To analyze macro environment in english training market in hcmc

MINISTRY OF EDUCATION AND TRAININGUEH UNIVERSITY

UEH COLLEGE OF BUSINESS

MID-TERM ASSIGNMENT:

TO ANALYZE MACRO ENVIRONMENT INENGLISH TRAINING MARKET IN HCMC

Lecturer: TS Trần Mai Đông

Nguyễn Huỳnh Thúy An - 31221022274 Phan Cao Cường – 31221022445

TP Hồ Chí Minh – 2023

In the heart of Vietnam's bustling metropolis, Ho Chi Minh City, a captivating transformation is unfolding that extends far beyond the city's soaring skyscrapers and vibrant streets It's a transformation that resonates with the global ethos of interconnectedness and the quest for knowledge—the remarkable evolution of English language instruction.

Recent years have borne witness to a meteoric rise in the English learning sector within Ho Chi Minh City, a phenomenon that has piqued the interest of educators, entrepreneurs, and learners alike What was once a niche endeavor has burgeoned into a thriving industry, symbolizing the city's dynamic spirit and its eagerness to embrace the world.

The driving force behind this remarkable growth is the ever-expanding need for individuals proficient in foreign languages, with English leading the way as the quintessential global lingua franca In an era where cross-border communication and collaboration are the linchpins of success, fluency in English has transcended from a valuable asset to an essential tool for navigating the global landscape.

This surge in demand for English learning is not a mere coincidence but rather a synchrony with Vietnam's economic ascent As the nation forges ahead on its journey of development and international integration, the proficiency in English has become an indispensable ingredient for success Industry forecasts indicate that this sector has the potential to burgeon into a billion-dollar industry.

Within the pages of this research essay, we embark on a comprehensive exploration of the myriad possibilities and challenges that define the landscape of English language learning in Ho Chi Minh City Our journey delves deep into the intricate interplay between macro environment and the English learning market It is a journey that uncovers the secret to seizing opportunities and deftly navigating potential pitfalls—a journey crucial for businesses aiming to carve a path to enduring success and sustainability.

TABLE OF CONTENTS

1 Natural environment 1

1.1 Opportunities 1

1.1.1 Building sustainable brand trust 1

1.1.2 Demand for environmentally-experts human resources 2

1.2 Threats 4

1.2.1 Pollution impacting health 4

1.2.2 Pollution leading to traffic congestion and flooding 6

2 Economic environment 8

2.1 Opportunities 9

2.1.1 Inflation and CPI downward trend 9

2.1.2 Average income level 10

3.1.1 Exploding demand for learning english 15

3.1.2 Population analysis and geographic distribution 16

3.1.3 Curriculum direction 17

3.1.4 Increased demand for english certifications 17

3.1.5 English for older adults 18

3.2 Threats 18

3.2.1 High education demand 18

3.2.2 Uneven distribution of education 20

4.2.1 Lack of feedback and personalized interaction 25

4.2.2 Technology disparities and lack of digital literacy awareness 26

5 Political and social environment 27

5.1 Opportunities 27

5.1.1 The Vietnamese legal system facilitates the training of the English language in Ho Chi Minh City 27

5.1.2 The training of foreign languages has received attention and investmentfrom the government 30

5.1.3 Integration and international cooperation 32

5.2 Threats 33

5.2.1 Law - Confronting the Times 33

5.2.2 Politics: Policies for resource allocation and budget funding 37

5.2.3 International certifications and verification 37

5.2.4 Challenge in international diplomatic relations 39

6 Social-cultural environment 40

6.1 Opportunities 41

6.1.1 Subcultures 41

6.1.2 The evolution of secondary cultural values 43

6.1.3 Vietnamese people are curious and inquisitive 49

6.2 Threats 51

6.2.1 Traditional methods of instruction are passive 51

6.2.2 Vietnamese parents have high expectations for their children 52

6.2.3 Celebrities influence the behavior and perception of language learners 54

Table 3.1 Average CPI growth rate in months of 2023 compared to the same period last year (%)

Table 3.2 Top 10 provinces and cities with the highest average income in 2022

Table 3.3 Number of Vietnamese international students studying abroad in some prominent countries and territories in 2022

Table 3.4 10 localities with the highest number of immigrants in the country according to the General Statistics Office

Table 3.5 The number of lecturers participating in online teaching at the University of Technical Education, Ho Chi Minh City, over the years

CHAPTER 1 OVERVIEW1 Purpose of Research

The research on “To analyze the Macro environment in the English training Market at Ho Chi Minh City “ has three primary goals:

To analyze and evaluate the macroeconomic factors affecting the English language training market in Ho Chi Minh City.

To propose solutions, strategies, visions, and missions for English language training institutions to adapt to the changing marketing environment.

To provide businesses with a comprehensive understanding of the external factors that influence their decisions to invest in the English learning market.

2 Research Methodology Overview

Research Topic: Ho Chi Minh City's English Language Instruction Market

Research Method: Data and real-world information acquired from individual English language training centers are analyzed and presented Inferences and estimates regarding the English-language market in the city are taken from this data.

Research Purpose: The macroeconomic variables impacting the English language training market in Ho Chi Minh City are the subject of this study It makes no mention of rural areas, neighboring provinces, or cities.

3 Essay Organization

The essay is broken into three chapters: Overview, Marketing theories and Analyzing macro environment in English training market in Ho Chi Minh City.

CHAPTER 2 MARKETING THEORIES1 Macro environment

1.1 Natural environment

Environmental awareness and sustainability can influence English training There may be a demand for courses that align with environmental or social responsibility values, such as sustainability-focused business English courses.

