as platform, Oil and Gas Companies (hereinafter referred as the Project Company) normally sign an EPC (Engineering, Procurement and Construction) contract with the EPC contractor. For this field of industry, there are only few numbers of EPC Contractors in the Asian South East countries who can execute a full EPC project, therefore the EPC contractor is normally selected and awarded thru the international bidding tender. The major factors for executing an EPC project are the contract clauses which are normally generally stipulated, with unclear understanding and interpretation when having disputes between the contractor and the project company. Therefore, studying the method in developing the effective, simplified and understandable clauses in the EPC contract is necessary. In this context, involved parties will understand and interpret clearly the contract negotiation prior to the EPC contract signing and commencement. The understandable and applicable contract clauses properly will help an EPC project to be executed smoothly and effectively.
In order to minimize the interfaces and risks between the separated contractor and the project company during executing an oil and gas project, the oil and gas companies normally prefer to award and sign an EPC contract with the EPC contractor, however this project delivery method will take a lot of time to make clarification, explanation and get the mutually agreement on the contract clauses between the contractor and the project company. The following problems are normally involved with the EPC contract clauses:
1. Take time to make the clarification and finalization before contract signing;
2. Wrong understanding and interpreting of stipulated clauses in the contract;
3. Conflict between contractor and the project company during project execution.
Mr. Nguyen Van Diep made a case study that focused on the issues related to EPC contract. His study objectives are to (1) study the advantages and disadvantages of EPC contract; (2) study the contract clauses to manage EPC oil and gas project; and (3) state the problems in the contract and propose the effective solutions to resolve the problems.
Mr. Diep outlined below the summary of effective clauses in oil and gas EPC project and lessons learned in the EPC contract and conclusion. He also gave some suggestions in applying the effective clauses that can be carried out to expand the understanding regarding the contracting arrangement that are used in EPC project in the Vietnam Oil and Gas industry.
1. Summary of contract clauses
These clauses are normally defined and given by the Project Company in order to protect the project objectives and the Project Company from any kind of risks that may happen. However from contractor’s point of view, it will be very risky if the Contractor complies with all these clauses without any exception or amendment. Therefore, providing the effective clauses based on the project documents and the Project Company’s interest shall be addressed during the bidding preparation and negotiation.
In summary, the effective clauses are the terms and conditions stipulated in the contract which shall be defined based on the interest and “win-win solution” basis for both the Project Company and the EPC Contractor.
2. Lessons learned in the EPC contract
EPC contract is quite complicated in terms of legal issue, therefore the Project Company and the EPC Contractor shall have enough experiences and knowledge about the nature of project facilities in order to avoid their faults and minimize the risks during contract execution. There are some key elements that the Contractor shall be needed to focus on the following issues below to implement in an EPC contract:
- Incorporate a more thorough requirement of using an earned value system with an objective measurement method. Try to use the Contractor’s standard system to its full extent and make sure it is an objective, not a subjective, measurement.
- Specify the types, formats, and frequency of reports in the contract to set the expectations and to avoid disturbing contractor’s standard practices
- Agree on the monthly percent completion of EPC early and compare them with other past EPC project experiences
- Continue the use of “monthly milestone events” evaluation and payment structure.
- Distinguish documents subject to the project company’s approval turnaround and documents subject to the project company’s review
- Assign the Project Company’s specific equipment and drawing numbers early
- Ask each discipline engineer to write and communicate the hottest items/concerns in their areas of responsibilities in the early stage of the Project
- Promote a proactive planning effort throughout the organization
- Devise a method to facilitate the early detection of potential cost and schedule deviation to minimize surprises
- Use variance analysis to concentrate the management efforts
- Ensure that milestone events and progress curves support and consistency each other
- Clarify the project company’s responsibilities and roles in construction, commissioning and hand-over.
- Identify commissioning system/events early.
For the project company to manage EPC lump sum contract, they also need to understand lump sum contract characteristics from the perspectives of both the contractor and the Project Company. EPC projects offer a mutually beneficial and exciting form of project delivery for both the project company and the contractor. However the EPC contract come many new risks that are often severe, due to the complex nature and high cost frequently associated with this type of project. Understanding the risks and some of the other unique characteristics of EPC contracting is critical to a successful project where both the project company and the contractor obtain the high rewards for the risk.
3. Conclusion for the advantages and disadvantages of EPC Contract
The advantage from the Project Company’s point of view of an EPC contract is that the contractor takes full responsibility in respect of the following:
- Cost of completion if it is a lump sum contract (subject to limited adjustments);
- The time for completion (subject to extensions of time);
- The quality of the design and work and achievement of performance guarantees (subject to any exclusion).
This means that the potential factors for multiple disputes is also avoided. However, the major disadvantage for the Project Company of the EPC contract is that the detailed design is the contractor's prerogative. Accordingly, in an EPC contract, great care needs to be taken that the Project Company specifies and defines the design parameters and deliverables (including consumption of utilities and emissions) so that the Project obtains a project of the required standard. This is usually required more than simply stipulating performance criteria in relation to the output of the project, and will include design-life and maintenance issues.
The results from his study have identified that the advantages and disadvantages of EPC contract as well as description of the application for some major clauses and finding the way how to minimize the risks for the Project by providing the effective amendment in consideration of the EPC Contractor’s point of view and the project objectives expected by the Project Company.
4. Conclusion for the contract clauses to manage EPC oil & gas project
The contract clauses are the most important tool to manage the EPC project. Therefore, the involved parties (i.e. Project Company, EPC Contractor) shall understand and know how to apply this tool effectively to manage the project in term of costly, timely and quality.
The contract clauses will be only effective when these are defined and stipulated in accordance with the project specification, documents and nature of work to be performed. Finally, these clauses also are established and finalized according to the mutually agreement between the Project Company and EPC Contractor.
5. Conclusion for resolving the problems in an EPC contract
The problems always happen in the construction project and it will be very difficult to avoid problems happening to the project; however the problems can be ignored or minimized by understanding clearly about the scope of application for each contract clause in term of legal aspects and project requirement. In addition, these problems can be foreseen and negotiable during the bidding phase prior to finalization of contract documents and these shall be controlled and monitored during all phases of project.
In conclusion, besides the other relationships between Project Company and EPC Contractor, the fair and effective contract clauses stipulated in the contract document are tool to resolve all problems in an EPC contract in term of contractual relationships between Project Company and EPC Contractor.
General Conclusion
In conclusion, the major clauses in the EPC contracts are not the same for all project, these also depend on each project scope of work, complexity, specification and documents, the project company’s requirement and expectation and mostly on the outcome of contract negotiation between the Project Company and the EPC Contractor. Therefore, the meaning and application of major clauses in the EPC contracts shall be different in term of the standard form contract i.e. FIDIC or other organizations as well as in each kind of industry i.e. construction, oil and gas, etc.
His thesis abstract is copied and posted.
