MINISTRY OF JUSTICE MINISTRY OF EDUCATION AND TRAINING NGUYEN CAT TUONG ANH 453521 REGULATION ON PUBLIC-PRIVATE PARTNERSHIPS IN THE UNITED KINGDOM AND VIETNAM: A COMPARATIVE PERSPECTIVE BACHELOR’S THESIS MINISTRY OF JUSTICE MINISTRY OF EDUCATION AND TRAINING NGUYEN CAT TUONG ANH 453521 REGULATION ON PUBLIC-PRIVATE PARTNERSHIPS IN THE UNITED KINGDOM AND VIETNAM: A COMPARATIVE PERSPECTIVE Major: Comparative Law BACHELOR'S THESIS SUPERVISOR DR. HA THI UT STATUTORY DECLARATION I herewith formaily deciare that I myself have written the submitted Bacheior’s Thesis independently, the conclusions and data in the Bachelor's Thesis are truthfully and reiiabie. Confirmation of supervisor Author of Bachelor’s Thesis Dr. Ha Thi Ut Nguyen Cat Tuong Anh ACKNOWLEDGEMENTS First of all, I would like to express my sincere gratitude to my supervisor, Dr.
Ha Thi Ut, for her guidance and invaluable expertise throughout this thesis. Her constructive feedback and constant encouragement have been instrumental in shaping this thesis and pushing me to achieve my best. I am also immensely grateful to the members of Comparative Law Institute of Hanoi Law University, whose support and resources have been indispensable throughout my academic journey. I am grateful for the opportunities provided to me, which have allowed me to grow both personally and professionally.
I am deeply indebted to my fiends and family for their unwavering support, understanding, and encouragement. Their belief in me, even during the most challenging times, has been a constant source of motivation. Their love and encouragement have sustained me throughout this thesis joumey. Lastly, I would like to express my heartfelt gratitude to all the authors, researchers, and scholars whose work has laid the foundation for this thesis.
Their contributions have shaped my understanding and inspired me to delve deeper into the subject matter. This thesis would not have been possible without the support and guidance of the individuals and institutions mentioned above. I am truly grateful for their contributions, and I consider myself fortunate to have had their support throughout this academic endeavor. Author of the Bachelor's Thesis Nguyen Cat Tuong Anh ili LIST OF ABBREVIATION PPP Public-Private Partnership UK The United Kingdom DSPCR The Defence and Secunty Public Contracts Regulations IPA Infrastructure Projects Authonty PCR Public Contracts Regulations SoPC Standardisation of PFI Contract FOIA Freedom of Information Act Altemative Dispute Resolutions BOT Build-Operate-Transfer BTO Build-Transfer-Operate BOO Build-Own-Operate O&M Operate-Manage BTL Build-Transfer-Lease BLT Build-Lease-Transfer BT Build-Transfer 1V TABLE OF CONTENTS ACKNOWLEDGEMENTS.cccsssssssssssnsssneessnsesnsessecenessnecsuecenecessessnecenecenseesved iii LIST OF ABBREVIATION.
Rationale of the researcÌi. Literature review of previous studies related to the Thesis. 2 S\Objectives of the Test aia sie. Object and scope of the Thesis.
Research methods of the 'T heSiS. Significance of the Thesis. Structure ofthe Thesis. THEORETICAL ISSUES OF REGULATIONS ON PUBLIC-PRIVATE PARTNERSHIP.
The concept of public-private partnership 0. eee cee eee B 1. Characteristics of public - private partnersiip. The nature of public-private partnership.
Subjects of public-private Partnership 2. Characteristics on regulation ofpublic-private partnership. Significance of public-private partnerships mies wee LB CHAPTER 2. REGULATION ON PUBLIC-PRIVATE PARTNERSHIP IN THE UNITED KINGDOM AND VIETNAM.
Regulation on public-private partnership in the United Kingdom. Regulation on classification of public-private partnership. Regulation on signing and implementation of project contracts. Regulation on the content of public-private partnership contract.
Regulation on the termination of PPP contract. Regulation on dispute resolution. Regulation on public-private partnership in Vietnam. Regulation on classification of public-private partnership.