1.2 Economic environment

Economics is a key driver in English training Economic conditions impact the affordability of courses and the ability of individuals to invest in language learning Economic downturns can lead to reduced enrollment, while economic growth may spur greater demand for English training.

1.3 Demographic environment

Demographics play a role in shaping English training Changes in population size, age, and migration patterns influence the demand for English courses An aging population may seek language training for travel, while younger generations may focus on career advancement.

1.4 Technological environment

Technology is revolutionizing English training Online platforms, AI-driven language apps, and interactive digital content have expanded access to English learning However, they also pose challenges, such as maintaining student engagement and ensuring quality.

1.5 Political and Social Environment

Political factors can impact language policy and international relations, affecting English training Government policies and diplomatic ties can influence the flow of English learners, instructors, and educational resources across borders.

1.6 Social-cultural environment

Culture influences both the content and approach to English training Cultural

considerations affect the choice of curriculum, teaching methods, and even the motivation to learn English Understanding cultural nuances is essential for effective language instruction.

2 Views on responding

2.1 Proactive response involves innovating approaches, actively identifying trends,

planning for potential challenges in the macro environment before they occur or become evident.

2.2 Reactive Response involves addressing changes in the macro environment after

they have already occurred or become evident, often without prior planning.

CHAPTER 3 ANALYZING MACRO ENVIRONMENT IN ENGLISH TRAINING MARKET IN HCMC

1 Natural environment 1.1 Opportunities

1.1.1 Building sustainable brand trust

Developing the economy towards green and sustainable growth is currently a top priority and a goal that every nation is striving to achieve, aiming for economic prosperity, environmental sustainability, and social equity This involves moving towards a green economy, carbon neutrality, and contributing to the goal of limiting global temperature rise For Ho Chi Minh City, green growth is not just a necessity but also an opportunity to become a pioneering locality, keeping pace with global development trends.

In order to meet the demands of the era regarding green growth goals, creating an image of a sustainable company or educational institution has become a crucial factor in attracting students and collaborating with partners Focusing on activities and initiatives to protect the natural environment can help English language training centers in Ho Chi Minh City build a positive reputation within the community and attract the attention of environmental advocates English language training centers in Ho Chi Minh City recognize the importance of engaging in environmental protection activities They cooperate with non-profit organizations to jointly carry out environmental clean-up initiatives This helps them establish a positive image within the community and garner interest from environmentally conscious students, leading to enhanced reputation and trust from students, parents, and society, thereby increasing competitiveness and effectiveness in the English language training market.

●Views on responding

Proactive response: EF (Education First) is a leading international education

organization that offers short-term language study abroad programs in Ho Chi Minh City, providing students with truly exciting experiences It's not just about learning a foreign language with international friends; it's about living in the very language

you've long dreamt of mastering EF places a strong emphasis on sustainable branding and environmental protection, with some of its activities and policies related to the environment and sustainability including:

EF Tree Planting Program: EF has conducted tree planting programs to reduce greenhouse gas emissions and protect the environment They have committed to planting one million trees in recent years.

Greenhouse Gas Reduction Program: EF has set targets to reduce the greenhouse gas emissions generated by their activities by using clean energy and implementing energy-saving measures.

Sustainable Training System: EF has developed courses and training programs on sustainability and the environment to raise awareness and educate their students about environmental issues.

EF is one of the first international education organizations to make an ambitious carbon commitment: achieving carbon negativity starting in 2021 and aiming for carbon neutrality, eliminating all direct or indirect carbon emissions related to EF programs since its establishment in 1965 (Achieving carbon neutrality means balancing carbon removal from the atmosphere with the carbon emissions generated by activities such as flying, bus transportation, office space operations, and student housing) Through this campaign, EF aims to spread the message and hopes that other organizations, both within and outside the industry, will join in the commitment to achieve this carbon neutrality goal.

1.1.2 Demand for environmentally-experts human resources

With climate change, there is a growing need for education and research in environmental issues, climate change, and sustainability This can drive the demand for learning English to access and participate in international research communities and collaborations.

In recent times, international cooperation in the field of resources and the environment has contributed to promoting environmental protection activities in our country, such as mobilizing funds, enhancing scientific and technological capabilities in the field of

resources and the environment, adopting modern methodologies, and incorporating international experiences into environmental management efforts.

Specifically, Vietnam is actively participating in 19 international agreements on the environment, with a focus on effectively implementing bilateral and multilateral agreements This includes promoting cooperative activities within the framework of Memorandum of Understanding signed with Laos, Russia, Poland, Japan, China, the Netherlands, Italy, South Korea, Cuba, and France It also involves considering, reviewing, and submitting relevant authorities for the signing of department-level Memorandum of Understanding on environmental protection and climate change adaptation with potential international partners.

As a result, the demand for experts with knowledge of the environment and sufficient English language skills to engage in environmental projects and climate change research is increasing English language training centers can identify opportunities in developing specialized courses for learners interested in this field This can help generate new revenue streams and attract a large number of students interested in environmental issues.

● Views on responding

Proactive response: English is not just an internationally recognized language with a

vital role in education and research; it also fosters global connectivity, making it easier for individuals to communicate and collaborate in an international setting A strong foundation in English is essential for the younger generation to keep pace with global development trends.

Recognizing the significance of English in the path to international integration, in August 2023, the British Council inaugurated two new teaching centers at 71 Hoang Van Thai Street, Tan Phu Ward, District 7, and 20 Cong Hoa Street, Ward 12, Tan Binh District, Ho Chi Minh City This effort aims to position English as a crucial key to empowering the young generation of Vietnam to confidently engage in international integration.

