EMBA Master Thesis Proposal Nguyen Duc Hiep

DAS No.35 `Matriculation No:

Master Thesis Proposal

Executive Master of Business Administration ( EMBA)
University of Applied Sciences and Arts Northwestern Switzerland,
School of Business
FPT University, FPT School of Business

Topic:
SOME SOLUTIONS TO IMPROVE AND ENHANCE
THE MANAGEMENT OF CONSTRUCTION
INVESTMENT PROJECTS ON HIGHRISE BUILDINGS
FOR DWELLING IN COMBINATION WITH TRADING &
SERVICES AT HANOI HOUSING DEVELOPMENT AND
INVESTMENT CORPORATION (HANDICO)

Author: Nguyen Duc Hiep

Tutor : Ta Ngoc Cau

Hanoi, 2017
 TABLE OF CONTENTS
TABLE OF CONTENTS ......................................................................................... 1
LIST OF ABBREVIATIONS .................................... Error! Bookmark not defined.
LIST OF TABLES ...................................................... Error! Bookmark not defined.
LIST OF FIGURES .................................................... Error! Bookmark not defined.
INTRODUCTION ...................................................... Error! Bookmark not defined.
CHAPTER 1 ................................................................ Error! Bookmark not defined.
OVERVIEW OF THE STUDY SITUATION AND THE GENERAL
THEORETICAL BASIS ON THE MANAGEMENT OF CONSTRUCTION
INVESTMENT PROJECTS IN ENTERPRISES ... Error! Bookmark not defined.
1.1. Overview of the study situation .................... Error! Bookmark not defined.
1.2. general theoretical basis on the management of construction investment
projects in enterprises ............................................ Error! Bookmark not defined.
1.2.1. Investment .............................................. Error! Bookmark not defined.
1.2.2. Investment project ................................... Error! Bookmark not defined.
1.2.3. Characteristics of the projects ................. Error! Bookmark not defined.
1.2.4. Classification of the projects .................. Error! Bookmark not defined.
1.3. Management of construction investment projectsError! Bookmark not defined.
1.3.1. Concept of management of construction investment project Error! Bookmark
not defined.
1.4. Contents of construction investment project managementError! Bookmark not
defined.
1.4.1. Preparing a construction investment project Error! Bookmark not defined.
1.4.2. Financial analysis of investment projects Error! Bookmark not defined.
1.4.3. Analysis of socio-economic efficiency of investment projectsError! Bookmark
not defined.
1.4.4. Managing the progress of investment projectsError! Bookmark not defined.
1.4.5. Project cost management ....................... Error! Bookmark not defined.
1.4.6. Project quality management .................... Error! Bookmark not defined.
1.4.7. Project risk management ......................... Error! Bookmark not defined.
CHAPTER 2 ................................................................ Error! Bookmark not defined.
METHODS OF STUDY ............................................. Error! Bookmark not defined.
2.1. Desk study method ......................................... Error! Bookmark not defined.
2.2. Observation method ....................................... Error! Bookmark not defined.
2.3. Method of analysis and summation of experienceError! Bookmark not defined.
CHAPTER 3 ................................................................ Error! Bookmark not defined.
CURRENT SITUATION OF CONSTRUCTION INVESTMENT PROJECTS ON
HIGHRISE BUILDINGS FOR DWELLING IN COMBINATION WITH TRADING
& SERVICES AT HANOI HOUSING DEVELOPMENT AND INVESTMENT
CORPORATION. ....................................................... Error! Bookmark not defined.
3.1. General information about the Hanoi Housing Development And Investment
Corporation ............................................................ Error! Bookmark not defined.
3.1.1. The formation and development of Hanoi Housing Development and Investment
Corporation ....................................................... Error! Bookmark not defined.
3.1.2. Bussiness lines and operational markets of the CorporationError! Bookmark
not defined.
3.1.3. Organizational structure of Hanoi Housing Development and Investment
Corporation ....................................................... Error! Bookmark not defined.
3.1.4. Results of business and production activities in recent years at the Corporation
........................................................................... Error! Bookmark not defined.
3.2. Analysis of the management of construction investment projects on highrise
buildings for dwelling in combination with trading & services at the Hanoi Housing
Development and Investment Corporation ......... Error! Bookmark not defined.
