Griccd UNIVERSI Global Advanced
CAPSTONE PROJECT REPORT
A STUDY ON STRATEGIC
DEVELOPMENT OF HUNG VUONG UNIVERSITY HOCHIMINH CITY
FOR PERIOD 2011 - 2020
PHAN THI YEN HA LE QUYET TAM
NGUYEN NGOC THANH TRAN VAN TUAN
NGUYEN THANH TUNG NGUYEN THI BICH VAN
GaMBA.COI1
HOCHIMINH, 2010
Trang 2ACKNOWLEDGEMENTS
First of all, we, Group 1, would like to thank Center for Education
Technology and Career System - The National University of Hanoi, has created conditions for us to join the training program of Griggs University
The course really helped us a lot to increase knowledge in business management as well as reality business skills and practical experiences in the daily works
In addition, we also sincerely thank all the teachers, professors as well as responsible members of the program who are very enthusiastic support for us and the whole class to complete the training
With this our thesis, we would like to use the knowledge acquired through the course that have been applied to the actual situation in Hung
Vuong Ho Chi Minh City University to raise the efficiency of strategic
Trang 3ASSURE
This thesis is the study of our group really, is done on the basis of theoretical knowledge and research classic survey the real situation
The data and results of the thesis is true, given the strategy comes from practice and experience, have never been published in any form before the presentation and recognition
Once again, we also committed that this study were writen by ourself and we have all rights of it
Trang 4TABLE OF CONTENTS
LIST OF ABBREVIATIONS siscsccsssesscasessscuscvcosvenscenscavusvaudsccacanianscsucsnscstnassascasnacs 5 LIST OF "TABLES coniscosssniovecsessamancemneinnnnninnaveseeeavsanumnssensssmneensenasenannes 5 NI L F lv RE ceresesesrvrverreererrrsorntoientsnnkryeoeteisvstu913900/3563217595E01a456592998i3 6 LIST OE APPENDIXES Q00 50 6 TNTNIODU TT aieiiiyiianeoabioccoaoarnariidinierbiesbkiaagiigiinaGlÀ4000148348556E 7
ke Enuir0tHitE tí RIG RÍŒDY cauaueeeseeeenoardatyrrorrgrdtortrrtigrittiotcptiurrigiGig08000013/01 7 2 Objective of the SÍUY G0 Họ Họ 0006 8 3 Mfethiod 0Ÿ thế SH coaaHdGdeietuiiioidedidiiueeosirexfiasseordtrsrsddes 8 4 Sc0ie ưŸ the SỈLY sec riiiinarnnaiinnddsgiasaarddsisa0l5x680542L24582.a168lXbMstuuấk 8 > Surrcture Of Cie SHY monsscasciosenamonpenneninrnmeinmimmeannniannions 9 6 Scientific and practical significance of the study . <- 9
CHAPTER 1: LITERATURE REVIEW FOR STRATEGY AND
UNIVERSITY DEVELOPMENT STRATEOY 555 s55 s55 10
1.1 Concept and Role of business sSfr2af€ØY G55 S5 s52 10 lLI.L1 Concept oƒStrategy and Business sfFdf€Øy - -« «5s +5 s+ +2 10
Li2, ROG Of Business SUAS) s.assskaasaseesoadeslDaHASia0051802S5ã6-4ug8ã 30548128 II
1.2 :: Strategic pÌantinp Process iicccisccscscsccsssssecsssmesssscsesonpoesusecclvcessausencene 11 1.2.1 Determination of vision, mission and goals of the industry,
BPC PUT a eis es Se RE ah PASS aa vend dsacdacsncadaseals dvsadbestieacoubed 12 boils, LAO ORION HUT IOS sac cccmsonaccancmanamemnenreespenncenamnawica es 12 1.2.2.1 The External factors anaÏYS1S . - 5s s++ssseerees 13 1.2.2.2 Value chain anaÏYSIS - - c1 13+ vs srirerirrree 14 12.2.3 The internal factors HHữÏVSẢS cĩ 0y 2 cá c2 n0 0ssaceaa Co e.g 15
1.2.2.4 Competitive Profile Matrix (CPM) :cccccssesseeesesteeteees 16
1.2.3 Strategic Analysis ANd CHOICE wo.ccccccccccccsesccesseesessecsessecsseeseseeeseeensees 17 1.2.3.1 Locate strategies by Micheal Porter's 5 generic strategy 16 1.2.3.2 Strategres in action by SWOT Ma tein, cccsasccceccccesisarnencarics 17 1.2.3.3 Determine stratepies by SPACE MatrIx 18 1.2.4 SIrategy lmpDÌ€IN€HIQHIOH ĂĂẶ SG BS St Site erhy Ig 1.2.5 Solutions to business stralegy iIMDÏ€II€HIQfÏOH s55: 19
Trang 51.3 Concept and features of pFÏiVaf€ UnIV€FSÏẨY c2 19 1.4 Legal issues in connection with higher education « 20 1.5 Role of competitive síra(egy ẨOT UIV€TSIẨY Ăn se se 20 CONCLUSION OF CHAPTER I ssssusscsacscsnecsssencewenansennavonecnissssaemecanconeneesay 21 CHAPTER 2: INTRODUCTION TO OPERATION OF HUNG VUONG HE TH NI HH TH cà ke pguiadaeibgatbotselssatokeolaokesleaslxi2423zsspksechaagkvia 22
2.1 Overview of Hung Vuong HCMC University «5< 22 2.1.1 History and Development of Hung Vuong HCMC University 22
đc dốc cứ PDUNWGÍ [GGÌHWVS kusdsniediennidiostesvideeasslssvsbirtoposesbvervidsnriassersitsnnarde 23
2.1.3 Functions and đufie€S ScSc BS sikerees 23 Bhd MNGHGNS GÌ E CŨ xo adueisaoaainadtpataaiosallaslassadasdbaalsdndssdaselderl 25
2.1.3.2, äỌẼ 24
2.1.4 Organization structure 0ƒ HIẲ s5 «se 25
É.0.) ‹ (VIÊN) TM Đổi c v1 27eogyvetgkoscevstdlsiescerfssceeareoresdhrsbdng Ercspslg2Sss2kelVVR 26 Boke “€@fiYifles 0Ể HVU láïicci5666i6sx6niáasslacexkcatkasalasssgssalsassilssassbaxeexaeiásaniei 27 Bekeeh: A OPIOID oo vsexsctessencecsacetpuns) sopimermmanseunrenssemnesianiernnegssitemadniae stress cgeth 27 SDT, EP TPIS MB acco nvcivicerepornsrovenscnettstaceveqreressorbeearnescsmonstaeutesss 27 2.212 Lraining form, profession and result os vsisicisesnesaysuxiatiesaiareioens 28 2.2.2 Scientific research and international cooperation of the university 30 2.2.3 Material and technical facilities of the universify - 31 EE TTI css cn pt ss as SR HRS PASE ANG SATAN TR RN 33 CONCLUSION OF CHAPTER 2 susissssesesiascivvenssesssvesistevesndeinvissnssvcetitevvastevvdinse’ 33 CHAPTER 3: ANALYSIS OF HUNG VUONG HOCHIMINH CITY
