Module: Emerging Issues in Management

UNIT 01
TRENDS
IN BUSINESS ENVIRONMENT

NGO QUY NHAM

Foreign Trade University
E: quynham@gmail.com
Web: www.ngoquynham.net
CONTENT
v Key trends in global environment
v Changes in business environment in Vietnam
v PEST Analysis for Vietnam
KEY TRENDS
IN GLOBAL ENVIRONMENT
v Globalization and global competition
v Industrial revolution 4.0
²IoT, Clouds, AI, blockchain

v Global warming & sustainability development

v Social Media

v Covid pandemic
KEY GLOBAL TRENDS
GLOBALIZATION& COMPETITION

Globalization Dimensions of Globalization

& Competition
v Trade and transactions

v Capital and investment

movements

v Migration and movement of

people

v The dissemination of knowledge

KEY GLOBAL TRENDS
INDUSTRIAL REVOLUTION
v IR4.0: IoT, Robotics, AI,
Globalization Autonomous Vehicles,
& Competition Blockchain, 3D Printing
Impact:
Industrial v Easier & more safety information transfer
Revolution 4.0
v Facilitates global structures
v Requires new competencies and
expectations
v Facilitates telecommuting; new
employment relationships
v More emphasis on knowledge
management
KEY GLOBAL TRENDS
INDUSTRIAL REVOLUTION
v “The process of meeting
Globalization
& Competition present needs without
compromising the ability of
future generations to meet
Industrial their needs”- United Nations
Revolution 4.0
v The Three Pillars of : Social,
Environmental and Economic
Sustainability
RMIT International
University©8/17/21
University Vietnam

KEY GLOBAL TRENDS

SUSTAINABILITY
The Three Pillars of : Social, Environmental and Economic

Viable
Bearable

Equitable
RMIT International
University©8/17/21
University Vietnam

UN’S SUSTAINABLE DEVELOPMENT

GOALS
RMIT International
University©8/17/21
University Vietnam

ENVIRONMENTAL SUSTAINABILITY
v Environmental Sustainability- preservation of environmental
resources and biodiversity, creation of sustainable access to
safe drinking water, and enhancement of quality of life
among the most impoverished.
v Global Warming- A fairly recent increase in the temperature
of earth’s lower atmosphere (the air we breathe), as well as
in the land and water that make up the Earth’s surface.
v Global warming is caused by the Green House Effect

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RMIT International University Vietnam

SOCIAL SUSTAINABILITY-

Social Sustainability- Examines the ways in which natural

resources, education, skills and social institutions build
human quality of life
Three particularly important issues:
qChild labour
qWorker Exploitation
qWorkplace safety

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RMIT International University Vietnam

ECONOMIC SUSTAINABILITY
Economic Sustainability- refers to an economy’s ability
to create and maintain economic conditions that foster
current economic health and long-term economic
development- also referred to as sustainable
development
• According to the United Nations (UN) it is a shared
responsibility of both world governments and private
institutions

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RMIT International University Vietnam

Corporate social responsibility (CSR)- A form of corporate self-

regulation that builds sustainability and public interest into
business decision making and activities
CSR has its roots in philanthropy which is giving money, time,
services or products in support of society’s well being
There are five common dimensions of CSR

§ Environmental
§ Social
§ Economic
§ Stakeholder
§ Voluntariness

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CHANGES IN BUSINESS
ENVIRONMENT IN VIETNAM
v Joining FTA, CPTPP

v Changes in market regulation (eg. SOEs)

