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Hodng Phuong vln vd Dtg Tap chi KHOA HOC & CONG NGHE l26(l2) 219 224 INTERNATIONAL STRATEGY OF HIGHER EDUCATION IN VIETNAM A CASE STUDY OF INTERNATIONAL SCHOOL OF THAI NGUYEN UNIVERSITY Hoang Phuong V[.]
Hodng Phuong vln vd Dtg Tap chi KHOA HOC & CONG NGHE l26(l2):219-224 INTERNATIONAL STRATEGY O F H I G H E R EDUCATION IN VIETNAM: A CASE STUDY O F INTERNATIONAL S C H O O L OF THAI NGUYEN UNIVERSITY Hoang Phuong Ven, Pham Thi Tuan Linh", Do Thi Ha Phuong International School - TNU SUMMARY The higher education is an industry that significantly contributes to the development of Vietnam As Vietnam becomes more and more integrated to the worid through which higher education is also experiencing internationalization process, it is important for leaders of higher education instutionsto understand the trend of internationalization in higher education and build a appropriate interaational stragegy for their institutions to develop and survive in the rising industry Seven (7) individual in-depth, face-to-face interview were conducted with workers at the Intemational School of Thai Nguyen University (ISTNU), one of leading institutions for internationalization, together with official figures and report in higher education Three theoretical frameworks used in this study are Porter's Five Forces Model, PEST framework and Rudzki's framework as lens for data analysis and discussion The study aims to provide insights and practical implication for higher education institutions in Vietnam, Keywords' Higher education Internationalization, Strategy Cooperation INTRODUCTION During the last two decades, globalization has becoming a central topic of academic arguments; its influence and impact cannot be ignored It is an inevitable process "that is increasing the flow of people, culture, ideas, values, knowledge, technology, and economy across borders resulting in a more interconnected and interdependent world (Knight, 2006) In the era of globalization, Vietnam has been changing thoroughly in allaspects including socio-economy, culture and education As an inevitable result of the globlization process, like many other educational bodies through out the worid, Vietnam higher education institutions (HEls) have to develop their international strategies to improve their programs in order to survive in rising strong competition with the participation of foreign factors including partners, investors, competitors and consumers There have been several research works addressing problems of internationalization in Vietnam higher education, which all of them however are conducted from the national * Tel 0984 662357 Emad tuanlmhpham0802@gmailc, level, not the industrial level which put higher education into the context of a real industry with all of their stakeholders in eluding competitors, consumers, and the higher education institutions themselves as service providers This paper aims to provide some analysing information about higher education in Vietnam and take Intemational School of Thai Nguyen University (ISTNU) as a case study to give recommendations and suggestions for other HEIs and Vietnam government for improvement, OBJECTIVES The research is conducted to identify driving forces for internationalization in higher education and problems arising during internationalization process, examine Vietnam higher education industry, analyze intemational strategies of the ISTNU as a case study to offer suggestions and recommendations for other higher education institutes and Vietnam government LITERATURE REVIEW PEST Analysis According to Gupta (2013), the PEST analysis is the most common approach for considering the external business Hoang Phuong Yen vd Dtg Tgp chi KHOA HOC & CONG NGHE environment The acronym PEST stands for Political, Economic, Social, and Technological The PEST analysis describes a framework of macro-environmental factors used in the environmental scanning component of strategic management (Gupta, 2013) In this study, PEST framework is employed to analyse the macroenvironment of higher education industry Porter's Five Forces Model The Porter's five forces model is described as a dynamic approach to analyze industry structure, based on five competitive forces acting in an industry or sub-industry: threat of entry, rivalry among current competitors, threat of substitution, bargaining power of buyers, and bargaining power of suppliers (Porter, 1985) The Porter's five forces model is used for industry analysis Cooperation Mode Rudzki (1993) built a strategic model applied to the internationalization of higher education, which stated four dimensions of internationalization comprising; Organizational Change, Curriculum Innovation, Staff Development and Student Mobility, Employing Rudzki's Model, this research will identify and assess the international cooperation mode of the ISTNU as a case study for higher education institutions RESEARCH PROCESS AND METHODOLOGY Research Process The research was conducted in a consistent process as illustrated in Figure 1, Methodological Approach The aim of this study is to examine the higher education industry in Vietnam in the context of internationalization This study will reflect the thoughts, expressions and perspective of higher education industry workers regarding the intemational strategy formulation through which find out key successful factors and levarage their experience for improvement of international strategies in higher education institutions 220 l26(12);2l9-224 rC Figure To obtain detailed information and in-depth understanding that might bring about relevant insights supporting to the aim and objectives of the research through obsevation and experience of insiders, a qualitative method is