ABSTRACT
Nowadays, the EPC contract is very wide applied in oil and gas industry in this Region for developing an oil & gas field project, this EPC contract is as a “fast track” tool to reduce the project duration. In order to execute this kind of contract successfully in term of the benefit for all involved parties, it is necessary to focus on some key factors that shall be affected on the project during execution phase i.e. contract terms and conditions clauses. Therefore, understanding and interpreting the application of term and condition clauses clearly in EPC contract will help the project to be executed and monitored by using the proper manning level in accordance with project specification and the project will be achieved its goals without the minimized disputations and conflicts happening.
This study will also discuss on the advantages and disadvantages of EPC contract from both Contractor and Project Company’s point of view and how to manage the EPC contract in accordance with term and condition clauses stipulated in the signed contract documents; how to resolve problems by understanding the contract clauses. However, the improvement of some major clauses are still needed in order to specify and define clearly the duties and responsibilities as well as obligations of involved parties to minimize the conflicts, interfaces, risks and disputes that can be happened during the project execution phase.
Thursday, 15 October 2009
Monday, 12 October 2009
AIT-CV (Hanoi and Ho Chi Minh) August 2009 Intake for CEIM and MPM Field of Studies
The AIT-CV Hanoi branch accepted 13 students for August 2009 semester. Twelve (12) students are now enrolled in Professional Master in Project Management and one (1) MS student for Construction, Engineering and Infrastructure Management.
In AIT-CV Ho Chi Minh City Branch, twenty four (24) students are currently registered; four (4) MS students and one (1) Ph. D. for Construction, Engineering and Infrastructure Management, while nineteen (19) students for Professional Master in Project Management field of study.
Below is the complete list of AIT-CV students.
Hanoi Branch
No. Name Field
1. Mr. Tran Van Trung - MPM
2. Mr. Pham Nhu Dung - MPM
3. Ms. Le Ngoc Diep - MPM
4. Mr. Doan Thai Duong - MPM
5. Mr. Le Nam Binh - MPM
6. Mr. Pham Van Thanh - MPM
7. Mr. Le Van Thu - MPM
8. Mr. Nguyen Trung Kien - MPM
9. Mr. Nguyen Duy Duc Thu - MPM
10. Mr. Dinh Quang Hiep - MPM
11. Mr. Bui Duc Luong - MPM
12. Mr. Vu Van Cao - MPM
13. Ms. Nguyen Phung Hai - CEIM
Ho Chi Minh City Branch
No. Name Field
1. Mr. Nguyen Tuan Tu - CEIM
2. Mr. Bui Duy Khanh - CEIM
3. Mr. Nguyen Quoc Trung - CEIM
4. Mr. Duong Quang Minh - CEIM
5. Mr. Ha Cong Huy - Ph.D – CEIM
6. Mr. Bui Kim Binh - MPM
7. Mr. Nguyen Phan Hoa Binh - MPM
8. Mr. Truong Thai Binh - MPM
9. Mr. Le Minh Đang - MPM
10. Mr. Truong Ngoc Dung - MPM
11. Mr. Nguyen Duy Thien Giang - MPM
12. Ms. Trinh Thi Thu Ha - MPM
13. Mr. Bien Nam Hai - MPM
14. Mr. Vo Si Hoai - MPM
15. Mr. Bui Hai Nam - MPM
16. Mr. Ha Chi Nghia - MPM
17. Mr. Nguyen Van Nhan - MPM
18. Mr. Nguyen Chanh Phuong - MPM
19. Mr. Nguyen Le Thuan - MPM
20. Mr. Le Mien Thuy - MPM
21. Ms. Nguyen Thu Trang - MPM
22. Mr. Nguyen Duc Trong - MPM
23. Mr. Nguyen Quoc Viet - MPM
24. Ms. Nguyen Thi Vui - MPM
In AIT-CV Ho Chi Minh City Branch, twenty four (24) students are currently registered; four (4) MS students and one (1) Ph. D. for Construction, Engineering and Infrastructure Management, while nineteen (19) students for Professional Master in Project Management field of study.
Below is the complete list of AIT-CV students.
Hanoi Branch
No. Name Field
1. Mr. Tran Van Trung - MPM
2. Mr. Pham Nhu Dung - MPM
3. Ms. Le Ngoc Diep - MPM
4. Mr. Doan Thai Duong - MPM
5. Mr. Le Nam Binh - MPM
6. Mr. Pham Van Thanh - MPM
7. Mr. Le Van Thu - MPM
8. Mr. Nguyen Trung Kien - MPM
9. Mr. Nguyen Duy Duc Thu - MPM
10. Mr. Dinh Quang Hiep - MPM
11. Mr. Bui Duc Luong - MPM
12. Mr. Vu Van Cao - MPM
13. Ms. Nguyen Phung Hai - CEIM
Ho Chi Minh City Branch
No. Name Field
1. Mr. Nguyen Tuan Tu - CEIM
2. Mr. Bui Duy Khanh - CEIM
3. Mr. Nguyen Quoc Trung - CEIM
4. Mr. Duong Quang Minh - CEIM
5. Mr. Ha Cong Huy - Ph.D – CEIM
6. Mr. Bui Kim Binh - MPM
7. Mr. Nguyen Phan Hoa Binh - MPM
8. Mr. Truong Thai Binh - MPM
9. Mr. Le Minh Đang - MPM
10. Mr. Truong Ngoc Dung - MPM
11. Mr. Nguyen Duy Thien Giang - MPM
12. Ms. Trinh Thi Thu Ha - MPM
13. Mr. Bien Nam Hai - MPM
14. Mr. Vo Si Hoai - MPM
15. Mr. Bui Hai Nam - MPM
16. Mr. Ha Chi Nghia - MPM
17. Mr. Nguyen Van Nhan - MPM
18. Mr. Nguyen Chanh Phuong - MPM
19. Mr. Nguyen Le Thuan - MPM
20. Mr. Le Mien Thuy - MPM
21. Ms. Nguyen Thu Trang - MPM
22. Mr. Nguyen Duc Trong - MPM
23. Mr. Nguyen Quoc Viet - MPM
24. Ms. Nguyen Thi Vui - MPM
Wednesday, 7 October 2009
Public Private Partnerships for Low Income Housing Development in Cantho City, Vietnam
According to assessment of World Bank (2006), Vietnam has made remarkable progress in GDP and poverty reduction over the past decade. A critical factor in this success is significant government emphasis on investment, particularly in infrastructure. Since 1997, infrastructure investment has highly occupied GDP growth, boosting the economy’s productivity. Vietnam, together with Thailand and China, has been the leading countries in terms of infrastructure investment in East Asian region (ADB et al., 2006a).
As for the future investment, some sector plans and forecasts (transport sector, electricity sector, telecommunications sector, and water and sanitation sector) future annual infrastructure investment assuming to 11.4% of GDP (World Bank, 2006). At provincial level, public private financing schemes have been found to assist in urban development carried out by local government (Kyvelou & Karaiskou, 2006). Provincial governments have more jurisdictions in choosing their own projects within a given budget envelop (ADB et al., 2006b). Some local governments have created specialist government investment funds with significant roles in infrastructure financing.