Regulation on signing and implementation of public-private partnership PED) CCH CONTA CHS se cron sseraronessarere sepesnsserasenneunnmenanseonaccrennmpunisiaaerveseamnegmnees Oe 2. Regulation on the content of public-private partnership contract. Regulation on the termination of public-private partnership contract. Regulation on dispute resoÏution.
The similarities and differences regarding regulations on public-private partnership in The United Kingdom andVietnam. The SiMIRHHEfflososssagbdteccS0SÐStli898ISG68S08XcãG08gi0888dpsaazÙ4f 3:3:2.0] nếtdITTETEHGES1¿-ocsccscgssissetsooectdtbLt389120g0001018646008g130e330X5GgespSosssgapzuscsassusDIf) CHAPTER 3. RECOMMENDATIONS FOR PERFECTING THE REGULATION ON PUBLIC-PRIVATE PARTNERSHIP IN VIETNAM 52 3. Guiding principles for the proposals to improve provisions on regulations on public-private partnership in Vietnam 2.
cece ec St eeeeeee ee re 52 3. Specific proposals to improve provisions on regulations on public-private parthershipin VIeDIAR:6s6ssc6igs42sclckt6laiddu4iteesij0 84si2 A, 3. Proposals regarding the subject of project contracts. Proposals regarding regulation on signing and implementation of project contracts.
Proposals regarding regulation on the content of project contracts. Proposals regarding termination of contract. Proposals regarding dispute resolution. seososscessssescvonsousnsestononsopnsonsnssssennesenngesdouns vonveneceasoroussgnesbossanvensd 62 REFERENCES.
Rationale of the research In today’s rapidly evolving world, governments face a multitude of complex issues, ranging from infrastructure development to technological advancements. With public infrastructure provision, for example, most govermments around the world have been working with private sectors to build and develop large-scale and durable facilities and services. Such projects obviously have a great impact on the financial aspects of the authonities. Facing the economic crisis, policymakers suggested that public private partnerships is a solution to release the economic burden on the national budget and improve the quality of human resources in public projects.
Public-private partnerships (PPPs) are a recent extension of what has now become well known as the “new public management” agenda for changes in the way public services are provided. With the existence of PPP, policymakers and the authorities hope that it can attract more funding for public infrastructure and services from domestic and foreign investors, by opening a new channel for investors to propose and apply more efficient solutions to socio-economic challenges. As the pioneer of the PPP since the beginning of the industrial revolution, the United Kingdom is the ideal subject for this comparative research. Its innovative and entrepreneurial approaches to providing the services and facilities demanded of 21st century leading countnes around the world to develop their own models of PPP and deliver facilities and services for their own.
In contrast, Vietnam's experience with PPPs is relatively recent, as well as its Civil Law- based legal framework provides a fresh perspective and highlights the unique challenges and opportunities faced by a developing country in implementing effective PPPs, hence offering practical implications for legal practitioners, policymakers and entities engaged in transactions. Considering the novelty of the legal framework on PPP law in Vietnam, it was supposed to, in theory, address three major problems endemic in Vietnam's infrastructure projects: slow progression, overbudget and poor quality. However, according to many in the field, the law has failed to tackle several fundamental issues, which has discouraged and hindered investors to commit to infrastructure projects. In fact, nearly 4 years since the introduction of the 2020 Law on PPP in Vietnam, it's still difficult to get investors to warm up to PPP projects despite the huge potential for growth, as the country ramps up efforts to build modem infrastructure.
Dr Tran Chung, Vietnam Association of Road Traffic Investors President, said the relationship between the State and investors, as of night now, was extremely one-sided. He mentioned that PPP contracts, in essence, were agreements in which the State and investors work together to share risks, benefits and responsibilities for projects. Ideally, they should be equal partners and treated as such under the law. “What benefits the State is prioritized, while what may be detrimental to businesses is sometimes overlooked, which is highly unfair," Mr.
Pham Van Khoi, CEO of Phuong Thanh Investment and Construction Joint Stock Company, involved in Phap Van - Cau Gie Expressway project, has stated. Given the situation, the author chose the topic ''Regulation on public - private partnerships in The United Kingdom and Vietnam: A comparative perspective" for the Bachelor thesis to conduct research on the current legal framework and compare to that of the UK to propose solutions and improve the implementation of the PPP Law. Literature review of previous studies related to the Thesis 2. Foreign publications WwW Freire A.
