Marketing Education in Vietnam: A Review and Agenda for Development

Terrence H. Witkowski and Hieu Nguyen, California State University, Long Beach, USA Huyen Thi Pham, National Economics University, Vietnam

Abstract
The rapid development of Vietnams market economy, business infrastructure, and consumer society, has created a burgeoning demand for well-trained marketing managers and specialists. Vietnams tertiary educational system has also developed, but the number and quality of marketing graduates it produces fall short of market demands. This paper analyzes marketing education in Vietnam, uses National Economics University in Ha Noi as a representative case, and makes recommendations for pedagogical and curricular reforms and for upgrading faculty teaching and research qualifications.

Introduction
Whether they operate internationally or in just their home market, companies need welltrained marketing managers and specialists who have good product and market knowledge and the appropriate skill set to implement successful programs. In rich nations, universities have longestablished marketing programs that produce sufficient numbers of graduates, but in the developing world demand for educated marketers frequently outstrips supply. Companies need graduates who are educated to global professional standards, but who also understand domestic marketing institutions. Thus, the introduction and nurturance of state-of-the-art marketing education at the university level should be a top priority in developing countries. As Duoc and Metzger (2007) put it: Tertiary institutions play an important role in supporting the countrys economic objectives as well as in diffusing and applying new knowledge and developing a qualified indigenous labor force. The objective of higher education is to produce outputs that meet the requirements of a society (p. 629). This paper explores the current status of marketing education in Vietnam. After a brief discussion of the evolution of marketing and consumer behavior in Vietnam, the general state of the countrys marketing education is described, followed by a case study of the curriculum and pedagogy of one university, National Economics University in Ha Noi. The paper then recommends two areas for educational reform: 1) updating curriculum and pedagogy and 2) upgrading faculty skills. By encouraging faculty to develop new course materials based on researching local marketing institutions and market conditions, both goals can be reached simultaneously.

Marketing and Markets in Vietnam

Historically, Vietnam was largely an agrarian, village-oriented society with only the most rudimentary of marketing systems based on barter and obligations. Little coinage was in circulation and most of that was Chinese (Cribb, Cook, and Carradice, 1990). There were exceptions, however. Kilns in the Red River area in and around Ha Noi produced tiles and table wares for export as early as 1300. This required reasonably sophisticated distribution channels and logistics. When the Ming emperor banned overseas voyages in the late 14th century, thus hamstringing Chinese ceramics exporters, Vietnamese pottery filled the gap and trade with Japan, Thailand, Indonesia, and the Philippines increased. In the 1600s, the Dutch East India Company established an office in Tonkin (northern Vietnam) and its ships carried large cargos of Vietnamese ceramics. These products did not have any identification marks an early form of branding to their village or region of origin. When the Chinese ban on foreign trade was lifted in 1684, their higher quality wares soon supplanted the Vietnamese competition (Brown, 1988; Guy, 1997). During the colonial era (1858 1954), the French envisioned Vietnam as both a source of agricultural products rubber, coffee, and tea plantations were established and as an export market for European manufactured goods. Occupation by Japan, a series of wars, and communist orthodoxy all hindered economic and marketing development during the mid 20th century. The central planning policy of the post-war era (1975-1986) rendered marketing unnecessary, in theory, because goods were distributed through a rationing system and private enterprise was not allowed. Yet, in the early 1980s, private businesses called t hp (cooperatives) began to appear. To get a license, they had to be owned by more than one person. The owners had to find a market for their products which were not distributed through the governments system. After the establishment of Doi Moi (renovation) policy in 1986, Vietnam began its transition to a market economy with socialist characteristics. Vietnam joined ASEAN in 1995, signed a bi-lateral trade agreement with the U.S. in 2001, and obtained membership in the World Trade Organization in 2007. The country is now well-integrated into the global economy and has seen rapid growth in manufacturing and exporting, as well as rising human development indicators. The United Nations Human Development Index lists Vietnam as 116th out of 182 countries measured (UNHDR, 2009). The War with America ravaged the country in many ways, but one consequence that most researchers have neglected is the way it affected market orientations in the North and the South. Consumer rights did not exist and the priority of most Vietnamese consumers was to find enough food to feed the whole family without fussing over its quality. After the implementation of Doi Moi, a dichotomy in market orientation developed. In the South, companies focused more on customer service as they understood that their consumers had higher expectations, a legacy of the capitalist system under the American-backed government during the War (Shultz et al., 2006). Southern consumers also became avid spenders. They worked hard, used their income to satisfy immediate needs, and, being optimistic about their future prospects, were not particularly big savers. In the North, despite ever increasing levels of competition and consumer purchasing power, companies (especially state-owned corporations) still practiced a production orientation, and consumers did not demand service. They thought low standards were the norm, as they were unfamiliar with the service-oriented model popular in the South. The hardships during the Statesubsidized era still cast a large shadow on the Northern consumers mindset. Northern consumers are frugal and still prefer to save rather than spend, for fears of an unstable future. Shultz et al. (2006) describe North-South differences as follows: . . . Hanoians tend to be more serious, scrutinizing, demanding, value conscious, trend followers; while Saigonese tend to be more playful, 2

