Professionalizing infrastructure investment management to better support diplomatic activities

On the afternoon of October 15, the Service Department for the Diplomatic Corps organized a scientific workshop titled “Legal basis and operational regulations for the Specialized Construction Project Management Unit to implement domestic, international projects and international bidding packages.”

The workshop formed part of the ministerial-level scientific research project “Specialized Construction Project Management Unit of the Ministry of Foreign Affairs: Legal framework and operational regulations” led by Mr. Ngo Phuong Nghi, Director General of the Service Department for Diplomacy Corps.

A critical element for enhancing public investment efficiency

Director General of the Service Department for Diplomacy Corps Ngo Phuong Nghi noted that project management for construction investment in Vietnam is undergoing a transformation, shifting from an administrative mechanism to a more professional, transparent, decentralized, and accountable system. (Photo: Thanh Long)

In the context of the country’s strong development, project management in construction investment has become a key factor in ensuring public investment efficiency and promoting sustainable infrastructure development.

According to Mr. Ngo Phuong Nghi, project management in construction investment across Vietnam is transitioning from an administrative mechanism to a more professional, transparent, decentralized, and accountable system. At both ministerial and local levels, Project Management Units have gradually standardized their organizational structures, improved management procedures, and adopted information technology applications, such as Building Information Modeling (BIM) and digital contract management to enhance investment efficiency. However, to ensure greater consistency and sustainability, it remains essential to continue refining the legal basis, strengthen professional training, clearly define the functions and authorities among stakeholders, and, in particular, develop a specialized Project Management Unit model with a high degree of professionalism, suited the requirements of the new development phase.

Within the Ministry of Foreign Affairs, project management activities have expanded alongside globalization and deep international integration. The Ministry plays a pivotal role in implementing diplomatic construction projects, from infrastructure development to bilateral and multilateral cooperation initiatives. With nearly 100 Vietnamese representative missions abroad and numerous facilities across the country, the Ministry’s construction investment projects not only meet operational needs but also embody the image and stature of Vietnam on the international stage.

At present, the Ministry manages a broad portfolio of projects, including the construction, renovation, and repair of domestic facilities, as well as the establishment of representative offices overseas. However, in the absence of a specialized Project Management Unit, project organization and implementation are largely decentralized. The Ministry’s projects are financed through various sources, including public investment, the state budget, Official Development Assistance (ODA), and concessional loans. Despite achieving positive results, the Ministry’s project management activities continue to face various challenges.

An overview of the seminar. (Photo: Thanh Long)

Mr. Ngo Phuong Nghi proposed three options for establishing the Specialized Construction Project Management Unit: (i) Establishing a new, independent Specialized Construction Project Management Unit under the direct management of the Ministry of Foreign Affairs, with its own legal status, seal, and bank account; (ii) Establishing the Specialized Construction Project Management Unit within an existing public administrative unit under the Ministry; (iii) Upgrading an existing project management unit into the Specialized Construction Project Management Unit.

The proposed unit would manage all construction investment projects of the Ministry, both domestically and abroad, based on principles of transparency, consistency, feasibility, and alignment with the unique characteristics of diplomatic and international investment activities, while ensuring full compliance with Vietnamese laws and regulations.

Strategic and specialized requirements

Presenting an overview of project management in construction investment across ministries and sectors, Dr. Nguyen Van Duc, Lecturer at the Faculty of Construction, Hanoi Architectural University, emphasized the specific characteristics of construction investment projects under the Ministry of Foreign Affairs and and the need to establish a Specialized Construction Project Management Unit directly under the Ministry.

Dr. Nguyen Van Duc, Lecturer at the Faculty of Construction, Hanoi Architectural University, emphasized the distinctive features of construction investment management within the Ministry of Foreign Affairs. (Photo: Thanh Long)

According to Dr. Nguyen Van Duc, Vietnam’s current legal basis governing construction investment project management has become increasingly comprehensive, laying an important foundation for the professionalization of public investment management. Consequently, most ministries and sectors have established specialized or regional Specialized Construction Project Management Unit tailored to the specific investment characteristics of each field.

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Building on this reality, Dr. Nguyen Van Duc underlined the distinctive nature of construction investment projects under the Ministry of Foreign Affairs. These projects are diverse in form and function, ranging from representative offices, cultural centers, and staff residences to logistical facilities, and must simultaneously meet technical, security, confidentiality, and architectural identity standards of Vietnam, while strictly complying with host-country construction regulations. In addition, the Ministry’s financial sources are highly specific, encompassing state budget allocations, bilateral aid, Official Development Assistance (ODA), and public–private partnership (PPP) models, all of which require a high level of expertise in international financial and legal management.

Dr. Nguyen Van Duc affirmed that the establishment of a Specialized Construction Project Management Unit is not merely a technical or organizational solution to improve project efficiency at home and abroad, but also a strategic move that would strengthen the position, credibility, and institutional capacity of the Ministry of Foreign Affairs of Vietnam in the international arena. Through this model, the Ministry will have a dedicated mechanism capable of effectively managing its construction projects, ensuring quality, progress, and cost-efficiency, while promoting transparency, accountability, and maximizing public investment efficiency.

