Business education in the emerging econo

McIntyreBUSINESS AND MANAGEMENT EDUCATION IN CHINA Transition, Pedagogy, Training and Alliances BUSINESS AND MANAGEMENT EDUCATION IN TRANSITIONING AND DEVELOPING COUNTRIES A Handbook BUS

Innovation in Business Education in Emerging Markets

Also edited by Ilan Alon and John R McIntyre

BUSINESS AND MANAGEMENT EDUCATION IN CHINA

Transition, Pedagogy, Training and Alliances

BUSINESS AND MANAGEMENT EDUCATION IN TRANSITIONING AND DEVELOPING COUNTRIES

A Handbook

BUSINESS EDUCATION AND EMERGING MARKET ECONOMIES

Perspectives and Best Practices

THE GLOBALIZATION OF CHINESE ENTERPRISES

Other books by the editors

BIOGRAPHICAL DICTIONARY OF NEW CHINESE ENTREPRENEURS AND

BUSINESS LEADERS (edited by Wenxian Zhang and Ilan Alon)

CHINA RULES

Globalization and Political Transformation (edited by Ilan Alon, Julian Chang, Marc Fetscherin, Christoph Lattemann and John R McIntyre)

CHINESE INTERNATIONAL INVESTMENTS

(edited by Ilan Alon, Marc Fetscherin and Philippe Gugler)

DOING BUSINESS IN SOUTH AMERICA

A Handbook (Victoria Jones)

ENTREPRENEURIAL AND BUSINESS ELITES OF CHINA

The Chinese Returnees Who Have Shaped Modern China

(edited by Wenxian Zhang, Huiyao Wang and Ilan Alon)

A GUIDE TO TOP 100 COMPANIES IN CHINA

(edited by Wenxian Zhang and Ilan Alon)

INTERNATIONAL SPACE POLICY

Legal, Economic, and Strategic Options for the Twentieth Century and Beyond

(edited by Daniel S Papp and John R McIntyre)

JAPAN’S TECHNICAL STANDARDS

Implications for Global Trade and Competitiveness ( John R McIntyre)

MULTINATIONAL ENTERPRISES AND THE CHALLENGE OF SUSTAINABLE

DEVELOPMENT (edited by John R McIntyre, Silvester Ivanaj and Vera Ivanaj)

NATIONAL SECURITY AND TECHNOLOGY TRANSFER

The Strategic Dimensions of East-West Trade

(edited by Gary K Bertsch and John R McI)

THE POLITICAL ECONOMY OF INTERNATIONAL TECHNOLOGY TRANSFER

( John R McIntyre and Daniel S Papp)

UNCERTAINTY IN BUSINESS-GOVERNMENT RELATIONS

The Dynamics of International Trade Policy (John R McIntyre)

Innovation in Business Education in Emerging Markets

Selection and editorial content © Ilan Alon, Victoria Jones and

John R McIntyre 2013

Individual chapters © Contributors 2013

Foreword © Charles Wankel 2013

All rights reserved No reproduction, copy or transmission of this

publication may be made without written permission

No portion of this publication may be reproduced, copied or transmittedsave with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS

Any person who does any unauthorized act in relation to this publicationmay be liable to criminal prosecution and civil claims for damages.The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988.First published 2013 by

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Softcover reprint of the hardcover 1st edition 2013 978-1-137-29295-7

ISBN 978-1-349-45102-9 ISBN 978-1-137-29296-4 (eBook)

DOI 10.1057/9781137292964

John McIntyre and Ilan Alon

Part I Regional Trajectories

1 Management Education in Africa: Prospects

John Kuada

2 Advancing People Skills for Twenty-First Century

María-Teresa Lepeley and Carlos A Albornoz

3 Emerging Trends in Higher Education in the

Mourad Dakhli and Dina El Zohairy

4 An Overview of the Indian Education System: From

Its Religious Roots to Its Present Incarnation 64

Jitender Gill

5 The Development of Business Education in a Young,

Entrepreneurial Country: The Case of Israel 76

Diana Bank and Tamar Almor

6 Business Education in the Emerging Economy of

Vietnam: Twenty Years of Expectations, Illusions

Quan Hoang Vuong, Tri Dung Tran, Nancy K Napier

and Thuy Ha Dau

Part II Content Adaptations

7 Economic and Management Education in China: The

Pros and Cons of Emulating the US Model 113

Penelope B Prime

8 International Accreditation of Business Schools in

Emerging Markets: A Study of FGV-EAESP and

Eric Ford Travis

9 Business Education and Ethics: The Case of Mexico as an

Francisco Iracheta and Diana Bank

10 Stakeholder Dialogues in Transition Economies:

Educating and Training Leaders to Build Relations

between Investors and Local Communities 162

Roland Bardy and Maurizio Massaro

Part III New Directions

11 A Review of the Current Status of Mobile Apps in

Education: Implications for Emerging Countries’

