Luận văn thạc sĩ UEB effect assessment of the national road maintence fund on vietnam road network maintenance sub sector

UPPSALA UNIVERSITÉT & VNU UNIVERSITY OF ECONOM1CS & BUSINESS UPPSALA _ VNU‘UCB, _ UNIVERSITET T ll/ MASTER THESIS OF MPPM EFFECT ASSESSMENT OF THE “NATIONAL ROAD MAINTENANCE FƯND” ON VIETNAM ROAD NETVVORK MA1NTENANCE SUB-SECTOR Author: Hao, Khuc Thi Nguyet Supennsor: Dr Sven-Erik Svard Local supervisor: Assoc.Prof Dr Nguyet, Hoang Thi Thuy Class: MPPM - INTAKE Hanoi, January - 2015 — ACKNOWLEDGEMENT My first thank is for Uppsala University, Sweden and Economic College — Vietnam National University who have collaborated to develop programs and organize a training course of “Public Management - Master Degree) which is very exciting, useful and practical, especially to the govemmental offícers, including me who are working for the Vietnamese govemmental offìces The lectures delivered by Professors and Doctors who have full experience in theory and practice which brought leaming interest to the leaners I, once again got chance to go to university vvhere I had graduated as B.A Economist with university degree Thereíore I decided to choose this training course to improve my knovvledge I would like to express my sincere thanks to Proíessor Sven-Erick Svard who owns valuable expenence via many years of lecturing in one of the most reputed European universities He has reserved wholehearted and thoughtful instructions towards us, the leamers Individually, I got my study and implement studv stages correctly oriented I also would like to reserve these sincere thanks to Associate Proíessor, Dr Hoang Thi Thuy Nguyet who has scientiíĩc style 'of lecturing to transíer leaming and studying motive and excitement to us right on the fìrst days I got very impressive in the way the Proíessor put forward macro-matters but they were so close to daily life of her; and made extremely abstract matters simple and easily understandable ones I express my sincere thanks to all officials of Ministry of Transport, Directorate for Road of Vietnam and particularly National Road Maintenance Fund Office who have considerately provided me important and necessary data and iníbrmation to be integrated into and made my thesis clariíìed and lively Finally, this thesis writer permanently and highly appreciate the assistances vvith enthusiasm from the CITE Center as well as great emotion from all the 7th course attendants which greatly contribute into my completion of this thesis Yours Faithfull, Ha Noi, January 2015 ABSTRACT Name of the Study: Effect assessment of the “National Road Maintenance FuncT on Vietnam Road Maintenance sub-sector Thesis Degree: Master Date of Presentation: 6th December 2014 Presented by : Khuc Thi Nguyet Hao Supervisors - Dr Sven-Erick Svard - Assoc Prof Dr Hoang Thi Thuy Nựuyet Objectives Years ago, all of Vietnam road maintenance activities had been paid by the State budget, which was very limited The financed State subsidies was equivalent of about 20% to 29% with the actual needs what are required by proposal of Directorate for Roads of Vietnam in order to preserve exiting road system in a good condition and to ensure smoothly o f transportation, in comparison Due to the above issues, Vietnam "National Road Maintenance Fund” was established in December 2012 and officially activated on January 2013 by the Decision of Government with the goals that the fund could meet a main part of existing demand by providing Capital collected by annual fee of transportation vehicles This study is to assess the considerable changes in road network maintenance in Vietnam, compared to road conditions before the road network was funded for maintenance by the said Fund; Besides, this study considers other impacts of the "National Road Maintenance Fund" such as changes on management method of govemment agencies, application of Science and technology on road maintenance as vvell as raisc in avvareness o f residents Research Method The study applied 03 researched methods to clarify the impact of NRMF on Vietnam road system, as bellovvs: Firstly, the study analyzed statistical data over a period of years from 2010 to the end of December 2014 and divided into two speciíìc periods - Phase 1, from 2010 to the end of 2012 (03 years) is the period of road maintenance activities in Vietnam operating under 100% o f the annual State budget - Phase 2, from January l st, 2013 until the end of 2014, which means 02 years since the NRMF was established and has put into operation to manage all revenues which are collected of transportation vehicle, associating with the annually additional State budget, in order to provide funding for activities related to the road maintenance sub-sector AU using data are collected from reliable