KEY MANAGEMENT PRACTICES AFFECTING PROJECT PERFORMANCE IN VIETNAM

Abstract

While there are enormous opportunities in Vietnam’s construction industry, many of its construction projects do not have good performance outcomes. The objectives of this study are to: (1) Determine the performance level of projects in Vietnam; (2) Explore the project management practices adopted when undertaking projects in Vietnam that lead to better performance; and (3) Recommend improvement to the present project management practices. Data were collected via a self-administered postal survey, targeting contractors and consultants who had undertaken and managed projects in Vietnam. The quantitative data is analyzed using the Statistical Package for Social Sciences (SPSS) software. The results showed that projects in Vietnam did not achieve significantly good performance in all areas. In particular, cost performance and time/schedule performance are extremely poor. Hence, for better project success, more efforts should be directed to improving all areas, especially cost and time performance. It was found that practices relating to cost, quality, risk and communication management affect project performance to a greater extent than other management practices. Therefore, greater emphasis should be placed on these aspects to achieve good project outcomes. Seven important practices were uncovered to affect at least two performance metrics each. Firms are thus recommended to undertake the following when handling projects in Vietnam: have high compliance with client’s demand for high quality output (Quality46); conduct regular reviews (Quality48); have appropriate control on infrastructure risk (Risk514); provide adequate number of staff to deliver the service (HRM61); increase faceto- face communication (Com71); work with clients whom they have prior working relationships with (Com72); and prioritize projects’ objectives to a high extent (Integ92). For each performance metric, several important project management practices are recommended. The most significant recommendation is to prioritize the project objectives to a high extent (Integ92). To improve time performance, it is recommended that Vietnamese firms should have early acceptance, approval and commitment in the schedule by the project team (Time21) and logical schedule planning with adequate duration for activities (Time22). The key management practices recommended for improving quality performance, owner and public satisfaction and profitability is to have project objectives prioritized clearly (Integ92), allow members to choose their own partners (Proc81), have better control on language risks (Risk511) and provide high quality response towards perceived variations (Scope12). Among the performance metrics, time, quality performance, and owner satisfaction were found to influence at least two other performance metrics. Thus, it is important to improve the performance of these metrics in attaining project success. Particularly in public satisfaction that is often overlooked by both consultants and contractors. This research has established project management practices that significantly impact the performance of projects in Vietnam. With better understanding in the key project management practices and performance metrics, it helps participants to channel their limited resources into the right area and achieves project success.