Introduction about FPT Education Corporation

FPT Education Corporation is an organization operating in Viet Nam since 1999. FPT Education participated in
general education in 2013 by establishing FPT High School in Hoa Lac (high school training from 10th to 12th
grade according to the boarding model) and Primary and Secondary Schools. junior high school (secondary
school) FPT Cau Giay (Hanoi) becomes the first elementary and middle school of FPT Education 4 years later. In
2019 and 2020, FPT Education continuously expanded its general education network to Can Tho (FPT Can Tho
High School), Da Nang (FPT Da Nang Primary - Secondary School), Quy Nhon (FPT Quy Nhon High School).
Nhon). FPT Polytechnic's High School Program provides vocational training for students graduating from
secondary school and above and earning a full-time college degree.

PESTLE MODEL OF BUSINESSES

1. Politics
According to Investment VietNam (n.d), VietNam is a country with a one-party state governed by the Communist
Party of VietNam which provides strategies and visions to decide all major policy issues. Due to the situation,
VietNam is one of the more politically stable countries in the region of South West Asia. While other countries
are still in conflict and remain vulnerable instability in economics and politics, VietNam got the advance from its
stable government leading it to be an ideal place for not only capital investments but also for FDI enterprises to
invest.
Based on this reason, FPT Corporation caught the opportunity and decided its establish of Education field in
VietNam in 1999 and has become an expanded significant Education Organization so far.
As reported by FPT Education Organization news (n.d), after VietNam, the UK, USA, and Australia are three
developed nations with rather highly stable politics recognized international integration, FPT Education
Organization entered into these three potential markets and has become a permanent partner with them, its
orientated education program is Global Pathway Program collaborating with top national universities in those
countries.
2. Economics
Viet Nam is a developing country in the Asian region which recently has been positively increasing in the general
economy since the period of Covid 19 during 2020-2021. There are many factors and signs proving that
argument.

Firstly, according to Reuters (2022), the GDP of Viet Nam in 2022 grew to 8%, fastest since 1997. In particular,
the current hit is higher than the 6.0%–6.5% official growth objective and the 2.58% increase recorded last year,
when COVID-19 lockdowns had a negative influence on the economy and factory activity.

(Atradious, 2022)

The next factor to evaluate the Vietnamese economic situation is the Inflation rate. Based on the analysis of the
inflation rate chart below, it can be inferred that from 2011, Viet Nam has decreased the rate rapidly through each
year and until 2023, the inflation rate is about 3.92%. Also, the country expects to maintain stability until 2027,
with the expectation objective is approximately 3.5%.
 (Statista, 2023)

Vietnam’s Average monthly wage is inferred as “Wages in Vietnam increased to 6800 VND Thousand/Month in
the fourth quarter of 2022 from 6700 VND Thousand/Month in the third quarter of 2022” (General Statistics
Office of Vietnam, 2023). Additionally, Vietnam’s Unemployment rate also has a positive sign from 2022 to
2023 with a good rate of under 3%, combined with the previous years, the rates of unemployment were up to 3-
4%.

(Trading Economics, 2023)

After discussing the situation of Vietnam’s economy, it can be inferred that the country doesn’t only conclude
potential factors but also contains threats. From the reality of the economy in the difficult period, the educational
orientation was built. After that, education has the duty to train human resources to take economic development
another step higher. This concept has been developed into a new theory by Gay Baker, an American economist -
Nobel Prize in 1992. According to him, to create such capital, the Government must be responsible for
determining the direction of a country's education and other economic organizations must participate in this
cause. The theory does not accept the stagnation of education while the economy is in motion. This is also the
problem education organizations in Vietnam urge to solve, needless to say, F. E Organization has been one of the
trail-blazers for this issue.
3. Social environment
“Human social environments encompass the immediate physical surroundings, social relationships, and cultural
milieus within which defined groups of people function and interact. Components of the social environment
include built infrastructure; industrial and occupational structure; labor markets; social and economic processes;
wealth; social, human, and health services; power relations; government; race relations; social inequality; cultural
practices; the arts; religious institutions and practices; and beliefs about place and community” (American Journal
of Public Health, 2001).
To have a clearer observation of how Vietnamese people interact with businesses in the country. Below are some
analyses and diagrams illustrating the explicit perspectives of Vietnamese Demographic.