sources such as Ministry of Transportation Directorate for Roads of Vietnam and National Road Maintenance Fund including: (i) annually actual funds using for road maintenance operations, particularly for the highway system; and also the supported funding to the local before/after NRMF establishing; (ii) The number of road and bridge has been maintenance by funding through NRMF; expenditure of applied Science and technologies on road maintenance sub-sector which has been paid by the NRMF; and changing of managemcnt method what is exccuted by State agencies in road maintenance sub-sector through nevvly applied policy documents for project bidding and approval Based on the actual data collected above, comparison between the phase with the phase was implemented in order to assess the NRM F’s impacts on road maintenance subsector beíore and aíter its íormation and operation Secondly, the author also conducts intervievvs 03 ỵroups directly related to road maintenance operation They are: (i) Government Officials represent those who implement State policy and Capital management under the Fund m echanism (ii) constructors and consultant companies represent companies which directly carry out road maintenance contraction as bid contract as vvell as Consulting firms who are supervisors in construction site; (iii) transportation firms and local residents vvho benefited from the quality of roads change rapidly due to NRMF investment Interviewing results of group (i) to clarify the impact of the NRMF changing the mode of operation management and also policy applies of State agencies on the road maintenance sub-sector After interviewing group (ii), it is discovered the fact that, apart from the traditional state-owned company beĩore, but now the company carried out construction bid has included many different economic sectors such as the private equity company, the limited liability companies and joint stock companies with State Capital associated private participate Thank to suffícient and timely funding what is more attractive to companies on roads maintenance sub- sector leading vanous competitive environment and managers also has beneíited when having the better road with lovver costs The quality of construction is also increased when to seek cost reduced measurements as applying Science and technology and newly management practices Targets of interviexving group (iii) are íinding out prìts what automobile transportation companies benefited after reducing cost of fuel and depreciation of vehicle as well as saving labor due to the smoothly operated road system In addition, residents who use road system everyday, particularly in poor locals have been excited of the upgrading quality of the roads that were maintained by NRMF funding At last, SWOT analysis method was applied to recognize NRM F’s chances as well as its obstacles in order to build a rational master plan in which management agencies could be eníorced for NRMF development in the future Result and Conclusion After analyzing the actual data collected from the Rovemment agencies on road niaintenance operation and iníbrmation interviewed by questionnaire, it is found that NRMF íịundation is the rational decision of Vietnam Government, adapting to the socio-economic circumstances of Vietnam today In addition, through positive results of the N R M F’s activities brought back, one of the goals of Vietnam Government, which is oriented strategy on development of maintenance sub-sector toward the step by step of full privatization, is clearly supported prooís With two years only, Vietnam's road and bridge nehvork has been well preserved with longer life, also provided road users smooth traffic services, especially in the remote and isolated areas where annual State revenue is low Thereíore, with positive effects, it can be seen that in general, the National Road Maintenance Fund plays a vital role for the development of transport sector in Vietnam Due to the extremeiy limited staie budget, which is not insufficient to sponsor the social welfare system such as maintaining the road network in goođ operation, the NRMF Capital, which contributed by resident is the íĩrst step in the privatization process of road maintenance works With the íunding of the NRMF, shorted Capital situation are overcome in part Road and bridge systems, after many years of lacking fund for fragmented repair, with fund of much higher from the Fund than from State budget beíore have their quality improved to ensure smooth movement on the roads for the people This is signiíĩcant to remote and isolated area vvhere the local State budget is low have created belieí to the people, brought into full play direct contribution by the people (according to audit report prepared by the Vietnam State