Prof. Dr. Tran Chung, former Director of the Department for the National Construction Quality Assurance and Quality Control under the Ministry of Construction. (Photo: Thanh Long)

For his part, Assoc. Prof. Dr. Tran Chung, former Director of the Department for the National Construction Quality Assurance and Quality Control under the Ministry of Construction, emphasized that although the diplomatic sector operates with broad scope and unique characteristics, project management must still comply with national legal regulations. He noted that it is precisely these unique characteristics that should guide the design of an appropriate and effective organizational model and management approach.

Associate Professor Tran Chung also commended the Ministry of Foreign Affairs for organizing the seminar, describing it as an opportunity to gain deeper insights into the distinctive nature of diplomatic construction projects - those closely linked to national security, foreign affairs, and the country’s image abroad. Such projects, he said, demand a specialized, professional, and flexible management model.

He suggested studying modern international management models to streamline administrative procedures and enhance overall efficiency. Regarding infrastructure projects, he recommended adopting effective public–private partnership (PPP) mechanisms, which can help reduce costs while ensuring construction quality.

Standardizing regulations to address practical challenges

As Vietnam’s network of overseas representative missions expands, diplomatic construction projects have grown in both scale and complexity, often involving multiple legal systems. This diversity makes the management of EPC (Engineering, Procurement, and Construction) contracts more challenging and risk-prone.

Prof. Dr. Nguyen Duy Dat, Director of the Institute of International Business & Logistics, University of Commerce proposed establishing a Specialized Construction Project Management Unit under the Ministry of Foreign Affairs.

According to Assoc. Prof. Dr. Nguyen Duy Dat, Director of the Institute of International Business & Logistics, University of Commerce, pointed out that project owners in the diplomatic sector, who may lack deep technical expertise, often face risks such as cost overruns, project delays, and disputes arising from differences between Vietnamese and host-country laws or international standards. He proposed establishing a Specialized Construction Project Management Unit under the Ministry of Foreign Affairs to serve as a centralized body for legal, technical, and financial coordination in managing EPC projects. He also recommended developing a regulation on the management of EPC contracts with foreign elements, including standardized bilingual contract templates, unified procedures, and an inter-ministerial coordination mechanism.

Furthermore, Mr. Dat suggested strengthening capacity building in areas such as FIDIC contract management, international arbitration, insurance, and foreign currency finance, alongside applying digital technologies in project management.

He concluded that completing the legal framework and operational regulations for the Specialized Construction Project Management Unit represents a fundamental solution to enhance public investment efficiency, ensure transparency and professionalism, and reinforce Vietnam’s credibility in implementing diplomatic construction projects.

Mr. Nguyen Minh Tuan, Head of the Construction Investment Department, Financial Management Department of the Ministry of Foreign Affairs. (Photo: Thanh Long)

Meanwhile, Mr. Nguyen Minh Tuan, Head of the Construction Investment Department, Financial Management Department of the Ministry of Foreign Affairs, highlighted challenges in project management at overseas missions due to differences in legal frameworks, language barriers, and implementation conditions.

He explained that diplomatic missions must comply with three layers of legal principles: the laws of the host country, international treaties, and Vietnamese law. However, implementing the principle of “priority for host-country law” under Decree No. 104 remains complex due to systemic and linguistic differences, often leading to prolonged and costly project preparation and bidding processes. At the same time, overseas missions typically lack technical staff and are unable to closely monitor project progress.

Therefore, Mr. Nguyen Minh Tuan emphasized the need to establish a specialized construction and investment management unit to provide comprehensive support for Vietnam’s overseas missions. He described project management at these missions as “practical hotspot”, requiring a flexible approach and a capable organizational structure with qualified personnel. He also expressed hope that future studies and seminars would delve deeper into feasible organizational models and operational mechanisms to help the Ministry of Foreign Affairs effectively address existing challenges in this field.

Through the workshop, participants clarified the legal foundation, operational regulations, and organizational model of the Specialized Construction Project Management Unit under the Ministry of Foreign Affairs, while also gathering valuable feedback from experts, scholars, and government agencies to finalize the findings and deliverables of the 2025 ministerial-level scientific research project.

The discussions covered three topics: (i) Current project management practices in ministries and sectors; (ii) the legal framework and operational regulations of the Ministry’s Specialized Construction Project Management Unit; and (iii) international standards related to project management organizations handling ODA-funded projects, EPC contracts, and foreign-related elements.

The workshop not only contributed to refining the outcomes of the 2025 research project but also opened new directions for developing a professional and modern project management model suited to the specific characteristics of the Ministry of Foreign Affairs’ operations - creating an important foundation for improving investment efficiency and supporting Vietnam’s foreign affairs efforts in the new stage of development.

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