Technology Transfer from British to Vietnamese Industrial Companies - Venturing into a New Business Culture

VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> <br /> <br /> Technology Transfer from British to Vietnamese Industrial <br /> Companies ­ Venturing into a New Business Culture<br /> <br /> Tran Ngoc Ca*<br /> Vietnam National Institute for Science and Technology Policy and Strategy Studies (NISTPASS), <br /> Ministry of Science and Technology, 38 Ngo Quyen Street, Hanoi, Vietnam<br /> <br /> Received 01 May 2018<br /> Revised 30 May 2018; Accepted 20 June 2018<br /> <br /> <br /> <br /> Abstract:  The   paper   examines   the   process   of   technology   transfer   from   British   industrial <br /> companies to Vietnamese companies, to look at the obstacles of this process, especially in dealing <br /> with different business culture environments. The study uses the case studies method, conducting <br /> interviews with about ten companies working in oil and gas service industry. Since this is only a <br /> first   stage   of   the   longer   term   project,   only   preliminary   results   were   discussed.   Therefore,   a  <br /> company in civil engineering consulting has been examined for comparison. The paper argues that <br /> the differences in perception of the same operation activity like service in oil and gas industry are  <br /> crucial factors to take into account if the transfer process is to be successful. Also, the transferor  <br /> and the recipient may have different behaviour in negotiating, in communicating with each other. <br /> Thus, the preparation  of background information, to do "home work", patience and pro­active <br /> attitudes in trying to understand partners are important for transferring technology into different <br /> business environment.<br /> In addition, the factors, sometime not very technology­related, such as internal political motives <br /> and organisational issues of the firms involved can be very influential in the success of technology <br /> transfer process.<br /> Keywords:<br /> <br /> <br /> 1. Introduction economic performance and other benefits to the <br /> host   countries.   Issues   of   international <br /> Technology   transfer   from   industrialised  technology   transfer   are   among   the   most <br /> countries   to   developing   ones   has   been  important in consideration of both government <br /> recognised widely in literature as an effective  and   business   community   concerning   foreign <br /> mechanism   of   increasing   production   capacity,  investment. At the same time, its problems have <br /> been analysed in a substantial amount of works <br /> <br />  Tel.: 84­ of   technology   and  development   studies,   some <br />    Email: tranngocca@gmail.com of   which   are   quite   comprehensive   studies <br />    https://doi.org/10.25073/2588­1116/vnupam.4147 (Stobaugh & Wells, 1984; Fransman & King, <br /> 18<br /> 19 T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> 1984;   Rosenberg   &   Frischtack,   1985;  differences   is   slightly   dealt   with   under   sub <br /> Fransman,   1985;   Lall,   1985;   Ghosh,   1984).  headings such as language problems and choice <br /> Most   of   this   work,   however,   dealt   with   the  of experts. This paper tries to fill this gap by <br /> issues   like   technology   choice,   appropriate  examining the cases of some British industrial <br /> technology,   the   absorption   of   imported  companies   in   doing   investment   and   transfer <br /> technology (Bulfin & Weaver, 1977; Amsalem,  technology to Vietnamese companies and by <br /> 1984).  Other  studies  have been carried out to  doing   so,   to   contribute   into   the   empirical <br /> research  the issues  of  technological  capability  experiences   of   technology   transfer   studies<br /> building   by   developing   countries   (UNCTAD,   in general.<br /> 1990;   Collinson,   1991;   Baba   &   Hatashima, <br /> 1995;   Lall   &   Wignaraja,   1994).   At   the   same <br /> time,   it   seems   that   the   issue   of   new   business  2. The study, background and methodology<br /> culture and environment of host countries tend to <br /> receive less attention of researchers, although it  This   study   analyses   results   of   a   project <br /> emerged as crucial in deciding the rate of success  under   auspices   of   the   European   Union   ECIP <br /> of   transfer   as   some   call   a   technology   climate  (European Community Investment Partnership) <br /> (APCCT, 1988) or cultural obstacles (Barbosa &  and   Scottish   Enterprise,   a   government <br /> Vaidya, 1995). How the firms from outside enter  organisation to assist Scottish companies to do <br /> this new business culture, how do they adapt to  business   both   at   home   and   in   exporting <br /> work in this environment will decide very much  markets. With funding coming from the EU and <br /> the sustainability of the deal, either technology  Scottish   Enterprise,   Scottish   companies   are <br /> transfer agreement or setting up a joint venture.  supported in identifying partners in Vietnam for <br /> A study on technology transfer from British to  their   technology   transfer   or   joint   venture <br /> Chinese   industrial   firms   has   shown   that   this  activities. The focus of this programme is the <br /> factor could be an important one in the success  oil   and   gas   services   industry,   with   attention <br /> rate of transfer (Zhao et al., 1995).  paid to small and medium size companies.