Audit Office in September 2014) Enhancing accountability because management mode by a State administrative agency that is responsible for road maintenance is thereíore changed as the timely provided fund meeting progress As a result of this, interest in participation in this íield is attracted by several economic sectors Road maintenance becomes more competitive, so bidding method to select contractor with high quality and low cost has been applied Application of Science and new technology, which has been the first time to be supported by the Fund, changed previously subsidized construction process Companies are obligatory to be interested in studying and íĩnding out how to reduce cost of materials and laboring increasing liíecycle for their constructed structures Awareness of preserving public assets has been raised up because of recognition of practical and quick efficiency from annual contribution that they did The study also shows that, for the Vietnam’s social economy, in which majority (70%) population live on agriculture and individual business is mainly, therịre, tax collection to meet social welfare is very diffícult and impossible As State budget relies mainly on export, which is very constrained and public debt is increasing, privatizing road network maintenance is an objective that Vietnam Government set up is fully reasonable Forming the Fund to directly manage revenue and allocate investment right in the fiscal year with transparent results shall generate belief of the public in effìciency of their direct contribution Recommendations This studies show that, NRFM play a vital role in the transport sector in Vietnam, particularly in road maintenance sub-sector In the future, with the goal of sustainable development NRMF, I have some recommendations as follows: - The biggest constraint is seeking a developing íĩnancial source for NRMF to satisíy road maintenance works The Government should consider on other income sources such as collecting electricity inửastructure user fee, optical cable fee etc As reality shovvs that, Vietnam transport infrastructure are ìnvaded by power lines, vvater pipes and ĩiber optic cable a lot, especially in big cities Thereíore, said rented fees could be abundant revenues for further needs of the NRMF Taking advantage of study assistance of the WB, MOT needs to assign consultant that build up a year road toll collection plan with the aim of making use of revenue from leasing inữastructure transport into communication and electncity - Government also early encourages various business modes, promote privatization process on road maintenance sub-sector in order to eliminate State abundant - Based on the positive support from the road users on the impressed results brought back by NRMF, to built up legal corridor for NRMF foIlowing direction of increasing revenue from road toll imposed on road vehicles in compliance with GDP growth and to look for other sources as well - For further construction projects, maintenance should be subjected to an item in the contract, guaranteed by the contractor for at least years after construction completion and handing over - Government should quickly develop other transportation modes such as: (i) railway transportation (this is under a study conducted by MOT) and (ii) continuing to build and develop sea favorable transportation routes, which run along the country - In order to achieve high efficiency in collecting fee, the Government should issue penalty regulations to vvell control road fee, particularly motorbike users - NRMF need to closely coordinate with WB funded consultants to early build up LRMF model nationwide to create consistency and control of revenue and expenditure íavorably - MOT, NRMF should continue usiníỉ the media, educating and disseminating and building propaganda campaigns to direct beneíĩts brought back from NRMF against the road users’ contributions - Last but not least, Government needs to build a special mechanism on salaries of the staíís working in NRMFO and other priority measures, which could be reduced corruption Above are my study and assessment that are so primary on impacts by NRMF in its years of establishment and operation; and looking for measures in order to aífirm the roles of NRMF to Sub-section NRMF in particular and transport sector in general I wish to receive sincere comments from the tutors and mates Key words: Ministry of Transport (MOT); Ministry of Finance (MOF); Ministry of Planning and Investment (MPI); Road Maintenance Fund (RMF); National Road Maintenance Fund (NRMF); National Road Maintenance Fund Office (NRMFO) Local Roađ Maintenance Fund (LNRMF); Directorate for Road of Vietnam (DRVN); World Bank (WB) TABLE OF CONTENTS ỈNTRODUCTION 1.1 Background 1.2 Research questions