Intercultural Issue: Petrovietnam
Cultural issueExecutive Summary:Intercultural has become one of the main reasons for the failure of an international cooperation or project and Petrovietnam (PVN) stands no exception. One of PVN’s oversea oil exploration and production projects is implemented in Venezuela. There are many difficulties in implementing this project, including the lack of key Vietnamese personnel and engineers. The reason is that PVN wished to put the PVN’s culture in Venezuela but it has not considered all unexpected elements influencing on the working and living condition of their personnel. PVN has applied a common policy of salary for all experts working in joint operation project in order to avoid the conflict among them, however in Venezuela project,this salary level is considerably low comparing with the other Venezuela personnel at the same qualification, experience and job, which made the employee feel unfair. In addition, PVN also forgot that that the Vietnamese tightly bound with their families and homeland. The problem has been carefully studied base on the fact of what PVN had done and by the information collected from the employees working and left the project. After that, we have come up with some solutions to solve the problem. For the short term solution, PVN could (i) change the working period of the engineer so they could go back to Vietnam more frequently, (ii) transfer the personnel who have experience in working other oversea project to work for this project. And for
the long term solutions, PVN should (i) have the appropriate rate in the salary for PVN’s personnel working in Venezuela, (ii) selecting young engineers with high motivation, (iii) support employees’ family to move to Venezuela to live or workand using Vietnamese staffs for supporting services such as: cooking, cleaning etc.Cross-culture Management Group 6- iEMBA 13thClass – AITVNIntroductionPetrovietnam (PVN) is one of the Nation’s Leading Business Groups, plays extremely important role in national industrialization and modernization with the main activities/business in oil and gas exploration and production. PVN’s annual growth rate has been 20 -25%, accounting for 18-20% of GDP and about 30% State budget revenue. It has the revenue of US$ 32 billion in 2011. The total workforce of PVN is 60,000 with the number of subsidiaries is 41. PVN is transnational organization with the number of joint operation companies is 15 and the number of oversea exploration and production projects is 23 [1]