<br /> In the context of Vietnam as a developing  The oil and gas industry is a key sector in <br /> country,   some   research   projects   have   been  the   development   of   Vietnam   's   economy.   Oil <br /> carried out to analyse the problems and issues  and gas industry of Vietnam has began in the <br /> of   technology   transfer   from   outside  1970s   with   the   production   of   the   first   oil <br /> (Brundenius   et   al.,   1987;   NguyenThanhHa,  coming from Bach Ho (White Tiger) field by <br /> 1987; TranNgocCa, 1990). However, the issue  VietSovpetro, a joint venture of PetroVietnam <br /> of cultural differences between home and host  and   the   former   Soviet   Union   (Zarubezneft). <br /> countries have not been addressed sufficiently.  Crude   oil   production   has   been   increasing <br /> Instead,   issues   such   as   technology   transfer  steadily from 41,000 tons in 1986, for example, <br /> policies and mechanisms were the main focus  to 7.0 million tons in 1994, 7.7 million tons by <br /> of these studies. Even case studies are dealing  the end of 1995. In 1997, it has reached nearly <br /> very little with this cultural aspect of business  10 million tons.<br /> and   transfer   environment.   For   example,   in   a  Since there is no other actors in oil and gas <br /> study to evaluate foreign technology transfer to  industry in Vietnam, the Vietnam Corporation <br /> Vietnam   (VuCaoDam   et   al.,   1991),   the  of Oil and Gas (PetroVietnam) as a state owned <br /> problems   as   experienced   by   both   transferors  enterprise, is the single Vietnamese partner for <br /> and recipients of technology are focused mainly  all   businesses   in   this   industry.   The   company <br /> on   structure   of   organisation,   information  was  formed in 1975 and since then exercised <br /> sources,   labour   force,   site   selection   and  control   over   various   range   of   offshore <br /> maintenance   aspects.   The   issue   of   cultural  exploration   and   production   activities   in <br />  T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28 20<br /> <br /> Vietnam. In 1981, it has formed a joint venture  3. The companies and their links<br /> Vietsovpetro   to   make   geological   exploration <br /> and exploiting a number of blocks on Vietnam's  Company A<br /> continental  shelf.  In addition  it  has  PSC  with <br /> Background of the firm<br /> many other operators such as BP, ExxonMobil, <br /> Texaco, Esso, Fina, Total, and many companies  This   is   an   Aberdeen­based   company <br /> from   Asia   like   Petronas   (Malaysia),   Japanese  specialising   in   integrated   services   of   project <br /> Idemitsu and JVPC, and PEDCO (Korea). management and well engineering solutions for <br /> Initially,   approach   to   PetroVietnam   was  oil and gas industry. The company is a part of a <br /> made   in   1996   on   quite   a  high   level   with   the  bigger group of business companies providing a <br /> assistance   of   British   Embassy.   It   was   agreed  comprehensive   range   of   exploration   and <br /> between Scottish Enterprises and PetroVietnam  production services to the upstream oil and gas <br /> that   a   scheme   to   support   technology   transfer  industry. The group employs over 1,200 people, <br /> and foreign investment aiming at forming joint  has annual turnover of £80 million and consists <br /> ventures   would   be   pursued.   In   this   context,  of five independent companies with their own <br /> Scottish companies are invited and brought into  company   names,   specialising   in   exploration, <br /> Vietnam   for   exploratory   visits   as   the   first  environmental high­tech services, drilling, well <br /> Facility of ECIP programme. services,   production   engineering,   subsea   and <br /> ultrasonic   technology   and   integrated   services <br /> The   study   is   based   on   the   access   to <br /> management. The group has offices or bases in <br /> information   sources   both   in   Scotland   and <br /> 18   countries   and   been   to   Vietnam   before   but <br /> Vietnam   with   Scottish   Enterprise, <br /> due to lack of success in finding oil, it went on <br /> PetroVietnam,   Vietnamese   and   Scottish <br /> lower scale and currently keeps some presence <br /> companies. Interviews with managers working <br /> in the country at a minimum level.<br /> in   these   organisations   were   conducted   during <br /> the   last   twelve   months   as   well   as   direct  Company A provides services in integrated <br /> observation   of   negotiation   and   approaching  management   services   including   all   project <br /> process  by Scottish  companies.  In addition  to  management (drilling, testing, well technology <br /> other general issues of technology transfer and  and   production:   safety   management,   well <br /> doing investment studies such as the indigenous  management,   performance   management,   etc.). <br /> technological   capability   of   Vietnamese  The company has contracts with ten major and <br /> companies,   or   the   policy  of   host   country,   the  independent   operators   (20%   of   North   Sea <br /> aspect   of   different   cultural   and   business  output). It manages about 250 wells on eleven <br /> environment   is   specifically   of   interest   of   this  platforms,   or   about   20   well   tests   per   annum. <br /> study.   Following   parts   examine   preliminary  The   company   has   more   than   60   professional <br /> experiences   of   some   firms   among   about   ten  engineers   (ex­operator   and   ex­service <br /> companies   involved   in   the   project.   