Vietnam's population

According to Minh Ngoc Nguyen (2023), the population of Vietnam quickly expanded during the 1960s and the
1970s. Vietnam has a population of more than 98 million in 2021. Vietnamese people, on the other hand, had a
relatively high life expectancy of about 75 years old compared to other nations with comparable income levels.
With the greatest yearly growth rate in ASEAN, Vietnam's middle-income population is expanding alongside the
country's economic expansion.

(Statista, 2023)
Urban Population
According to Minh Ngoc Nguyen (2023), in 2021, there were over 36.6 million people living in urban areas in
Vietnam. Hanoi, Hai Phong, Da Nang, Bien Hoa, Ho Chi Minh City, and Can Tho are the six biggest urban
agglomerations in the country. The lowest rates of urbanization in the nation were seen in Ben Tre, Thai Binh,
and Bac Giang.

(Statista, 2023)
Average Monthly Wages
Following the urban population, the different salary rate between each province in Vietnam is also an important
issue. Based on analyst Stefan Roesner, this situation can be inferred as”this development represents an
opportunity and a threat. If remote working becomes an option, it might be tempting for younger Vietnamese to
stay with their families. They would earn good salary while avoiding high costs of places like HCMC or Hanoi. It
would again increase the average salary of most provinces across Vietnam. This could create a new talent pool for
companies that can offer flexible working, while reducing their labor costs. Such development could also create
new market opportunities due to increased available income in different provinces. For companies keeping the
status quo, this could be an issue and threat.”
 (Rsp International, n.d)
Labour Force With Advanced Education

In the manner of Judy Yang and Anh Thi Bao Tran (2022), they pointed out that Young Vietnamese people's
employment results are influenced by both supply and demand variables. On the supply side, there might be a
discrepancy between the education-based skills and knowledge acquired and those required in the contemporary
workplace. A fifth of the businesses polled in 2019 stated that a staff with insufficient education was their main
challenge.

Keeping to the situation, Vietnam has to keep enhancing both the availability and standard of higher education.
Expanding higher education access can be achieved by closing the access gaps between various socioeconomic
groups. This can be accomplished by addressing academic preparation, boosting financial aid, and implementing
outreach initiatives in underprivileged areas.

(CareerBuilder, n.d)

The next element of the Social Environment after Demographic is Psychology. In the field of Education, Parent
psychology is a significant factor impacting the performance of an educational organization. In particular, plenty
of Vietnamese parents always preferred their children to study wholly from elementary schools to Universities/
Colleges or even Post-Graduate studies.

To afford the integrated demands of those parents, FPT Education Org. has orientated their development into an
expanded eco-system that provides an energetic environment for students to be diversified and grow up with their
own strengths and habits.

After analyzing, Social environments aren’t the harmful factors that can really threaten the development of this
business, instead, it even created an advantageous environment for FPT Education to expand its scale based on
the demand of people across Vietnam.
4. Technology environment
Based on CNN (2020), between 2002 and 2018, more than 45 million Vietnamese people were lifted out of
poverty as the country developed industries in the fields of textiles, agriculture, furniture, tourism, and
telecommunications. Now thanks to the development of technology, Vietnam is undergoing another life
transformation.
“Over the past years, Vietnam has implemented many guidelines and policies to promote the
development of science and technology, so it has made significant progress in the ranking of the
global innovation index. According to the World Intellectual Property Organization in 2019, Vietnam’s
global innovation index ranking continued to improve to 42/129 economy, up 3 places compared to
2018, 17 levels compared to 2016, and 34 levels compared to 2012. This result puts Vietnam ranked
first in the group of low-middle-income countries, ranking 3rd in ASEAN (after Singapore and
Malaysia)” (Studies in Social Science Research, 2021)
In the context of the current situation of Vietnamese Technology, it can be inferred that this environment is
potentially generating a smooth opportunity for this firm’s application of Technology in teaching programs based
on the demand of the current situation in Vietnam or even the global trend in the near futute.
5. Legal environment
6. Ethic environment
Karisa Schroeder’18 - a famous contributing writer for the Unversity of Redlands, inferred corporations are
essential for the advancement of corporate ethics. But the development of moral leaders is also fundamentally
influenced by educational institutions. According to U.S. News & World Report, an MBA curriculum that is
comprehensive must include ethics instruction. The University of Redlands comprehends the significance of
business ethics. Currently, business professionals deal with some of the biggest issues in the globe. Complicated
ethical quandaries like those involving climate change, safety, and security demand critical thinking. We provide
pupils with these skills because of this.