casual, compromising, and outspoken trend setters . . . (p. 671). Shultz and his colleagues also remind us that rural consumers have their own agendas that tend to focus more on family, product utility, personal relationships and general happiness (p. 671). These differences may be waning. Popular Northern media, such as the electronic newspapers VNExpress and Vietnamnet, now feature consumer complaint sections. The lack of an effective consumer watchdog (such as Better Business Bureaus in the U.S.) prompted popular newspapers and their websites to be the venues where consumers can lodge complaints. However, knowledge of these venues is limited to only a small percentage of the population who have access to the Internet (mostly educated city dwellers), while the majority of rural consumers do not have access to such information. Due to an underdeveloped infrastructure and the persistence of traditional buying habits, the distribution system in Vietnam does not follow a Western model. Street-front shops remain the most common mode of retail distribution. Large independent wholesalers are also rare; so manufacturers must rely upon a series of small, family-run intermediaries to reach the small stores. In the 1990s, local supermarkets, such as Coopmart, Maximart, and City Mart, began to emerge in Ho Chi Minh city and more recently large hypermarkets, such as Big C (owned by Casino group) or Metro (owned by Metro Cash & Carry), have been expanding to serve more upscale, suburban consumers. For example, Metro Cash & Carry Vietnam has opened its 9th store (Metro 2009), portending new competition in distribution channels. Because of low labor costs, many companies hire large sales forces to personally sell fast-moving consumer goods such as shampoos, detergents, chewing gum, and beer, a practice unheard of in high labor cost Western societies. Regarding message strategy, most local and foreign enterprises in Vietnam still use a hard-sell approach focusing on product attributes, a strategy considered somewhat antiquated in Western markets where companies now emphasize nurturing emotional bonds with consumers. Vietnamese consumers prefer to see tangible evidence of benefits as manifested through product attributes. A lack of effective consumer advocacy and opaque promotional activities have set in motion numerous disputes and litigations involving local consumers and companies in Vietnam over product quality or promotions. Since the countrys overall income is still low at $2,800 per capita in 2008 at purchasing power parity 168th out of 229 countries analyzed (CIA, 2009) companies have resorted to using lower quality ingredients or have found other ways to cut costs, all of which results in lower quality products. Even though many global brands (e.g., Coca-Cola, P&G, Sony) have established manufacturing and assembly facilities in Vietnam, many Vietnamese consumers still prefer imported foreign-made goods and are willing to pay premium prices for such goods, even though a locally made version of the same product is available at a much lower price. This preference for foreign brands and imported merchandise reflect a general distrust in local goods, a legacy of the central planning era during which a severe shortage of capital resulted in poorly made local goods. A recent survey found that up to 77% of Vietnamese population prefers Western brands (Vinh Bao, 2008). A rising number of well-to-do consumers also travel to neighboring countries, such as Thailand and Hong Kong, to shop. As is true in some other countries in the region, brand counterfeiting is flourishing (Shultz et al., 2006) and some reputable local department stores have been caught selling knockoffs. Compared to developed countries, prices of goods in Vietnam are much higher as a proportion of disposable income, leaving the average consumer little money left for non-necessities such as travel, fitness, or entertainment. Data based on reported income may be deceiving given the Vietnamese tradition of hiding wealth from authorities. When TNS, a market research firm, asked a sample of consumers to keep spending diaries, the better-off respondents were spending up to seven times their declared salaries (The Economist, 2008).