and objectives 1.2.1 Objectives 1.2.2 Research questions 1.2.3 Research Scope FRAME OF REFERENCE 2.1 Theoretical basis on road network management and maintenance 2.1.1 Concepts of road network m aintenance 2.1.2 Roles of road network maintenance 2.1.3 Factors affect road maintenance activities 2.2 Model of Road Maintenance Fund 2.2.1 Objective of NRMF establishment 2.2.2 Revenues of Road Maintenance Fund 2.2.3 Road Maintenance Fund Management Unit 2.2.4 Fund allocation amongst road management agencies 2.3 Vietnam National Road Maintenance Fund 10 2.4 Literature review 13 STUDY METHOD 13 3.1 Methods of collecting and analyzing D ata 14 3.2 SWOT A nalysis 15 DATA ANALYSIS 15 4.1 Analyze secondly data 15 1.1 Assessment of effects by “Road Maintenance Fund” to Capital investment of road maintenance for the road maintenance fund beíore and after NRMF íoundation 15 4.1.1.1 Investment for road maintenance before having N R M F 16 4.1.1.2 Investment on road maintenance from N R M F 16 4.1.2 Changing o f management mechanism of govemment agencies on Road maintenance before and aíter NRMF was established 19 4.1.2.1 Contractors selection methodof national road management and maintenance unit: From 2012 backM ard: 19 4.1.2.2 Contractors selection method of national road management and maintenance unit after NRM F was established: 20 4.1.2.3 Evaluation \ 4.1.3 Apply Science and Technology in Maintenance Fund beíore and after having fmancing o f N R M F 22 1.3.1 Reality of maintenance activities before having íĩnancing of NRMF22 1.3.2 Applying Science and technology when NRMF vvas íormed and put into operation 23 4.1.3.3 Evaluation "> 4.2 Analysis o f primary data (base on results of interv'iews) .23 4.2.1 Impressed encreasingly fưnding leads to management methods 24 4.2.2 Applying csience and teachonlogies 25 4.2.3 Road transport system greatly im proves .25 4.3 SWOT analysis for next years (2015-2020) 25 4.3.1 Challenges 26 4.3.2 Opportunities 4.3.3 Strengths 29 4.3.4 Weaknesses 30 C O N C L U SIO N 30 RECO M M ENDATIO N 31 28 - The locals in the whole country have not had ửie general models of the funđ management, which leads to the diíficulties of the control of the center as well as creates ửie congruence of operatìon - Vietnamese citizens with ứie main means of transportation bemg motorbike are hard to administer the ìncome and expenditure of yearly fees because there is not enough íunctional íòrce to examine and supervise In local, the punishment sanction is not íĩerce so the eíBciency is not high - The majority of Vietnam resident is íamiliar with the subsidization of the govemment and has not understood ứieứ duties as well as the purpose, benefits of paying fees, especially, protests ứie new policies because điey think that they have to pay taxes and fees 3.2 Opportunities - Vietnam govemment has sped up the policy of socializing the road-traffic maintenance; thereíore, it is essential to consolidate and establish some related policies in order that the fund deveiops better and is one of the govemment’s priorities - The fund has been concerned and supported by sonie intemational orgamzations The policy of promoting VRANT25 regulation of WB has been deployed and anticipated the choice of the investors at the end of 2014 in order to assist the fund to build up the software system of monitoring the plan-making, collect and deliver the connection from the Central fund to the local one An aim given is to build up the fund model for the whole country and look for another fund to supplement the fund - Vietnam is a developing country with 70% agriculture as well as small and retail businesses; the income fee for social welfare is not íeasible Consequently, the policy of collecting the fee of road aspect is accessible to the awareness of citizens and easier to carry out Thereíore, at least 20 years later, the Government should concem the fund model - Being a newly íounded institution and no precedent in Vietnam, every regulation of the fund is easily implemented and experimented without any obstacles and time vvasting to prove the reasonableness of the appropriate authorities and society :í Vietnam Road Assets Management Project 29 - In years o f the operation, the fund showed the consequences that through the income fee and the budget, the operation expense increased 3-5 times This is a potential income, which is a premise for searching for the other capitals to abolish the budget of the govemment - Through the means of transportation, the citizens understand the beneíĩts of the yearly Capital of the fund and create the belief of the society Accompanied with paying the fee for road-traffic maintenance, the awareness of keeping the public properties of the citizens is obviously improved, typically, some