Since   the  companies   with   700   man­years   experience). <br /> project is only in its first facility, preliminary  Supporting staff of the firm work in quality, IT, <br /> finding   related   to   only   one   firm   is   provided.  administration,   etc.   Specifically,   the   firm   has <br /> Therefore,   another   case   of   civil   engineering  built   up   an   extensive   system   of   data   base   to <br /> industry   has   been   put   in   a   comparative  monitor   all   its   reporting   procedures   and   the <br /> perspective to see differences in approaches and  learning   system   which   provides   instantly <br /> results of these approaches.  knowledge   base   for   all   its   staff.   These <br /> information systems of management are a high <br /> quality   learning   tool   for   doing   business <br /> worldwide.   Company   A   has   a   specific <br /> philosophy   different   from   most   of   other <br /> 21 T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> competitors providing similar services. It does  PTSC has a staff of about 1,500 people working <br /> not   sell   any   product   but   work   closely   with  in 17 subsidiaries located in different provinces <br /> customers to develop economical solutions for  and   cities.   The   services   of   PTSC   are   quite <br /> their well operations aspects. The firm adopts  diversified, ranging from supply bases in main <br /> the   risk/reward   remuneration   strategy   which  ports,   bunkering   and   oil   product   supplies, <br /> blends   its   interests   into   the   performance   of  freight   forwarding   to   catering,   procurement, <br /> clients. It also maintains core competence in its  and   even   housing,   accommodation   and   hotels <br /> staff instead of relying on external consultants.  services. It provided labour for drilling, marine <br /> In many senses, this company is a organisation  crew,   positioning  stations   as   well   as   staff   for <br /> with strong emphasis on learning. shore­based offices. Concerning marine support <br /> and oil  field  supplies,  PTSC  provides  various <br /> The partner and activities kinds   of   support   vessels,   tools,   diving <br /> equipment and material.<br /> In January 1997, company A was brought <br /> by Scottish Enterprises to Vietnam to do a high  Perception   of   PTSC   on   technical   services <br /> profile   presentation   to   the   top   managers   of  are   mostly   simple   ones,   without   sophisticated <br /> PetroVietnam coming from all departments. By  concept of technical services. In fact, it is not <br /> introducing   company   A   to   Vietnam,   it   was  familiar with the concept of integrated services <br /> expected that one of PetroVietnam companies  such as well technology which company A is <br /> would   be   its   prime   partner   for   technology  providing.   Working   with   many   operators   in <br /> transfer   or   forming   a   joint   venture.   After   the  Vietnam,   PTSC   initially   has   a   perception   of <br /> presentation,   meetings   with   several   potential  "another foreign investor" which come to look <br /> partners   in   PetroVietnam   like   PVSC  for   quick   profit   and   PTSC,   thus,   can   provide <br /> (PetroVietnam   Supervising   Company)   and  services on the basis of charging commissions. <br /> PTSC   (PetroVietnam   Technical   Services  Since company is doing business in "oil and gas <br /> Company) were arranged (see Figure 1). From  services   industry",   it   is   obvious   to <br /> the first impression, PVSC managers were the  PetroVietnam that PTSC should be its natural <br /> right   partners   and   eagerly   to   develop  partner. The idea of forming joint venture, or <br /> partnership   with   company   A,   since   they  transfer of technology, was not very clear from <br /> understood   the   philosophy   and   vision   of  the beginning on the part of PTSC.<br /> company   A.   However,   some   weeks   later,  In   the   meantime,   company   A's   concept <br /> company   A   got   a   confirmation   from  regarding doing business in Vietnam is clearer. <br /> PetroVietnam   to   support   its   partnership   with  It   looks   forward   to   adopt   a   strategy   of <br /> designated   company   PTSC   and   asked   the  franchising   its   business   in   the   long   run   by <br /> company A to deals only with PTSC for all its  starting   with   technology   transfer   (training, <br /> future activities in Vietnam.  access   to   business   network   and   systems   of <br /> PTSC   is   a   wholly   owned   subsidiary   of  database, etc.). Eventually, after 10 years, the <br /> PetroVietnam,  formed  in 1976 originally as  a  Vietnamese workforce should be able to cope <br /> geophysical company. In 1986,  the Petroleum  with   business   demand   independently   using <br /> Services Company was set up to provide simple  brand   name,   network   and   support   of   the <br /> logistics   to   operators.   In   1993,   PTSC   was  company   A.   In   return,   the   two   companies <br /> created   on   the   basis   of   merging   all   related  should   work   together   for   joint   bidding <br /> companies   like   Geophysical   and   Petroleum  submitted to operators. <br /> Services   Companies.   The   company   works   in  Due   to   this   main   difference   in   business <br /> areas   like   onshore   services,   marine   support  concept,   which   was   a   result   of   different <br /> services,   oil   field  supplies   and   labour   supply.  