<\/span><\/h2>\nLarge structures, bridges, dams, pipelines, road networks, ports, railways, and aqueducts are all examples of infrastructure construction. Designing and constructing infrastructure costs a lot of money and time. They typically have a limited lifespan and are designed to support a specific maximum use or population. This makes it difficult for public and private sector planners to make accurate predictions about infrastructure usage levels and how dense the population will be in the future in order to make sure that these systems can support populations for 10 to 30 years.<\/span><\/p>\n<\/span>Infrastructure construction in Vietnam<\/span><\/span><\/h2>\n
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In Vietnam, infrastructure projects are referred to as electricity, roads, schools, and stations. They now also include water supply, waste treatment, and telecommunications systems.\u00a0<\/span>Previously, the state would invest in infrastructure and assign construction to government corporations. However, due to the government’s open-door policy, private companies are currently able to bid on these projects. As a result, more and more good construction units, such as PC1 Group Joint Stock Company, appear, ensuring quality while reducing construction costs.<\/span><\/p>\n<\/span>What is an infrastructure contractor?<\/span><\/span><\/h2>\n
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Large infrastructure construction programs frequently involve a central organization that oversees the overall project, which includes hundreds or thousands of subcontractors who each provide a variety of subcomponents and services. The engineering, procurement, and construction (EPC) contractor is another name for this position. In government contracts, they would serve as the prime contractor. In a nutshell, EPC firms are composed of highly skilled civil engineers, project managers, and builders.<\/span><\/p>\n<\/span>Types of infrastructure contractors<\/span><\/span><\/h2>\nThe infrastructure and construction sector is divided into a number of subsectors, from homebuilders to organizations that provide support for sizable government-funded projects.<\/span><\/p>\n<\/span>Public-Private Partnerships<\/span><\/span><\/h3>\n
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Large infrastructure projects typically involve public-private partnerships to some extent because of their duration and funding needs, which frequently call for government support. Additionally, public assets or services like transportation, power, and water networks are frequently involved in these projects.<\/span><\/p>\nWithout government support, it would be extremely difficult for businesses to construct significant infrastructure. The risk profile and capital requirements for these projects can be prohibitive, especially for public companies judged on their short-term financial results. Without government risk and cost-sharing, numerous large projects simply could not be built.<\/span><\/p>\nPublic-private partnerships are frequently required, but they are structurally flawed because they separate the user (citizens) from the buyer (government). This can cause pricing mechanisms to be distorted and lead to excess capacity, or the opposite. Both parties in the partnership must be trained and skilled in managing public-private partnership programs to reduce these distortions.<\/span><\/p>\n<\/span>Private Development<\/span><\/span><\/h3>\nThere are private companies that carry out sizable development projects without receiving government funding, even though the majority of large infrastructure is developed through public-private partnerships. Large commercial and residential complexes, for instance, are frequently private endeavors. These can be multibillion-dollar projects with many of the same risks as significant infrastructure projects in large cities and megacities.<\/span><\/p>\nAs the company bears the entire risk of underdevelopment or overdevelopment, privately funded projects are riskier than public-private projects. Because of this, the biggest of these projects are typically only found in the centers of significant cities, where businesses can be sure that stable long-term demand projections will exist.<\/span><\/p>\n