The Vietnam Capital Management and Budgeting Case Study

Divided into four parts, this chapter examines infrastructure investment in Vietnam through the lens of a normative framework for capital management and budgeting. Part 1 provides an overview of the country's socio-economic, political, and financial background that would affect the capital management processes. Part 2 introduces the status of Vietnam's infrastructure and its challenges. Part 3 is a comprehensive review of current procedures and processes of capital planning, budgeting, implementation, and maintenance being practiced in Vietnam. The authors then compare and contrast Vietnam's practices with the recommended provisions of the normative framework. Part 4 reviews the probable consequences associated with infrastructure inefficiency, which are implied by Vietnam's inconsistent practices with the framework. This chapter culminates with conclusions and recommendations for capital management and budgeting that are more specific to a developing country like Vietnam.