perception   of   service   industry,   the   two   sides <br />  T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28 22<br /> <br /> had hard time in explaining to each others their  with its own managers. It is found out that the <br /> perspective positions, and clarifying very minor  managing director in the process of engagement <br /> things.   It   is   difficult   for   them   to   understand  with   PTSC   was   about   to   resign   due   to   his <br /> each   others   when   most   of   the   time   spent   on  conflicts   with  shareholders  in terms  of  equity <br /> making   PTSC   to   understand   the   concept   of  and direction of the firm's future development. <br /> integrated management which is totally new to  He was not quite sure about his own position in <br /> them. Then, they had to work out how they can  the   company,   and   obviously   much   less   about <br /> come   up   with   a   scheme   acceptable   for  the deal with Vietnam. Lack of communication <br /> everyone. among different companies of the same group is <br /> Communication   between   the   two   sides   is  another   reason.   Although   the   group   still <br /> another problem. Due to reluctance of company  maintains   its   presence   in   Vietnam   with   some <br /> A's   top   managers   to   go   to   Vietnam   for  key people, the company A did not bother to <br /> exploratory   trip,   most   of   communication   has  contact them to know about the position of the <br /> been spent through fax and phone. In fact, the  group.   Moreover,   the   company   A   operates <br /> company sent one of its staff from Australian  under the name similar somewhat to the group's <br /> office   to   visit   Vietnam   for   rather   productive  name,   and  the   group  itself   has   quite   negative <br /> discussion on technical matters. But when it is  image in Vietnam because it has withdrawn from <br /> necessary to send top managers to discuss the  Vietnam   business   very   abruptly   without <br /> deal, the company fail to do. This is seen by  explanation   (which   in   Asian   way   of   doing <br /> Vietnamese   partner   as   not   very   serious  business, is not very acceptable to host country, at <br /> commitment,   while   many   other   competitors  least in Vietnam). All these together added some <br /> from   the   US,   other   European   and   Asian  suspicion toward the company A's attitudes.<br /> countries trying hard to court them. When there  It would be unfair to say that every unwise <br /> is   no   one   on   the   spot   to   push   for   the   deal,  actions are on the part of company A. From the <br /> business seem to be easily to fade away until it  Vietnamese side, there are some problems too. <br /> will be warmed up again at the next cycle of  First   is   the   gap   between   PetroVietnam   and <br /> meetings   which   usually   lasts   several   month.  PTSC   in   supporting   indigenous   technology <br /> This 'up and down' attitudes of doing business  transfer.   At   the   top   level   of   government   and <br /> from   company   A   created   some   unnecessary  PetroVietnam  board,  there  are  a strong desire <br /> gaps in communication with PTSC. This lack of  and political support for developing indigenous <br /> understanding   of   Vietnamese   business   habits  technological   capability   in   oil   and   gas <br /> seems to cause some doubt on the part of PTSC  exploration,   exploitation   as   well   services <br /> about the seriousness and genuine commitment  industries   which   the   Scottish   Enterprises   was <br /> of   company   A.   The   whole   slowness   of   this  aware   about.   The   alliance   with   a   British <br /> approach   led   to   the   fact   that   it   took   nearly   a  company with highly skilled base of expertise is <br /> year for two sides to meet each other again in  crucial   for   learning   technological   competence <br /> Aberdeen,   UK   to   sign   just   an   MOU  and   for   creation   of   a   local   service   industry. <br /> (Memorandum of Understanding ­ a document  However,   at   the   level   of   PTSC,   its   managers <br /> expressing the intention of doing business, but  still   did   not   have   sufficient   understanding   of <br /> without   much   of   legal   abiding   force).   In   the  this policy. They tended to think of business as <br /> context of a developing country, it might still be  usual   way   of   providing   simple   low   tech <br /> quick,   but   with   the   assistance   of   Scottish  services.<br /> Enterprise,   it   could   be   much   quicker   without <br /> misunderstanding. Company G<br /> There are several reasons for this ineffective  Background of the firm<br /> starting. First is internal problem of company A <br /> 23 T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> This is a small design and consulting civil  partner seems the organisation that deals with <br /> engineering company based in Glasgow. It core  the   regulation   on   technology   transfer,   in   this <br /> staff   is   small   with   a   network   of   external  case   the   then   Ministry   of   Science,   Technology <br /> consultants   working   on   providing   various  and   Environment   (MOSTE).   After   consultation <br /> services in design, project management in civil  with the Embassy staff (commercial section), the <br /> construction,   land   management   and   survey   as  National Centre for Technical Progress belonging <br /> well   as   other   infrastructure   projects.   It   was  to the MOSTE was considered as the partner.<br /> formed   in   1994   by   a   group   of   three   partners  The partner and activities<br /> who   worked   in   a   local   authority   roads <br /> department.   