1.2 Threats

1.2.1 Pollution impacting health

Air pollution occurs when the quality of the air is compromised and altered by pollutants to a level that can be harmful to human health, wildlife, and the natural environment Air pollutants include gasses such as ozone, nitrogen oxides, sulfur dioxide, carbon monoxide, and non-volatile organic compounds These substances can lead to health problems such as respiratory issues, cardiovascular diseases, cancer, and adverse effects on natural ecosystems Air pollution is a global issue, and measures to control and reduce pollution are being implemented worldwide to protect health and the environment.

Over 430 million tons of plastic are produced globally each year, with half of it designed for single-use purposes and less than 10% being recycled It is estimated that approximately 19-23 million tons of plastic end up in lakes, rivers, and oceans annually.

Microplastic particles, approximately 5 mm in diameter, infiltrate into food, water, and the air It is estimated that each person on the planet consumes over 50,000 plastic particles annually, even more when considering inhalation Single-use plastic disposal or incineration poses health risks to humans and biodiversity.

These hazards include an increased risk of respiratory diseases due to air pollution, particularly from pollutants such as fine particulate matter (PM2.5) and ozone, leading to conditions like pneumonia, asthma, and lung degradation Furthermore, the greenhouse effect contributes to mental health issues due to rising temperatures and climate change, causing stress, anxiety, depression, and affecting sleep quality It also has negative impacts on daily life, causing discomfort at work, reducing labor productivity, and jeopardizing sustainable community development According to data from the National Institute of Meteorology and Hydrology of Vietnam in 2022, the annual average PM2.5 index in Ho Chi Minh City was 26,946 μg/m³, exceeding both the national limit (25 μg/m³) and the WHO's 2021 limit (5 μg/m³) The PM2.5 index is one of several factors contributing to exceeding CO2 emission levels, leading to various health issues, from respiratory problems to cancer and cardiovascular diseases.

The government has issued Decree 08/2022/ND-CP to guide the implementation of the Environmental Protection Law of 2020, which includes provisions for temporarily suspending educational activities in cases of severe air pollution The application of emergency measures in cases of severe air pollution is a new addition in Decree 08/2022/ND-CP, in line with the requirements of the Environmental Protection Law of 2020 This decree became effective on January 10, 2022, replacing Decree 19/2015/ND-CP The temporary suspension of education in the event of severe air pollution is of paramount importance to protect the health and safety of individuals, particularly students and staff in educational institutions This measure serves as an urgent and temporary action to safeguard health and ensure safety in severely polluted air environments Furthermore, it plays a crucial role in raising awareness about air pollution and promoting measures to reduce pollution and protect the environment The issue of pollution is not only a challenge for the environment but also directly affects the health of the population, including students and teachers in training centers Air pollution and poor-quality drinking water can cause health problems, create community anxiety, and potentially affect participation in training center activities This necessitates that training centers ensure a safe and healthy learning environment for students and staff.

● Views on responding

Proactive response: Faced with the increasing severity of pollution's impact on health

today, training centers can promote environmental awareness within the learning community by organizing environmental protection programs and encouraging students to participate in environmental protection activities Recently, on September 1, 2023, the British Council organized a climate storytelling event in Ho Chi Minh City The project provided an opportunity for participants to develop Respira-Tree mobile devices for real-time air pollution monitoring, delve into excerpts from the documentary Nine Earths, contribute to video archives, and collect ethnographic data while engaging in discussions on climate and the natural environment Additionally, the center conducted educational activities on climate change for teachers and students at secondary schools This project contributes to the objectives of the Ministry of Education and Training's national focus program on coping with climate change.

Climate change affects everyone and all aspects of social life By enhancing networks and relationships among people, the British Council is contributing to increased understanding of climate change response cases and leading in the implementation of international agreements to address climate change threats.

1.2.2 Pollution leading to traffic congestion and flooding

Ho Chi Minh City, with over 2,000 canals and ditches within its city limits, has experienced severe pollution As much as 60%-70% of the lengths of canals within the inner city are heavily polluted, primarily with organic matter and coliforms With over 430 million tons of plastic produced globally each year, half of it designed for single-use and less than 10% recycled, it is estimated that approximately 19-23 million tons of plastic end up in lakes, rivers, and oceans annually.

Air pollution in the city is mainly caused by suspended dust particles and vehicle-related activities Air quality monitoring data indicates that carbon monoxide (CO) levels in the air have been generally decreasing However, in the first six months of the year, there was a significant increase in CO levels observed at various locations such as An Suong, Huynh Tan Phat - Nguyen Van Linh intersection, Hang Xanh, and Go Vap Pollution not only affects the natural environment but also impacts the transportation system and the safety of students Traffic congestion and adverse weather conditions can pose obstacles for students and teachers traveling to and from educational centers.

In addition to water and air pollution, Ho Chi Minh City also faces other forms of pollution such as noise pollution, light pollution, and particularly the issue of flooding on many of its roads.

Flooding: Ho Chi Minh City has 15 major arterial roads and numerous alleyways (especially in suburban areas) that frequently flood during heavy rains, with three areas regularly affected:

The first area includes roads like Le Van Tho, Le Duc Tho, Nguyen Van Khoi in Go Vap District.

The second area is in the "Western Quarter" of Thu Duc City, comprising roads like Thao Dien, Quoc Huong, Nguyen Van Huong.

The third area is in the old Thủ Đức market area, with roads like Vo Van Ngan, Dang Thi Ranh, Duong Van Cam, Kha Van Can (Thu Duc City).

Additionally, serious flooding is occurring in District 7.