transporting enterprises undertook the closeness of loading capacity which is one íactor causing the death at the present time 3.3 Strengths Looking back the overview of the development as well as the essential impacts of road traffic, particularly, Vietnam road-traffic maintenance along with the íoundation and operation of Fund of road-traffic maintenance, it can be realized that: Because NRMFB is a board consisting of 14 members from MOT, MOF, MPI, all beíore the execution has adopted any NRM F's investment decisions, therefor openness and transparency o f the ÍTinding source are confirmed - I he staffs in the office of the fund (the offíce assists the board of directors) are those who are got a transfer from Department of Staffs of MOT, MOF, DRVN They have deep specialized knovvledge, considerable experiences with above 10 years of working in the ĩield of Communications and Transportation and have access to the training of the developed countries, 7/12 people have certiíìcates of Master Art Thcy are at the age of from 35 to 45, with the experiences and education leveỊ they are at the period of devotion; thereíore, they have a large motivation, energy and effort capacity to work and devote - The NRMF Board is the deputy ministers of MOF, MOT and MPI vvhich are some major ministries carrying out the govemment management in terms of economic and social development The Chairman of the fund is one of some ministers who are judged to be of a venturesome spirit Besides, some members come from some other transporting businesses The Board passes every decision, thereíore, it is highly objective, the priorities o f investment are some exact choices, which bring high effíciency of economy and guarantee the social security 30 3.4 VVeaknesses - Actual salaries of staffs working at the NRMFO are very low in comparison with private business because of VietnarrTs lavvs and regulations while they manage a fund's activities in which is very large Capital Thus, corruption will be an issue for consideration - NRM FO’s staffs have been assigned ío manage a wealthy funđ with borth revemue and allocating, supervise LRM F’s disbusement of 63 provinces in the whole country However, it is limited staffs with only 10 people lead to their works overloaded - As mentioned in Section 2.3 (description of the N R M F’s operation mechanism) 35% Capital divided into 63 provinces of Vietnam without clear rules, leading uníair situation among locals Thereíore, it is also a weakness prone to corruption when the division of funds which is submited by NRMFO staffs for NRMFB approval is not purelv objective ratio RESƯLTS AND CONCLUSION ìer analyzing the actual data collected from the govemment agencies on road maintenance operation and iníormation interviewed by questionnaire, it is found that NRMF foundation is the rational decision of Vietnam Government, adapting to the socio-economic circumstances of Vietnam today In addition, through positive results of the NRM F's activities broughl back, one of the goals of Vietnam Government, which is onented strategy on development of maintenance sub-sector toward the step by step of full privatization, is clearly supported evidence With two years only, Vietnam’s road and bridge network has been well preserved with longer life, also provided road users smooth traffic services, especially in the remote and isolated areas where annual State revenue is low Thereíore, it can be seen that road maintenance fund plays vital role for the development of transportation sector in Vietnam in general, toward the step by step of full privatization of road maintenance activities in particularly contributing to eliminate the State budget Due to the extremely limited State budget, which is not insufficient to sponsor the social welfare system such as maintaining the road netvvork in good operation, 31 the NRMF Capital, which contributed by resident is the íĩrst step in the privatization process of road maintenance works With the funding of the NRMF, shorted Capital situation are overcome in part Road and bridge systems, after many years of lacking fund for fragmented repair, with fund of times higher from the Funđ than from State budget before, have their quality improved to ensure smooth movement on the roads for the people This is signiíìcant to remote and isolated area vvhere the local State budget is low, have created belief to the people, brought into full play direct contribution by the people (according to audit report prepared by the State auditor in September 2014) Enhancing accountability because of management mode by a State administrative agency that is responsible for road maintenance is therịre changed as the timely provided fund meeting progress As a result of this, interest in participation in this