PURCHASING

MANAGEMENT
TABLE OF CONTENT
CENTRALIZATION &
1
DECENTRALIZATION
HOW PURCHASING IN
2 VIETNAMESE COMPANIES SET UP
AND OUR VIEW ABOUT THAT
 1
CENTRALIZATION &
DECENTRALIZATION
 CENTRALIZATION
Advantages:

Consistency Control
Decisions are consistent across Decision-making power is
the organization, maintaining a concentrated at the top.
unified approach.

Economies of scale Faster decision-making Clear accountability

Bulk purchasing, streamlined With fewer levels of Decision-making power is
operations, and reduced bureaucracy, decisions can be concentrated, responsibility
duplication of efforts. made more quickly
and accountability
Flexibility:
adapt more easily to local or regional differences

Encourage innovation:
employees at lower levels can create innovation.

Faster response:
DECENTRALIZATION
pespond quickly to local or regional issues and Advantages:
opportunities.

Employee motivation:
employees tend to feel more engaged and motivated when
they have decision-making power.
 2
PURCHASING IN
VIETNAMESE COMPANIES
INFLUENCING FACTORS
Cultural norms

Language barriers

Government regulations

Language barriers

Government regulations

Purchasing in Vietnamese companies

 CHALLENGES FACED
Limited supplier options:

difficult to find the right goods and services at the right price.

Price fluctuations:
prices can be volatile.

Lack of transparency

need to be careful when dealing with suppliers

Purchasing in Vietnamese companies

 OPPORTUNITIES

Lower Skilled Growing

costs labor economy

low cost of living large, young, and skilled Vietnam's economy is

workforce growing rapidly

Purchasing in Vietnamese companies

VN PHARMA
2019 SCANDAL
The purchasing process in Vietnamese
companies and MNCs located in Vietnam
is a complex and multifaceted aspect of
business operations. While there are
challenges to be faced, there are also
opportunities to be seized. Companies
can achieve success and growth in this
dynamic and exciting market
According to reports, VN Pharma was able to obtain the fake license
through bribery and corruption, which allowed them to bypass the normal
regulatory procedures and import large quantities of cancer drugs at
lower prices. The company then sold these drugs to hospitals and medical
facilities across the country, earning millions of dollars in profits.

This case highlights the importance of having a well-structured and

transparent purchasing process in place to prevent such incidents from
occurring. It also underscores the need for stronger regulatory oversight
and enforcement to ensure that companies comply with the rules and
regulations governing their operations.
 OUR VIEW
The purchasing process in Vietnamese companies and
MNCs located in Vietnam is a complex and multifaceted
aspect of business operations
While there are challenges to be faced, there are also
opportunities to be seized
Companies can achieve success and growth in this
dynamic and exciting market

Purchasing in Vietnamese companies

THANK YOU