Flooding in Ho Chi Minh City is not just a recurring issue but also a significant lesson in the interaction between the environment and businesses In the modern era, climate change is having a profound impact, and Ho Chi Minh City is no exception Heavy rains and floods are on the rise due to climate change, directly affecting opportunities and challenges in English language education Weather changes and increased heavy rainfall frequencies have posed significant challenges in maintaining the stability of English language training centers Heavy rain can lead to rapid flooding, disrupting students' and teachers' study schedules and communication This can affect the learning experience and lead to student dissatisfaction Additionally, flooding impacts the business prospects of English language training centers Maintaining operations in an unstable weather context becomes more challenging, potentially affecting profits and the reputation of the center.

●Views on responding

Proactive response: Faced with the increasingly pressing issue of pollution in Ho Chi

Minh City, English language training centers have implemented environmental protection measures within the student and staff communities and conveyed meaningful messages to society For instance, VUS English Language Center, a leading educational institution that emphasizes both knowledge and life values for students, regularly organizes supplementary activities for children to explore the natural environment and life experiences These training programs include exciting activities that enhance life experiences and connect with nature, making them a preferred choice for parents VUS recently organized an international exchange event with the theme "Contribute Green to the Earth" This event marked the first time VUS collaborated with the publisher National Geographic Learning to host an international exchange exclusively for young learners, featuring renowned speaker Ms Lilly

Sedaghat With the topic of "Contributing Green to the Earth", young learners aged 6 to 11 will learn about how plastic waste affects water environments, advanced national green cover measures to address environmental issues, and ways to reuse plastic bottles to create objects Moreover, the opportunity to interact with international experts in a 100% English-speaking environment helps children enhance their English language skills naturally, learn more about the art of storytelling, and elevate their life values This program instills a love for the environment in each child and inspires them to protect the green planet.

Furthermore, the British Council offers online training projects to establish a self-directed education network with the goal of integrating climate knowledge into English language teaching Teachers are encouraged to apply creative thinking to bring about change and use their deep understanding of environmental issues to develop their roles as educators These teachers are then encouraged to share their knowledge and experiences with other educators, using this program as a model to expand the knowledge network and promote discussions about climate change in classrooms throughout Vietnam.

2 Economic environment

The economic environment consists of economic factors that affect consumer

purchasing power and spending patterns.These factors are often beyond the company's control and have a huge influence on businesses' activities For instance, growth rate, inflation rate, average income level, etc Therefore, being one of the promising markets in Ho Chi Minh city, especially Viet Nam, is embracing economic integration The English training market has to analyze carefully the changing economic factors and the opportunities and threats to make informed decisions such as business strategy, investment, etc meet the consumer needs.

2.1 Opportunities

2.1.1 Inflation and CPI downward trend

Table 3.1 Average CPI growth rate in months of 2023 compared to the same periodlast year (%)

According to the General Statistics Office, the Consumer Price Index (CPI) has been showing a decreasing trend in its monthly average growth rate, the CPI for the first seven months of 2023 increased by only 3.12% compared to the same period in 2022 This is a positive sign indicating that the average CPI for 2023 is expected to achieve the inflation control target of around 4.5% The reason behind this trend is the reduction in domestic fuel prices following the global market trend When fuel prices drop, students are more likely to attend language centers than online This will result in a significant increase in the number of students returning to traditional learning methods, downturning concerns about teaching quality due to the lack of direct interaction between teachers and students through online teaching.

●Views on responding

Proactive response: The center has invested in infrastructure at its new branches,

providing rooms for students to freely discuss, rooms for students to practice pronunciation, and various other amenities.This advancement by Wall Street English, based on reducing the financial burden of commuting for students, is a proactive response in an economic environment Leveraging its available capital, Wall Street English has confidently put forth measures to enhance the quality of teaching and create a more positive impression among its students.

2.1.2 Average income level

Table 3.2 Top 10 provinces and cities with the highest average income in 2022

Based on the preliminary results of the 2022 Household Living Standards Survey by the General Statistics Office, Ho Chi Minh City ranks third in terms of average income, with an average income of 6,392,000 VND per person per month It may not have the highest average income among all provinces and cities in the country, ranking third indicates that Ho Chi Minh City's growth rate is gradually recovering, but at a slower pace.

With this advantage, the demand for educational services for self-investment or for

children is expected to increase For instance, enrollment in English language courses at centers within the city's jurisdiction is likely to rise significantly Alongside this, there will be increasing demands for teaching quality, infrastructure, convenience, and other unique benefits that residents in the area are willing to invest in when registering for language centers.

●Views on responding

Proactive response: Recognizing the opportunity presented by the improving living

standards of the population, VUS (Vietnamese-American School) has introduced various educational programs catering to different age groups and diverse needs Apart from providing English language courses for individuals seeking certification, VUS also offers courses for elementary school children, busy professionals, and more The center has a proactive response which devised strategies based on its strengths to meet the demands of the market.

2.1.3 Economic integration

In the context of emphasizing economic integration, the benefits it brings to the Vietnamese economy in general and Ho Chi Minh City in particular have led to a significant increase in the demand for English language learning, expanding opportunities for the English training market.

2.1.3.1 Foreign investment sources

Foreign investment not only provides capital but also brings benefits in sharing knowledge, experience, and international standards in the field of English language training It also promotes the development of the education sector and enhances the quality of teaching services in the English training market Knowing the potential of the English language training market in Ho Chi Minh City, some foreign investors have invested in language centers.

●Views on responding

Proactive response: One familiar app for English learners is ELSA SPEAK.

Recognizing the context of foreign investment sources, CEO Văn Đinh Hồng Vũ successfully secured $7 million in funding from Gradient Ventures, Google's

AI-focused venture fund And this demonstrates their initiative approach in seeking financial support before the market becomes more competitive and faces strong reactions from foreign competitors Instead of merely reacting after increased competition arises, they have taken a proactive and positive initiative to ensure growth and competitiveness in the industry.This has helped businesses plan English language training for their employees conveniently without the need to attend language centers.