Christoph Lattemann and Ferial Khaddage

12 India Today: From Brain Drain to Brain Gain 193

P J Lavakare

13 Reaping the Benefits of Brain Circulation: The Impact

of the Overseas Study and the Returnees on the

Development of the Management Education in China 208

Wenxian Zhang

14 Outsourcing Global Skills Development to Australian

Vocational Colleges: A Case Study on Reverse

Transnationalization 222

Valeri Chukhlomin and Irina Chukhlomina

15 New Ways to Think about Business Education

Victoria Jones

viii Contents

5.2 Number of undergraduate and graduate students in

Israel between the years 1990/1991 and 2010/2011

enrolled in colleges and universities, excluding

5.3 Number of undergraduate students in Israel

between the years 1990/1991 and 2010/2011

5.4 Total number of undergraduate and graduate business

administration students in Israel between the years

1990/1991 and 2010/2011 enrolled in colleges

and universities, excluding Open University 89 5.5 Number of undergraduate and graduate business

administration students in Israel between the years

1990/1991 and 2010/2011 enrolled in colleges

and universities, excluding Open University 8912.1 Regional percentage distribution of destination of

approximately 20 million Indian migrants (diaspora) 19512.2 The GDP growth rate (percentage change in gross

domestic product) of India since the economic

12.3 Growth of higher education system in India from

13.1 Annual number of Chinese overseas students

and returnees, 1982–2011 (in ten thousands) 211

Tables

5.1 Schools of business and economics in Israel 82

6.1 Vietnam data 9810.1 Empirical evidence for principles-based

11.1 Usage of mobile phones in emerging markets and

11.3 Factors and issues related to mobile devices in

11.4 Synchronous and asynchronous mobile apps for

12.1 Reasons for returning to India, as stated by returnees

15.1 The disaggregated components of education 240

x List of Figures and Tables

6

Business Education in the

Emerging Economy of Vietnam: Twenty Years of Expectations,

Illusions and Lessons

Quan Hoang Vuong, Tri Dung Tran, Nancy K Napier

and Thuy Ha Dau

Introduction

Like many emerging economies, especially in Asia, Vietnam’s economy has undergone major economic shifts for at least a quarter of a century

On the one hand, this period is very short compared to the history

of capitalism and the market economy in Western, mostly developed, countries On the other hand, 25 years is long enough for many important changes of all types to have taken place in Vietnam’s once war-stricken economy

The present day is a crucial turning point for Vietnam Policy- makers and economists, both international and national, see mounting pres-sures on Vietnam’s economy and tend to agree that the economy demands a renewed tide of reform to survive the stormy years ahead, especially after recent years of high inflation, lower economic efficiency and the risk of losing steam

Since business activities have contributed and will continue to tribute to most economic achievements in Vietnam over the reform period, it makes sense to review the roles, impacts and lessons from actual happenings in Vietnam’s business education sector, which we believe have had profound effects not only on the corporate sec-tor, but also on political circles, various communities and ordinary Vietnamese households In addition, these trends will continue to influence the type of management education that Vietnam offers (or does not offer)

con-We divided the paper into three major parts First, we recap some

of the key points in the last quarter century of Vietnam’s transition

Quan Hoang Vuong et al 97

Next, we discuss the need for management education, and finally, we examine implications for management education Given the “organized chaos” in countries like Vietnam, much of the grounding and framing for this discussion comes from examples of events and actions that have occurred and how they relate to education—either a lack of or, in some cases, an outright ignoring of business principles and ideas

Vietnam’s transition economy in the last 25 years

Vietnam’s economic renovation—usually referred to as Doi Moi—started

during the VIth National Congress of the Communist Party of Vietnam (CPV) in 1986 Entrepreneurial political leaders encouraged, and were perhaps directly and indirectly involved in, business operations to transform their perceptions into reforming economic policies.1

“Economic thinking” has become one of the most important cepts to trigger learning in Vietnamese society The idea of “renovation

con-of economic thinking” applies not only to the importance con-of people learning the principles of the market economy from developed and fast-growing transitional economies, but also to finding ways to adapt them into Vietnam’s social context and economic settings