(2020), “Zhe Public-Private Partnership Lav review”, Chapter 22 and Chapter 24 clarifies and explains legal and other practical aspects involved in the formation of PPP contracts for disseminating best practices used by private professionals and governmental entities that rely on PPP projects for the provision of key infrastructure and public services and utilities Grimsey D. (2004), “Public Private Partnerships: The Worldwide Revolution in Infrastruchuwe Provision and Project Finance” published in Edward Elgar Publishing Ltd. explores revolution of PPP, its global impact and rising issues. This material analyses by examining case studies from England and Australia Stérbova L.
(2020), “Traditional Procurement versus Public- private Partnership: A Comparison and Synergies with Focus on Cross-border Contracts” from Our Economy analyses regulatory frameworks from European businesses, thus defines the main differences and possible synergies of the traditional procurement and public-private partnership while focusing on cross- border contracts. et al(2020), “The influence of governance on the implementation of Public-Pnvate Partnerships in the United Kingdom and China: A systematic comparison” from Dalian Maritime University provides a systematic and innovative analytical framework to evaluate and compare the PPP governance between China and the UK. Domestic publications VCCI Enternews (2023), “Public-private partnerships for sustainable development” published by Vietnam Chamber of Commerce and Industry scrutinise the current flaws within the legal framework, thus determine the root causes of the and propose some solutions to enhance the implementation of the PPP Law. Minh Nhat Nguyen (2022), “Legal Framework on Public-Private Partnership under Vietnamese Legislation: An Intemational Comparative Study and Lessons for Vietnam”, Master of Laws thesis, TLBU Graduate School of Law describes several essential sections of the PPP Law 2020 with a brief comparison to the past laws, providing several current legal issues that has been around for a long period of time without effective mechanism to deal with and solutions to such problems “Regulations on PPP contracts in Vietnam: Status Quos and Solutions” (2021) by Nguyen Quoc Toan of National University of Civil Engineering analyses applicable legal regulations on PPP contracts of investment in Vietnam, and demonstrates barriers encountered by parties and suggests how to deal with the situation by amendments, supplements to provisions on the agreements between public and private partners.
It can be concluded that the researches regarding regulation on PPP in Vietnam's legal framework have yet to be compared with the UK. Hence, this study does not coincide with these previous studies. This study is a fresh and unique examination that specifically compares Vietnam's law on PPP with that of the United Kingdom 3. Objectives of the Thesis First, the thesis comprehensively analyses and compares the regulatory frameworks governing PPPs in both countries.
Secondly, based on the distinctions of the traditional, historical, economical context of both countries, it aims to identify similanties, differences, and best practices in the legal and regulatory approaches to PPPs, evaluate challenges faced in implementation, draw lessons for Vietnam from these experiences, and provide policy recommendations to enhance transparency, accountability, efficiency, and sustainable development in PPP projects. Object and scope of the Thesis 4. Research objects The objective of the thesis is to assess and compare regulations regarding public-private partnerships within the legal frameworks of Vietnam and the UK legislation. The research explores the application, effectiveness, and cultural influences on PPPs, aiming to develop a comprehensive understanding of the concept, characteristics, signing, implementation and dispute resolution.
The study also identifies potential areas for cross-jurisdictional learning and improvement. Furthermore, the thesis investigates policy recommendations to enhance the utilisation and effectiveness of applying PPP in more and more projects in Vietnam. Research scope The thesis undertakes an examination and comparison of regulation on PPPs in Vietnam and the UK’s legislation, taking into account historical, economic and social factors. It evaluates the practical results of utilising PPP projects and aims to offer valuable insights into their effectiveness and suitability within each jurisdiction.
Furthermore, the thesis formulates policy recommendations with the objective of improving the utilisation and efficacy of PPP in Vietnam 5. Research methods of the Thesis The analytical method combined with enumeration and statistics is the main method collecting relevant documents and articles from authors who have conducted research related to the topic, providing evidence and evaluation to establish a scientific framework The synthesis method involves gathering pertinent documents, viewpoints, and solutions with the aim of improving the legal framework governing public- private partnership projects. The systematic method is applied when processing the information obtained from the above sections to propose solutions and recommend directions for resolution.