GTZ MPDF Viet Nam - Quality Management Services Analysis, 2003

Description
MPDF and GTZ contribute to the promotion of local, private SMEs in Viet Nam and have programs to strengthen the quality management services market. To better understand private involvement in the existing QM market they jointly conducted a supply analysis to: determine market trends; gain an overview of private QM providers and their services to assess technical and management capacity and human resource and business constraints; and evaluate both GTZ and MPDF initiatives and available QM services.

Although the study focused primarily on private suppliers in Hanoi and HCMC, it also included suppliers in the public and foreign invested sectors, as well as certification bodies and market regulators. Thirty-one in-depth interviews were conducted.


Methods for info gathering
Provider survey, SE survey, In-depth interviews

Summary of results
The study found no government restrictions on development of the QM market and wide variations in product quality. The most popular QM services were how to set up a QMS and obtain ISO 9000 certification. This was followed by ISO 14000, HACCP, and SA 8000. Other QM products, such as TQM, QM tools, and 6 Sigma, were not popular with users or suppliers, probably due to low awareness of their benefits for enterprises.

On the demand side, certifiable products were the most popular though it was difficult to assess non-certifiable projects due to low awareness. Demand originates with need, business partners require it, and most users are unaware or unconvinced of the benefit of using QM in their daily operations. Demand for other services such as human resource and financial management exist, but few options are available.

Private QM providers were found to be flexible about tailoring their services to user's needs, the majority were considered enthusiastic about their work (which users felt was as important as technical skill), and consulting firm management teams were seen as skilled and able to perform good management roles. In spite of these positive attributes, not one user of local providers said they would use them again. This may be due to the limited supply of products and the fact that most private suppliers do not understand the importance of corporate strategy, marketing, and product development. They are also at a severe disadvantage in terms of staff recruitment and retention - turnover is high and the best staff either move on to other QM suppliers or start their own firms.

Donor support, though helpful in many respects, was found to be limited in scope and impact. Although GTZ training was considered useful, the time needed to attend all courses and receive full benefit was somewhat excessive. Finally, duplication of funding resulted in less appreciation of the support received from donors.

Improving the availability and quality of QM and other business services is a priority in Vietnam and recommendations include: setting up a knowledge-sharing center so the public can learn about QM; establishing a professional association to assess QM professionals; helping suppliers improve consulting/ technical skills; minimizing subsidies and facilitating supplier independence; diversifying demand for other QM services; and raising awareness of QM so users can make informed choices about available providers, services, and tools.




Associated Activities and Documents
Market Assessment
»	GTZ and Swisscontact Viet Nam - BDS Market Assessment 2001