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Purpose

This study explores the challenges faced by infrastructure projects under the National Target Program for New Rural Development (NTP-NRD) during the 2010–2020 period in Vietnam.

Design/methodology/approach

Using the questionnaire survey, the responses from project owners’ perspective reveal significant barriers including land clearance and compensation delays, governance issues of owner, design- and supervise-contractor problems financial under-management, contractor performance, and external environmental factors. Based on developed hypotheses from the literature, this study employs structural equation modeling (SEM) to examine these challenge impacts on project outcomes.

Findings

All of the hypotheses representing six aspects of challenges are significant. These findings demonstrate the critical role of integrated strategies in overcoming these six aspects of challenges, suggesting improvements in regulatory frameworks, financial practices, and contractor management.

Practical implications

The results emphasize the importance of advanced project management tools and adaptive strategies to enhance the efficiency and sustainability of rural infrastructure projects.

Originality/value

This research contributes to the field by providing a referred framework for policy and practice. It aims at bridging the rural-urban divide and achieving sustainable economic growth. Future studies should explore the role of digital technologies and comparative analyses across different locations to further refine approaches to rural infrastructure development.

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