2.1.3.2 Increasing demand for employment in multinational corporations

In our current “opening”, the demand of learning English is on the rise not only among students but also among the workforce According to CareerBuilder Vietnam, a subsidiary of the world's largest recruitment company from the United States, CareerBuilder, the company conducted a survey at the end of 2022 and the beginning of 2023 to select the top 100 most favored employers In the top 5, two multinational corporations, SAMSUNG and STAVIAN, made it to the list.

Therefore, the requirement for learning English to increase the chances of being selected for a job or to meet the English proficiency requirements of employers in the city has significantly increased among the workforce in the city.

●Views on responding

Proactive response: As one of the leading English training centers, recognizing the

trend of working for multinational corporations, the British Council has launched an English language training program for businesses called myClass This exclusive English program is developed and taught in countries across East Asia The courses are modern and innovative, offering flexibility and a wide range of options to meet the diverse needs of businesses.

2.2 Threats

2.2.1 Decreased economic growth rate in Ho Chi Minh City

Overall, the economic growth of Ho Chi Minh City in the first quarter of 2023 has significantly declined, reaching only 0.7% and ranking 56th out of 63 provinces and cities nationwide, primarily due to the economic crisis Consequently, the income of

the residents has also been affected This implies that the demand for self-investment in education as well as for children in terms of improving English proficiency is likely to decrease compared to previous years

●Views on responding

Reactive response: To attract more students amid the slowing growth rate of the

city,some English training centers are reducing tuition fees by 25% in September and offering interest-free installment support, which can be considered a "reactive" response in the economic environment of the English language training market Instead of focusing on improving the quality of teaching or investing in facilities or mobile applications to support students, they have chosen to discount prices and provide financial incentives to attract students immediately While this strategy may help increase the number of students in the short term, it is not a sustainable method to compete with competitors and improve service quality It is essential to consider strategic measures and invest in enhancing the quality of teaching and services to attract and retain students in the long run.

2.2.2 Economic integration

Although economic integration presents an opportunity for the development of the English language training market, it also comes with unpredictable threats that may cause damage

2.2.2.1 The number of Vietnamese students abroad

Table 3.3 Number of Vietnamese international students studying abroad in someprominent countries and territories in 2022

Due to the government's strong investments and favorable policies from advanced countries like South Korea and Japan for Vietnamese students, Vietnam has seen a surge in the number of students studying abroad This has resulted in Vietnamese students ranking at the top among all nations in these countries Consequently, there is a high demand for learning languages like Korean to obtain visas and meet the requirements of universities A notable example is Seoul National University, which requires a minimum Korean proficiency level of TOPIK 3 excluding Korean language programs

●Views on responding

Proactive response: Given the current situation of Vietnamese students studying

abroad, the English training market must also compete with markets offering other languages Recognizing this reality, YOLA, a reputable language center, is planning to introduce Yola English, specializing in English training combined with skills development This will provide a foundation for young learners who plan to study abroad in the future YOLA has been proactive by using its strengths and reputation in the English training market to turn challenges into opportunities and expand its business.This can be considered a “proactive” response in the economic environment.

2.2.2.2 Labor export

The labor export market presents an opportunity for young people to find attractive job opportunities with competitive salaries, but it is also a challenge to the English training market The total number of Vietnamese workers employed abroad was 59,645 workers (20,585 of whom were female) in the first five months of 2023 This figure represents 54.2% of the annual plan for 2023 and is more than 1.9 times higher than the same period last year Among these workers, Japan is the leading destination for Vietnamese labor, followed by Taiwan (China) with 26,201 workers.

This trend indicates that the English training market is gradually cooling down in response to the increasing demand for learning other languages to serve the growing labor export market Therefore, English language training centers must develop programs that can attract more students in this changing landscape.

●View on responding

Proactive response: EIV Education, an English language center in Ho Chi Minh City,

has published an article on the topic of visa interviews for individuals planning to work abroad in English-speaking countries This not only helps improve English proficiency and gain valuable experience but also enhances the center's reputation, attracting more attention The result of this proactive response is, the center will have a larger customer base as more people become aware of it.

3 Demographic environment

In an increasingly globalized world, the ability to communicate in English has become a valuable asset As a result, the Learning English market has witnessed significant growth and diversification To effectively reach and engage learners, marketing strategies must be tailored to the demographics of the target students This essay explores the profound influence of demographics on marketing in the Learning English market, highlighting key factors such as age, education level, income, location, cultural background, and language background.

In marketing research, demographic data is a fundamental component of market segmentation, which involves dividing a more significant market into smaller, more

homogeneous groups based on shared characteristics This segmentation allows businesses to tailor their marketing strategies and messages to better resonate with specific customer segments

3.1 Opportunities

The English learning market in HCM City is a dynamic and ever-expanding industry that offers a plethora of opportunities for businesses Some factors such as globalization, international travel, and the importance of English in various fields, have created a favorable environment for growth and innovation.

3.1.1 Exploding demand for learning english

Ho Chi Minh City comprises 19 urban districts and 5 suburban districts, covering an area of 2,061 square kilometers The population density was estimated to be 4.292 people per square kilometer As of January 2023, according to the World Population Review website, the city's population exceeded 9.3 million people With such a high population density, the demand for English language learning is on the rise, making Ho Chi Minh City one of the thriving markets for English language training centers in the country with the ambition to expand nationally.