Private investment in infrastructure at provincial level has been noticeable growth as the result of decentralization policy of central government in recent years. There are a number of projects funded successfully by local governments as Hanoi, Binhduong, Dongnai, and Hochiminh including two main areas privatization of existing assets and green-field investment in new assets.
In Cantho city, there are no actual model BOT, BTO, BT implemented under city’s government up till now. Cantho City has to face with pressing needs in developing infrastructure in general while state budget is limited. Government of Cantho City is seeking for the possible models with participation of private sector to reduce the burden of state budget and offer the housing for employees with affordable price. Therefore, Mr. Tran Quang Ninh made a case study and considered the following problems:
1) Limit of using public private partnership approach at local government level may cause difficulties for infrastructure development;
2) Lack of reference to public private partnerships models applied in other countries to create the efficient delivery infrastructure system;
3) Lack of public private partnerships model is to support as the referential procurement in development low income housing in Cantho city, Vietnam.
Mr. Nihn made a case study which main objectives are to: (1) develop public private partnerships models for low income housing development in Cantho city, Vietnam; (2) evaluate the applicability of developed models, and 3) propose the applicable public private partnerships model and its implementation guidelines for low income housing development in Cantho city, Vietnam.
His study revealed that in the context, the price of land is extremely expensive compared with average income of the majority of the people, which makes housing always bother them and also, a big concern for Vietnamese government now. Three local governments were appointed to implement the pilot projects and only Binhduong province’s project proposal was approved by the Prime Minister.
Public private partnerships approach has been applied for developing infrastructure in Vietnam in recent years. There are many projects implemented successfully under PPP, especially power sector and transport sector. According to experts (ADB, 2005), public private partnership approach has much potential to be applied widely through many fields in Vietnam.
Mr. Nihn proposed 3 PPP Models, its strength and weakness for low income housing in Cantho city. See table below:
And finally, the PPPs structure of applicable model he proposed can seen below: 
His thesis abstract is copied and posted.
ABSTRACT
Public private partnerships approach is considered efficient tool for infrastructure development in Vietnam recently. There are many implemented successfully under this approach, especially power sector and transport sector. The objective of this study is to apply the public private partnerships approach into low income housing development in Cantho city, Vietnam. The Vietnam legal framework, existing Public private partnerships models in various countries, and case study in Binhduong are investigated to develop the possible Public private partnerships models. And then, interviews stakeholders are conducted to evaluate applicability of developed models. The study proposes the applicable model to develop low income housing in Cantho city under public private partnerships concept. The proposed model is adequate to the real context of Cantho city. And this model possesses some improvements in comparison with the case study’s model, especially in financial aspect, it reduces around 24% state budget under the same assumptions of case study’s project. The proposed model either satisfies the low income people due to adequate price of service or reduces spending state budget and also uses more efficient subsidies through private participations and an adequate subsidy mechanism. The prominent performances of proposed model are specifically showed in two aspects sources of funds and government. That leads the applicability of proposed model.
As for the future investment, some sector plans and forecasts (transport sector, electricity sector, telecommunications sector, and water and sanitation sector) future annual infrastructure investment assuming to 11.4% of GDP (World Bank, 2006). At provincial level, public private financing schemes have been found to assist in urban development carried out by local government (Kyvelou & Karaiskou, 2006). Provincial governments have more jurisdictions in choosing their own projects within a given budget envelop (ADB et al., 2006b). Some local governments have created specialist government investment funds with significant roles in infrastructure financing.
Private investment in infrastructure at provincial level has been noticeable growth as the result of decentralization policy of central government in recent years. There are a number of projects funded successfully by local governments as Hanoi, Binhduong, Dongnai, and Hochiminh including two main areas privatization of existing assets and green-field investment in new assets.
In Cantho city, there are no actual model BOT, BTO, BT implemented under city’s government up till now. Cantho City has to face with pressing needs in developing infrastructure in general while state budget is limited. Government of Cantho City is seeking for the possible models with participation of private sector to reduce the burden of state budget and offer the housing for employees with affordable price. Therefore, Mr. Tran Quang Ninh made a case study and considered the following problems:
1) Limit of using public private partnership approach at local government level may cause difficulties for infrastructure development;
2) Lack of reference to public private partnerships models applied in other countries to create the efficient delivery infrastructure system;
3) Lack of public private partnerships model is to support as the referential procurement in development low income housing in Cantho city, Vietnam.
Mr. Nihn made a case study which main objectives are to: (1) develop public private partnerships models for low income housing development in Cantho city, Vietnam; (2) evaluate the applicability of developed models, and 3) propose the applicable public private partnerships model and its implementation guidelines for low income housing development in Cantho city, Vietnam.
His study revealed that in the context, the price of land is extremely expensive compared with average income of the majority of the people, which makes housing always bother them and also, a big concern for Vietnamese government now. Three local governments were appointed to implement the pilot projects and only Binhduong province’s project proposal was approved by the Prime Minister.
Public private partnerships approach has been applied for developing infrastructure in Vietnam in recent years. There are many projects implemented successfully under PPP, especially power sector and transport sector. According to experts (ADB, 2005), public private partnership approach has much potential to be applied widely through many fields in Vietnam.
Mr. Nihn proposed 3 PPP Models, its strength and weakness for low income housing in Cantho city. See table below:
And finally, the PPPs structure of applicable model he proposed can seen below:
His thesis abstract is copied and posted.
ABSTRACT
Public private partnerships approach is considered efficient tool for infrastructure development in Vietnam recently. There are many implemented successfully under this approach, especially power sector and transport sector. The objective of this study is to apply the public private partnerships approach into low income housing development in Cantho city, Vietnam. The Vietnam legal framework, existing Public private partnerships models in various countries, and case study in Binhduong are investigated to develop the possible Public private partnerships models. And then, interviews stakeholders are conducted to evaluate applicability of developed models. The study proposes the applicable model to develop low income housing in Cantho city under public private partnerships concept. The proposed model is adequate to the real context of Cantho city. And this model possesses some improvements in comparison with the case study’s model, especially in financial aspect, it reduces around 24% state budget under the same assumptions of case study’s project. The proposed model either satisfies the low income people due to adequate price of service or reduces spending state budget and also uses more efficient subsidies through private participations and an adequate subsidy mechanism. The prominent performances of proposed model are specifically showed in two aspects sources of funds and government. That leads the applicability of proposed model.
Tuesday, 6 October 2009
Developer’s Investment Decision Making on Real Estate Development:
In Thailand, most of real estate investors depends their decision on the overall economic situation resulting to property development industry downsizing since 2005. This phenomenon directly affects the consumer’s confidence, and has direct coloration with economic situation. While housing demand was reducing gradually, housing supply was increasing at the same time. And some investors therefore could not gain revenues base on their expectation.
For real estate project, it is impossible to make investment decision which aim is to achieve the business goal without understanding the whole process of investment and the factors which influence every state of decision making process.