UNIVERSIDY’S AG TIVITIES sisscxsscsscsssisscesscunssoeasesavicesecasateniasetvieivivievsavassesas ¬ 3.1 Determination of valve Chait .0 sscscssecssseossssoncsssosossvevesscossscssscassese 35 3.2 Analysis of external ©€nVIFOTIN€TI( 55 << 55 Ă S5 <seessesse 35 3.2.1 Analysis Of macro enVIiTOnIm€TI chinh nh 35 3.2.1.1 Political and Legal factOrs - -c+sScsssccsssvrseerssee 35 353.1.2 Eeon0iledii TGÙDẨE:coeeeuesooesiantiaid gi 1101100120308 0303.386 018542285500 37 3.2.1.3 Cultural and Soclal faCtOFS c s2 SSSsskseeeeres 38 3.2.2 Analysis Oƒ HIÍCFO CHVITOHHICHÍ à Ăn khe 40
Trang 63.2.3 The External Factors Evaluation MatrIX -s 2c c2 cseseeo 45 34.3 Analysis of internal enVirONII€H cc SH ng 46 5.3 _ GH(ONNCL GHI DFEEIRMINHI[DẨN ss sack ccna cactialcansnansnscissnatirtimsinssoasatbastcadanne 46 Cuốn RICE TENGTTGÊN sensngaateiaruioiattirittint030001409138100000D4/80X40130d0356:80616/08 47 Ÿ.3.7 A4HrqctiVEHCSS OƒDFOƒ€SSÏOH Ă.àĂ Shin 48 TA 4 0 anố.ốộẶaA 49 DBS, TU THETLIEE dat 2n 60 2 56yx-nesueresseanrtirrsrmermmmsierekomszremssmsrantradiennsioanlesmeE 50 đu guốa, -:IVNHBFMHE THU THÍ trumdiontipasdikesbsetriehrdtesssasosdSesisborSuzsOsetiiasUDsusgiucansaalligmlS 50 3.3.7 TUILOH Ặ LH HT TT TH kết 51
3.3.8 The Internal Factors Evaluation Matrix (IFE) - << << << 53
3.4 Determination of Advantage compDefifÏOI -« 55s <sss<sssse 54 BS Chae BERRY naessseesnnneenevaesrsdoenrbuneterotkethinoEeUi1404357051X665105100/3404 5E 60 3.5.1 Determine OF GCHCric SIALERY 2 ss ccsvscveciindtiouvi tse esiibettls divershaveindanverds 60 3a 0, CHẾ On VV MRIS tgp sess nies cap satcnps nctspse phcsprapanpenieorichemnr nthnmeinnmeenn Eepsewtons 60 3.3.3 The SPACE Matin sgisitectidatiiseanteiciedninasidasl oil dvi ada never ants 63 CONCLUSION OF CHAPLER 2 crcncanemnmpemoenmeeemmnmnospet 65 CHAPTER 4: ESTABLISHMENT OF DEVELOPMENT STRATEGY OF HUNG VUONG HOCHIMINH CITY UNIVERSITY FOR THE PERIOD EE 2 ELD svscctietkisrsssieer borsxreodasssaidesanusayodlleYissxeatiokifeisntviEÐDSDSKIAOSEXGSE95290/195/-159345V%E 66
Trang 74.5 Demnnd 0Í gunÌs by 202 seseeseeeseesoseseenseidennnnadknodarsdretiaiasaaeasrr 69
ABD TV Qin Txa A.:-.:-£ 69
4.3.2 Resedafci dHdỈ DiHGCFHIIOHQÍ COOD€FQEIOH., ààà c5 35522533 70 Đ.i CƯ NHI E GẤ EỔ naaseeiesnỶtreannsestthrenronnaemarmaxpaeoseetrunlnsroseinetli 7] 4.3.4 Malerial ƒQCHifie ĂẶSĂ St ESiSsererskerves 71 FBS FÌÌHQHC© Ă.Ă.Ă ST TH Hy HH rệt Tổ 0 Ắ ảẫ4 72 4.4 General developmenf S{Fa{€ØY 0G Go 09 06 73 4.5 Solutions to strategic implemenfafÏOT «55c <5 s< s2 sese 74 4.5.1 Viewpoint oƒ solution deVeÌODIN€HI c5 55c sss 74 AD, SOUMOGS 10 HPHÙHÍNỔ suaoiaaiaiiiiidiiiikiiLdiia.sediagkdesgkesssisseessssơslestassessee 74 4.5.3 Solutions to research and international cooperdtioH T15 4.5.4 Solutions to human resource deVelOJIM€HI - 5< c5 ss++ss++ 76 4.5.5 Solutions to the implementation of management procedure 77 4.5.6 Solutions to material facilities investMent .ccccccccccseccesseeesssesseeesees 77 4.5.7 Solutions to finance and qssefS iHCF€@S€ c c3 79
4.5.8 Solutions to marketing and brand develoDpI€HIf - ‹- «- 79 CONCLUSION TO CALAPTER TT ion ng Dasridbaslaeeeioipsbaa 80 CƠNG H200 CN nuenesrnrenniiesbiisnlEESg0012106330682516665853016484601400184788140160185033/7X4P15038 81 SUGGESTIONS cọ Họ Họ cọ 0 00.000 00040600600008090800 600 83 APPENDIXES
Trang 8LIST OF ABBREVIATIONS
FFE: External Factor Evaluation
HVU: HungVuong HoChiMinh City University IFE: Internal Factor Evaluation
CPM: Competitive Profile Matrix VCA: Value Chain Analysis
SPACE: Strength Position and Action Evaluation SWOT: Strengths-Weeknesses-Opportunities- Threats HCMC: HoChiMinh City
VLU: VanLang University
LIST OF TABLES
Table 1.1: The External Factors Evaluation Matrix (EFE) Table 1.2: The Internal Factors Evaluation Matrix (IFE)
Table 1.3: The Competitive Profile Matrix (CPM) 555 <<+ Table.1.4: The SWOT Matrix soseocacoiiiiaivcaowaiaab,siitatvliGiion
Table 2.1: Training majors and programs .c:eeseeeeeeeeeeteeeseeeeeeeeeeaeenees
Table 2.2: Floor area and number of cÏaSSFOOIMS «<< - << << <<<<2
Table 2.3: Number of equipments and comput€rs .- - -: ‹+s«-
Table 2.4: HVU”s Income Statement in 2008, 2009 << <<:
Table 3.1: Analysis of external factors matrix of HVU (EFE)
Table 3.2: Analysis of internal factors matrix of HVU (IFE)
1nble 3.5: TY LTˆs Competiive Drufib NAHIENN c.isuscerneesaaeninnnagdlisnseoaaa SẺ Tape 246 VU 8 WOE Mai sssawsgnvegongrngesgragmgripegyegpsigoobesgmiiwrgunxossorssei
Trang 9LIST OF FIGURES
Figure 1.1: Planning Strategy PrOC€SS 2c S2 v12 vs v2 nhe 12 Figure 1.2: Environment analysis ẪOdGÏ cv nhe |3 Figure 1.3: Porter’s 5-forces Model of competition .- csc+: 14 PIBUfE 1,4: Velie CHAI cá ccaicassantsssassensisonnenscinenensctnansamnransdadanceunaevsenpennseunennss 15 Figure 1.5: Michael Porter’s 5-generic strateZy ccccccsceesseesscesseesseeseeeseens 17 Figure 1.6: SPACE matrix oo cc ccccceccceseeseeseeeeeeeeeeseecsecsseesseeseccseeseesseseseaeeas 18
Figure 2.1: Organization diagram of Hung Vuong HCMC University 25
Figure 2.2: Number and organization structure of HVU -‹- ZS Figure 2.3: Number and qualification of managers of HVU 26
Figure 2.4: Number and qualification of lecturers of HVU 26
Figure 2.5: Targets and real number of enrolment oVer y€arS 28
Figure 2.6: Compare number of graduates with of enrolment over years 28
Figure 3.1: Valde chạm G£ HH áccseeicsaeendoaddxdilosBAasliialoneloalEsoBdlae 35 Figure 3.2: GDP growth rate of Vietnam OV€T Y€AFS c5 +5«<s++ 37 FIgure 3.3: Average Income per capital of Vietnam over y€ars 37
Figure 3.4: Targets and number of applications OVer y€ars 39
Figure 3.5: The HVU’s Š5-force competifion s55 + + + s+ss+vssesss 40 Figure 3.6: The level of HVUs Š-force competifion ‹ +++ 45
Figure 3.7: Ratio of student/lecturer and student/full-time lecturer 47
Figure 3.8: Level Of tuitiOn FIS€ - c1 1112 1v v9 ng ng ray 48 Figure 3.9: Percentage of drop-out studenS . -cccscxssccssvseree 49 Figure 3.10: Target and Number of real enrolment of HVU 32