● Views on responding

Reactive response: After a significant increase in demand for learning English due to

overpopulation, English language centers may start registering for additional classes and enhance advertising campaigns to seize this opportunity: open more classes in the evenings or on weekends to meet the learners' needs The English language center TalkFirst offers ten flexible learning time slots every day, specializing in tailored content and teaching methods for all learners, especially those with busy schedules

3.1.2 Population analysis and geographic distribution

3.1.2.1 Population analysis

Ho Chi Minh City has a diverse population in terms of age, ranging from children to adults and the elderly This diversity raises questions regarding the need to provide suitable

education programs for each age group Many students have varying educational levels, ranging from beginners in English to those with basic or advanced knowledge

●Views on responding

Proactive response: To meet these diverse needs, many businesses have organized classes

based on age and educational proficiency For example, the VUS English Language Center has developed courses for adults who need to regain their English skills, whereas the Apollo English Language Center uses the FLIP method combined with well-designed and detailed curricula to comprehensively develop skills for learners

3.1.2.2 Geographic distribution

The uneven distribution of schools and English-language education facilities in different areas is another challenge Some districts have more schools, whereas others lack one However, the population is gradually moving to suburban areas with increasing density in districts such as Binh Tan, District 12, and Binh Chanh Factors such as urban development policies and rising prices in city centers contribute to this migration

● Views on responding

Proactive response: Consequently, many businesses seize the opportunity to open

additional training centers in these areas to meet the demand for English language learning conveniently, without the need to travel to the city center For instance, the ILA, a language center, has adapted to the city's changing demographics by opening 20 branches in various districts of Ho Chi Minh City, not just focusing on the city center, including locations such as the Center Mall (Satra Pham Hung) and ILA Binh Tan This is a proactive response.

3.1.3 Curriculum direction

Adjusting the curriculum, changing teaching methods, and developing English language courses that cater to specific learning needs (such as exam preparation or everyday communication) allows businesses to pinpoint the exact learning requirements of their students Consequently, many language centers have developed flexible courses that focus on practical applications

●Views on responding

Proactive response: As ACET offers "First Steps English", a program designed for middle

school students, combining a clear roadmap for English language education orientation (EAP - English for Academic Purposes) with a balanced approach to General English, Academic English, and conversational English This provides graduating middle school

students with a strong English language foundation and rich test-taking experiences

3.1.4 Increased demand for english certifications

Starting in 2020, the Ministry of Education and Training exempted and scored 10 foreign language subjects in the high school graduation exam for students with IELTS scores of 4.0 or higher (or equivalent English language certificates) In Ho Chi Minh City, nearly 7,900 students were exempted from the foreign language graduation exam in 2022, an increase of approximately 2,000 compared to the previous year At the university level, international foreign language certificates are used in the admission process and are recognized as standard outcomes Universities, such as FTU and HCM UTE, have also introduced admission through foreign language certificates With a large population, high demand, and increased competition to meet societal aspirations, the number of candidates taking English certification exams, such as TOEIC and TOEFL, is rising In Ho Chi Minh City, 278 examinations with 130,000 candidates were expected

●Views on responding

Proactive response: Therefore, many language centers have initiated streamlined training

programs using advanced technology, providing in-depth materials, and employing high-quality instructors For instance, the VUS English Language Center dedicated 80% of its class time to practical exercises, allowing students to interact with both Vietnamese and

native English-speaking teachers to effectively enhance all four IELTS skills

3.1.5 English for older adults

The aging population in Vietnam, particularly in Ho Chi Minh City, is increasing In Ho Chi Minh City, the elderly make up 11.3% of the population, an increase of 0.32% from 2021

●Views on responding

Recognizing this trend, businesses have expanded their opportunities by offering English language programs designed specifically for older adults to attract more learners

Proactive response: the English Town introduced a separate English program for learners

aged 40 years and above Understanding that the main goal for older learners is English for communication, the center has designed a teaching program that focuses on pronunciation, communication, and reflexes, without placing excessive emphasis on grammar or certification

3.2 Threats

Besides, businesses and institutions seek to capitalize on this demand, they encounter a range of challenges in catering to diverse learners

3.2.1 High education demand

On average, Ho Chi Minh City adds approximately 200,000 officially registered residents each year, two-thirds of whom are migrants from other areas Rapid population growth in urban areas is mainly due to migration and urbanization As a densely populated city, Ho Chi Minh City faces overloading in various aspects The consequence of this process is that

educational infrastructure and teaching equipment do not meet demand The construction of standard national-level schools and foreign language education facilities is lagging.

Table 3.4 10 localities with the highest number of immigrants in the countryaccording to the General Statistics Office

In 2019, Ho Chi Minh City was the region with the highest number of immigrants in the whole country, with 772,000 people, which was nearly 300,000 more than Binh Duong, which ranked second.

3.2.1.1 Infrastructure and human resources

A population explosion can lead to an increased demand for education and higher requirements for English language instruction This poses challenges to the educational infrastructure and the improvement of education quality For instance, An Hoi Elementary School, one of the most crowded schools in the Go Vap District, needs classrooms and English language teachers.

3.2.1.2 Quality of english language instruction

Given the current widespread demand for learning English, quality of instruction is a critical factor to consider Taking advantage of this demand, some individuals falsified foreign language certificates and manipulated their scores for personal gain Consequently, the quality of instruction has declined, significantly affecting the English-language training market For example, there is the case of a female IELTS instructor (at a center in Go Vap) who consistently advertised her ability at an 8.0 proficiency level, but her actual test scores from seven exams in 2019 ranged between 6.5 and 7.0 Additionally, incidents such as those at the Fighter English Language Center, where they withheld teachers' salaries and sold low-quality teaching materials, eroded people's trust.