3.2.1. Investment project formulation .............. Error! Bookmark not defined.
3.2.2. Management of project progress ............. Error! Bookmark not defined.
3.2.3. Management of project progress ............. Error! Bookmark not defined.
3.2.4. Management of investment project qualityError! Bookmark not defined.
3.2.5. Management of construction risk ........... Error! Bookmark not defined.
3.3. General assessment of the management of construction investment projects on
highrise buildings for dwelling in combination with trading & services at the Hanoi
Housing Development and Investment CorporationError! Bookmark not defined.
 3.3.1. Achievements .......................................... Error! Bookmark not defined.
3.3.2. Shortcomings and limitations.................. Error! Bookmark not defined.
CHAPTER 4 ................................................................ Error! Bookmark not defined.
SOME SOLUTIONS TO IMPROVE AND ENHANCE THE MANAGEMENT OF
CONSTRUCTION INVESTMENT PROJECTS ON HIGHRISE BUILDINGS FOR
DWELLING IN COMBINATION WITH TRADING & SERVICES AT HANOI
HOUSING DEVELOPMENT AND INVESTMENT CORPORATION .... Error!
Bookmark not defined.
4.1. Development orientation of the Corporation until 2020Error! Bookmark not
defined.
4.1.1. General objectives ................................... Error! Bookmark not defined.
4.1.2 Specific objectives on the market ............ Error! Bookmark not defined.
4.2. Solutions to complete the management of construction investment projects on
highrise buildings for dwelling in combination with trading & services at the Hanoi
Housing Development and Investment CorporationError! Bookmark not defined.
4.2.1. Finalizing the investment project preparation Error! Bookmark not defined.
4.2.2. Finalizing the analysis of investment projectsError! Bookmark not defined.
4.2.3. Finalizing the management of project progressError! Bookmark not defined.
4.2.4. Finalizing the management of project costsError! Bookmark not defined.
4.3.5. Finalizing the management of project quality Error! Bookmark not defined.
CONCLUSION ........................................................... Error! Bookmark not defined.
REFERENCES ........................................................... Error! Bookmark not defined.
APPENDIX.................................................................. Error! Bookmark not defined.
Appendix 1. Classification of construction investment projects Error! Bookmark not
defined.
Appendix 2. Revenue of projects ......................... Error! Bookmark not defined.
Annex 3. Cash flow analysis of project finance ... Error! Bookmark not defined.
Annex 4. Summary table of total adjusted investment and the project's final
settlement value ...................................................... Error! Bookmark not defined.
 INTRODUCTION
1. The necessity of thesis
Along with the economy's development, and thanks to the opening mechanism of the
State and the equitization policies for SOEs for improving the economy's efficiency at
present, enterprises are increasingly established, thus for this reason, the economy become
more and more active and enterprises are severely competitive.
In the course of participating in business activities, enterprises often have their own
development orientations and strategies, and during the implemention of their development
strategies, enterprises often have to carry out their investments such as: Investments in
plants, equipments, lands etc. and usually these investments are fixed assets of very great
value and the cost of conversion is pretty high thus it is not allowed to make mistakes.
Hanoi Housing Investment and Development Corporation is a business unit mainly
engaged in the field of construction investment, so the businesses of the Corporation are
the construction investment projects.
Investment is a major activity that determines the growth and development of
enterprises, in which the management of construction investment projects shall be a key
factor in ensuring investment efficiency. Therefore, in order to ensure the effective
investment, the improvement on the management of construction investment projects in
enterprises shall be increasingly paid attention to and have a very important significance.
Through investigation, I realized that the management of construction investment
projects at Hanoi Housing Investment and Development Corporation over the past years,
apart from the results achieved, has still existed some projects being carried out and
delayed at the Corporation accounting for around 39% in the period of 2009 - 2015 and
mainly focusing upon construction investment projects on highrise buildings for dwelling
in combination with trading & services (accounting for around 80% of erection and
