{"id":25063,"date":"2026-01-27T21:25:01","date_gmt":"2026-01-27T14:25:01","guid":{"rendered":"https:\/\/vinasc.co\/vi-sao-nhieu-du-an-dau-tu-duoc-phe-duyet-nhung-van-that-bai\/"},"modified":"2026-01-27T21:41:36","modified_gmt":"2026-01-27T14:41:36","slug":"vi-sao-nhieu-du-an-dau-tu-duoc-phe-duyet-nhung-van-that-bai","status":"publish","type":"post","link":"https:\/\/vinasc.co\/en\/vi-sao-nhieu-du-an-dau-tu-duoc-phe-duyet-nhung-van-that-bai\/","title":{"rendered":"Why do many investment projects fail despite being approved?"},"content":{"rendered":"

Why do many investment projects fail despite being approved?<\/strong><\/h2>\n

Perspective from the project planning stage<\/strong><\/p>\n

In consulting practice, it’s not uncommon to encounter investment projects that have received full approval from competent authorities, have valid documentation, and have even received partial disbursement of funds, yet still fall into a state of stagnation, losses, or are forced to halt implementation. What’s noteworthy is that, upon reflection, the cause of failure rarely lies in legal procedures or policies, but often stems from how the project was initially planned <\/strong>.<\/p>\n

Many businesses and investors view the preparation of investment projects as a “mandatory step to obtain permits,” rather than as a strategic decision-making tool <\/strong>. When projects are developed with a formalistic mindset, focusing more on documentation than on operational efficiency, even if approved, the risk of failure is already “programmed” from the very first pages.<\/p>\n

The approving authority and the investor view the investment project very differently.<\/strong><\/h3>\n
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Why do many investment projects fail despite being approved?<\/figcaption><\/figure>\n

One common misconception is that “an approved project means it’s feasible.” <\/em>In reality, regulators and investors (or banks, strategic partners) view a project from two completely different frames of reference.<\/p>\n

Government agencies focus on validity: whether the project conforms to planning regulations, whether the industry is permitted for investment, and whether the documentation is complete as required. Meanwhile, investors and financial institutions are concerned with other questions: whether the project will generate real cash flow, its risk tolerance, what the worst-case scenario is, and whether the business has the capacity to overcome it.<\/p>\n

This difference is what causes many projects to “pass the legal hurdles” but “die at the operational stage.” The application meets the approval requirements, but lacks sufficient economic and financial viability when put into practice.<\/p>\n

Four common mistakes when preparing investment projects.<\/strong><\/h3>\n
    \n
  1. Project proposals are for obtaining permits, not for making decisions.<\/strong><\/li>\n<\/ol>\n

    The biggest mistake is treating an investment project like a set of documents submitted to a regulatory agency, which, once approved, is then simply put away in a drawer. In many cases, the project is not reused to monitor progress, evaluate effectiveness, or adjust strategy. At that point, the project itself loses its managerial value, and all decisions during implementation become subjective.<\/p>\n

      \n
    1. A purely formal financial model.<\/strong><\/li>\n<\/ol>\n

      Many projects have financial models built with the goal of making a “good profile”: steadily increasing revenue, attractive profits, but lacking validation of assumptions. Risk scenarios are almost never considered, and cash flow is not analyzed in depth at each stage. When the market does not perform as expected, businesses quickly find themselves in a passive position.<\/p>\n

        \n
      1. The ultimate goals of the project are not clearly defined.<\/strong><\/li>\n<\/ol>\n

        An investment project for long-term operation has a completely different logic than a project aimed at raising capital or preparing for M&A. However, many project proposals fail to clarify this objective from the outset. As a result, the capital structure, financial model, and development strategy are fragmented and inconsistent, making it difficult to work with investors or partners later on.<\/p>\n

          \n
        1. \n

          Separate the project from the company’s actual capabilities.<\/strong><\/h3>\n<\/li>\n<\/ol>\n
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          Why do many investment projects fail despite being approved?<\/figcaption><\/figure>\n

          A project may look very attractive on paper, but if it is not aligned with the company’s management capabilities, financial resources, and practical experience, the risk of failure is very high. Developing a project without properly assessing the company’s “tolerance limits” will lead to resource overload from the very first years of implementation.<\/p>\n

          Consultant’s perspective: What is the investment project actually intended for?<\/strong><\/p>\n

          From a consulting perspective, a well-prepared investment project is not just for submitting documents or seeking policy approval. Essentially, the project must be:<\/p>\n