Now   it   has   business   in   the   UK,  The National Centre for Technical Progress <br /> Qatar and Vietnam. It Vietnam business began  (NACENTECH) was originally created outside <br /> almost   immediately   after   the   creation   of   the  the   MOSTE   as   the   National   Institute   of <br /> firm. When it had created rather strong base in  Technology   (NIT),   one   of   the   organisations <br /> the   UK,   the   company's   managers   decide   to  promoting   high   tech   ambition   of   the <br /> venture into one of the last emerging markets in  government. It worked mostly in fields such as <br /> Southeast   Asia   learning   about   the   steady  microelectronics, new material, or information <br /> economic   growth   of   the   Vietnamese   market,  systems.   The   institute   was   a   centre   of <br /> especially in construction business.  excellence   for   new   and   strategic   important <br /> research   programmes   of   the   government   and <br /> Initially in 1995, the company intended to <br /> had an independent status, reporting directly to <br /> have   its   wholly­owned   business   in   Vietnam. <br /> the Prime Minister office. At the later stage, as <br /> They   prepared   very   substantial   application <br /> a   result   of   changes   in   organisation   structure, <br /> work   which   was   submitted   to   the   State <br /> this institute had been merged with MOSTE by <br /> Commission for Cooperation and Investment, a <br /> the beginning of 1990s, and then was allowed <br /> body   to   approve   all   foreign   investment <br /> to   do   other   kinds   of   business   based   on   its <br /> businesses in Vietnam. Application packs were <br /> expertise.   NIT   began   to   develop   different <br /> all   made   in   both   English   and   Vietnamese. <br /> research and consulting activities, one of which <br /> Besides,   technical   feasibility   studies   were <br /> is   software   development   for   civil   engineering <br /> prepared for setting up an office in Vietnam to <br /> and   NACENTECH   can   be   seen   as   a   spin­off <br /> provide   the   consulting   civil   engineering <br /> part   of  NIT.  Nevertheless,  the  Centre  did not <br /> services,   especially   in   industry   standard <br /> have   specialised   expertise   in   construction <br /> software   package   for   construction   and <br /> business   necessary   for   being   competitive <br /> infrastructure   projects.   Unfortunately,   the <br /> enough in comparison with other construction <br /> application   has   been   rejected,   simply   because <br /> companies in the countries. To compensate for <br /> the   regulations   have   been   changed.   A   new <br /> this   shortcoming,   it   has   a   power   and <br /> decree   promulgated   after   their   submission   of <br /> connections within and outside MOSTE which <br /> the application has restricted the entry of new <br /> would   be   very   useful   for   building   long   term <br /> foreign consulting firms in civil engineering on <br /> relationship.   Company   G   saw   this   as   a   great <br /> their   own.   In   another   word,   the   only   way   to <br /> advantage and decided to go for it.<br /> enter the business is to have a joint activities <br /> with a Vietnamese partner, for a joint venture or  Still,   to   set   up   a   joint   venture   with <br /> technology transfer agreement.  Vietnamese   partner   is   not   a   simple   matter, <br /> requiring  a   lot   of   efforts,   time   and   resources. <br /> To   find   suitable   partner,   however,   is   not <br /> Eventually, the two partners decided to switch <br /> easy with hundreds of foreign consulting firms <br /> their   efforts   to   a   more   flexible   mode   of <br /> competing for work in civil engineering. After <br /> business,   a   technology   transfer   agreement, <br /> carefully   studying   various   options,   the <br /> which according to experiences of local partner, <br /> managers   decided   that   the   most   appropriate <br />  T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28 24<br /> <br /> is more feasible to achieve the same goal. With  It is not yet easy for many students to be self­<br /> the   connections   and   experiences   of  funded  to  study  overseas   and   therefore,   some <br /> NACENTECH in the MOSTE, they cut through  support provided to student is seen as a great <br /> the   red   tap   bureaucracy   and   found   the  goodwill gesture (which not necessary cost a lot <br /> appropriate   mechanism   to   set   up   the   Civil  of money). The company helps to train students <br /> Engineering   Centre   jointly   run   by   the  (mostly in Vietnam with few selected going to <br /> NACENTECH   and   company   G.   The   new  UK)   and   recruits   them   to   work   later.   This <br /> Centre   specialised   in   highway,   infrastructure  strengthens  very much its position among the <br /> and land development engineering, introducing  network   of   universities   and   institutes.   Long <br /> topographical surveying and digital modelling. time search of partner, patience and efforts to <br /> The Centre also aims to provide a range of  understand   Vietnamese   situation,   mentality, <br /> educational,   training   and   technical   support  expectations and to respond to these have paid <br /> services   and   liases   with   different   government  off. Then, the company has sold some software <br /> organisations.   