Ms. Rahongsree Prayongrut made a case study to investigate the investment decision making process of real estate project and to identify the key factors which influence every stage. In order to accomplish these primary objectives, she outlined three sub-objectives which are to (1) develop model of investment decision making process of real estate project and identifying factors which influence investment decision in each stage; (2) investigate the practice of developer’s investment decision making base upon developed model, through finding out significant factors affecting decision making process, and their behaviors in facing fluctuation and alter of factors in investment decision making process for real estate project; and (3) propose recommendations to developers in order to improve practical management decisions by using the model and significant factors.
Her study revealed that the residential property project investment decision is divided into two directions; a) investment decision driven by supply, and b) investment decision driven by demand. Each direction has four main decisions such as location, target group, design and finance. In the investment decision driven by supply, it started with land acquisition while investment decision driven by demand is started with identify target group. Some processes and key influence decision are different between two directions.
Her study also revealed that there are many internal and external factors which induce developer to follow each direction. These are:
1. The reasons for choosing any of investment direction
Generally investment decision making process driven by supply is long process of development and more in land bank strategy. On the other hand, investment decision making process driven by demand is raced against time and several competitors because of attractive existing demand. The developer can choose any investment direction, and the decision will depend on internal factors (investment strategy and financial health) and external factors (land price, economic situation, and property market trend). Land price and property market trend is one of the most important considerations of decision making process.
2. Residential investment decision driven by supply: land acquisition and target group selection.
For the acquisition of land through legal process, the developers should consider several factors such as land price, right of land, accessibility, transportation, the distant form CBD, amenity, facility, infrastructure, government development plan obligation, expropriate, physical feature of land, elevation, physical constrain, and previous building.
For identifying the target group, there are several factors which developers should consider such as housing demand, customer’ confidence, housing stock, demographic, housing supply, housing loan, housing affordability, average income, and government financial and housing policy, competitor’s price, quality and brand royalty for target group consideration.
3. Residential investment decision driven by demand: target group selection, land acquisition, and financial decision. To identify and analyze the target group, the developers are advised to do the following steps:
a) Evaluate the real estate market trend, housing demand and supply to find the existing demand in terms of number, income, characteristic, and affordability
b) Analyze whether the government policy in terms of housing development and finance is supportive or not.
c) Analyze the competitors in terms of their target group and location. The market segmentation is evaluated.
For site selection, the developers must identify where the existing demand and project’s competitors are. They need to evaluate the site in terms of transportation, accessibility, facility and amenity, physical feature and land price, and for the legal requirements, analysis of right of land and other legal title of land.
4. Design: The similar of two investment directions, the investment decision driven by supply and demand. Below are some points for developers to follow:
a) Start with developing detail financial plan and feasibility analysis in terms of cash flow statement, budget, unit price, discount rate, mark-up, break event point, D/E, and capital arrangement. Sensitivity analysis is achieved afterward.
b) Set up the construction cost following financial plan from financial activities,
c) Analyze customer in terms of customers’ needs, lift style and family size and then they identify selling point.
d) Point out the legal and environmental requirement and constrain if any, then carried out the project design and product design subsequently, and
e) Finally, conduct master plan, payment condition, and contract condition with other stakeholders and negotiation.
5. The difference between financial methods. Generally, investment decision making process driven by supply uses long term loan or developer’s equity for land acquisition, contrary to the process driven by demand which uses short term finance for projects.
Her thesis abstract is copied and posted.
ABSTRACT
Currently, economic and financial are varying over the time among increase in business competitors. Therefore, it encourages the higher investment risks especially in real estate industry because of its nature. The study focused on residential investment which is the major part of real estate industry. The study aims to investigate investment decision making process of real estate project and identifying factors which influence investment decision and recommend the effective operational method for making residential investment decisions.
The study uses case study as a research design. The processes begin with factor identification which consists of preliminary factor and verification of the factors. It is the continued with the data collection using the abovementioned factors to design the case study question. Data analysis is conducted toward the evidences using explanation building method in which all the important evidences are revealed and explained.
The result from project case studies indicated, that residential property project investment decision is divided into two directions. There are investment decisions driven by supply and demand. Any of investment direction, there are four main decisions which are location, target group, design and finance. The framework shows the how to choose the investment direction and how each investment direction are performed.
For real estate project, it is impossible to make investment decision which aim is to achieve the business goal without understanding the whole process of investment and the factors which influence every state of decision making process.
Ms. Rahongsree Prayongrut made a case study to investigate the investment decision making process of real estate project and to identify the key factors which influence every stage. In order to accomplish these primary objectives, she outlined three sub-objectives which are to (1) develop model of investment decision making process of real estate project and identifying factors which influence investment decision in each stage; (2) investigate the practice of developer’s investment decision making base upon developed model, through finding out significant factors affecting decision making process, and their behaviors in facing fluctuation and alter of factors in investment decision making process for real estate project; and (3) propose recommendations to developers in order to improve practical management decisions by using the model and significant factors.
Her study revealed that the residential property project investment decision is divided into two directions; a) investment decision driven by supply, and b) investment decision driven by demand. Each direction has four main decisions such as location, target group, design and finance. In the investment decision driven by supply, it started with land acquisition while investment decision driven by demand is started with identify target group. Some processes and key influence decision are different between two directions.
Her study also revealed that there are many internal and external factors which induce developer to follow each direction. These are:
1. The reasons for choosing any of investment direction
Generally investment decision making process driven by supply is long process of development and more in land bank strategy. On the other hand, investment decision making process driven by demand is raced against time and several competitors because of attractive existing demand. The developer can choose any investment direction, and the decision will depend on internal factors (investment strategy and financial health) and external factors (land price, economic situation, and property market trend). Land price and property market trend is one of the most important considerations of decision making process.
2. Residential investment decision driven by supply: land acquisition and target group selection.
For the acquisition of land through legal process, the developers should consider several factors such as land price, right of land, accessibility, transportation, the distant form CBD, amenity, facility, infrastructure, government development plan obligation, expropriate, physical feature of land, elevation, physical constrain, and previous building.
For identifying the target group, there are several factors which developers should consider such as housing demand, customer’ confidence, housing stock, demographic, housing supply, housing loan, housing affordability, average income, and government financial and housing policy, competitor’s price, quality and brand royalty for target group consideration.
3. Residential investment decision driven by demand: target group selection, land acquisition, and financial decision. To identify and analyze the target group, the developers are advised to do the following steps:
a) Evaluate the real estate market trend, housing demand and supply to find the existing demand in terms of number, income, characteristic, and affordability
b) Analyze whether the government policy in terms of housing development and finance is supportive or not.
c) Analyze the competitors in terms of their target group and location. The market segmentation is evaluated.
For site selection, the developers must identify where the existing demand and project’s competitors are. They need to evaluate the site in terms of transportation, accessibility, facility and amenity, physical feature and land price, and for the legal requirements, analysis of right of land and other legal title of land.