Figure 3.11: Target and Number of real enrolment of VLU 52 Figure Sl 2+ TT VU" 9 penerie Strate ey Q.10 gác eevs báckasbt 9a stacbedkoessse 60 Figure 3.13: HVU’s SPACE Matrix 0 ccccecseceseceseeeteeeneeeseeeeeneeeeeenaeeneeenees 65
LIST OF APPENDIXES
Appendix 1: Number and structure of officers, employees and la lecturers of HVU
Trang 10INTRODUCTION
1 Rationale of the study
In 1993, the policy of educational socialization of the Party and Government was released in order to create favorable conditions for domestic education and training to develop, promptly provide highly qualified and skilled human resources for the cause of national industrialization and modernization, by 2010 our country basically becomes an industrial country in the modern direction, at the same time, in order to meet reasonable demands and desires of most of the public for studying, improving qualification, upholding the most valuable tradition of Vietnam — studiousness Responding to such policy, together with other private universities, colleges in Ho Chi Minh City and the whole country, Hung Vuong HCM University was established on the 1a" August of 1995 with the norm of building and developing the “Scientific — Developed — Ethical” university It can be said that, for over 15 years of construction and development, by now, in comparison with other private universities and colleges, Hung Vuong University has not developed appropriately with its position for several reasons
In the context of globalization and WTO integration, in the near future,
many foreign universities will penetrate the education market of Vietnam, in
addition to the competition of many domestic universities and colleges
Therefore, leaders of Hung Vuong HCMC University is aware that if there are no
Trang 112 Objective of the study
In current social context, in comparison with social demand, Hung Vuong HCMC University has potential and desires to further develop in terms of scale and quality Establishment and strategic management require leaders of the university need to prepare both theoretically and practically in order to promote the university to higher position Basis for strategic planning is to re-evaluate objectively the strengths, weaknesses as well as the capacity to respond to external factors of the university, then to determine goals as well as to choose short-term and long-term strategies
So, objective of the study is to analyze and evaluate comprehensively the real situation of Hung Vuong HCMC University in order to find strengths as well as weaknesses, opportunities as well as threats of the university On that basis, we will establish Hung Vuong HCMC University development strategy from 2011 to 2020
3 Method of the study
Y Descriptive and analytical statistic method: collect and evaluate internal and external information of the university in connection with operations of the university
vY Forecast method: based on the past data, forecast the future demand
VY Specialist method: interview leaders
4 Scope of the study
Trang 125 Structure of the study
The study consists of 4 chapters, in addition to the introduction, conclusion and recommendation,
Chapter 1: Literature review of strategy and strategic development university
Chapter 2: Introduction of HungVuong HCMC University
Chapter 3: Analysis of HungVuong HCMC University’s activities
Chapter 4: Establishment of HungVuong HCMC — University
development strategy from 2011 to 2020
6 Scientific and practical significance of the study
Y Scientific significance: In the market economy, business strategy is decisive to the success and failure of an enterprise, business strategy plays an important role for all enterprises, not only a particular one Any enterprise desiring to exist and develop must firstly have a good and effective business
Strategy
There are many approaches to establish a business strategy for an
enterprise Research topic has a scientific significance of generalizing existing theories from different sources to establish a business strategy development procedure for Hung Vuong HCMC University in a basic, easy to understand and
use way
Y Practical significance: Real situation of Hung Vuong HCMC University is also general situation of all private universities in Vietnam at present
Therefore, this study can also be applied for other private universities having the
Trang 13CHAPTER |
LITERATURE REVIEW FOR STRATEGY AND STRATEGIC DEVELOPMENT UNIVERSITY
1.1 Concept and Role of business strategy
1.1.1 Concept of Strategy and Business strategy
According to Harvard business handbook, strategy is a military term originated from Greece and used to refer to the plan of disposing the troops in battle formation and allocating force in order to achieve goals in the war Nowadays, the term strategy is used in many economic fields and understood as “means to achieve long-term goals”
Business strategy is associated to economic field and interpreted in
various ways Some popular definitions of business strategy are:
- According to Fred R David, strategy is means to achieve long-term goals
- According to Alfred Chandler, strategy is to determine basic and long-
term goals and set up a process of action and distribution of necessary resources
to implement such goals
- According to Michael E.Porter, strategy is the creation valuable and unique position, including different activities, the choice, the exchange in competition, the creation of appropriateness in all activities of the company