Understanding   that   to   get  to   a   technical   civil   engineering   company   and <br /> business   in   the   country,   connections   are  prepared   the   first   group   of   users   and   service <br /> important,   company   G,   thus,   created   the  providers.   Other   works   for   infrastructure <br /> relationship with one core organisation and at  projects came after.<br /> the same time, to build a whole set of its own <br /> constituency   in   other   ministries   such   as <br /> 3. Emerging issues<br /> Ministries   of   Construction,   Transport   and <br /> Industry,   under   which   there   are   several  There are several issues emerged from the <br /> potential   partners   and   customers   of   their  two   cases   discussed.   The   differences   in <br /> activities.   Besides,   the   new   Centre   has   close  perception of the same operation activity, in the <br /> links   with   Hanoi   University   of   Civil  concept   of   technology   and   in   business <br /> Engineering   to   secure   access   to   students,  behaviour   of   the   firms   from   both   sides   are <br /> teaching   support   for   development   and  crucial   factors   to   take   into   account   if   the <br /> application   of   new   computer   added   design  transfer process is to be successful.<br /> technology   in   civil   engineering.   This <br /> First,   different   perceptions   of   business <br /> networking   with   the   strategy   of   building   up <br /> (service for oil and gas industry in the case of <br /> constituency   seems   to   work.   Eventually   the <br /> company   A   and   PTSC)   can   cause   a   much <br /> company   has   access   to   and   is   registered   as <br /> longer period of understanding for partners. In <br /> potential   bidders   for   infrastructure   projects <br /> this case, provisions of simple versus technical <br /> funded by World Bank and Asia Development <br /> and   complicated   services   are   totally   different <br /> Bank as well as other ODA sources.<br /> philosophies   of   doing   business.   In   contrast, <br /> Another  notable  attitude  of  company  G  is <br /> company G and its partner NACENTECH are <br /> that it decided not restrict itself to bidding for <br /> more   easy   in   finding   a   common   language. <br /> the   whole   project   by   itself,   but   sub   contract <br /> NACENTECH   is   a   research   and   training <br /> from other bigger players. Thus, by cooperating <br /> organisation itself and understands the context <br /> rather   than   competing   directly   with   other <br /> of a learning organisation where knowledge is <br /> consulting  firms,   a   small   firm   as   company  G <br /> the   main   asset.   According   to   Senge   (1997), <br /> can  have   some  niche  areas   to   specialise   in.   It <br /> founder   of   the   MIT   Center   of   Organizational <br /> looks at opportunity to provide specialist support <br /> Learning,   core   competence   of   a   learning <br /> services   for   government   in   its   secondary   or <br /> organisation   should   comprise   aspiration, <br /> even tertiary road network projects. <br /> capability   of   conversation   and   dealing   with <br /> Company G also has some understanding of  complexity.   It   looks   like   that   the   transfer   of <br /> Vietnam market in terms of recruiting students.  technology   in   high­tech   such   as   software   is <br /> 25 T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> more difficult from a learning organisation like  small was it, is important for positive attitude of <br /> company   A   to   PTSC,   a   company   without  local   partner.   This   is   a   big   contrast   to   the <br /> knowledge   and   understanding   capability   of  negligence of local expectations by company A. <br /> learning (non­learning organisation) and cannot  Interestingly, the commercial habits aspect was <br /> deal with complexity.   ranked as being most obstructive in difference <br /> Second case is a kind of technology transfer  obstacles for doing business in similar country <br /> from a learning to another learning organisation  like China (Zhao et al, 1995).<br /> having   almost   the   same   modes   of   doing  Fifth,   to   build   up   the   network   of <br /> business (or business mentality) and, hence, has  constituency,   to   make   yourself   known   to   the <br /> more advantages than the previous case. As a  local   organisations   as   company   G   did,   is <br /> study on multinationals in oil and gas industry  crucial. Link in terms of alliance or partnership <br /> indicated, it is pragmatically necessary for both  with some other actors outside the project put it <br /> parties to identify sufficient common ground in  into very advanced position in winning works. <br /> terms   of   both   motivation   and   capability   for  Moreover, as Warhust (1991) pointed out, the <br /> technology   transfer   to   arise   (Chooi,   Webb   &  absorption  of   high­technology   where   software <br /> Bernard, 1994). is   involved,   a   special   policy   framework   is <br /> Second,   different   attitudes   of   doing  required. Both cases discussed are dealing with <br /> business: approaching partners, negotiating and  transferring   software   activities   to   Vietnamese <br /> keep communicating with partner can held up  users,   and   thus,   need   to   take   this   point   into <br /> the whole process of understanding each other.  account.   But,   this   already   goes   to   the <br /> Company A did not know how to approach and  responsibility   of   the   host   country  government <br /> negotiate   with   partners,   or   at   least   did   not  and organisations.