4. Design: The similar of two investment directions, the investment decision driven by supply and demand. Below are some points for developers to follow:
a) Start with developing detail financial plan and feasibility analysis in terms of cash flow statement, budget, unit price, discount rate, mark-up, break event point, D/E, and capital arrangement. Sensitivity analysis is achieved afterward.
b) Set up the construction cost following financial plan from financial activities,
c) Analyze customer in terms of customers’ needs, lift style and family size and then they identify selling point.
d) Point out the legal and environmental requirement and constrain if any, then carried out the project design and product design subsequently, and
e) Finally, conduct master plan, payment condition, and contract condition with other stakeholders and negotiation.
5. The difference between financial methods. Generally, investment decision making process driven by supply uses long term loan or developer’s equity for land acquisition, contrary to the process driven by demand which uses short term finance for projects.
Her thesis abstract is copied and posted.
ABSTRACT
Currently, economic and financial are varying over the time among increase in business competitors. Therefore, it encourages the higher investment risks especially in real estate industry because of its nature. The study focused on residential investment which is the major part of real estate industry. The study aims to investigate investment decision making process of real estate project and identifying factors which influence investment decision and recommend the effective operational method for making residential investment decisions.
The study uses case study as a research design. The processes begin with factor identification which consists of preliminary factor and verification of the factors. It is the continued with the data collection using the abovementioned factors to design the case study question. Data analysis is conducted toward the evidences using explanation building method in which all the important evidences are revealed and explained.
The result from project case studies indicated, that residential property project investment decision is divided into two directions. There are investment decisions driven by supply and demand. Any of investment direction, there are four main decisions which are location, target group, design and finance. The framework shows the how to choose the investment direction and how each investment direction are performed.
Monday, 5 October 2009
Safety Improvement Programs In An Oil And Gas Construction Company: A Study Of Petrovietnam Technical Services Company (Ptsc Production)
Safety is of prime importance in oil and gas industry, and one of the most important factors that contribute to Petrovietnam success in the past years. The effective application of the Health, Safety and Environment Management System (HSEMS) in all Divisions has been applied in almost oil and gas construction companies operating in Viet Nam. This is a modern approach in domestic oil and gas industry where safety requirements are very strictly controlled with tight supervision mechanism.
However, there are some occupational accidents, which happen, kill and injure many people every year. Therefore, preventing accidents and providing safe working environment to protect employees are very important issues in oil and gas operations in Petrovietnam’s subsidiaries and a safety improvement program can be compulsorily necessary to prevent people from any harm, minimize any damage to property and to the environment during production and business processes.
The purposes of the safety improvement programs are to identify strong and weak issues of the safety management system, and then to give the best solutions for control of all risks to achieve goals “All activities are completed with zero injuries to people and zero damage to equipment, property and environment”.
Although the oil and gas construction companies in Vietnam have already established the health, safety and environment management systems to provide the flexible and integrated approach to manage HSE, risks, and develop HSE programs to meet the requirements of Vietnamese and international standards and laws, but there have been some problems about the safety such as:
a) High rate of accidents occurs at the offshore platforms.
b) Problems with workers participation when working on offshore platform
Mr. Pham Van Tuan made a case study to (1) identify safety improvement programs used in the oil and gas construction company; and (2) discuss and review the effectiveness of the safety improvement programs.
He found out that many oil and gas companies in Vietnam have been applied the successful safety improvement programs for several years now. They considered these useful tools to avoid and mitigate accidents and to improve safety performances that resulting in achieving effective cost control and quality control. They recognize the importance of the safety improvement programs and have responsibilities to identify, assess, prevent and manage all risks and injury to people, damage to property and working environment.
These safety improvement programs establish actions for achieving the objectives and targets, in line with the policy commitment of continuous improvement. When establishing targets, take into considerations of the following:
a) Current legal (comply with the national and international regulations and standards related to health, safety and environment) and regulation requirements.
b) The HSE performances (includes: Site and office).
Mr. Tuan also found out that after implementations the safety improvement programs, there are some achieved results about the safety management such as:
1) All accidents have been reduced.
2) The HSE management system objective is to conduct every trade and service activity with all risks identified and well controlled to achieve its goals.
3) The HSE and risk management roles and responsibilities are allocated, and that accountability for the maintenance and continuous improvement of HSE performance is established in all operations.
4) Eliminating injuries by providing rigorous risk mitigation process including safe systems of work, rectifying, and reporting all actions and conditions, which could lead to an incident.
5) Responsibilities for HSE performance will be visible throughout the organization, with clarity on line management accountability.
6) The HSE management system have provided its units and offices with HSE framework that can be used to manage risk that may arise from the existing projects and future projects.
His thesis abstract is copied and posted.
ABSTRACT
Occupational health and safety is related to a good working environment, which covers terms of employment. The main purposes of the safety performance are to foster and develop safety management programs and promote the working abilities of the employees to prevent any risks, accidents and hazards.
Most companies can give many good reasons why they want to improve their management safety system. A well-designed safety management system can help to reduce injuries and illnesses and prevent risks and hazards. In addition, a good management system can increase efficiency, improve productivity and quality of services.
The occupational health and safety improvement programs are very crucial for any oil and gas construction companies in Vietnam. The programs provide the basis for managing and controlling the occupational health and safety performance and identify the safety problems and methods to improve the occupational health and safety performance in the future.
However, there are some occupational accidents, which happen, kill and injure many people every year. Therefore, preventing accidents and providing safe working environment to protect employees are very important issues in oil and gas operations in Petrovietnam’s subsidiaries and a safety improvement program can be compulsorily necessary to prevent people from any harm, minimize any damage to property and to the environment during production and business processes.
The purposes of the safety improvement programs are to identify strong and weak issues of the safety management system, and then to give the best solutions for control of all risks to achieve goals “All activities are completed with zero injuries to people and zero damage to equipment, property and environment”.
Although the oil and gas construction companies in Vietnam have already established the health, safety and environment management systems to provide the flexible and integrated approach to manage HSE, risks, and develop HSE programs to meet the requirements of Vietnamese and international standards and laws, but there have been some problems about the safety such as:
a) High rate of accidents occurs at the offshore platforms.
b) Problems with workers participation when working on offshore platform
Mr. Pham Van Tuan made a case study to (1) identify safety improvement programs used in the oil and gas construction company; and (2) discuss and review the effectiveness of the safety improvement programs.
He found out that many oil and gas companies in Vietnam have been applied the successful safety improvement programs for several years now. They considered these useful tools to avoid and mitigate accidents and to improve safety performances that resulting in achieving effective cost control and quality control. They recognize the importance of the safety improvement programs and have responsibilities to identify, assess, prevent and manage all risks and injury to people, damage to property and working environment.
These safety improvement programs establish actions for achieving the objectives and targets, in line with the policy commitment of continuous improvement. When establishing targets, take into considerations of the following:
a) Current legal (comply with the national and international regulations and standards related to health, safety and environment) and regulation requirements.
b) The HSE performances (includes: Site and office).
