PROJECT MANAGEMENT COMPETENCY DEVELOPMENT: A CASE STUDY OF VIETNAMESE SMALL AND MEDIUM-SIZED CONSTRUCTION FIRMS

As one of the most dynamic cities in Viet Nam, Ho Chi Minh City has numinous changes in both its image and infrastructure. In the year of 1998, there were few buildings, most of which were located in the downtown area. However, for the last decade, many large scale projects have been built.

Following Vietnam’s economic growth, the demand for high-rise buildings increases and the need for efficient construction are therefore evident. However, like other developing countries, Vietnam is also facing many weaknesses in project management that weakened domestic competitiveness.

Improper project management competency is present both in the public sector and private sector and in small and large scale projects. Seminars and workshops have been held to discuss and explore the effectiveness of this issue in term of project cost, time and quality, as well as to seek for an enhancement of project management competency.

Mr. Chu Bien Cuong made a case study to (1) identify the project management competency of an SME construction company in Vietnam; and (2) identify on how to enhance project management knowledge and skills for human resources.

Mr. Cuong analyzed the weakness and identified the root causes attributable to project management competence. And based on which, he gave recommendations to solve the problems peculiar to a real-world project, while highlighting the expected enhancements of a real contractor. After all, a project management competence framework was developed for projects under the administration of a small or medium-sized construction firm.

Through this case study, Mr. Cuong found out that among small and medium sized construction firms, the competency of SMEs still does not meet the project management in terms of effectiveness and efficiency. Most SMEs are restricted in applying the management system. Besides, the management knowledge is the most important thing that SMEs have to improve in order to obtain the potential competition with other rivals.

Through various assessments and analyses, his study successfully explored insights in project management competency. The findings are found to be practical for small and medium-sized construction firms. His recommendations are the following:

1. Individual competency. The use of suitable leadership style is of prime importance in the firms. In addition, the individuals should be aware of the necessity to acquire knowledge as well as fundamental project management skills. Lessons from project failures can be a source of experience to learn. Beside, the project management should have full support of his top management and colleagues to carry out project tasks successfully.

2. Team competency. Group leadership and cooperation is crucial for the survival and development of any organization. A good system should therefore be established to address at least the following issues:

(i) line of communication;
(ii) vague and ambiguous defined responsibilities;
(iii) individual relationships;
(iv) decision-making processes;
(v) high cooperation.

3. The organization institutionalization is very important for its own development and as a good working environment for its staff. The organization should be structured in such a way that divisions, departments or strategic development, etc. can meet the project-focused objectives. In addition, the employees also contribute greatly to the development of the organization itself. It is strongly recommended that in setting rules and policies, the top management should, among other things, focus on enhancing individual and team competency through special-purpose capacity-building programs designed for its responsible staff.

His thesis abstract is copied and posted.

ABSTRACT

For the last decade, most projects in Vietnam were in small and medium scales. So with crowded labor sources at that time, contractors satisfied the basic project requirements with inefficient outputs and outcomes. However, construction projects have nowadays been developing in scale as well as in quantity. As a result, the requirements on improvements in competition in terms of quantity, cost, and technology are increasing.

The role of contractors in construction projects is very important since their performance brings successful or failure to these projects. In Vietnam, project management competence of local contractors has recently not satisfied market demand and project requirements. Such low project management competence has resulted in poor performance and side effects. These not only have a direct impact on the stakeholders but also on the project objectives and social interests. To enhance project management competence is therefore required by and from individuals and organizations.

Project owners have been seeking for efficient and effective contractors who can deliver a promised project. As stated, contracts are often awarded to foreign contractors who have experience and capacity to meet their client’s expectations. Meanwhile, the chance to lose contracts in high demand markets is obvious for local contractors due to limited abilities.

The need of approaching and improving project management competence is critical. This study will therefore address the project management competence by investigating a project by a construction firm, and then recommending solutions to improve project management competence in small and medium-sized construction firms in Vietnam.

His research framework is illustrated below.