an appropriate methodology Data Collection Primary Data There are several types of primary data gathering supporting qualitative research among which the individual semistrucuted indepth interview will serve as the main research data-gathering tool for this study Due to the nature of qualitative research, the number of respondents in this study is relatively small with seven participation covering four categories: Leader of the ISTNU, Staff of the ISTNU, Faculty of the ISTNU and Students of the ISTNU (Table 1) Secondary Data Beside the primary data collected from faceto-face in-depth interviews, secondary data is also gathered from several sources varying from previous surveys, reports and statistical figures of Vietnam government higher education institutions and other dependent private organizations, which mainly serve the examination of higher education industry in Vietnam Hoang Phuang Y6n vd Dig Tap chi KHOA HQC &CONG NGHE 126(12): 219-224 Table I: Interviewees' Profile Category ISTNU Leader Respondent Assoc Prof Hoang Van Phu ISTNU Staff ^^^- Tran Anh Vu MSc Dang Hoang Faculty Prof David Grealy Prof MichaelJohn ISTNU Student Ms Nguyen Due Tu Ms Doan Ngoc Diep Seniority Inter exprerience 33 years 28 years Vice Director, Dept of Accademic Affairs &lnter Cooperation years Director, Dept of Admistration 10 years S years Instructor, Faculty of Management Instructor, Faculty of English Language Student Student 25 years 13 years 30 years years i years years years RESULTS AND DISCUSION Macro-environment Analysis Primary data was gathered through semi structured in-depth inverviews to make an overall PEST analysis for Vietnam higher education The dimensions and sub-dimensions for each mentioned through the interviews are listed in Table Table 2: Dimensions and sub-dimensions for Macro-environment Analysis Dimensions Sub-dimensions Government policy for higher education Stability Economic development Economic Factors Economic integration Demographics Attitudes towards higher education Infrastructure, facilities, equipment Internet Technological Factors Leaming resources Political Factors higher education enrollment by Vietnamese people who become richer, especially people According to interview results, the first key in rural areas Besides, economic integration factor affecting higher education in Vietnam brings about more investment from overseas, is government policy which creates appropriate framework for higher education which incentives Vietnamese people to operation Besides, the stability helps the improve their knowledge and skills through country attract more foreign investors, which higher education to meet the employment leads to more jobs and spurs people to think requirement of foreign investors about enrol in a HEI to improve knowledge Social Factors and skills for satisfying requirements of According to the statements of the foreign employe participants, Vietnam demographics as a Economic Factors supportive factor for higher education growth The young population of Vietnam with a high According to the respondents, the percentage of people from 18 to 35 in the development of Vietnam economy has the population structure creates the potential for supportive influence on higher education the higher education growth industry through a larger amount invested in Political Factors 221 H o ^ g Phuang Yen vd Dtg Tap chi KHOA HQC & CONG NGHE l26(12):219-224 Table 3: Dimensions and sub-dimensions for industry' analysis Dimensions Rivalry among existing competitors Threat of New Entrants Threat of Substitutes Bargaining Power of Buyers Bargaining Power of Buyers Technological Factors Through the interviews, the advantages of technological factors was agreed to have significant influence on higher education, in which infrastructure, facilities, equipment; Internet and Leaning resources are mentioned as the most significantly supportive tools for higher education development Industry Analysis Secondary data was collected to make industry analysis for higher education employing Porter's Five Forces Framework with indicator of Rivalry among existing firms Threat of new entrants Threat of subtitutes Bargaining power of buyers Bargaining power of suppiers These dimensions and sub-domensions for each are listed in Table Rivalry among existing competitors Within Vietnam higher education industry, HEIs significantly differ from size, influence and service, which creates strong differentiation among HEIs Besides, the high fixed cost and high industry growth rate make the competition in the industry relatively weak, in which national multidiscipline universities outweigh the small private or semi-private institutions Threat of New Entrants In Vietnam, higher education industry achieves economies of scale which certainly represent formidable barriers to entry Moreover, Vietnamese government poses a 222 Sub-dimensions HEIs differs in size and influence High fixed cost High idustry growth rate Economies of scale Strict Government policy for establishment High switching cost Large number of buyers Quite small number of suppliers regulation for establishment of a new higher education institution with minimum 50,000,000,000 VND for initial physical capital (Vietnam Government, 2009), which creates a high barrier for birth of new institutions Threat of Substitutes In Vietnam, the switching costs to alter from one universtity or college to another is quite high covering the finacial academic conpensation of students for the institutions, which implies that the threat of subtitutes in higher education industry is quite low Bargaining Power of Buyers Vietnam has a young polulation of 62.8%i peope at the age from 15 to 54 (National General Statistics Office, 2013), who are available for higher