Mr. Tuan also found out that after implementations the safety improvement programs, there are some achieved results about the safety management such as:
1) All accidents have been reduced.
2) The HSE management system objective is to conduct every trade and service activity with all risks identified and well controlled to achieve its goals.
3) The HSE and risk management roles and responsibilities are allocated, and that accountability for the maintenance and continuous improvement of HSE performance is established in all operations.
4) Eliminating injuries by providing rigorous risk mitigation process including safe systems of work, rectifying, and reporting all actions and conditions, which could lead to an incident.
5) Responsibilities for HSE performance will be visible throughout the organization, with clarity on line management accountability.
6) The HSE management system have provided its units and offices with HSE framework that can be used to manage risk that may arise from the existing projects and future projects.
His thesis abstract is copied and posted.
ABSTRACT
Occupational health and safety is related to a good working environment, which covers terms of employment. The main purposes of the safety performance are to foster and develop safety management programs and promote the working abilities of the employees to prevent any risks, accidents and hazards.
Most companies can give many good reasons why they want to improve their management safety system. A well-designed safety management system can help to reduce injuries and illnesses and prevent risks and hazards. In addition, a good management system can increase efficiency, improve productivity and quality of services.
The occupational health and safety improvement programs are very crucial for any oil and gas construction companies in Vietnam. The programs provide the basis for managing and controlling the occupational health and safety performance and identify the safety problems and methods to improve the occupational health and safety performance in the future.
Wednesday, 30 September 2009
Project Time and Cost Management in Water Supply Pipeline Construction in Dong Nai Province, Vietnam: A System Dynamics Approach
The primary objectives of any construction projects are to complete the project within the limited period of time, to meet the determined quality based on the standard and specifications, and to keep the project cost under the estimated budget. The concept and practice of project time and cost management in construction industry have been used in recent years in Viet Nam, since at that time, the country had the open-door policy to lure the investment from FDI projects.
It has been proven that, in construction industry especially in water supply pipeline construction, time and cost management played an important role among several construction project management activities. The efficiency of time and cost management can result in the success or failure of construction projects. Hence, it is considered that there is the necessity to develop the model for effective project time and costs management in water supply pipeline construction in Dong Nai province.
Mr. Tran Minh Tung made a case study which objectives are to (1) find out critical factors affecting the project time and cost in water supply pipeline construction project and analyzing the relationship of these factors and thereby enhance understanding of construction delays and cost overruns; (2) develop a generic model based on the factors identified using system dynamic approach; and (3) formulate implementable policies that may aims to reducing project time and costs in water supply pipeline construction project in Dongnai Province, Viet Nam.
He found out that the problem of time delays and cost overrun in the construction industry is a global phenomenon. Project delay and cost overrun have frequently happened in most of construction project and water supply pipeline construction project is not exception. Below are his conclusions and discussions:
1. The critical factors and their interrelationship
By using exploratory research, he found out that there are several critical factors affecting the project cost and time in implementing a water supply pipeline construction project. Project cost and project time completion are significantly influenced by factors in six aspects such as:
a. Labor - by hiring the seasonal laborers, the labor cost can be reduced but the quality and labor productivity will also be affected. However, ‘training’ can enhance the workforce’s productivity; reduce rework and supervisor on site. Besides, ‘Financial difficulties of contractor’ along with ‘late monthly payment’ can negatively influence the ratio of labor turnover which causes laborers shortage.
b. Quality – from this point of view, project cost and time completion rate have related with rework that causing by ‘errors in construction pipeline’. The higher schedule pressure increases, the more ‘errors in construction’ happen. Conversely, the increase of ‘tighter in control and monitoring’ results in ‘error in construction pipeline’ reduction and therefore ‘fault in testing pipeline’ will be increased.
c. Schedule pressure - project cost and time can be influenced by the variance of ‘schedule pressure’, ‘speed up work’ and ‘work remaining’. The increase of ‘speed up’ helps reducing ‘work remaining’ which decreases the project time completion. Also, ‘coordination closely among other Department’ in Dongnai province also helps decreasing ‘the necessary time to consult among these departments’, which can reduce project delay and cost overrun.
d & e. Material and equipment - ‘accuracy material planning design’ helps delivering material on time, saving material and increasing ‘purchasing coordination’ which reduces ‘late delivery of material’. The effectiveness in ‘accuracy material planning’ has positively affected to project time completion. However, ‘late delivery of material’ can happen by the consequence of ‘late payment to suppliers’, ‘financial difficulties of contractors’. In another aspect, the result from simulator shows that ‘qualified subcontractor’ can increase quality of equipment, which reduces rework, leading to accelerate project time completion rate.
f. Safety - project cost and time have the relation with ‘labor productivity’, ‘the rate of labor turnover’, and ‘unsafe act and condition on site’. The higher schedule pressure increases, the more ‘unsafe act and condition’ happen. Conversely ‘safely construction method’ and ‘supervisory effort and monitoring’ help reducing ‘unsafe act and condition’ on site.
2. The system dynamics modeling
It is not difficult for the practitioners to capture the behavior of construction project. The dynamics model will facilitate practitioners to identify the problems related to performance gap by adjusting inputs of exogenous variables with their real scenario. It also makes possible for practitioners to find out the reasonable strategy to implement project in an effective way. Beside, in order to reach the usefulness of system dynamics model, the managers should develop the ability to understand construction project as a whole rather than simply concentrating on the detail of specific issues.
With the aim of setting up the model, the critical factors that have a potential to affect project cost and time in water supply pipeline construction project were identified and analyzed in term of their probable impact on construction process. Then, adopting by system dynamics approach, the generic system dynamics model has been formulated in this study by integrating a number of endogenous and exogenous factors to make dynamic interactions visible.
The generic performance model, when calibrated and tested with data from Nhon Trach water supply project in Dongnai Province, Vietnam, the simulated behavior (base run) of the adopted model has been replicated with the historic behavior (reference mode). This implied that the generic model dynamics performance model can be able to simulate the dynamic of project cost and time during implementing project.
3. Policies for improving
In order to considerably improve project time and cost performance in water supply pipeline construction project, five policies having the most potential were evaluated. The result showed that delay and cost overrun can be reduced by carrying out several important policies during the construction phase, including accuracy design, quality improvement; qualify subcontractors, multi-skilled training and material management.
His thesis abstract is copied and posted.
ABSTRACT
Normally, achieving the project within predetermined time, budget, and quality is the basic purpose of construction project control. Unfortunately, most water supply projects can not be completed within specified time and budget. Most projects showed massive cost and time overruns.
In general, the problem involved with project delays and cost overruns are avoidable. In an attempt to solve these problems, there are various strategies have been applied. Among them, many factors were found as the main source lead to manage time and cost in project efficiently.
