Construction Risks in Developing Countries: A Vietnam Case Study


  • Nguyen Le, PhD MWH Constructors, United States
  • Wai Oswald Chong, PhD, PE Arizona State University, United States
  • Kenneth Sullivan, PhD, PE Arizona State University, United States



Construction Industry Risks, Developing Countries, Construction Delay and Cost Overrun, Risk Importance Index, Factor Analysis, Vietnam


Most construction projects in the developing countries are marred with delays, cost overruns and low satisfaction levels. This paper focuses on analysis of the data collected from a survey that include the twenty-three (23) common risk factors that cause non-performance in construction projects in developing countries. The factors were consolidated from an extensive literature review, and inputs were solicited from 103 construction practitioners in Vietnam. The study reveals the top five risk factors as the bureaucratic administrative system, financial difficulties of owner, slow payment of completed works, poor contractor performance, financial difficulties of contractor. Spearman’s rank-order correlation tests determined no significant differences between the participating groups. Factor analysis explored the correlations among the risks and yielded four outcomes – Lack of Site and Legal Information, Lack of Capable Managers, Poor Deliverables Quality, and Owner’s Financial Incapability. The findings lay the foundation for stakeholders in the developing countries’ construction industry to better plan and manage the risks for their projects and investment and develop innovative solutions to improve their construction project performances.




How to Cite

Le, N., Chong, O., & Sullivan, K. (2020). Construction Risks in Developing Countries: A Vietnam Case Study. Journal for the Advancement of Performance Information and Value, 12(1), 30–49.

Most read articles by the same author(s)

1 2 3 4 > >>