education Besides, Vietnamese universities had room for only about 600,000 of the 1.8 million candidates who took university/college entrance exams Therefore, in Vietnam higher education industry, the power of buyers is quite weak that reduce the competition for the industry itself Bargaining Power of Buyers The number of HEIs is not very large compared to the number of students and potential candidates for higher education which reflects the relatively weak power of buyers in the industry International Cooperation Mode According to interview results, effective intemational cooperation activities of the ISTNU are listed in Table 4; Hoang PhuOTg Yfa va Dig T^p chf KHOA HQC & CONG NGHE 126(12):219-224 Table 4; International Cooperation Mode of ISTNU Organisational Development • Links with overseas partner institutions • Links with commerce and indusUy • Application of technologies Staff Development • Opportunities for staff exchanges • Availability of facilities for staff to learn foreign languages • The recruitment of staff with overseas teaching and business experience • Financial support for conference attendance SUMMARY Through the study, it can be seen that the higher education industry in Vietnam is experiencing prospect growth in which the competition is still quite low with a large amount of buyers and potential buyers Analyzing case study of the ISTNU gives a practice of international cooperation activities that have been gaining susscess among which there is a concentration on intemational links establishment, faculty and staff capacity building, technology application in teaching and setting operation system, development of curriculum and student mobility Vietnam government should actively promote internationalization in higher education by both creating legal framework for international cooperation and funding for international cooperation activities in longterm and short-term In the industry itself, HEIs should be active in establishing international links with oversea partners as a leading strategy for interantionalisation Besides, HEIs need to step by step create a effective supporting system for Curriculum Innovation • English as language of instruction • Joint research and curriculum development with foreign experts Student Mobility • Recruitment of overseas students • Exchange programmes • Field trips as a learning methoc • Overseas work placements internationalization in terms of facilities, operating procedure and language training for staff REFERENCE Vietnam National General Statistics Office (2013) Report on Vietnam population structure by age Gupta, A, (2013), Environment & PEST Analysis: An Approach to External Business Environment Intemational Joumal of Modem Social Sciences Knight, J (2006) Higher education crossing borders: A guide lo the Implications of GATS for Cross-border Education Paris: UNESCO Commonwealth of Learning Porter, M.E (1985), Competitive Advantage: Creating and Sustaining Superior Performance New York: The Free Press Rudzki, R.E.J (1993), The Application of a Strategic Manageemnl Model lo the Internatioanlization of Higher Education Institutions Newcastle Business School (to be published in Higher Educatio, Wolters Kiuwer, Amsterdam) Prime Minister of Vietnam (2009), The Resolution No 07/2009/QD-TTg dated January 15, 2009 on Requirements and Procedure for Foundation, Suspension, Scqulsltlon, Spilling, Dissolution of Higher Education Institution Gorvemment of Vietnam 223 Ho^ng Phucmg Vln va Dig Tap chi KHOA HQC & CONG NGHE 126(12), 219 - TOM TAT CHIEN LVOC HOP TAC QUOC TE CUA CO S d GIAO DUC DAI HOC TAI VIET NAM: BAI HOC KINH NGHIEM CUA KHOA QUOC TE - DAI HOC THAI NGUYEN Hoing Phuwng YSn, Pham Thj TuSn Linh", Do Thi Ha Phuong Khoa QuSc fe' - DH Thai Nguyen Giao due dai hpc la mpt linh vyc c6 nhifng dong gop dang kk cho sy phat triln ciia Viet Nam Nudc ta dang mot hoi nhgp sau rpng^ hon vao moi trudng qudc tl giio dye dai hpc ciing d§ va dang trai qua qua trinh quoc te hoa manh me, vi vay cac nha quan Iy cSc co sd gido due dai hpc cung c^n thilt phai trang bj nhthig hilu biit vl xu hudng qudc tl hda gi^o due dgi hpc va xay dung chiln luge hop tac quoc tl phii hop vdi dan vi dl cd thi ton tat va phat triln mpt lmh vyc dang tSng trudng nhanh Nghien ciru d3 thuc hien bay (07) cupc phdng vin chuyen sau tryc tifip vdi can bp vh hoc vien tai Khoa Qudc tl - Dgi hpc Thai Nguyen (ISTNU), mpt nhirng dan vi dao tao dai hoc dan dau ve cdng tac hop tac qudc te, ddng that su dung cac sd lieu thdng ke chinh thirc va cac bao cao ve giao due dai hoc tai Viet Nam va the gidi Nghien cuu ap dung ba md hinh ly thuyet la Mo hinh canh tranh nam tac dpng cua Michael Porter, Md hinh phan tich PEST va Mo hinh hap tac qudc tl giao dye dai hpc cua Rudzki qui trinh ph§n ti'ch s6 liSu \h thao luan, NghiSn ciiu nham cung cSp nhung thdng tin vl thyc trang vk de xuat cd tinh irng dung cho cac don vi d^o tao dai hpc tgi Viet Nam Til' khda: Gido due dgi hgc, Qudc telida, Chien luac, Hgp lac Ngdy nhgn bdl 15/9/2014: Ngdy phdn blen:06/10/2014, Ngdy duyet ddng: 25/10/2014 Phan biin khoa hoc: PGS TS DdAnh Tdl - Dgi hoc Thdi Nguyen ' Tei 0984 662357 EmaiT tuanlinhpham0802i%gmail.com 224 ... of Vietnam 223 Ho^ng Phucmg Vln va Dig Tap chi KHOA HQC & CONG NGHE 126(12), 219 - TOM TAT CHIEN LVOC HOP TAC QUOC TE CUA CO S d GIAO DUC DAI HOC TAI VIET NAM: BAI HOC KINH NGHIEM CUA KHOA QUOC... Vietnamese people who become richer, especially people According to interview results, the first key in rural areas Besides, economic integration factor affecting higher education in Vietnam... of the foreign employe participants, Vietnam demographics as a Economic Factors supportive factor for higher education growth The young population of Vietnam with a high According to the respondents,