This thesis analyzes factors affecting project time and costs in water supply pipeline construction in Dongnai Province, Viet Nam. The qualitative research is conducted to fulfill the objective of the research. Data collection is based on case study in water supply pipeline construction in Dongnai Province. It will be found out from this study that there are a lot of factors affecting project time and costs in water supply pipeline construction. Research objectives is the development of the model involved with the factors affecting project time and costs in water supply pipeline construction project.
In analysis, the model including the factors for reducing project time and cost in water supply pipeline construction projects will be built by using system dynamics modeling. Finally, some strategies deal with project delays and cost overruns are proposed.
It has been proven that, in construction industry especially in water supply pipeline construction, time and cost management played an important role among several construction project management activities. The efficiency of time and cost management can result in the success or failure of construction projects. Hence, it is considered that there is the necessity to develop the model for effective project time and costs management in water supply pipeline construction in Dong Nai province.
Mr. Tran Minh Tung made a case study which objectives are to (1) find out critical factors affecting the project time and cost in water supply pipeline construction project and analyzing the relationship of these factors and thereby enhance understanding of construction delays and cost overruns; (2) develop a generic model based on the factors identified using system dynamic approach; and (3) formulate implementable policies that may aims to reducing project time and costs in water supply pipeline construction project in Dongnai Province, Viet Nam.
He found out that the problem of time delays and cost overrun in the construction industry is a global phenomenon. Project delay and cost overrun have frequently happened in most of construction project and water supply pipeline construction project is not exception. Below are his conclusions and discussions:
1. The critical factors and their interrelationship
By using exploratory research, he found out that there are several critical factors affecting the project cost and time in implementing a water supply pipeline construction project. Project cost and project time completion are significantly influenced by factors in six aspects such as:
a. Labor - by hiring the seasonal laborers, the labor cost can be reduced but the quality and labor productivity will also be affected. However, ‘training’ can enhance the workforce’s productivity; reduce rework and supervisor on site. Besides, ‘Financial difficulties of contractor’ along with ‘late monthly payment’ can negatively influence the ratio of labor turnover which causes laborers shortage.
b. Quality – from this point of view, project cost and time completion rate have related with rework that causing by ‘errors in construction pipeline’. The higher schedule pressure increases, the more ‘errors in construction’ happen. Conversely, the increase of ‘tighter in control and monitoring’ results in ‘error in construction pipeline’ reduction and therefore ‘fault in testing pipeline’ will be increased.
c. Schedule pressure - project cost and time can be influenced by the variance of ‘schedule pressure’, ‘speed up work’ and ‘work remaining’. The increase of ‘speed up’ helps reducing ‘work remaining’ which decreases the project time completion. Also, ‘coordination closely among other Department’ in Dongnai province also helps decreasing ‘the necessary time to consult among these departments’, which can reduce project delay and cost overrun.
d & e. Material and equipment - ‘accuracy material planning design’ helps delivering material on time, saving material and increasing ‘purchasing coordination’ which reduces ‘late delivery of material’. The effectiveness in ‘accuracy material planning’ has positively affected to project time completion. However, ‘late delivery of material’ can happen by the consequence of ‘late payment to suppliers’, ‘financial difficulties of contractors’. In another aspect, the result from simulator shows that ‘qualified subcontractor’ can increase quality of equipment, which reduces rework, leading to accelerate project time completion rate.
f. Safety - project cost and time have the relation with ‘labor productivity’, ‘the rate of labor turnover’, and ‘unsafe act and condition on site’. The higher schedule pressure increases, the more ‘unsafe act and condition’ happen. Conversely ‘safely construction method’ and ‘supervisory effort and monitoring’ help reducing ‘unsafe act and condition’ on site.
2. The system dynamics modeling
It is not difficult for the practitioners to capture the behavior of construction project. The dynamics model will facilitate practitioners to identify the problems related to performance gap by adjusting inputs of exogenous variables with their real scenario. It also makes possible for practitioners to find out the reasonable strategy to implement project in an effective way. Beside, in order to reach the usefulness of system dynamics model, the managers should develop the ability to understand construction project as a whole rather than simply concentrating on the detail of specific issues.
With the aim of setting up the model, the critical factors that have a potential to affect project cost and time in water supply pipeline construction project were identified and analyzed in term of their probable impact on construction process. Then, adopting by system dynamics approach, the generic system dynamics model has been formulated in this study by integrating a number of endogenous and exogenous factors to make dynamic interactions visible.
The generic performance model, when calibrated and tested with data from Nhon Trach water supply project in Dongnai Province, Vietnam, the simulated behavior (base run) of the adopted model has been replicated with the historic behavior (reference mode). This implied that the generic model dynamics performance model can be able to simulate the dynamic of project cost and time during implementing project.
3. Policies for improving
In order to considerably improve project time and cost performance in water supply pipeline construction project, five policies having the most potential were evaluated. The result showed that delay and cost overrun can be reduced by carrying out several important policies during the construction phase, including accuracy design, quality improvement; qualify subcontractors, multi-skilled training and material management.
His thesis abstract is copied and posted.
ABSTRACT
Normally, achieving the project within predetermined time, budget, and quality is the basic purpose of construction project control. Unfortunately, most water supply projects can not be completed within specified time and budget. Most projects showed massive cost and time overruns.
In general, the problem involved with project delays and cost overruns are avoidable. In an attempt to solve these problems, there are various strategies have been applied. Among them, many factors were found as the main source lead to manage time and cost in project efficiently.
This thesis analyzes factors affecting project time and costs in water supply pipeline construction in Dongnai Province, Viet Nam. The qualitative research is conducted to fulfill the objective of the research. Data collection is based on case study in water supply pipeline construction in Dongnai Province. It will be found out from this study that there are a lot of factors affecting project time and costs in water supply pipeline construction. Research objectives is the development of the model involved with the factors affecting project time and costs in water supply pipeline construction project.
In analysis, the model including the factors for reducing project time and cost in water supply pipeline construction projects will be built by using system dynamics modeling. Finally, some strategies deal with project delays and cost overruns are proposed.
Tuesday, 29 September 2009
Sustainable Construction Development Framework Tourism Industry In Phu Quoc Island In Kien Giang Province Viet Nam
Kien Giang, a province at the Southwest end of Vietnam, is one of the biggest provinces in the Mekong Delta, lies next to the Gulf of Thailand, Although it is located relatively far away from the Economic Centers of Viet Nam, compared to the other provinces, it is close to ASEAN countries such as Thailand, Malaysia, Indonesia, Philippine and Cambodia.
Kien Giang is a province with a large tourism potential with its location and islands compared to other provinces in the Mekong Delta. Kien Giang also has flat lands, islands, sea, mountains, forests, caves, rivers, streams, beaches, primeval forests and many other famous landscapes. Kien Giang has many places of historical interest such as Mui Nai beach, Hang Pagoda, Father and Son islet, Thach Dong (Cavern), Mac Cuu Royal Tomb, Hon Dat, U Minh Forest and especially Phu Quoc Island which are attracting to visitors from inland and abroad.
There are flights from Ho Chi Minh City to Phu Quoc and from Phu Quoc to Rach Gia. These good conditions has enable Phu Quoc develop Trade and Tourism in the short term as well as in the long term.