3.2.2 Uneven distribution of education

Ensuring the equal distribution of English language education for everyone in all areas of Ho Chi Minh City is a significant challenge Improving the quality of English language education in schools across different districts and regions is an important goal To enhance the accessibility of highly qualified teachers and quality teaching materials, investments in educational infrastructure and support policies are needed to ensure that there is no significant disparity in access to and quality of education

Reactive response: The majority of RES branches are strategically located near schools,

which reduces the challenges of commuting and provides convenient schedules for learners Spread across all districts, geographical distance will no longer be a hindrance on the way to pursuing the learning journey.

In conclusion, the demographic landscape of Ho Chi Minh City offers a wide array of opportunities and challenges for businesses operating in the Learning English market By understanding the specific needs and preferences of the city's diverse population, English language providers can tailor their offerings to meet the demands of students, professionals, and the broader community, ultimately contributing to language proficiency and social integration in this vibrant urban center.

4 Technological environment

Today, technology is experiencing significant advancements and is being applied in most aspects of social life This includes the field of education, particularly the English language training market, which is undergoing a significant transformation In the past, English language teaching and learning had many limitations and drawbacks, causing difficulties for learners due to traditional and rigid approaches, mainly focused on vocabulary and grammar, or primarily relying on radio broadcasts, which affected English listening skills From this situation, digital technology began to emerge, and Artificial Intelligence (AI) tools that support remote learning and online interaction through applications and websites are gaining prominence and are being promoted through various media channels.

In Ho Chi Minh City, on April 23, 2023, to implement and expand the application of information technology in English language learning, the Student Support Center, along with the Vietnamese Student Association, organized a foreign language student fair under the theme "Touch The Future" The event discussed the role of students in the digital age, adapting to the changing world through English Additionally, there was an exhibition showcasing the technological achievements of digital transformation in developed countries This demonstrates the importance of information technology in global integration.

4.1 Opportunities

4.1.1 Accessibility to extensive learning resources through technology

In the past, accessing learning materials often faced physical and time-related barriers However, with technological advancements, people can easily access online learning resources from anywhere Interactive websites, online courses, e-books, and language learning apps have become diverse sources of information, ready to serve everyone's learning needs The main benefit of accessing this vast resource is flexibility and customization Learners have the freedom to decide their learning pace and choose topics that interest them This helps create a personalized learning environment tailored to their abilities and goals.

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Proactive response: English language training centers and organizations are

demonstrating a keen ability to harness the potential of accessing extensive resources to elevate the quality of education Thanks to the burgeoning technological landscape in Ho Chi Minh City, the English language training market has found effective avenues to leverage online learning resources

Specifically, Ho Chi Minh City has firmly established itself as a leading hub for fixed Internet speeds, boasting 75.10 Mbps download, 72.48 Mbps upload, and a mere 4 ms latency, as per Speedtest data from the fourth quarter of 2021 This has created a favorable environment for these centers and organizations to offer a diverse range of courses, spanning from comprehensive English language programs to specialized courses in various domains such as business, tourism, healthcare, and numerous other fields This truly marks a significant stride in ensuring that learning English becomes more accessible and effective than ever before.

4.1.2 Online classes

The shift from in-person learning to online education is a significant advancement in English language education, especially in the context of the Fourth Industrial Revolution Technology has introduced a range of new learning materials and methods Language learning software such as Duolingo, Memrise, or Rosetta Stone

exercises Online interaction between teachers and students through applications like Zoom or Skype facilitates flexible and convenient learning Online learning eliminates geographical and time constraints, enabling learners to participate in English courses from anywhere and at any time.

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Proactive response: Covid-19 has prompted many businesses to invest in the

development of online English courses to meet the growing demand for remote learning during the pandemic The accessibility to extensive resources has allowed them to create high-quality and flexible online courses.

For instance, the technological environment has enabled learners in Ho Chi Minh City to access English training programs regardless of their geographical location In higher education, the Ministry of Education and Training has issued regulations on the use of information technology in teaching Specifically, it has provided guidelines for the implementation of online learning through the use of information technology In secondary education, the Ministry has also actively promoted the creation of e-learning lessons through competitions To date, there have been four national competitions for designing e-learning lessons, with tens of thousands of teachers participating in building more than 5,000 high-quality lessons, contributing to an extensive online

This proactive response from businesses and the education sector reflects the adaptability and innovation within the community to ensure continued access to quality education, even in challenging times.

Table 3.5 The number of lecturers participating in online teaching at the University ofTechnical Education, Ho Chi Minh City, over the years

4.1.3 Integration of new technologies

Advancements in Virtual Reality (VR) technology in Vietnam have opened up significant potential in English language education VR technology is rapidly developing in Vietnam, and English language training institutions can leverage this technology to create rich learning experiences VR simulations can enhance language learning by providing real-life situations and creating more interactive and engaging learning environments Virtual environments closely mirroring reality through VR allow students to have more authentic learning experiences Instead of just sitting in a classroom and listening to lectures, students can participate in interactive and immersive activities, such as visiting museums, exploring new regions, or conducting experiments This helps students apply knowledge to real-life situations and develop practical skills for the future.

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Proactive response: English language training businesses in Ho Chi Minh City have

taken proactive steps to integrate new technologies into their teaching processes, enhancing the learning experience for students One notable example is the Prep.vn platform, which was launched during the pandemic to offer comprehensive test

preparation Unlike traditional course-selling websites, Prep.vn tailors its curriculum to individual needs, providing a one-stop platform for learners.

A standout feature of Prep.vn is its virtual writing and speaking rooms equipped with AI-powered grading and correction accuracy of up to 90% In the writing room, students receive real-time suggestions as they compose essays In the virtual speaking room, learners experience authentic speaking tests, with their responses automatically recorded and evaluated Results are delivered within minutes, with specific errors highlighted and feedback provided, along with a higher-scoring essay generated while preserving the student's ideas.