Since Doi Moi, the economy of Vietnam has been emerging vibrantly

From a US$10 billion economy in 1986, with a huge accumulated external debt (later recalculated by the Russians and Vietnamese to be about US$20 billion), Vietnam expanded its total annual output to an estimate of US$110 billion by the end of 2011

The economy has been pursuing an export-led growth model, which

is predicted to yield total export revenues of US$95 billion in 2011, while the total value of imports could reach US$105 billion Given a population of about 90 million by the end of 2011, the Vietnamese economy has become increasingly important in the ASEAN region.Vietnam’s long boundary with China led to an influx of Chinese goods into the Vietnamese domestic economy and a large trade deficit, especially in recent years This economic setting has affected the evolu-tion of the business sector, its importance in the country’s economic transition, and how business people have gained understanding, skills and opportunities in Vietnam’s nascent market economy, which we cover in the next section

The growth of the business sector

As part of the Doi Moi process, Vietnam has institutionalized

corner-stones to support its future path of development Domestic trade was

98 Business Education in the Emerging Economy of Vietnam

gradually liberalized in the late 1980s and the state-run import–export companies’ monopoly on international trade was removed in the mid-1990s The price system has been gradually reformed since 1987 and price reform was essentially finished in early 2007 when Vietnam offi-cially joined the World Trade Organization as the 150th member These steps have proved to be a painstaking process of transition, embedded with periods of high inflation (e.g 1987–1992; 2007–2008; and 2011),

a large-scale restructuring of the state-owned enterprise (SOE) sector (which downsized from 12,000 SOEs in 1995 to 2000 in 2011), and mas-sive layoffs within the state sector

However, right from the beginning of Doi Moi, a new corporate

sec-tor, both state-owned and private, emerged and has been thriving From only 1000 private enterprises in the early 1990s, when the Law

on Private Enterprises was enacted, the sector had gradually grown to approximately 500,000 private enterprises in 2011 These private play-ers created pressures of competition in the marketplace, forcing previ-ously complacent and self-congratulating SOEs out of their comfort zones to enter an unprecedented battle: fighting for profits

Business enterprises significantly contributed to the Vietnamese my’s growth and development through several mechanisms, including:Growing trade activities and international economic cooperation.Financial contribution to the state budget, which is estimated to reach about 25% of GDP during 2008–2011

Export ($ bln)

Import ($ bln)

Fixed investment (% of GDP)

Area (sq km)

Quan Hoang Vuong et al 99

Private-sector and foreign-invested enterprises that continue to ate jobs for the labor market and employees In the first 9 months

cre-of 2011, although economic expansion slowed to a 5.76% growth rate (year to date—YTD), the private-sector enterprises (PSE) and foreign-invested enterprises (FIE) created over 1.17 million new jobs, representing job growth in these sub-sectors of 5.8% and 11.8%, respectively.2

Significant improvements in living conditions in the country through taking advantage of market mechanisms, freedom in pricing activities, lowered transaction costs, and market competition that leads to lower costs

Better functioning of nascent money/capital markets and facilitating flows of funds to where it is needed at lower costs, via building new components, installing new institutions and shaping the way the new economy works

In reality, about two thirds of state budget revenues come from major taxes on business activities: VAT (23%); corporate income taxes (30%); and import–export tariffs (13%).3 This fact is important and relevant to business education because politicians have gradually come to appreci-ate the power of market forces and to rely on them to obtain financing for their political mandates This is not obvious unless we note that Vietnam had been long dependent on foreign aid, especially from the former Soviet bloc and China In terms of international economic cooperation, foreign direct investments (FDI) and foreign portfolio investments (FPI) have propelled an important flow of funds into the Vietnamese economy In 2011, Vietnam expects to attract US$10–11 billion pledged FDI capital and to get about $11.5 billion disbursed into the real economy The number represents more than 10% of Vietnam’s GDP in the year

Vietnam’s economic ties with the world economy in general and the regional markets and developed economies in particular have been established over time and are increasingly important for trade Vietnam’s growing trade with the USA can be seen as a typical example Vietnam enjoyed a significant trade surplus with the world’s biggest economy, which was also its biggest importer The Vietnam Trade Commission in the USA estimated two-way trade at $20 billion in 2011, a year-on-year increase of 10%

Finally, Vietnam’s stock markets grew from a pilot trading center based in HCMC with only four listed firms in August 2000 to now include two officially established stock markets: the HCMC Stock

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