Recognizing the significance of business ethics and how the world is changing today leading to results of
tomorrow. F. E Organization is one of the educational institutions in Vietnam that undertakes the global mission
and shifts it as an opportunity in order to prove their ability in teaching and leading their students to a sustainable
future development.

(FPT University, n.d)

 PORTER MODEL

1. Threat of new entrants

According to CFI (2023), the term "barriers to entry" was coined by American economist Joe S. Bain, who
defined it as "an advantage of established sellers in an industry over potential entrant sellers, which is reflected in
the extent to which established sellers can persistently raise their prices above competitive levels without
attracting new entrants to enter the industry."
On the other hand, FPT Education Org. is an education brand with international influence, FPT Education has
expanded to a full range of educational levels, contributing to nurturing high-quality human resources for the
labor market since 1999. Following the statement, FPT did get the strong advantage to become one of the
educational trailblazers in Vietnam, which certainly made it rather easy and doesn’t contain so many barriers for
FPT Education Org. to enter into this potential market at the initial time.
2. Industrial rivalry
Despite the initial advantages of this organization, the education market has been gradually increasing with lots of
significant components, which leads the situation to a harsh and scarce one. Hence, there are the current ones
competing with FPT Education Org, for example:
- Public schools governed by Governors (Primary schools, Secondary schools, High Schools, Universities/
Colleges,..)
- Private Schools (Van Lang University, Hoa Sen University,..)
- IACBE – International Assembly for Collegiate Business Education
- According to FPT Corporation’s Annual Report, it can be inferred that in 2021, the Education Org. had 74.313
full-time equivalent students all around the country, below is the analysis. Meanwhile, UEH University is also a
potential Organization in Vietnam including around 31.000 students, Van Lang University includes around
40.000 students, and VsNU-HCM trained 82,586 university students around the country.

(FPT Education Organization, n.d)

Keeping informed with FPT Education Org (n.d), they pointed out that nowadays, Generation Z tends to choose
schools with diverse and rich experiences so that their youth years have many imprints in their lives. And in FPT
Education, not only receiving specialized knowledge, Generation Z increasingly prioritizes seeking training
programs to develop the necessary skills to integrate with the world. FPT Education is always in affords in order
to bring out the most distinguished, special, helpful studying programs for students. According to their
orientation, they want to bring out “the schools of experiencing” with 6 fields for students to positively
experience:
- Experiencing future technology
- Experiencing Skills of the 21st age
- Experiencing Vietnamese culture and East Asian culture
- Experiencing leadership
- Experiencing the trend of future society and culturex
- Experiencing a world with multi-cultures
These 6 elements are the punctual reasons that make FPT Education Org. so distinguished and more special than
other schools in Vietnam, which appeals to more and more young talented students to learn and enjoy such an
efficient school system, FPT Education Organization.
From another point of view, the industrial rivalry is a threat to this firm, however, they don’t contain so many
disadvantageous positions among other rivalry
 3. Power of buyers
The next factor of Porter’s model is the Power of customers in the business. According to Investopedia (n.d), the
news addressed this force “ It is affected by how many buyers or customers a company has, how significant each
customer is, and how much it would cost a company to find new customers or markets for its output.”
In the context of FPT Education Org, the main focused customers are obviously students not only from Vietnam
but also around the world. As they reported, the range of students is expanded widely into full types of
segmentations, which continuously contributes to nurturing High-quality human resources for the labor market in
Vietnam.