Another example is the American Learning Lab (ALAB) English Language Center, which has embraced Industry 4.0 technology ALAB equips students with smart screens, computers, and tablet learning devices, facilitating interactive learning Cloud computing, big data, and AI are core components of ALAB's technology infrastructure The cloud stores all course materials, enabling quick updates and easy access to new knowledge Big data collects detailed learning data, while AI synthesizes and analyzes this information to tailor learning experiences Real-time reports help teachers track each student's progress and suggest personalized exercises

Furthermore, there is a focus on interactive tablet technology, engaging students through multimedia content ALAB offers a Parent App, enabling parents to monitor attendance, evaluations, and AI-generated progress reports A Student App encourages collaborative learning at home.

Lastly, Ant Edu Joint Stock Company has partnered with Language Confidence, an AI-first company, to integrate AI technology into English language training programs Language Confidence provides an API toolkit to support automated learning on various digital platforms This technology emphasizes voice assessment based on Oxford Languages' pronunciation data, bolstered by AI The integration spans competency assessments, curriculum development, training, and final assessments, ensuring users develop proficiency in listening, speaking, reading, and writing skills These examples illustrate the proactive efforts of English language training businesses

in Ho Chi Minh City to leverage technology and enhance the quality of education for their students.

4.2 Threats

4.2.1 Lack of feedback and personalized interaction

In online teaching environments, especially with a large number of learners, creating interaction between teachers and students becomes challenging Technology can partially automate teaching, but it struggles with personalization Learners may feel distant and lack a personal connection with their instructors, which can affect their motivation and learning performance In online teaching, students often do not receive real-time feedback from instructors Waiting for feedback can diminish motivation and student engagement Students may also struggle with time management and self-regulation when they do not receive specific guidance from instructors This can lead to a lack of progress in learning English.

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Proactive response: In modern education, the incorporation of interactive technologies

is paramount By utilizing tools such as video meetings, online forums, and live chat, institutions can create real-time interaction opportunities that bridge the gap between instructors and students This fosters active engagement and facilitates immediate communication.

Furthermore, the integration of Artificial Intelligence (AI) adds a layer of personalization to the learning process AI algorithms assess individual students' progress and offer instant feedback, tailoring educational experiences to their unique needs and abilities.

To enhance the sense of community and connection, it's essential to establish online learning communities These platforms enable students to interact with peers, engage in group learning, and form personal connections that enrich their educational journey However, one of the limitations of technology in the English language training market is its ability to provide feedback and personalized interaction, which is often limited compared to face-to-face teaching Although interactive platforms exist, they may not

provide the same level of nuanced feedback and real-time interaction as a classroom environment between teachers and students A survey conducted by the University of Foreign Languages and Information Technology in Vietnam showed that 70% of students prefer traditional classroom learning over online courses due to the lack of feedback and personalized interaction (according to a study on student satisfaction with combined training in English language subjects - 2023).

Addressing this limitation is crucial for educators and institutions to ensure that technology-enhanced learning experiences provide the necessary feedback and personalization required for effective language training.

4.2.2 Technology disparities and lack of digital literacy awareness

The issue of technology disparities and a lack of digital literacy awareness are significant challenges in English language education in Ho Chi Minh City While the overall Internet usage rate seems high in Ho Chi Minh City, technology disparities still exist Certain areas and socio-economic groups still face limitations in Internet access and technical devices This creates a digital divide, affecting the ability to participate in online courses and access English language knowledge and training opportunities To address this issue, there is a need for investment in enhancing awareness and digital literacy training for the community, especially for those who lack technological knowledge.

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Proactive response: Businesses have taken proactive steps to ensure that both

instructors and students acquire fundamental digital skills This proactive approach aims to enable everyone to effectively utilize technology in the teaching and learning process.

Additionally, these businesses have recognized the importance of providing technical support services to assist instructors and students in addressing technology-related issues This support is available through various channels, including phone, email, or online chat, offering timely solutions to resolve technical problems as needed However, it's essential to acknowledge that despite the overall increase in Internet usage, disparities in digital literacy persist in Ho Chi Minh City Not all individuals

possess the same level of digital literacy, which can limit their ability to navigate and effectively utilize online English training materials A study conducted by the World Bank has revealed that only 43% of adults in Vietnam have basic digital skills This underscores the ongoing need for additional support and training initiatives to bridge the digital literacy gap and ensure that technology-enhanced learning remains

In summary, the application of technology in English language education in Vietnam offers opportunities to enhance language learning and increase access to learning resources and experiences However, challenges such as training and quality control need to be addressed to fully harness the potential of technology in English education.

5 Political and social environment

Ho Chi Minh City (HCMC), the vibrant economic and cultural hub of Vietnam, has witnessed significant developments in the field of English language education in recent years The city's political and social environment has played a pivotal role in shaping the opportunities and challenges for English training institutions This essay explores the dynamics of the English training market in HCMC, focusing on the opportunities and threats arising from its political and social context.

5.1 Opportunities

Ho Chi Minh City, one of Vietnam's leading economic, cultural, and educational centers, is witnessing significant development in the field of English language education Notably, the city's socio-political environment has generated a series of important opportunities, igniting the growth potential for businesses participating in the market Below, we will delve into how this socio-political environment creates opportunities for the development of enterprises.

5.1.1 The Vietnamese legal system facilitates the training of the English language in Ho Chi Minh City

5.1.1.1 Vietnam's Competition Law of 2018

In the fierce competition of the modern economy, ensuring fair competition in the field of English language education is a crucial task Vietnam's Competition Law of 2018