v Digital transformation

v Climate change
FTA COMMON CHARACTERISTICS
AND IMPACTS
v The aim of a free-trade area is to reduce barriers
to exchange so that trade can grow as a result of
specialisation, division of labour, and most
importantly via comparative advantage
FREE TRADE AGREEMENTS
BY VIETNAM
SIGNED AND IN EFFECT NEGOTIATIONS LAUNCHED
v ASEAN Free Trade Area
v Trans-Pacific Partnership (CPTPP) ² ASEAN-EU FTA
² ASEAN-Hong Kong, China FTA
v Viet Nam-European FTA ² Regional Comprehensive Economic Partnership
v R.Korea-Viet Nam FTA ² Viet Nam-Customs Union of Russia, Belarus, and
Kazakhstan FTA
v ASEAN-Australia and New Zealand FTA
v ASEAN-India Comprehensive Economic
Cooperation Agreement
v ASEAN-Japan Comprehensive Economic
Partnership
v ASEAN-People's Republic of China
Comprehensive Economic Cooperation
Agreement
v ASEAN-[Republic of] Korea Comprehensive
Economic Cooperation Agreement
v Chile-Viet Nam FTA
v Japan-Viet Nam Economic Partnership
Agreement
FTA &TPP IMPACTS ON
VIETNAM ECONOM
COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-
PACIFIC PARTNERSHIP (CPTPP)
SPECIFIC AREAS IN THE
AGREEMENT:
v Goods market access
v Services market access
v Labour
v Environment
v Protections
v Pharmaceuticals
v Investment and ISDS (investor-state dispute settlement)
v Government procurement
v Intellectual property
v Trade facilitation
v State-owned enterprises
BENEFITS OF CPTPP
v More exports from producers
v More imports of consumer goods and commodity
v More FDIs as a result of higher confidence
v Boost GDP of Vietnam
v Improve productivity and sustained growth
v Improve the linkage of international supply chain
v Established new trade and investment standards
CHALLENGES OF CPTPP
(AND ALSO FTA)
v More competition both in product market and input
market.
v Big question: Does Vietnam have comparative
advantage and where?
²The theory of comparative advantage argues that in an
unrestricted marketplace (in equilibrium) each source of
production will tend to specialize in that activity where it has
comparative (rather than absolute) advantage.
TECHNOLOGICAL FACTORS –
INTERNET

Source: We are social website - http://wearesocial.net/blog/

TECHNOLOGICAL FACTORS

Source: We are social website - http://wearesocial.net/

SOCIAL MEDIA PLATFORMS

Source: We are social website - http://wearesocial.net/

SOCIAL MEDIA PLATFORMS

Source: We are social website - http://wearesocial.net/

Source: We are social website - https://datareportal.com/reports/digital-2021-vietnam?rq=VIETNAM%202021
Source: We are social website - http://wearesocial.net
Source: We are social website - http://wearesocial.net
VIETNAM

Source: We are social website - http://wearesocial.net

VIETNAM: INTERNET USE

Source: We are social website - http://wearesocial.net

VIETNAM

Source: We are social website - http://wearesocial.net

VIETNAM

Source: We are social website - http://wearesocial.net

VIETNAM

Source: We are social website - http://wearesocial.net

VIETNAM BUSINESS ENVIRONMENT

Source: Global Competitiveness Report 2019, World Economic Forum

 ECONOMIC FACTORS:
STAGE OF DEVELOPMENT
v The economy is still in
the beginning stage of
development.
v Vietnam outperform
many key factors in
comparison with those of
emerging and developing
Asian economies , except
for Business
sophistication,
innovation, institution
and infrastructure and
financial market
development.
ECONOMIC FACTORS:
STAGE OF DEVELOPMENT
KEY ISSUES FACED BY
ENTERPRISES IN VIETNAM

Source: Global Competitiveness Report 2017-2018, World Economic Forum

SUMMARY OF PEST ANALYSIS FOR VIETNAM
Political & Legal
• Political stability
• New Enterprise Law 2015 come into
effect: break-through mindset
• Vietnam involved in conflict with
China in South China Sea
• New AFTA with EU, S.Korea,
promising TPP
Socio-cultural Factors
• Large market (90.5M)
• Improving standard of education
• Young population (35% under 35)
but skills and productivity is still
low (education, culture)
• Increased middle class (30m)
• Positive entrepreneurship and start-
ups

SMEs
Economic Factors Technological Factors
• Good GDP growth
• Controlled Inflation • IT advancement
• Stable & reasonable Interest rate • Low investment on R&D
• Low Unemployment (2-4%)
• Slow reform and restructuring of
Banking systems
• Increased budget deficit and public
debt
• Poor Transportation Infrastructure
CONTENT OF THE COURSE

1. Key trends in business environment and

contemporary issues in management
2. Strategic Change Management
3. Business Process Reengineering
4. MBO & Balanced scorecard
5. Digital Transformation
6. Agile Management (Optional)