| Author | Ngo, Tien Dung |
| Call Number | AIT RSPR no. SM-94-17 |
| Subject(s) | Joint ventures--Vietnam
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of
Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | In 1987, the Law of Foreign Investment was issued in Vietnam. Joint ventures became
the most common form of foreign investment. The increasing number of joint ventures added
important influences to the local market. However, the increasing rate of failed joint ventures is
significant. Especially, the case of Joint ventures between European companies and Vietnam's
partners should be considered. European companies have advantages in capital, technology.
Why did they fail? Some reasons have been considered: They included the poor
infrastructure, the ineffectiveness of local administrative system, the economy is "not open
enough", the political situation is not stable, the Vietnamese staff are less. educated. This means
less expectation for investors. All of these reasons have some substance. But there is the
economy growth rate of 8%, and the success of other joint ventures. The main reasons for
failure in joint venture is ineffective Multicultural Management. Foreign managers can do
much better, if they become more aware of the cultural features of Vietnam and better prepared
to manage in Vietnam.
In this report, the field research included a questionnaire to partners in joint ventures in
Vietnam and face to face interviews with directors. The data from the surveys are analyzed to
build a "general image" of multicultural managers: Characteristics, Knowledge, Actions. The
report also included a qualitative analysis which is based on the interviews, the contacts of
author has had with foreign businesses and observation. One important point which is very
clear: The simplistic knowledge about the Vietnam market and misunderstanding of local
culture are common problems for foreign managers. There is less preparation of foreign
managers before going to Vietnam. They are less ready to manage in the multicultural
management environment. This report develops some guidelines which are practical for
foreign managers. The objective is to reduce the failures of joint ventures. No one benefits from the death of joint ventures. |
| Year | 1994 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierczek, F.W. |
| Examination Committee(s) | Ramanathan, K.;Do, Ba Khang; |
| Scholarship Donor(s) | Bread for the World; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1994 |