(FPT Corporation’s Annual Report, 2021)

As reported by FPT Corporation, in 2021, there were about 74,313 full-time equivalent students studying in the
F.E system. Due to 2023, it is recorded that a total of around 100.000 students involving in the F.E Organization
and equally separating the numbers into diversified programs of the system.
According to recent statistics, FPT University ranks last in the list of Top 15 universities with high tuition fees in
Vietnam. After implementing a new form of tuition fee collection, tuition fees for international affiliate programs
at the University of Social Sciences and Humanities of Ho Chi Minh City. Ho Chi Minh City is 82 million
VND/per year.
However, in the situation of the current Vietnamese market, this perspective both includes strengths and
weaknesses for the firm. Firstly, its strengths are the high revenue and assets earned from customers to
unstoppably develop and expand its scale in Vietnam and also, maintain its quality of facility and training
programs for its pupils. Despite its positive side, the firm also contains a bad consequence created by its high
expanded tuition fee. The thing will be discussed in detail in the next part of “Threat of Substitutes”
4. Threat of substitutes
Keeping informed with Liupost (2022), businesses worry that competing goods or services could supplant their
own. When competitors or businesses outside the industry provide more alluring and/or less expensive items,
there is a greater risk of substitution. Then, buyers can choose to trade off performance for the price. Another
consideration is the cost of switching. If it is high, there is less risk of substitution.
In the context of F. E Organization, currently, they are facing multiple significant competing education services
from other firms within the same fields since their tuition fee is also a high risk itself. To enhance this statement,
throughout the Vietnamese economy, many families are still earning medium salaries (4.000-6.000 VND million
as a common wage) making a hard situation for their children to afford such high costs of FPT Education. On the
other hand, they make decisions in taking part in public schools or other less-expanded schools instead.
As a result, FPT Education Organization is facing high risks of their substitutes because many of them are
included in this market, also, as mentioned before, the cost of switching between other choices (which are other
less expensive schools in Vietnam) is low. This is a huge weakness of FPT Education.
5. Power of suppliers
As stated in F.E Organization (n.d), globalization and international connections have become inevitable trends in
many fields of economy, culture, society, science and especially education... Attending international joint training
programs helps students have access to new learning methods, updated knowledge, and professional learning
conditions.
FPT is one of the first training units to transfer international standard training programs on deployment in
Vietnam. Becoming officially affiliated units meaning that the foreign programs have been substantial suppliers
of F.E Organization. Below is a list of foreign study programs affiliating with F.E Organization in Vietnam:
1. Greenwich University from the U.K
2. BTEC Pearson from the UK
3. Melbourne Polytechnic from Australia
4. Swinburne University of Technology
5. Aptech Computer Education
6. Arena Multimedia
7. Skillking
8. Coking IoT expert academy
9. FPT Jeking
In conclusion, affiliating with many significant partners from such developed countries is a huge strength of FPT
Education since they not only create diversified choices for pupils taking part in the ecosystem but also enhance
their positioning in every parent’s trust whenever parents take time to enquire about the program’s information of
this organization.
TOWS Analysis
Below are the three internal factors of this firm listed which may be helpful for the analysis of the TOWS table:
1. Core mission

(FPT Education Global, n.d)

According to FPT Digital (2021), Vietnam is forming and developing large-scale education complexes at a high
level, typically the FPT Education system of FPT Corporation. With the mission of providing globally
competitive human resources and contributing to the development of the industrial 4.0 economy, FPT Education
was formed based on the close connection of inter-schools from preschool to university, the Union International
Student Association, International Student Development, Institute of Business Administration, Technology
Research Institute of FPT Corporation. In addition, there are FPT Innovation Global, functional departments and
incubation projects.
This educational ecosystem is a pioneer in training a large number of IT human resources to thousands of
graduates each year, contributing to the modern technology ecosystem, and contributing to the development of
centralized IT parks. Vietnam's high-tech park as well as helping Vietnam improve its position in the global
technology value chain. Currently, FPT Technology Research Institute has become a bridge between business and
education with the main function of researching and applying outstanding developments in science and
technology, serving the development of industries. domestic industry. Developed digital initiatives will help
Vietnamese businesses increase their competitiveness in the market.
2. Technology base and Research & Development
Nowadays, when science and technology are developing very fast, knowledge has become a measure of the
development and forecast of an economy's future, such as the Global Competitiveness Index. Index – GCI for
short) of the World Economic Forum will be assessed in part based on the quality of education, human resources,
and innovation capacity. For sustainable socio-economic development, human resources will be needed to meet
the increasing requirements of the labor market in the 4.0 technology era with many continuous changes.
General model Investment in education and building an education ecosystem is the focus of the long-term
strategy of many countries. The education ecosystem includes a network of schools at all levels, businesses,
technology research centers, vocational and employment training centers, and local authorities… to create a
comprehensive educational environment. From there, creating socioeconomic values to improve the country's
competitiveness.

