National Economics University
Department of Public Economics
Development Programs and Projects
REFERENCES
Pham Van Van (Chief Editor), (1999), Socio-Economic
Development Program and Project, Technique and
Science Publishing House.
ADB (1997), Guidelines for the Economic Analysis of
Projects.
ADB (2012), Handbooks on Project Implementation
AusAID (2000), Guideline of project construction in
accordance with the logical framework approach
Time distribution
60% of the time: Lecturing
40% of the time: doing assignments and
discussing (alternating at theory sessions)
COURSE EVALUATION
Participation (10%): Student attendance
and performance in group discussions.
Mid-term exam (40%): Group assignment
and mini test.
Final exam (50%): A 60-minute paper
exam.
COURSE OBJECTIVES
After completing the course, students are expected to:
be equipped with basic knowledge about the role of
DP&P in the planning system of the national
economy, a tool for the Government to implement
the market-oriented economy.
understand and be able to apply different steps in the
DP&P design and formulation process in alignment
with the internationally common practice – which is
known as LFA.
COURSE OBJECTIVES
be able to apply absorbed fundamental theories
to develop a mini-project proposal and defense
of that project initiative.
be able to analyze the financial viability of an
investment project and understand theoretical
backup behind financial analysis principles
(both financial and economic perspectives of
development or business projects).
understand general principles and basic
methods to analyze a DP&P economically.
DEVELOPMENT PROGRAMS AND PROJECTS
CHAPTER I: DEVELOPMENT PROGRAMS AND
PROJECTS IN THE NATIONAL DEVELOPMENT
PLANNING SYSTEM
CHAPTER II: BUILDING DEVELOPMENT
PROGRAMS AND PROJECTS
CHAPTER III DEVELOPMENT PROJECT APPRAISAL
CHAPTER IV: FINANCIAL ANALYSIS OF
DEVELOPMENT PROGRAMS AND PROJECTS
CHAPTER V: ECONOMIC ANALYSIS OF
DEVELOPMENT PROGRAMS AND PROJECTS
CHAPTER I
DEVELOPMENT PROGRAMS AND
PROJECTS IN THE NATIONAL
DEVELOPMENT PLANNING SYSTEM
General introduction
This chapter aims to provide students with an
overview of the role of socio-economic
development planning in the market economy,
and the components of the planning system,
which goes into the position of DP&P in this
system…
The last part of the chapter will clarify the
course's subjects, objectives, and research
methodology, which emphasizes the fundamental
difference between DP&P and business projects.
Chapter 1
1.1. Socio-economic development planning in the
market economy
1.2. The concept and characteristics of DP&P
1.3. Subject, objectives, and studying methods of
the course
1.1. Socio-economic development
planning in market economy
1.1.1 The role and characteristics of socio-economic
development planning in the market economy
1.1.2. Socio-economic development planning
system
1.1.3. The role of DP&P in the socio-economic
development planning system
1.1.1 The role and characteristics of socio-
economic development planning
in market economy
a. Planning for socio-economic development in the
market economy
b. Definition of socio-economic
development planning
c. Characteristics of the socio-economic
development plan in the market economy.
d. Socio-economic development planning system
a.Planning in the market economy
The obstacles of development Things to Mechanism
do Regulation
Conflict between -Define mixed tool
development goals economic
development
mechanism
goals
- Between immediate Limitations take -Planning of
Develop- Scarce correctly advantage of
ment Goals resources benefits and long-term of market
- both
socioecono
benefits mechanism mic
Reasonably mechanisms,
-Between overall benefits overcome development
allocate and
and local benefits the -Legislation
efficiently drawbacks -Economic
-Between social benefits
use of both
and personal interests policy
resources
-Between economic -Economic
-Overcome
development goals and levers
conflicts
social and political goals -Economic
and risks in forces of the
- Between classes in
society the state
development
process
b. Definition of socio-economic
development planning
Socio-economic development planning is
a mode of state economic management.
In essence, it is a conscious activity of
the state based on objective awareness
to guide the development of the entire
national economy as well as identify
major solutions to carry out that
orientation with the biggest socio-
economic efficiency
c. Characterized by the socio-economic development
planning in the market economy.
- The market is both a base and a subject
of the plan.