íĩeld is attracted by several economic sectors Road maintenance becomes more competitive, so bidding method to select contractor with hieh quality and low cost has been applied Application of Science and new technology, which has been the fĩrst time to be supported by the NRM F’s funding, changed previously subsidized construction process Companies are obligatory to b e interested in studying and fínding out how to reduce cost of materials and laboring, increasing liíecvcle for their constructed structures Awareness of preserving public assets has been raised up because of recoỉinition of practical and quick effĩciency from annual contribution that they did The study also shovvs that, for Vietnam economy with mạjority (70%) population live on agriculture and individual business is mainly, thereíore, tax collection to meet social welfare is very difficult and impossible As State budget relies mainly on export, which is very constrained, and public debt is increasing, privatizing road network maintenance is an objective that Vietnam Government set up is fully reasonable Forming the Fund to directly manage revenue and allocate investment right in the íìscal year with transparent results shall generate belief o f the public in effíciency of their direct contribution RECOMMENDATIONS This studies show that, NRFM plays a vital role in the transport sector in Vietnam, particularly in road maintenance sub-sector In the future, with the goal of sustainable development NRMF, I have some recommendations as follows: 32 - The biggest constraint is seeking a development íĩnancial source for NRMF to satisfy road maintenance works The Government should consider other resources such as collecting electricity inírastructure user fee, optical cable fee, etc As reality shows that, Vietnam transport infrastructure are invaded by power lines, water pipes, fiber optic cable a lot, especially in big cities Thereíbre, said rented fees could be abundant revenues for furlher needs of the NRMF Taking advantage of study assistance of the WB, MOT needs to assign consultant that build up a year road toll collection plan vvith the aim of making use of revenue from leasing inírastructure transport into communication and electricity - Government also early encourages various business modes, promote privatization process on road maintenance sub-sector in order to eliminate State abundant - Based on the positive support from the road users on the impressed results broimht back by NRMF, to built up legal corridor for NRMF following direction of increasintì revenue from road toll imposed on road vehicles in compliance with GDP grovvth and to look for other sources as well - For further construction projects, maintenance should be subjected to an item in the contract, guaranteed by the contractor for at least years after construction completion and handing over - Government should quickly develop other transportation modes such as: (i) rail\vay transportation (this is under a study conducted by MOT) and (ii) continuing to build and develop sea favorable transportation routes, which run along the country - In order to achieve high efficiency in collecting fee, the Government should issue penalty reaulations to well control road fee, particularly motorbike users - NRMF need to closely coordinate with WB íunded consultants to early build up provincial road maintenance fund (PRMF) model nationvvide to create consistency and control of revenue and expenditure íavorably 33 - MOT, NRMF should continue using the media, educating and disseminating and building propaganda campaigns to direct beneĩits brought back from NRMF against the road users’ contributions Above are my study and assessment that are so primary on impacts by NRMF in its years of establishment and operation; and looking for measures in order to affìrm the roles of NRMF to Sub-section NRMF in particular and transport sector in general I wish to receive sincere comments from the tutors and mates REFERENCES Annual Report and Documents from Ministry of Transport, The Directorate for Road of Vietnam and National Road Maintenance Fund of Vietnam Asian Development Bank (2002), “TA SRI 3110 Re-engineering of Road Sector Institutions, Final Report, Volume A Analysis” Asian Development Bank (2003), “An Asian Perspective, Road Funds and Road Maintenance” Circular No.l0/2010/TT-BGTVT dated 19 April 2010 issued by Ministry of Transport of Viet Nam Circular NO.197/2012/TT-BTC: Circular guiding regulation on collection, payment, management and use charges by unit of vehicle, Hanoi November 15, 2012; Circular No.230/2012/TTLT-BTC-BGTVT: Joint circular, guiding regime of management, use, payment and settlement of Road Maintenance Fund, use, payment and settlement of Road Maintenance Fund, Hanoi