So, business strategy is a combination of goals and policies as well as major plans to achieve such goals It clearly shows what business activities the
company has been implementing or what business field the company will be
focus on
In general, definitions of business strategy, despite of basis differences, include following contents:
vY Set up short-term and long-term goals of the organization:
v Propose and select solutions to achieve such goals;
Y Develop and allocate resources to implement the goals
Trang 141.1.2 Role of Business Strategy
Nowadays, enterprises in particular and organizations in general pay special aitention to developing strategy Strategy plays key role in directing and developing development plan of an organization Main effects of the strategy in an organization are recognized as follows:
- Help enterprises to find clearly their purposes and directions It forces managers to review and determine which direction to follow and when to reach to certain position
- Force managers to analyze and anticipate conditions in near future as well as for future environment
- Enterprises shall attach set up decisions to business environment conditions - Help managers to use existing resources of enterprises effectively and
allocate them reasonably
- Help managers to combine functions in organizations in the best way on the
basis of achieving general goals of organizations
“Without a strategy, an organization is like a ship without a rudder, going around in circles It’s like a tramp; it has no place to go.” - Joel Ross and Michael Kami [10, pp 34]
1.2 Strategic planning process
Trang 15Figure 1.1: Strategic Formulation Process |
Source: Adapted from Fred R David, Strategic Management: Concepts and Cases
(Pearson Education International, Twelfth Edition) 37
1.2.1 Determination of vision, mission and goals of the industry, enterprise
“A business is not defined by its name, statutes, or articles of incorporation It is
defined by the business mission Only a clear definition of the mission and purpose of the organization makes possible clear and realistic business
objectives” - Peter Ducker (10, pp 80]
Goal is a concept used to refer to specific business outcome which an enterprise wishes to achieve
Short-term goal means specific and detailed outcomes in | year They are separate outcomes arising in the next decision cycle of an enterprise
Medium-term goal: means results to be achieved in 3 years
Long-term goal means goals showing desirable outcomes for a period of at least 1 year Long-term goal is normally set up for following issues: Profitability, productivity, competitive position, personnel development, personnel relation, technical direction, social responsibility
1.2.2 Environmental analysis
Environment of an organization includes factors, forces, institutions, etc
Trang 16Environment of an organization includes ¡nternal and external environment Figure 1,2: Environment analysis model Macro environment Micro environment Internal Environment
Source: Adapted from Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 104, 106, 136
1.2.2.1 The external environment analysis
External environment of an organization is determined by 5 main factors:
(1) economic factor, (2) cultural — social — natural — environmental factor, (3)
political — legal — policy factor, (4) technical and technological factor and (5) competitor factor External factors are divided into two levels:
- Macro environment includes factors from macro management level affecting all business industries but not necessarily in a certain way Analysis of macro environment helps an enterprise realize what it is facing
- Micro environment (or specific environment) is determined for some
particular industries; all enterprises of the industry are affected by micro environment of such industry
Micro environment includes all factors in the industry and external factors for the enterprises, deciding the quality and level of competition in such trading and manufacturing industry
“The opportunities and threats existing in any situation always exceed the recourses needed to exploit the opportunities or avoid the threats Thus, strategy is essentially a problem of allocating recourses If strategy is to be successful, it
Trang 17must allocate superior resources against a decisive opportunity.” - William
Cohen [10, pp 102]
With the 5-forces model of competition of Michael Porter, external environment of an enterprise shall be analyzed in terms of such factors as Customer, Supplier, Current Competitor, Potential Competitor, Substitute product
Figure 1.3: Porter’s Five-Forces Model of Competition
Source: Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 118
Based on above analysis, we make the matrix of external factor evaluation (EFE) in order to determine the capacity to respond to environment of the enterprise Table 1.1: External Factor Evaluation (EFE) Key factors Weight Rating Weighted Score
List the 0 (not important) 1 (response is poor) =(Weight)* factors for / (all-important) =2 (response is average) (Rating)
evaluation 3 (response is above average) Total Weight — | 4 (response is superior)
Trang 18
1.2.2.2 Value chain analysis
The value chain is a systematic approach to examining the development
of competitive advantage It was created by Michael E Porter in his book, Competitive Advantage (1985) The chain consists of a series of activities that create and build value They culminate in the total value delivered by an organization The 'margin' depicted in the diagram is the same as added value The organization is split into ‘primary activities’ and 'support activities.’