Ms. Pham Thi Cam Tien made a research study regarding the issues affecting construction development in Phu Quoc Island in order to propose a strategy for the future growth of tourism on the island. Her study objectives are (1) to study the current situation of Phu Quoc Island of Kien Giang Province related with sustainable development in tourism; and (2) to study sustainable construction development factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island.
After conducting her survey and interview, the result of the data analyses revealed several issues related with tourism in Phu Quoc Island that affect on sustainable development. In general, Phu Quoc Island is the potential Tourism Island with many long beach as well as waterfalls along the Island. The number of tourists travelling to Phu Quoc is getting bigger and bigger, thus achieving the sustainable development in tourism. But Phu Quoc Island must follow the ecological development standard. The government as well as the investors should have policy to protect environment and nature on the Island. They should have rules and rewards for protecting the nature and environment in the sustainable development construction project.
The sustainable construction development factors and frame work which are applicable in Bai Sao and Bai Truong tourism project in Phu Quoc Island showed that Bai Truong project, is rather big project which is more concentrated on the specific environment investigation and have orientation sustainable development for the island which is divided and developed in small project following the ecological standard. The construction planning is designed into short term and long term stage and has planned to preserve the forest and coach resources.
On the other hand, Bai Sao Project also follows the sustainable development process such as investigating the environment using local material and protecting the natural atmosphere. Bai Sao is concentrated on architecture development. It tried to design ecological architecture with is familiar with nature and coach. Besides, Bai Sao project is attached special importance to the customers – tourist – with hi-end ecological leisure center.
Ms. Cam proposed some measures for improvements of Local Area Tourism Project and the Roles of the Public and Private Sectors. She suggested that a local area tourism project should be accompanied by a concept or urban design drawing which shows diagrammatically the form, layout and disposition of buildings and their relationship to open spaces and other areas. It is very important that these plans will also form the basis for a set of development control procedures relating to land use and urban design guidelines which also cover urban planning policies and measures. Nevertheless they can contain smaller action plans devoted to tourism, such as the upgrading of the waterfronts of both towns, the preservation of the historical core and creation of activity nodes in Duong Dong. As for the roles of the Public and Private Sectors, both should therefore assume collective responsibilities in realizing a quality environment for tourism on the island.
Her thesis abstract is copied and posted.
ABSTRACT
This thesis was conducted to respond the current situation of the tourism development in Phu Quoc Island – Kien Giang province where tourism is recognize as one major income generator for local people. Many interesting activities have been conducted a long to the beaches of Phu Quoc Island in order to attract tourists. The thesis was studied to identify the environmental impacts of current touris m and to provide recommendations for sustainable tourism development in Phu Quoc Island.
This thesis began with site investigation, interview with key informants. This studies issues affecting construction development in Phu Quoc Island and proposes a str ategy for the future growth of tourism on the island which followed the main objective – to study sustainable development and construction factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island. In order to develop study area, the current issue of environment and developed orientation of Phu Quoc Island were conducted. Finally, the results of the analysis and collected data were include and combined to become basis system of sustainable tourism development in Phu Q uoc Island – Kien Giang province.
Kien Giang is a province with a large tourism potential with its location and islands compared to other provinces in the Mekong Delta. Kien Giang also has flat lands, islands, sea, mountains, forests, caves, rivers, streams, beaches, primeval forests and many other famous landscapes. Kien Giang has many places of historical interest such as Mui Nai beach, Hang Pagoda, Father and Son islet, Thach Dong (Cavern), Mac Cuu Royal Tomb, Hon Dat, U Minh Forest and especially Phu Quoc Island which are attracting to visitors from inland and abroad.
There are flights from Ho Chi Minh City to Phu Quoc and from Phu Quoc to Rach Gia. These good conditions has enable Phu Quoc develop Trade and Tourism in the short term as well as in the long term.
Ms. Pham Thi Cam Tien made a research study regarding the issues affecting construction development in Phu Quoc Island in order to propose a strategy for the future growth of tourism on the island. Her study objectives are (1) to study the current situation of Phu Quoc Island of Kien Giang Province related with sustainable development in tourism; and (2) to study sustainable construction development factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island.
After conducting her survey and interview, the result of the data analyses revealed several issues related with tourism in Phu Quoc Island that affect on sustainable development. In general, Phu Quoc Island is the potential Tourism Island with many long beach as well as waterfalls along the Island. The number of tourists travelling to Phu Quoc is getting bigger and bigger, thus achieving the sustainable development in tourism. But Phu Quoc Island must follow the ecological development standard. The government as well as the investors should have policy to protect environment and nature on the Island. They should have rules and rewards for protecting the nature and environment in the sustainable development construction project.
The sustainable construction development factors and frame work which are applicable in Bai Sao and Bai Truong tourism project in Phu Quoc Island showed that Bai Truong project, is rather big project which is more concentrated on the specific environment investigation and have orientation sustainable development for the island which is divided and developed in small project following the ecological standard. The construction planning is designed into short term and long term stage and has planned to preserve the forest and coach resources.
On the other hand, Bai Sao Project also follows the sustainable development process such as investigating the environment using local material and protecting the natural atmosphere. Bai Sao is concentrated on architecture development. It tried to design ecological architecture with is familiar with nature and coach. Besides, Bai Sao project is attached special importance to the customers – tourist – with hi-end ecological leisure center.
Ms. Cam proposed some measures for improvements of Local Area Tourism Project and the Roles of the Public and Private Sectors. She suggested that a local area tourism project should be accompanied by a concept or urban design drawing which shows diagrammatically the form, layout and disposition of buildings and their relationship to open spaces and other areas. It is very important that these plans will also form the basis for a set of development control procedures relating to land use and urban design guidelines which also cover urban planning policies and measures. Nevertheless they can contain smaller action plans devoted to tourism, such as the upgrading of the waterfronts of both towns, the preservation of the historical core and creation of activity nodes in Duong Dong. As for the roles of the Public and Private Sectors, both should therefore assume collective responsibilities in realizing a quality environment for tourism on the island.
Her thesis abstract is copied and posted.
ABSTRACT
This thesis was conducted to respond the current situation of the tourism development in Phu Quoc Island – Kien Giang province where tourism is recognize as one major income generator for local people. Many interesting activities have been conducted a long to the beaches of Phu Quoc Island in order to attract tourists. The thesis was studied to identify the environmental impacts of current touris m and to provide recommendations for sustainable tourism development in Phu Quoc Island.
This thesis began with site investigation, interview with key informants. This studies issues affecting construction development in Phu Quoc Island and proposes a str ategy for the future growth of tourism on the island which followed the main objective – to study sustainable development and construction factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island. In order to develop study area, the current issue of environment and developed orientation of Phu Quoc Island were conducted. Finally, the results of the analysis and collected data were include and combined to become basis system of sustainable tourism development in Phu Q uoc Island – Kien Giang province.
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