December 27 2012 Cừcular No.52/2013/TT-BGTVT issued by MOT dated 12/12/2013 Decree No.31/2005/NĐ-CP dated 11/3/2005 by the Government on production and supply public Products Deuree Nol8/2012/NĐ -CP issued by Pnme Minister of Vietnam in 13 March 2012 on Road Maintenance Fund 10 Heggie lan G and Piers Vickers (1998), “Commercial Management and Financing of Roads”, the World Bank Technical Paper No 409, May 1998 lU e n n a r o B Odoki and Paulina AgyekumBoamah (2012), “Optimal Fund Allocation for Road Maintenance”, University of Birmingham 2012 12 Kcnneth M Gwilliam&ZmarakM.Shalizi, “Road Funds, User Charges and Taxes” World Highvvays, Vol 9, No 7, October 2000 “Second Generation Road Funds: The Way Ahead” 13.Law on Road Traffic approved by Vietnam National Assembly in 13 November 2008 14.0ffĩcial letter NO.430/UBATGTỌG-VP dated 16 November 2011 by Offĩce of National Traffíc Safety Committee 15 S N Malkanthi and T Matsumoto (2012), “Study of Effectiveness of Road Fund as a Solution for Maintenance Problem in Sri Lanka”, ACEPS 2012 16 The research of PADECO Consultant for Ministry of Transport (2011) 17 Transportation development strategy to 2020, Vision to 2030 has been approved by the Prime Minister under Decision No.35/2009/QD-TTg dated 3rd March 2009 APPENDIX QUESTIONAIRES FOR DEEP INTERVIEVV Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government which aims at creating fund via roađ vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, gradually, for heading total socialization of road maintenance to reduce national budget burden In order to contribute to the more and more effective road fund operation, deep interview to State road maintenance management agencies to seize effects from Road Maintenance Fund to road maintenance vvorks etc so that íĩnancial management mechanism for the fund shall be períected and more efficient and so on Thereíore, we wish to receive support by Madam/Sir in providing iníbrmation as stated in the following table Thank you very much for your cooperation! All iníbrmation received from the inten iew shall be used for the above-mentioned purpose only General iníbrmation No DESCRIPTION AI Province/City: Ha noi A2 Full name of the interviewer: A3 Date of intervievv A4 Full name of the interviewed person: Mr.NGUYEN HON TRUONG A5 O f offíce/agency: MIN1STRY OF TRANSPORT A6 Address of the offíce/agency: 80 Tran Hung Dao Street, Vietnam A7 Title: Vice Minister Tel: A8 HP: Overview of road maintenance in Vietnam compared on periods before and aíterload fund mechanism Assessing on the positive and negative changes that Road Maintenance Fund affects road maintenance in Vietnam after years of implementation of operation of the road fund 3.1.Changes on mechanism, policies and procedures to road maintenance works and road maintenance management 3.2.Changes of investment sources in road network maintenance and mechanism on collecting and managing allocation of Road Maintenance Fund 3.3.Changes on quality of road and bridge system, especially in remote areas and provincial areas 3.4.Renovation in application of Science and technology in order to increase efficiency of implementation and saving human resources in road maintenance work Awareness of the road users Thank you very much! APPENDIX QƯESTIONAIRES FOR DEEP INTERVIEVV Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government vvhich aims at creating fund via road vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, cradually, for heading total socialization of road maintenance to reduce national budget burden In order to contribute to the more and more effective road fund operation, deep interview to State road maintenance management agencies to seize effects from Road Maintenance Fund to road maintenance works etc so that ĩinancial management mechanism for the fand shall be períected and more efficient and so on Thereíore, we wish to receive support by Madam/Sir in providing iníormation as stated in the following table Thank you very much for your cooperation! All iníormation received from the interv iew shall be used for the above mentioned purpose only General iníormation No DESCRIPTION AI Province/City: Ha noi A2 Full name of the interviewer: A3 Date of interview A4 Full name of the interviewed person: O f office/agency: A5 VIETNAM AUTOMOBILE ASSOCIATION A6 Address of the office/agency: A7 Title: Chairman Tel: A8 HP: Street, Hanoi, Vietnam TRANSPORT How many members are there in VATA and the form of participation and operation? The positive and negative changes that Road Maintenance Fund affects directly to the VATA 3.1 Effects by mechanism, policies and procedures on production and operation after the establishment of Road Maintenance Fund; and effects by road toll to the corporate revenue? 