Figure 1.4: Value chain
( Firm Infrastructure
sÉ Human Resource Management §
3 Technology 2
[ Procurement
Inbound «=, Qutbound Marketingh
Igợc ỨEW gs MG Sve VỀ
\———— NWMMWY KTMTIES——————————Z
Source: Michael E Porter, Competitive Advantage, New York, Free Press, 1985
1.2.2.3 The internal environment analysis
Trang 19Based on above analysis, we make an internal factor evaluation matrix Table 1.2: Internal Factor Evaluation (IFE) Factors for evaluation Total Weight = 1 =3 (minor strength) =4 (major strength) Key factors | Weight Rating Weighted Score
List the =0 (not important) =I (major weakness) =(Weight)*
internal =1 (all-important) =2 (minor weakness) (Rating)
Source: Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 168
1.2.2.4 Competitive profile matrix (CPM)
Competitive profile matrix (CPM) identifies a firm’s major competitors and its particular strength and weaknesses in relations to a sample firm’s strategic position The weight and total weighted scores in both a CPM and an EFE matrix have the same meaning However, critical success factors in the CPM include
both external and internal issues; therefore, the rating refers to the strength and
weaknesses There are some important differences between EFE and CPM First
of all, the critical success factors in CPM are broader, they do not include
specific and factual data, and they even may focus internal issues The critical success factors in CPM are not grouped into opportunities and threats as they are in an EFE matrix Table 1.3: Competitive profile matrix (CPM)
Critical Weight Company 1 Company 2 Company 3
anemone Rating Score Rating | Score | Rating | Score
factors
List the | The same | The same | The same
internal and) EFE EFE EFE
external matrix matrix matrix
factors
Source: Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 127
16
Trang 201.2.3 Strategy Analysis and Choice
Strategy is defined as the match an organization make between its internal sources and skills and the opportunities and threats created by its external factors The matching stage of the strategy-formulation framework consists of 5 techniques that can be used at any sequence: the SWOT matrix, the SPACE matrix, the BCG matrix, the IE matrix and the Grand Strategy matrix
1.2.3.1 Locate strategies by Michael Porter’s 5 generic strategies
Michael Porter’s 5 generic strategies allow organizations to gain competitive advantages based three different bases: cost leadership, differentiation and focus
Figure 1.5 : Michael Porter’s 5 generic strategies GENERIC STRATEGIES COST LEADERSHIP DIFFERENTIATION FOCUS TP y ee 2 pg
Source: Adapted from Michael E Porter, Competitive strategy: Techniques analyzing Industries and Competitors (New York: Free Press, 1980: 35-40) LARGE SIZE OF MARKET SMALL
Type 1: Cost Leadership — Low Cost Type 2: Cost Leadership — Best value Type 3: Differentiation
Type 4: Focus — Low Cost Type 5: Focus — Best value
1.2.3.2 Strategies in action by SWOT Matrix
Strengths-Weaknesses Opportunities-Threats Matrix is an important matching tool that helps the managers develop 4 types of strategies: strength- opportunities (SO) strategies, weakness-opportunities (WO) strategies, strength-
threats (ST) strategies, weakness-threats (WT) strategies
Trang 21Table 1.4: SWOT Matrix
[Key Internal Factor |S OPPORTUNITIES THREATS
| oN List opportunities List threats
Key External Fac CƠ
——— STRENGTH S-O Strategies S-T Strategies
| List strengths Use strengths to take advantage | Use strengths to avoid threats
| of opportunities
—— WEAKNESS W-O Strategies W-T Strategies
List weaknesses Overcome weaknesses by taking Minimize weaknesses and
advantage of opportunities avoid threats
Source: Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 225
1.2.3.2 Determine strategy by SPACE Matrix
The Strategic Position and Action Evaluation matrix (SPACE matrix) represents 2 internal dimensions (financial strength and competitive advantages) and 2 external dimensions (environmental stability and industry strength) These 4 factors are the most important determinants of an organizational overall strategic position Figure 1.6: SPACE Matrix Conservative - Market penetration FS Aggressive - Backward, forward, horizontal š 6 integration - Market development l
- Product development 5 = Market penetration - Related diversification 4 3 =, = Masient development - Product development 2 - Related diversification | 4 3 -2 -l l 2 3 4 IS ` “1 Gà -2 - 3 Competitive Defensive -4 - Backward, forward, horizontal - Retrenchment 5 integration
- Divestiture 6 Market penetration
- Liquidation - Market development ES - Product development
Source: H Rowe, R.WMason and K.Dickel, Strategic Management and Business Policy:
A Methodological Approach (Reading, Massachusetts: Addison — Wesley Publishing Co Inc, 1982) 155
Trang 22FS: Financial Strengths ES: Enviroment Stability CA: Competitive Advaniage IS: Industry Strengh
1.2.4 Strategy Implementation
Based on goals of the enterprise, internal and external situation of the enterprise, develop business strategy Business strategy includes following basis
contents:
- Identify and choose opportunity to help the enterprise to achieve its
business goal
- Choose target market of the enterprise, which helps the enterprise take best advantage of opportunity
- Choose type of services and products supplied for the target market - Develop marketing strategy for the chosen market and strategy 1.2.5 Solutions to business strategy implementation
They are solutions in terms of human resources, financial sources, business management organization, production management, etc in order to implement set up business strategies In other words, it is the arrangement and allocation of resources of the enterprise to successfully implement chosen business strategies, for example:
- Suitable arrangement of enterprise organization structure
- Allocation of financial sources
- Establishment of a scientific and effective management model 1.3 Concept and features of private university
According to Regulation on private university issued by Prime Minister under Decision No 86/2000/QD-TTg dated18/7/2000, private university is defined as “Higher education agency established by social organizations, social — vocational organizations, economic organizations (hereafter referred to as organizations) which mobilize teachers, investors to contribute their effort, money and material _from sources beyond the State budget.” (Article 1)
Trang 23According to this Regulation, private university has following main features: - Have the same legal position as public universities in national education
system, (according to Article 2)
- Subject to public administration in education of Ministry of Education and Training, subject to administration management in territory of Provincial People’s Committee, Cities directly under the Central Government (hereafter referred to as Provincial People’s Committee) where the university is located; (according to Article 4)
- Self-control and self-responsible for the master plan, development plan of the university, organizing training, scientific and technological activities, finance, international relation, organization and civil (according to Article 7)
- Charter capital is determined including charter in cash (Vietnam dong or free convertible foreign currency), gold or assets and no less than 15 billion
VND (according to Article 11)
1.4 Legal issues in connection with higher education
- Regulation on private university stipulating feature, form, organization
structure, establishment conditions, operation mechanism of the private
university;
- A set of 10 standards, 53 criteria for quality assessment stipulating
standards for staff, material facilities, learners, from that recognize the
university to meet national standards of not, at what level;
- Hung Vuong HCMC University regulation stipulating organization
structure, management, operation, individual responsibility of HVU 1.5 Role of competitive strategy for university
