Critical Factors that Influence the Effectiveness of Exploiting Toll Booth (Build - Operate - Transfer - Bot) Projects in Vietnam: Sponsorship Bank’s View

Abstract

Vietnamese firms are particularly interested in the successful utilization of developments financed by toll stations (BOT). The research was done to determine the influence of a variety of variables on firms' capacity to efficiently utilize the BOT toll station project, including the following: From the standpoint of loan-financing banks. Financial statement information for five years (2018-2022) and the capacity profile of 35 firms that obtained loans from commercial banks to operate the BOT toll station project were gathered. Investment capital; economic efficiency; project operation personnel; project implementation experience; transparency in bidding; and location of BOT toll booths are all included in the research. Due to the fact that the data are temporal and spatial in nature, the panel regression approach is utilized using three models: (1) Using pooled OLS, (2) FEM, and (3) REM, the author estimated a regression model and evaluated it using the Hausman, Time Fixed Effect, and REM tests to determine the best appropriate model. The findings indicate that six factors influence an enterprise's capacity to exploit the BOT toll station project successfully, including investment capital; economic efficiency; project exploitation personnel; project implementation expertise; transparency in bidding; and location of the BOT toll booth. The outcome contributes to the corpus of knowledge by examining the chance of firms using the BOT toll station project efficiently in a developing nation like Vietnam. Additionally, it gives insight into public and private sector stakeholders' perspectives of how to efficiently use the BOT toll station project, which is critical for prospective stakeholders when deciding whether or not to invest in such projects.