Marketing Education in Vietnam

Vietnamese traditionally have revered education, a legacy of Confucianism, and afforded considerable prestige to teachers, schools, and colleges, but more recently educator salaries have not kept pace with other sectors (Ellis, 2000; Shultz et al., 2006). Not until recently have most universities in Vietnam included marketing as a subject in their curriculums. In the 1980s, marketing was not taught since central planners and communist ideologues saw no apparent need for it. They were not alone in their low opinion of marketing. International development thought and public policy had long favored the agricultural and industrial sectors and assumed that distribution would automatically follow production (Duhaime, McTavish and Ross, 1985; Klein and Nason, 2001). By the 1990s, a few universities in Ha Noi and Ho Chi Minh City began offering courses in marketing using materials translated from out-of-date texts which Vietnamese publishers had acquired. In 1989-1990, for example, National Economics University in Ha Noi prepared materials taken from Philip Kotlers work on marketing management. At the beginning of the 21st century, due to a heightened demand for marketing specialists, the governments decision to allow more private universities to be founded, and the onset of transnational degree programs from Australia, the UK, and other countries, many more local universities in Vietnam started scheduling marketing courses. Today, textbooks are translated versions of marketing texts popular in the U.S., but some concepts remain unfamiliar to faculty who were never trained or lived in a capitalistic society. In addition, the lack of the well-established business infrastructure seen in developed countries makes the teaching and implementation of Western marketing concepts in Vietnam, such as the intricacies of brand management, customer relationships, and online retailing, seem rather irrelevant at times. As a result, Vietnamese students only gain a limited knowledge of applicable modern marketing theories and strategies, and by the time they join the workforce they are faced with challenges for which they were not prepared in college. As shown in Table 1, the number of marketing majors graduating from Vietnamese universities meets only about 30% of the demand created by both local businesses and by foreign companies operating in Vietnam. When graduates enter the workforce, they still need about six months of on-the-job training before given any real responsibilities. Employers complain that graduates lack the skills and practical experience to meet their expectations (Duoc and Metzger, 2007). A desire for increasing the number of marketing graduates to meet demand is hindered by limited facilities. Classrooms, libraries, materials, and teaching aids are in short supply and annual enrollments are capped because of this shortage. On the other hand, due to marketings traditional low profile in the Vietnamese society, many university students still prefer an accounting or management major, as the relevance and importance of such fields are better understood among Vietnamese companies. To make matters worse, only a very small number of marketing faculty at Vietnamese universities nationwide have a Doctorate in marketing, and among those that do, many are not welltrained by Western standards. A high number of newly hired, junior faculty lack sufficient teaching skills to be effective teachers in the classroom. Most marketing faculty do not engage in academic research as their promotion and compensation are not based on research productivity. They have a very high teaching load at their own universities, yet moonlighting has become the norm as a means to augment meager official salaries averaging $150 a month (The Chronicle of Higher Education

2008; Napier et al. 1997). As a result, the quality of marketing teaching in Vietnam is lower than it needs to be. Table 1. Current Demand v. Supply of Marketing Staff in Vietnam Demand Supply Vietnam currently has about 300,000 About 35 universities/colleges Small to Medium Sized Enterprises supply about 30% of marketing staff (SMEs) and 15,000 Foreign Direct for the labor market. Investment (FDI) firms. About 105,000 marketing majors and Demand for marketing staff is business majors who work in approximately 1,350,000. marketing are produced annually. Annual increase about 250,000. The quality of marketing graduates does not meet the requirements of the market. Source: Vietnam MPI, VCCI, MOET Several factors explain why marketing education shows room for improvement in Vietnam. First, the importance of marketing is still under-recognized. Most companies in Vietnam, local or foreign, continue to focus on churning out goods as fast as possible in order to recover manufacturing costs and earn a quick profit. They neglect the distribution of goods and the establishment of long-lasting, mutually beneficial relationships with domestic customers. As the country opens its door to foreign goods, domestic companies must focus on establishing their brand equity and cultivating strong customer relationships to protect (and expand) their market share. A recent re-launch of a Buy Vietnamese goods campaign necessitates and highlights the importance of marketing among domestic companies. Marketing is oftentimes regarded as a support function and consequently lacks strong advocates. Indeed, many Vietnamese think of marketing as cheating and lying. As discussed above, these attitudes are carried over to the universities where marketing is not regarded as an important a field as finance or accounting, and state support for marketing education is limited. Second, the educational system in Vietnam is unnecessarily bureaucratic. In order to get their bachelors degree, students need to complete an extensive yet often irrelevant (to business) curriculum. The number of credit hours in marketing for marketing majors is far outweighed by other subjects including courses in Marxist Leninism and the History of the Communist party. Third, , the quality of teaching is questionable, as faculty are more concerned with improving their income potentials through part-time positions at other universities, meaning that they need to fit in as many classes as possible within a limited time budget. Needless to say, conducting research and publishing results in a scholarly journal is a foreign concept.