Pursuant Regulation on private universities, private universities can “se/f- control and take responsibility for the master plan, development plan of the university, organizing training, scientific and technological activities, finance, international relation, organization and personnel.” Therefore, strategic role and strategic management in general is very importance, since it:
- Help the university to find its direction in the future to review and decide
which direction and when to achieve a certain goal
Trang 24- Help the university to see opportunity and threat in its operation at present and in the future, to analyze, evaluate and anticipate environmental conditions in the future, to take advantage of opportunities, to reduce threats and to overcome the competition to achieve success
- Strategic management process helps the university make suitable decision to cope with each environment, to improve operational efficiency and to develop the university
CONCLUSION OF CHAPTER 1
Strategic role and strategic management in general are very important,
developing strategy also takes time and effort; however, the university shall be
compensated with more interests It is also mistaken to develop strategy hastenly, rigidly with turnover targets to be achieved
For education sector, strategy and strategic management help schools, especially universities and colleges to optimally meet demands of human resources for the society, to improve level, training capacity in the most difficult conditions as well as to guarantee the living standard of officers, lecturers and employees
In short-term, a good strategy shall help university and college do well in training human resources for the society in order to best implement the goals in education and training sector in the most difficult conditions in terms of funds
as well as help university to feel secure in self-controlling, making decision and
Trang 25CHAPTER 2
INTRODUCTION TO OPERATION OF HUNG VUONG HOCHIMINH CITY UNIVERSITY
2.1 Overview of Hung Vuong HCMC University
University name: HUNG VUONG HO CHI MINH CITY UNIVERSITY
Date of establishment: 14" August 1995
Traditional date: 9" March (Lunar)
Sector: Education and Training
Training levels: University — College — Professional School
Personnel: 150 officers - employees (excluding part-time lecturers)
Number of students: 10,081
Head office: 342bis Nguyen Trong Tuyen, Ward 2, Tan Binh District, HoChiMinh City
Website: www hungvuong.edu.vn
2.1.1, History and Development of Hung Vuong HCMC University
Implementing the policy of education socialization, diversification of training forms of the Party and Government under the Resolution of the 7" Party Central Committee on 14/01/1993, some intellectuals led by the late Profession, Medical master Ngo Gia Hy established a private university in Ho Chi Minh City On the 24" of May 1993, Prime Minister Vo Van Kiet signed the Decision No 240/TTg promulgating regulations on private university However, through review, survey, social opinion investigation, it is found that opening “private” universities in our country is still new, so on 02/01/1994 Ministry of Education and Training promulgated the temporary Regulation No 196/TCCB on private university signed by Minister of Education and Training Professor Tran Hong Quan Due to such adjustment, some intellectuals proposed to establish Hung Vuong private university and Ministry of Education and Training made decision on approval No 2395/QD-TCCB dated 03/11/1993
Trang 26In the early days since its establishment, the university was named Hung Vuong private university Under the Decision No 122/2006/QD — TTg of Prime Minister permitting some universities to convert to private universities, including Hung Vuong private university Since 12/6/2008 the university was renamed Hung Vuong University (abbreviated as HVU)
2.1.2 Product features
Products of HVU are determined to provide training services, including:
Training bachelors, engineers at university level with the training period of 4 years, regular training, vocational training, connection training programs; Training bachelors, engineers at university level of the second major with the
training period of 2.5 years for the second training program;
Training college bachelors with the training period of 3 years for regular training, connection training programs;
Vocational training for pupils finishing high schools with the training period of 2.5 years for regular training program;
Providing short-term vocational training courses supplementing for those of
at least professional level;
Providing skill training services such as English, Computing
2.1.3 Functions and duties 2.1.3.1 Functions of HVU
Training personnel to have good political quality, ethics, knowledge and professional practice skills corresponding to training level, to have health and capacity suitable for working in the society, creating employment for
themselves and others, to have capacity of equal cooperation in international
relation, to meet demand for national construction and protection
Trang 272.1.3.2 Duties
s To students:
Teaching basic knowledge and prolessional knowledge selected by students based on their capacity and expectation;
Creating environment for student to develop comprehensively in terms of ethics, intelligence, ability and arts:
Creating conditions for developing knowledge and training students to be able to analyze problems to find solutions;
Helping students uphold community spirit; dynamics and creativeness, combining study and professional practice, school and society, world
** To officers — lecturers — employees:
Training experts of high scientific level to meet social demand, at the same time, maintain the humanity of the profession and uphold the quintessence of Vietnam’s culture
Encouraging and creating conditions for members to carry out scientific research and to apply scientific achievements in teaching, studying contents and social reality On this basis, extending domestic as well as international cooperation;
Trang 282.1.4 Organization structure of HVU
Figure 2.1 Organization diagram of HVU Ho Chi Minh Youth Union Student association PARTY BOARD OF COMMITTEE MANAGEMENT
Party cells RECTOR - Science and Training Council Trade union Vice Rectors - Other member councils
- Assessment — Inspection — Conclusion council [ ì MANAGEMENT DIVISION (Offices, Divisions) - Administrative - Equipment Management - Training Bureau TRAINING DIVISIONS (Faculties, Departments) - Information Technology - Business Administration - Tourism - Foreign Language SERVICE DIVISION (Services, student support ) - Library - Traditional medical association - Sai Gon telecommunication
- Student Affairs - Hospital Management technology institute - Finance - Post-harvest Technology - Management quality - Organization, Personnel - Accounting — Auditing institute
and Legal - Finance — Banking - Student support center - TCCN & DN Board - Construction Engineering - ISO management board
Technology - Information network - Politics management team - Foreign Language Center
- Resource Training Center
Note:
Leadership function line c—————n
Coordination function line lễ se ~s >
Trang 29Figure 2.3: Number and qualification of Figure 24: Number and qualification of Managers and Lecturers of HVU Lecturers of HVU @ Ph.D @ Master @ Ph.D Bachelor & Master ® Diploma ® Bachelor Others (See Appendix 1, 2) 2.1.5 Salary policy
“* For officers, managers
Income = Basic salary + Allowance — Teaching pay (if any) - Basic salary: is paid according to qualification, senior
- Allowance: includes responsibility coefficient, teaching salary
According to data of Accounting Division in September 2010, average
income of Manager is 10 million VND, of Vice Dean is 7.5 million VND, and of
senior specialist of at least 5 years is 5.5 million dong s* For lecturers
Teaching salary = Teaching pay + Marking pay