(FPT Digital, 2021)

In the FPT Education Ecosystem, the system is also generated into the model of “Three Hubs”, in which each of
the hubs below will be classified and applied due to the distinctions of different young workforces in the country.
The divisions are also a huge advance of the F. E Organization since students’ abilities can be identified very
early and judiciously leading Viet Nam to sustainable development and preventing risks of brain drain in the
future. Here are three elements of the model “Three Hub”, which is inferred by FPT Digital (2021):

(FPT Digital, 2021)

Moreover, FPT Education Organization isn’t only applying this ecosystem as a sustainable way to develop their
firm, but they also have a huge application of technology base originated from FPT Software, which can be
inferred that their studying programs are the most significant admissions of their technology base. As a part of the
organization, FPT University pointed out their teaching orientation below:

“Information Technology at FPT University is a prominent program with six specializations:

 Software Engineering: The specialization focuses on integrating fundamental knowledge with technology

trends to assist students in approaching society’s future requirements. As a result, students would be able to
produce quality and applicable software that keep pace with the needs of the times.
 Information Assurance: The specialization equips students with basic knowledge of the computer and IT
industries and provides intensive training in information assurance to develop learners’ abilities in system
security and reliable communication in enterprises.
 Information System: The specialization aids students in developing a thorough understanding of the
database system and the procedures for implementing information systems in enterprises, ensuring the
system’s secure operation as well as enhancing and developing applications to build a rational and efficient
information management system for enterprises.
 Internet of Things: The Internet of Things specialization equips students with foundational knowledge in
combination with practical skills so that they can program and manufacture IoT application devices. That
contributes to the enhancement of the quality of life and the quality of human’s work.
 Artificial Intelligence: The Artificial Intelligence specialization at FPT University follows the application-
focused approach. While getting the foundational knowledge of mathematics and computers, students acquire
in-depth knowledge and skills to apply artificial intelligence to address practical problems
 Digital Art & Design: The Digital Art & Design specialization equips students with a basic graphic
background and IT applications in graphics, and enables them to combine design with media, fine art, and
commerce to satisfy societal requirements.” (FPT University, n.d)

After discussing about the Technology base and Research & Development of F. E, the firm is spotted that it
concludes many punctual strengths which may attract many students across the nation by the high-practice of
every major in schools and its efficiency in orienting their students with the purpose of training their outstanding
workforces.
3. Brand Equity

Since the beginning of FPT Corporation, it has raised and maintained its highly trusted reputation and status
across the nation or even beyond the border with certain certificates and awards from internationally famous
institutions. In 1999, following its legacies, FPT Corporation opened its education system and expanded it
strongly throughout Vietnam. After that, it achieved many certificates and rankings due to its Education
excellence.

Moreover, its reputation has also been enhanced unstoppably by appearing on many official news presses
including VNExpress, tuoitre,... with the applause of the Vietnam government and also people around the
country.

According to its success in gaining the trust of its partners and customers through many years, FPT Education
Organization applied these strengths to develop its firm globally without any fear in the context of the harshness
and scarceness of such the Vietnamese market nowadays.
SWOT Analysis
O-OPPORTUNITY T-THREAT
1. Increasing customer demand 1. High competition
SWOT 2. Increasing job opportunity 2. Economy is unstable
3. Digital transformation 3. Customer demands change
4. Diversity in target customers constantly
S-STRENGTH S-O Strategies S-T strategies
1. Highly Reputable Company
2. Campuses scattering in Vietnam Product Development:
3. A Huge Total asset Developing training programs
4. Modern facilities in cooperation with foreign
5. Potency in Technology fields partners
6. Potential Workforce
W-WEAKNESS W-O Strategies W-T Strategies
1. High cost compared to opponents
2. System of schools isn’t comprehensive
enough

FPT has been implementing a corporate-level cooperation strategy by developing training programs in
cooperation with foreign partners. The first such cooperation was implemented in 1998 and since then the number
of international cooperation programs has increased, which includes undergraduate, and postgraduate programs.
Students enrolled in these programs pay rather to very high tuition fees but have access to foreign curricula,
receive degrees from foreign institutions, and have the option of attending half of the program.
Reference list