<br /> appreciate the expectations of the local partner.  The   first   results   of   the   project   show <br /> The difficulty in communication, partly caused  obstacles   of   transfer   process,   especially   in <br /> by   the   hesitance   of   company   A,   also  dealing   with   different   business   culture   and <br /> contributed to the slowing down of business. In  environment. Similar to technology transfer to <br /> the meantime, the long process of learning local  China   by   foreign   oil   and   gas   firms   where <br /> situation,   adapting   regularly   to   its   changing  knowledge   gap   combined   with   language <br /> nature   by   company   G   has   shown   it   has   both  difference   were   so   great   that   many   learning <br /> patience and dynamism to act flexibly.  opportunities were wasted (Oldham et al, 1988; <br /> Third,   political   motives   and   internal  Warhust,   1991),   cultural   and   business   habits <br /> changes   of   both   host   country   institutions  indeed have important role in causing difficulty <br /> (PetroVietnam,   for   example)   and   companies  for the agreement between company A and PTSC. <br /> concerned like company A are also reasons for  In developing countries, these problems can lead <br /> difficulties   in   negotiating   process.   As   in   the  to the questioning the viability of a whole venture. <br /> case   of   company   A,   its   former   director  This happens even with big multinational's joint <br /> unwillingness of active pursuing business led to  venture   like   Procter   and   Gamble   in   Vietnam <br /> misunderstanding   of   partner   that   company   A  where models that work elsewhere may not be <br /> had not serious commitment.  appropriate (Keenan, 1997).<br /> Fourth, the mentality, habits, expectation of  One   of   the   notable   points   is   the   role   of <br /> local   people   working   in   partner   organisations  supporting   organisations   such   as   Scottish <br /> are important to take into account if the foreign  Enterprise,   British   Embassy,   and   other   UK­<br /> companies   want   to   pursue  business   smoothly.  based   trade   and   investment   promotion <br /> The training and information support provided  organisations   such   as   Strathclyde   Business <br /> to local students by company G, no matter how  Development,   Glasgow   Development   Agency, <br />  T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28 26<br /> <br /> etc.   These   organisations   have   provided  respect   of   new   business   environment   of <br /> companies with various kinds of mechanisms to  companies in Vietnam is crucial to success of <br /> understand   new   business   conditions,   local  British companies.<br /> situation.   Unfortunately,   not   all   companies <br /> know   how   to   utilise   this   support   effectively. <br /> Company G invited Duke of Gloucester to open  4. Conclusion and after thought<br /> its seminar in Vietnam on his business trip in <br /> 1997. One important impact of this act is that  The technology spin­off and/or spillover of <br /> this   is   seen   by   the   Vietnamese   as   a   strong  foreign   direct   investment   is   a   big   concern   of <br /> support  from British government given to the  many   organisations,   including   Vietnamese <br /> project.   Meanwhile,   many   advises   given   by  government. From the investor point of view, <br /> Scottish   Enterprise   to   company   A   on   how   to  the business success and rate of return for their <br /> respond and communicate with PTSC, were not  investment   are   more   important.   To   combine <br /> taken into account.  these   interests   for   the   common   purposes   and <br /> finding   a   way   to   balance   these   two   kinds   of <br /> Follow up perspective interest is a crucial factor for consideration of <br /> investment   and   technology   transfer   issues. <br /> Company A's business should not be seen  Depending on balancing these long term vision <br /> as too bad in the context of slow development  and short term return, companies may perform <br /> in   Vietnam,   but   it   could   do   much   better.  differently.<br /> Company G itself has spent several years and  This paper looks at both successful and less <br /> quite substantial expenses for a small company  successful cases to identify the reasons behind <br /> to   build   up   its   constituency   and   gained   first  this performance. The paper proposes that the <br /> work.   With   the   replacement   of   company   A's  differences in perception of the same operation <br /> director   by   a   much   more   understanding   and  activity,   in   the   concept   of   technology   and   in <br /> active man, it should have better business. To  behaviour   of   the   firms   from   both   sides   are <br /> be patient, to have good will, etc., actually are  crucial   factors   to   take   into   account   if   the <br /> not so new recommendations for doing business  transfer process is to be successful.<br /> in   any   context.   But   it   is   more   true   for   a <br /> developing country, where the rules, laws, and  Do the home work carefully is a must for <br /> business practice are less clear cut. Moreover, it  foreign companies to understand its future and <br /> seems that doing business in Asia requires more  present partners, to understand deeply partners' <br /> connections than in the West. It may be difficult  attitudes, expectations and even habit of doing <br /> for a small companies with limited resources to  business. Besides, patience, goodwill and long <br /> 'hang in there' for too long without real return.  