Teaching pay = number of periods * pay rate * crowded class rate Marking pay = number of exams * norm
According to data of Accounting Division in September 2010, average
income of Dean is 11.5 million VND, of Vice Dean is 9 million VND, and of
lecturer is 6 million VND
In addition, the University also has other expenses: - Expenses for holidays
- Expenses for founders, officers, lecturers, employees of the university - Expenses for collaborators
- Expenses for political, union activities
Trang 30In general, salary as well as income of officers, lecturers, employees of HVU is still low in comparison with average income of the society and not as high as that of other universities, so it is not attractive enough to attract and keep talented people Therefore, officers, lecturers and employees of HVU are lack in comparison with demand
2.2 Activities of HVU 2.2.1 Training
2.2.1.1 Training scale
Enrolment target is assigned by Ministry of Education & Training every year to the university, depending on the operational capacity, material facilities of full-time lecturers of the university For the first 10 years, since its establishment, from 1995 to 2006, due to unreasonable investment in material
facilities, limited number of lecturers, annual enrolment target ranges between
1,000 and 1,500 students Since 2007, the university has invested remarkably, since the academic year 2007-2008, especially 2008-2009, 2009-2010, university, college target of the university has increased to 2,500, of professional school has increased to 2,500, number of applicants has increased significantly
Student scale of the university ranges between 3,000 and 4,000 students in one year College level is also extended from the academic year 1997-1998 For 3 years, 140 college bachelors major in Information Technology and Tourism
have been trained At present, college level is being extended and connection to
university level will be implemented Second certificate training is also implemented at some Faculties excluded from the assigned enrolment target
In general, enrolment target of the university has gradually increased over
14 years of operation Real enrolment decreased in 1998-1999 and 2004-2005
Trang 31Figure 2.5: Target and real number of enrolment over years 2500,0 2058,0 2000,0 4 i 1433,0 445,0 | - 1500,0 | 1259204 d iil PB @rarcer 1000,0 ane | | 2š Pr i w REAL ENROLMENT gi nà 4 i | 500,0 ì ; | ,0 LE (ELE | a n a S ` - S mm In addition, the university should face and find measures to repair some 1996 1997 1998 mm 1999 2000 2008 „ © N
weaknesses including the rate of drop, absence from school of about 40% which
affects greatly to the funds of the university Causes of this problem include: - Students subject to drop out of university as stipulated by Ministry due to
poor study results;
- Students dropping out of university halfway;
- Students re-applying into other universities, changing their majors
Figure 2.6: Compare number of graduates with number of enrolment over years 2000,0 1839,0 1662,0 1500,0 1500,0 1240, 1251283, 1000,0 ch 622, RE NROLMENT 500,0 lh ill 09, @GRADUTES | af | l 3 w | | N 1995 CUE 3 2 8 sẽ§S 8 1996 1997
2.2.1.2 Training form, profession and result
Training forms of the university are mainly regular programs At present, Ministry of Education and Training has assigned in-service training target for the university Some majors have short-term training courses upon the social request
Trang 32Training majors: in the early days since its establishment, there were 04
majors: Business Administration, Applied Mathematics, Information
technology, English; in 1996 more majors were added: Hospital Administration, Tourism, Japanese; in 2003 Post-harvest Technology major was opened At present, the university has 10 faculties namely Politics Department; Information
Technology Department; Business Administration with such sub-majors as:
foreign trade, marketing, production operation management; Hospital Management; Tourism; Post-harvest Technology; Foreign Language with such sub-majors as: English, French, Chinese, Japanese; in 2007 Finance and Banking Department was established; in 2008 Construction Engineering Technology Department was established; in 2009 Accounting — Auditing Department was established
However, number of training majors is low, training contents and methods
Trang 33_ a _ r T—— Si aa 20201 1ú, posi Tourism x | X | X X Construction X ('ngineerIng [echnology snglish Xx X Xx X X /apanese X x X X “hinese x X X *rench X X X Veb design X ind nanagement “ravel X [ractice banking X practice
Source: Statistics of Training Bureau in September 2009
In general, training affairs of the university has good achievements Rate
d students finding jobs after graduation has gradually increased and highly
apreciated by users Survey results of employment of graduated students from 2)01 to 2004 are as follows:
e 54% of students find jobs right after graduation e 96.2% of students find jobs | year after graduation e 96.8% of students find jobs by the time of the survey
2.2.2 Scientific research and international cooperation of the university
2.2.2.1 Scientific research
For the past 14 years, scientific research has significantly contributed to th: improvement of training quality and the creation of external connection In 1°97, there were 14 researches have been published, in 1998 there were 07 reearches, in 1999 - 11, in 2001 - 13 and in 2008 - 26 at university Scientific ecucation internal journal of the university has been published for 11 years However, this activity is still small, tattered, there are no works at ministry,
Trang 34national level Number of officers, students carrying out scientific researches is limited, quality is not high This operation needs to be promoted in the future
2.2.2.2 International cooperation
HVU is studying to establish cooperative relations with many Canadian universities such as Moncton University, Quebec Montreal University, Sorbonne University, Belgian universities such as Louvain University, Belgium Freedom University, Public Health School of Louvain Medical University By now, the university has signed memorandum only, no specific agreements due to various
reasons
International cooperation has a very important meaning in the current trend of globalization, so in the next strategy, the university is required to promote this activity more strongly
2.2.3 Material and technical facilities of the university
By now, operating agencies of the university are all rented, including: - Agency at 736 Nguyen Trai, district 5;
- Agency at 239 Nguyen Trong Tuyen, Phu Nhuan district; - Agency at 146 Vo Thi Sau, district 3;
- 342Bis Nguyen Trong Tuyen, Tan Binh district; - 59 Che Lan Vien, Tan Phu district
Since HVU has not had its own agency so it has not equipped modern technical equipment to serve teaching and studying, scientific research, except computer rooms for Information Technology Department
Ho Chi Minh City People’s Committee has decided to permit the
university to use an area of 25.5 ha in Tan Kien commune, Binh Chanh district to
build a new agency This is an important premise for HVU to basically settle its
material facilities for HVU development strategy in the future
Trang 35Table 2.2: Floor area and number of classrooms
No.) MATERIAL FACILITIES | TOTAL AREA (ha) Remarks TT | TTlạnam | 26194ha |Totallandareaof
-2_ | Construction area ( 24.305m') Number of | Number | 28,194ha, of which
classroom of m?_ | 26, 205 ha is _ a | Classroom, lecture hall 76 9,685 | planned by Ho Chi
_ b_ | Laboratory 4 320 Minh City People’s
_ c | Classroom for foreign language, 10 840 | Committee for
music, arts, sports building a university
Td (Cc omputer room 9 740 in Tan Kien
_ e | Library 3 460 commune, Binh
f | Public work area (canteen, 4] 2,568 | Chinh district; the medical center, offices, rest is rented land
departments) with the period of
use of 6 to 20 years
g | Dormitory 16 400 Rented in Go Vap
district for 100 Laos students
ot Total 159 15,013
