1 AIT Asian Institute of Technology

Improvement of purchasing process of goods and services for operational activities in J.V Vietsovpetro, Vung Tau, Vietnam

AuthorTruong Thanh Son
NoteA project study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration (Executive) in International Business – Management of Technology (VN), School of Management
PublisherAsian Institute of Technology
AbstractThe goods and services to serve production activities for any enterprise always play important role in the existence and development of that enterprise. For the Joint Venture Vietsovpetro (VSP), the oil and gas exploration activities are primarily carried out on the offshore installations located more than 100 km from onshore, the role of goods and services for maintenance, repair and operation (MRO) on those offshore installations even more important. Every year, the VSP spends hundreds of millions US Dollars to purchase goods and services to ensure the production safety and continuity as well as to invest in new projects. In the marine condition, the offshore facilities will be degraded quickly, VSP needs to maintain and repair them on time by a large volume of materials, equipment. To capture the investment opportunities, VSP needs to purchase of materials and equipment for construction of new projects according to plan. It means the goods and services are provided on time is a important factor affecting the economic efficiency in production activities of VSP. The purchasing process of goods and services in the VSP is implemented in accordance with the provisions of the Vietnam’s Laws on Procurement and regulations of both parties Vietnam and Russia. In fact, the delay in the process of purchase of goods and services has caused many difficulties for implementation of production and development plan annually. To overcome this delay, VSP has launched several measures to reduce the number of days to perform an order from 216 days (in 2006) to 117 days per order (in 2009). However, according to statistics in 2009 is still around 60% of purchasing orders were delayed. This Case Research will analyze the reasons caused the delay in the implementing process of purchase of goods and services in VSP. The main factors are analyzed concerning with the legal, characteristics of the VSP, people and the purchasing process is being implemented in VSP. And more important, the Case Research also proposed the solutions to overcome the delay in implementation of purchasing process of goods and services in VSP.
Year2010
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Chairperson(s)Winai Wongsurawat
Examination Committee(s)Huynh Trung Luong;Bechter, Clemens
Scholarship Donor(s)Vietsovpetro J.V


Usage Metrics
View Detail0
Read PDF0
Download PDF0