Thạc Sĩ Post harvest technology transfer in vietnam coffee industry: Case studies of dakman joint venture an

POST HARVEST TECHNOLOGY TRANSFER IN VIETNAM COFFEE INDUSTRY: CASE STUDIES OF DAKMAN JOINT VENTURE AND VIETDUC STATE OWNED COMPANIES
​

by


Le Duc Niem



A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration.




Examination Committee Dr. Young-suk Hyun (Chairman)
Dr. Truong Quang
Dr. Hans Stoessel
Nationality Vietnamese
Previous Degree Graduate Diploma in Business Administration
Swiss-AIT-Vietnam Management Development Programme
Ho Chi Minh City, Vietnam.

Scholarship Donor Government of Switzerland
Swiss Development Cooperation (SAV)

Asian Institute of Technology
School of Management
Bangkok, Thailand
April 2000

ACKNOWLEDGEMENT

I would like to express my deepest gratitude to my advisor Dr. Young-suk Hyun for his valuable advice, enthusiastic guidance, patient correction, and continuous encouragement throughout the research study. I would also like to express my sincere thanks to Dr. Truong Quang and Dr. Hans Stoessel for their helpful contribution in serving as committee members.

I wish to show my deep appreciation to the Government of Switzerland for providing me the scholarship to pursue MBA degree in Vietnam and in Asian Institute of Technology. I am grateful to Dr. Hans Stoessel, director of SAV, for his confidence of my qualification to study in the School of Management.

Special thanks are also given to Vice Director of VIETDUC Coffee Company Mr. Nguyen Van Vong, Vice Director of DAKMAN Company- Mr. Pham Ngoc Bang for their cooperation and special helps.

I am very thankful to all of faculty members, staff of Tay Nguyen University and my friends as well as my classmates for their assistance and support.

Last but not least, I would like greatly to express my endless love to my mother and my sisters whose love and encouragement for me will be always my inspiration.

ABSTRACT

Coffee is the most important agricultural product of Vietnam. Recently, coffee production has been not only significantly contributing to the national economy but also enhancing the rural development in the remote regions in the central highland of Vietnam. Although Vietnam has become the forth-largest coffee- producing country, Vietnamese coffee is still in low quality. Thus, many Vietnamese coffee companies have been seeking new technology, acquired and adapted it in their conditions, and used it as major method to improve their coffee quality.

Good results of technology transfer are only achieved through careful selection of technology and a suitable way to upgrade company’s capabilities to adapt the newly imported one into local environment. The way in which new technology being identified and digested determines the success of technology transfer

The study was carried out to aim at analyzing and compared the ways Vietnamese Coffee companies acquired and assimilated new technology to identify some shortcomings, problems that these companies faced. The research will focus on two companies – state owned and a joint venture to make the comparison and withdraw findings

Based on the findings, recommendations and suggestions for improving the effectiveness of technology transfer will be offered.

TABLE OF CONTENTS

Chapter Title Page
Tittle Page i
Acknowledgement ii
Abstract iii
Table of Contents iv
List of Figures vii
List of Tables viii
I. INTRODUCTION 1
1.1. Problem statement 2
1.2. Organizational structure of study 2
1.3. Objectives of the research 3
1.4. Methodology 4
1.5. Scope and limitation of the research 4
II LITERATUREREVIEW 6
2.1. Concepts of technology 6
2.2. The Polytrophic Components of manufacturing technology 8
2.3. Concepts of appropriate technology 9
2.4. Concepts of technological capability 9
2.5. Acquisition of technological capability 10
2.6. Problems of international technological transfer encountered by LDCs 10
2.7. Main elements of technology transfer process 11
2.7.1. Comparison of major technology acquisition methods 12
2.8. Joint Venture and Purchase of Technology in developing countries 13
2.8.1 Purchase of technology 14
2.8.1.1. Reasons to engage in buying and selling technology 14
2.8.1.2. Problems and difficulties with purchase of technology 14
2.8.2. Transfer of technology through joint venture method 15
2.8.2.1. Definition of joint venture 15
2.8.2.2.Reasons to engage in joint venture 15
2.8.2.3. Problems and difficulties of joint venture in developing countries 16
2.9 Previous research results 18
III. ANALYTICAL FRAMEWORK 19
3.1. Analytical Framework 19
3.1.1. Corporate governance structure 19
3.1.2. Environment and internal resource/ capabilities 20
3.1.3. Chief Executive Officer 21
3.1.4 Strategy 21
3.1.5 Structure 21
3.1.6 Performance 21
IV VIETNAMESE COFFEE INDUSTRY AND COMPANY BACKGROUND 22
4.1. Development of Vietnamese coffee industry 23
4.2. Marketing channel and exporting markets 23
4.3. Overview of coffee processing 23
4.4. VIETDUC coffee company’s Profile 27
4.4.1 .Organization structure 28
4.4.2. Markets 29
4.4.3. Processing technology 30
4.3.4 SWOT analysis 31
4.3.5 Strategic objectives 30
4.5. DAKMAN company profile 31
4.5.1. Organizational structure 32
4.5.2. Markets 33
4.5.3. Processing technology 33
4.5.4 SWOT analysis 34
4.5.5 Strategic objective 35
4.6. Summary of VIETDUC and DAKMAN Companies’ profiles 35
V. ANALYSIS OF TECHNOLOGY TRANSFER CASES OF VIETDUC AND DAKMAN COFFEE INDUSTRY 38
5.1 Technology transfer of VIETDUC 38
5.1.1. Funding 38
5.1.3. Motives for acquiring technology 38
5.1.4. Process of technology transfer 39
5.1.5. Management of technology transfer 42
5.1.6. Evaluation of technology transfer 43
5.2 Technology transfer of DAKMAN 46
5.2.1 Motives of E.D&F Mann 46
5.2.2 Motives of DALIMEXCO 47
5.2.3. Process of technology transfer 47
5.2.4 .Management of the joint venture 49
5.2.5. Evaluation of the technology transfer 51
5.3 Comparison between the two cases of technology transfer 53
5.3.1 Comparison of the technology transfers in transferee’s point of view 53
5.3.2. Comparisons of the technological and economic performances 53
5.3.3. Comparison of the management of technology transfer 55
5.4. Findings 56
VI. CONCLUSION AND RECOMMENDATIONS 59
6.1 Conclusion 59
6.2 Recommendation 59
References 61
APPENDICES
Questionnaires 63
Coffee classification of robusta green coffee 75
List of personnel 76