3.2.Economic benìts to the corporate, such as the smooth traffĩc on road and bridge system, reduction of traffíc congestion, easy movement of traffíc and saving of human resources, time and fuel consumption 3.3 General assessment on economic benìt and loss against gained beneíĩts and costs Recommendations by the VATA to Road Maintenance Fund and the Government Thank you very much! APPENDIX QƯESTIONAIRES FOR DEEP INTERVIEVV Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government which aims at creating fund via road vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, gradually, for heading total socialization of road maintenance to reduce national budeet burden In order to contribute to the more and more effective road fund operation, deep interview to State road maintenance management agencies to seize effects from Road Maintenance Fund to road maintenance works etc so that íĩnancial management mechanism for the fund shall be perfected and more efficient and so on Thereíore, we wish to receive support by Madam/Sir in providing iníbrmation as stated in the following table Thank you very much for your cooperation! All iníbrmation received from the interview shall be used for the above mentioned purpose only General iníormation No DESCR1PTION AI Province/City: Ha Noi A2 Full name of the interviewer: A3 Date of interview A4 Full name of the interviewed person A5 O f office/agency A6 Address of the office/agency: Street, Hanoi, Vietn A7 Title: CEO A8 Tel: HP: At present, how many companies, you think, are there who take part in road maintenance in Vietnam; apart from the traditional road maintcnance companies, are there any other economic sectors who also take part in road maintenance? Assessing changes in mechanism and policies on selecting contractors participating in road maintenance works aíter the existence of íìnance from Road Maintenance Fund The positive and negative changes that Road Maintenance Fund affects directly to the corporate operation and production Economic benìts to the corporate, (such as quick circulation and rotation of the corporate's Capital, in-time disbursement that meet construction progress for acceptance and no bad debt because of the stable fund from Road Maintenance Fund General assessment on economic benefits and disadvantage ìer investment in and application of Science and technology on management to raise competitive capacity when bidding for Road Maintenance Contract Recommendation of the association to the Road Maintenance Fund and the Government Thank you very much! APPENDIX4 QUESTIONAIRES FOR DEEP INTERVIEW Road Maintenance Fund has been established and become effective since 2012 basing on the Vietnam Road Acts and Decree No 18/2012/NĐ-CP by the Government which aims at creating fund via road vehicle toll together with annual State budget allocation for road maintenance which has ever been so constrained; and, gradually, for heading total socialization of road maintenance to reduce national budget burden In order to contribute to the more and more effective road fund operation, deep intervievv to State road maintenance management agencies to seize eíĩects from Road Maintenance Fund to road maintenance works etc so that íĩnancial management mechanism for the fund shall be períected and more eữĩcient and so on Thereíbre, we wish to receive support by Madam/Sir in providing iníormation as stated in the following table Thank you very much for your cooperation! All iníịrmation received from the intervievv shall be used for the above mentioned purpose only General information No DESCR1PTION AI Province/City: Ha noi A2 Full name of the interviewer: A3 Date of intervievv A4 Full name of the interviewed person: A5 O f office/agency: RESIDENTS A6 Address of the office/agency: Street, Hanoú Vie A7 Title: A8 Tel: HP: How you think of the quality of roads in your local area? Is there any change in recent years? Do you support govemment policv as NRMF was established using transportation fee in order to provide for road maintenance? Are you willing to paid annual motorbike fee what may be slightly increasing in the future and then it will be used for the road maintenance in your province Thank you verv much! ... network maintenance in Vietnam, compared to road conditions before the road network was funded for maintenance by the said Fund; Besides, this study considers other impacts of the "National Road. .. (MOF); Ministry of Planning and Investment (MPI); Road Maintenance Fund (RMF); National Road Maintenance Fund (NRMF); National Road Maintenance Fund Office (NRMFO) Local Roađ Maintenance Fund (LNRMF);... Revenues of Road Maintenance Fund 2.2.3 Road Maintenance Fund Management Unit 2.2.4 Fund allocation amongst road management agencies 2.3 Vietnam National Road Maintenance Fund