construction products of the Corporation), this is such alarming statistics for the
management of project progress at the Corporation etc. Management of project progress
plays an extremely important role in deciding the success of construction investment
projects. These limitations are the main reasons for the current efficiency of investment
projects of the Corporation not high enough.
 Given the importance of that situation, along with the achived knowledge so I chose
the subject: Some solutions to improve and enhance the management of
construction investment projects on highrise buildings for dwelling in
combination with trading & services at Hanoi Housing Development and
Investment Corporation as the study topic for my thesis.
2. Purpose and task of the study
Purpose of the study: Based on the current situation, the thesis shall propose a
number of solutions to improve the management of construction investment projects on
highrise buildings for dwelling in combination with trading & services at the Hanoi
Housing Development And Investment Corporation.
Study task: In order to achieve the above purpose, the thesis shall carry out the
following tasks:
- To systematize and clarify the basic theoretical issues on management of
construction investment projects on enterprises under current conditions.
- To evaluate the current situation of management of construction investment projects
on highrise buildings for dwelling in combination with trading & services at the Hanoi
Housing Development and Investment Corporation.
- To develope a system of basic points and propose major solutions to improve the
management of construction investment projects on highrise buildings for dwelling in
combination with trading & services at the Hanoi Housing Development and Investment
Corporation.
3. Subjects and scope of the study
Subjects of the study:
Subjects of the study of this thesis is the management of construction investment
projects on highrise buildings for dwelling in combination with trading & services.
Scope of the study:
Spatial scope: Hanoi Housing Development And Investment Corporation
(HANDICO).
Scope of content: The thesis shall focus upon studying the management of
construction investment projects on highrise buildings for dwelling in combination with
trading & services at the Hanoi Housing Development and Investment Corporation
regarding the fields: Establishment of investment projects; Appraisal of Investment
projects; Selection of contractors; Supervision & control of construction works (in which:
going deep into progress control).
Study time: Information database in period of 2009 -2015 shall be obtained as this is
the period that the Corporation performs many projects and the data is also the latest
update.
4. Contributions of the thesis
- Regarding the scientific basis: Systematizing and clarifying the theoretical issues to
the management of construction investment projects at enterprises in the current period.
- Regarding the practical basis: Analyzing and assessing the current situation of
management of construction investment projects at the Hanoi Housing Development and
Investment Corporation. Bringing forth the shortcomings in the management of
construction investment projects at the Corporation and the causes of those shortcomings.
On the scientific and practical basis, the thesis shall build a system of views and
recommend appropriate solutions to improve the management of construction investment
projects at the Hanoi Housing Development and Investment Corporation under the current
conditions. Such views built together with those shortcomings that have been analyzed
shall be oriented to guide and improve the management of construction investment
projects. Proposed solutions are direct solutions for Hanoi Housing Development and
Investment Corporation from the perfection of perception to the organization, contents and
methods of managing construction investment projects.
5. Structure of the thesis
In addition to the table of contents, introduction, conclusion and reference, the
content of thesis shall be divided into four chapters, including:
Chapter 1: Overview of the study situation and the general theoretical basis on the
management of construction investment projects in enterprises.
Chuong 2: Methods of study
Chapter 3: Current situation of management of construction investment projects on
highrise buildings for dwelling in combination with trading & services at Hanoi Housing
Development and Investment Corporation
Chapter 4: Some solutions to improve and enhance the management of construction
investment projects on highrise buildings for dwelling in combination with trading & services
at Hanoi Housing Development and Investment Corporation.