term perspective are needed for doing business <br /> The   effective   use   of   assistance   from  in   many   developing   countries.   Looking   into <br /> government   and   investment   promotion  matters   which   at   first   seem   not   related   to <br /> organisations   like   DTI,   Scottish   Enterprise,  business such as political mood, independence <br /> Chamber   of   Commerce   in   Britain   as   well   as  spirit (in a country like Vietnam, for example), <br /> others   in   host   countries   should   and   can  even   finding   out   about   internal   changes   of <br /> supplement and reduce cost of operating as well  partners' organisational structure may prove as <br /> as frustration for the companies.  important to make a right move. Therefore, to <br /> build your own constituency of allies, friends, <br /> In the next phase of this technology transfer  and   supporters   in   host   country   are   no   less <br /> initiative,   some   experiences   of   pioneer   firms  important than to deal with the partner itself.<br /> can   be   learnt   and   improve   performance   of <br /> others. In whatever links, the understanding and  The events, companies and their actions in <br /> this   study,   in   fact   happened   few   years   back. <br /> 27 T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> They have changed quite a bit since then, with  [9] Fransman,   M.     &   King,   K.   (1984)   (Ed.) <br /> new actors coming into the scene of oil and gas  Technological   capability   in   the   Third   World. <br /> Macmillan.<br /> services   industries.   Many   technology   transfer <br /> [10] Fransman,   M.   (1985)   Conceptualising   technical <br /> practices   have   changed   after   introduction   of <br /> change   in   the   Third   World   in   the   1980s:   an <br /> several version of Technology Transfer Laws in  interpretative survey. The journal of development <br /> Vietnam.   However,   the  essence   of   issues,   the  studies. Vol. 21. No 4.<br /> nature   of   relationship   and   especially   lessons  [11] Ghosh,   D.   (1984)   (Ed.)Technology   policy   and <br /> from the past may still relevant for the scholars  development . UNCTAD publication.<br /> and   students   in   technology   transfer   and  [12] Keenan,   F.   (1997)   Culture   clash.   Far   Eastern <br /> business studies in general.  Economic Review. December 18.<br /> [13] Lall, S. (1985) Trade in technology by a slowly <br /> industrialising country: India. in Rosenberg, N. & <br /> References Frischtak,   C.   (Ed.)   International   technology <br /> transfer. Praeger.<br /> [1] Amsalem,   M.(1984)   Technology   choice   for <br /> [14] Lall,   S.   &   Wignaraja,   G.   (1994)   Foreign <br /> textiles   and   paper   manufacture.   in   Technology <br /> involvement and garment exports by developing <br /> crossing   border.   Stobaugh   &   Wells   (Ed.). <br /> countries.   Asia­Pacific   Development   Journal. <br /> Harvard.<br /> Vol.1. No.2<br /> [2] Asia   Pacific   Center   for   Technology   Transfer <br /> [15] Nguyen Thanh Ha (1987) Technology transfer to <br 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World Development. Vol.19. No.8.<br /> [24] Zhao,   Hongyu,   Bennett,   D.,   Vaidya,   K.   and <br /> Wang,   X.   (1995)   Transferring   technology   into <br />  T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28 28<br /> <br /> China:   perceptions   of   foreign   companies.   in  the   European   conference   on   management   of <br /> Bennett,   D.   &   Stewart,   F.   (Ed.)   Technological  technology. Aston University. Birmingham.<br /> innovation  and  global challenges.  Proceeding  of <br /> 29 T.N. Ca / VNU Journal of Science: Policy and Management Studies, Vol. 34, No. 2 (2018) 18­28<br /> <br /> <br /> Technology Transfer from British to Vietnamese Industrial <br /> Companies ­ Venturing into a New Business Culture<br /> <br /> Tran Ngoc Ca*<br /> Vietnam National Institute for Science and Technology Policy and Strategy Studies (NISTPASS), <br /> Ministry of Science and Technology, 38 Ngo Quyen Street, Hanoi, Vietnam<br /> <br /> <br /> Abstract:  The   paper   examines   the   process   of   technology   transfer   from   British   industrial <br /> companies to Vietnamese companies, to look at the obstacles of this process, especially in dealing  <br /> with different  business  culture environments.  The study uses  the  case  studies  method,  conducting <br /> interviews with about ten companies working in oil and gas service industry. Since this is only a first  <br /> stage of the longer term project, only preliminary results were discussed. Therefore, a company in civil <br /> engineering consulting has been examined for comparison. The paper argues that the differences in <br /> perception of the same operation activity like service in oil and gas industry are crucial factors to take <br /> into account if the transfer process is to be successful. Also, the transferor and the recipient may have  <br /> different   behaviour   in   negotiating,   in   communicating   with   each   other.   Thus,   the   preparation   of  <br /> background information, to do "home work", patience and pro­active attitudes in trying to understand <br /> partners are important for transferring technology into different business environment.<br /> In addition, the factors, sometime not very technology­related, such as internal political motives <br /> and organisational issues of the firms involved can be very influential in the success of technology  <br /> transfer process.<br /> Keywords:<br />