s Source: Statistics of Equipment Management Bureau in November 2009
Table 2.3: Number of equipments and computers
No COMPUTING CAPACITY Quantity Remarks
1 | Total number of computers 581 Of 450 computers used for
a | For training 450 training, 62 computers are
b_ | For management 131 installed in lecture halls,
2 | Number of computers connected to 519 classrooms (no Internet
Internet connection); 388 computers
3 | Number of computers having email 131 are installed in 9 computer | portal according to email address of rooms and 131 computers
Trang 36At present, the university has a basic advantage that it has invited Saigon Invest Group to be the main investor holding more than half of shares to invest in the university with the policy of no self-interest as proposed by founders of the university and it has coordinated with the university to established University Development Investment Joint Stock Company City Committee of the Party Office is doing the procedure of leasing the land at 736 Nguyen Trai for 20 years to build the head office of the university 2.2.4 Finance Table 2.4: Income Statement of HVU in 2008, 2009 Ratio 2008 2009 Amount ~~ Net revenue 30,998, 183,300 42,480,743,031 | 11,482,559,731 Gross revenue 12,200,000,840 12,740,502,965 540,502,125 EBIT 3,190,773,135 -629,296,171 -3,820,069,306 | Net earnings 2,871,695,821 -629,296,171 -3,500,991,992 | Margin profit 10,29% -1.48% -11.77% ROA 12,1% -1.78% -13.88% ROE 13.54% -2.41% -15.55% Total Assets 23,730,726,144 35,322,590,120 | 11,591,863,976 Total Debt 166,093,212 9,292,301,525 | 9,126,208,313
Source: Accounting Bureau on 31 December 2009
According to above turnover table, it can be seen that turnover in 2009 increased by 37% in comparison with in 2008, equivalent to the target which
HVU is permitted to increase in 2009 However, in 2009 profit of HVU
decreased to negative figure Reason for this loss is that HVU invested in equipment, purchased management procedure, increased salary in order to improve operational capacity, to prepare for the following years
CONCLUSION OF CHAPTER 2
HVU is a university with its main product is to provide training service At present, this is a suitable product of high demand In order to improve
Trang 37competitive capacity, HVU is necessary to establish a development strategy, including short-term and long-term goals
In recent years, demand for higher education of the citizens has increased remarkably, including for localities paid little attention to study before such as Southwestern provinces This is the most advantageous factor for
Vietnamese universities in general and HVU in particular
Regarding operation capacity, including staff, program, management mechanism, income policy, etc., HVU is potential and has achieved remarkable success In order to improve competitive capacity, HVU needs to have suitable strategy to improve its operational capacity in order to increase income, to create its position in the society
Trang 38CHAPTER 3
ANALYSIS OF HUNG VUONG HOCHIMINH CITY UNIVERSITY’S ACTIVITIES
3.1 Determination of value chain
Figure 3.1: Value Chain of HVU Focus on enhancing facilities, building new locations and purchasing educational equipments
e Manage recruitment and selection a good staff
e Training and development the staff
e Policies to allure talent people, encourage study and research,
improve income
ACTIVITIES
e Information system is relatively completed with internet connection 100% e Apply ISO in management, constantly improve procedures
Gain right of use system ISO 9000 and EFQM of European universities Training program is regularly updated to meet demand of society SUPPORT Inbound Operations | Outbound Marketing | Services Logistics Logistics aa
Education | - introduction to} video clip, - Help students in
Attract ae students updated program is | fresh- graduates exhibition study and life - Hold event - Scholarship high-mark in | Excellent | - Supportto - Hold contest
university lecturers seek jobs for for students
examination student
PRIMARY ACTIVITIES
Source: Michael E Porter, Competitive Advantage, New York, Free Press, 1985
3.2 Analysis of external environment
3.2.1 Analysis of macro environment 3.2.1.1 Political and Legal factors
Constitution of the Government states: “/ducation is national policy” It confirms the role of education in general development of the country Clearly aware of the significance of education, the Government continues to implement the policy of educational socialization State budget invested in education and training has increased from 15% in 2000 to 18% in 2005 with the mechanism of
Trang 39increasing expenditure for key tasks of the sector such as renovation of program, training of teachers, and improvement of mountainous education ODA projects in education and training mainly for basic education, education and training sector reached and exceeded basis targets which Education development strategy set up for 2005 Schools in Vietnam have been making effort to meet national standards in terms of infrastructure to guarantee high quality teaching and studying equivalent to other countries in the region However, these preferential policies only focus on public universities, but private universities Besides, approval and issue of targets for each university like present of Ministry of Education and Training causes many obstacles for operation and self-control of universities, hinders universities from improving operational quality It is due to restricted enrolment target which limits income of the university, and affects
investment plans of the university
According to General treaty of service trade under WTO, education and training is seen as a form of general service trade Education must operate in 4 forms as stipulated in the General treaty of service trade: inter-border provision, services are provided from this member country to another member country;
consumption outside territory; trade presentation, service suppliers of a member
country establish forms of presentation like 100% foreign owned company, joint venture company, etc Severe competition between domestic universities and foreign education organizations operating in Vietnam is indispensable This will create conditions for learners to have lots of choices at the same time put universities and education organizations in the position of self-renovation to
compete and develop
Along with urgent demands for human resources to serve the development, higher education has never been paid attention like at present According to the master plan of universities of Ministry of Education and Training, each local area will have a university When local universities are
‘established, universities in the city will have difficulty since such universities
‘attract a greater number of students in localities
Trang 403.2.1.2 Economical factors
» GDP and average income per capital
GDP of our country has steadily and relatively high growth rate Part of CDP is invested in education Average income per capital has increased over years Increase in average income per capital means capacity of expenditure on elucation of the citizens is also increased
Figure 3.2: GDP growth rate of Vietnam over years en = " + Ơ œ@œ “T 2000 2001 2002 2003 2004 2005 2006 2007 (Source: World Bank in October, 2009) >» Inflation
Since 2007, inflation has great impact on socio-economic life in our cuntry Inflation cause price of goods serving training such as books, studying tcols, tuitions to increase high, which causes difficulty for large number of ctizens Figure 3.3: Average income per capita of Vietnam over years 1024 2000 2001 2002 2003 2004 2005 2006 2007 2008
(Source: World Bank in October, 2009)
Economic development is partly resulted from investment in education
Vice versa, education should also be mobilized and renovated to meet the
d:mands for human resources of the economy In the context where intellectual economy plays important role in the development of production forces, education