- The plan is oriented
- The plan is flexible
d. Planning system
SED strategy
Spatial Planning
5-year plan
Long and Medium and short annual
medium term term program plan
programs
Projects Projects Projects
Market
Note: the solid line represents the implementation relationship
dashed lines show the impact relationship
The Role of DP&P in the system of socio-
economic development planning
Programs and projects are determined
based on directions and tasks of the
superior planning levels.
Programs and projects are tools to
implement and adjust plans and Spatial
Planning
1.2. Overview of DP&P
1.2.1. The concept, characteristics, and basic
content of programs
1.2.2 The concept, characteristics, and basic
content of projects
1.2.1. Concept, characteristics and
basic content of programs
The concept
The socio-economic development program is a tool to
concretize and implement the goals of the strategy and
the macro-oriented plan. It is a set of synchronous
objectives, tasks, and solutions in socio-economic,
technology, environmental, and policy mechanism ... to
realize one or some objectives of the superior plan, based
on certain resources and within given periods
1.2.1. Concept, characteristics and
basic content of Programs
Characteristics:
- Targeted
- Consistency
- Effectiveness
- Organizational
1.2.1. Concept, characteristics and
basic content of Programs
New
Program
context
analysis
evaluate
program choose the
implementat target
ion
implementat
Identify the
ion and
target
managemen
system
t
programmin
g,
identifying
projects
(i) context analysis
The background of the program should be
assessed in terms of:
+ Population characteristics
+ Infrastructure and socio-economic situation
+ The political environment and policies
.....
(ii): Select the target and build the target tree
the target tree
The last goal
Intermediate
Intermediate Intermediate
target level 1
target level 1 target level 1
Intermediate Intermediate Intermediate
target level II target level II target level II
Intermediate Intermediate Intermediate
target level III target level III target level III
Note: The deployment relations
The implementation relations
Characteristics of target trees
First: The goals in the target tree are interdependent. Large
and long-term goals are predefined. Specific and short-
term goals are identified later. Implementing the following
goals creates the premise to achieve the previous goal.
Second: goals are implementation trends. The ultimate
goal is concretized into an intermediate-level I target. Each
intermediate-level I goal is developed into many
intermediate-level II targets.
Third: intermediate targets of the same level are relatively
independent. Each intermediate target at the same level
aims to implement a certain aspect of the intermediate
goal.
(iii). Beneficiaries and Affected people
The program's beneficiaries are the group of
people for whom the program aims to benefit
Affected people are the group of people directly
affected by the program's results. The impact
can be beneficial or harmful.
Proper identification of these objects is to
distribute benefits to the right people and limit
harm to affected groups.
Others aspects
Choose the solution to achieve the goal
Identify the Program implementation resources
Identify the force to carry out the program
Propose the possibility of integration with other
related programs
Concretize the program through projects
Determine the socioeconomic effects of the
program
1.2.2. Concept, characteristics and basic
content of a development project
Concept
Characteristics
Basic content of a development project
1.2.2.1. Concept
A development investment project is
a collection of mutual activities aimed
at performing a development
objective according to a selected plan
with defined time and resources.
Overview of development investment projects
• Set of
investment objects
Investment
• Be formed and goals -
operated
under one Benefit
detailed plan (Individual-
social benefit)
• Exist in one
certain period
CLASSIFICATION OF INVESTMENT PROJECTS
BY FORM OF ACCORDING TO BY MODE OF
INVESTMENT INVESTMENT IMPLEMENTATION
Self-investment CAPITAL SOURCES Buy
Venture State budget Build
BOT, BT, BTO Private, in stock To rent
Mixture
BY INDUSTRY AND
UNDER THE INVESTMENT SECTOR
GOVERNING LAW INVESTMENT Manufacturing business
Domestic investment PROJECTS Infrastructure
FDI Administrative career
Social culture
UNDER THE COMPETENCE TO DECISIONS ON INVESTMENT
- Group A
- Group B
- Group C
1.2.2.2. Characteristics of the project
The project is consistent
The project is identified
Logical properties of the project
The basic requirements of an investment project
Be scientific and systematic
Be Legal
Practicality (feasibility)
Norms (consistency)
Project cycle
Research
opportunities (project
identification)
prepare for
investment
Pre-feasibility
study
Feasibility study
project Design, bidding
implementation
Project operation Construction
and installation
operation
Evaluation
project
Project finished
1.3. Objectives, subjects, and methods of the
research
Objectives of the research
Research subjects
Research Methods