Case Study: National Economics University in Ha Noi

To illustrate curricular and pedagogical challenges in Vietnam, we use as an example National Economics University (NEU) in Ha Noi, which is one of the countrys most prestigious universities. The U.S.-based second author has taught two courses at NEU since 2008, and the Vietnam-based third author was a faculty member in the Marketing department at the University from 1996 to 2009. In the 1990s, NEU received funds from the Swedish International Development CoOperation Agency to develop its graduate and undergraduate management education programs. 5

Twenty-nine instructors from NEU received MBA degrees in English from Boise State University in order to prepare them to offer their own MBA programs in Vietnamese (Napier et al., 1997). However, not all of these faculty members have remained at NEU and some have joined the private sector for better opportunities. Today, marketing students at NEU must take marketing principles (required of all business administration majors), marketing management, promotion management, marketing research, consumer behavior (core marketing courses), and international marketing, services marketing, B2B marketing, branding management, distribution management, pricing management, sales management. Optional courses include: 1) place marketing, public marketing, and social marketing, 2) public relations, event marketing, new products/services, and Internet marketing, and 3) internships and a final thesis. Other required general courses include courses related to business management such as business management, human resource, accounting, finance, and information technology. Students are encouraged to take additional courses in computer science, foreign languages, and physical education. Finally, the Vietnam Ministry of Education and Training requires courses on Marxist Leninism and the ideology of Ho Chi Minh, the countrys modern founding father. Currently, instruction is delivered through traditional lectures (85%) and case studies and seminars (15%). Lectures in Vietnam are largely one-way communication in which the instructor engages in a monolog while students laboriously take notes. Vietnamese students have not been taught to speak up in class or to question their instructors because such behaviors are considered rude and disrespectful. Exam questions do not leave much room for individual, independent, and critical thinking. Instead they focus on memorization of textbook definitions and concepts, resulting in rampant cheating among students at all levels. Students academic achievement is largely evaluated on the basis of their performance on final exams. However, NEU is moving toward implementing multiple measures of competence, such as class participation, group projects, and both midterm and final exams. Class evaluation, a standard in all U.S. universities, has been taken into consideration and will likely be implemented in the near future.

Agenda for Development

As the country braces itself for unprecedented economic growth opportunities, Vietnamese universities need to prepare well-trained marketing professionals to meet the increasing demand by local companies as well as foreign investors. Vietnams government is beginning to recognize these shortcomings and, as part of its Strategy for Education Development for 2009-2020 encourages a more rapid update of university curricula (The Brunei Times, 2009). Based on the information collected thus far, we recommend two areas of reform: 1) updating curriculum and pedagogy and 2) upgrading faculty skills.

Updating Marketing Curriculum and Pedagogy

We believe that Vietnam needs to update marketing curriculum, course content, and teaching materials, and introduce better teaching materials. What should marketing students be taught? Should todays managerial concepts and global case studies be imported intact from the U.S. and other rich Western nations? Or should marketing pedagogy be refashioned according to local situations and in service of local needs? As discussed earlier, texts and other materials imported from overseas are not always relevant to the needs of students. Many Vietnamese 6

marketing faculty share an idealistic thought that there is some magic textbook that can be translated and taught in Vietnam without any modifications, and that it would do its job as in the U.S. Such thought is nave at best, as marketing concepts and examples from any U.S. textbooks are based on the American business culture and social values specific to America, the most economically powerful country in the world. Vietnamese scholars need to spend their time and efforts cultivating relationships with local businesses, learning about their specific challenges and solutions, and presenting these case studies as teaching materials. Guest speakers from the local business community should be invited to classrooms to share experience with students. Student marketing competitions sponsored by local and foreign companies operating in Vietnam should be held on a regular basis to create opportunities for students to apply what they have learned in the classroom into a real business problem. The Vietnam Marketing and Management Institute in Ho Chi Minh City (http://www.vmi.edu.vn ) may be a useful clearinghouse for such collaborations.

Upgrading Faculty
Unfortunately, relatively few instructors in Vietnam have been trained in the West. Although they are reasonably familiar with core marketing theories, they have had relatively little practical experience and find it difficult to convey concepts to their students. To improve marketing education in Vietnam, much more needs to be done to describe local Vietnamese marketing practices and institutions. In some ways, this situation is similar to that which confronted early (ca. 1902-1920) marketing educators in the U.S. who had to go out and talk to businessmen to learn about how they operated and then had to write texts from scratch. Similarly, Vietnamese academics should research and write about how their own marketing system actually works. They need to describe their own marketing institutions and the marketing functions they perform and show how different types of products are distributed and sold in their country. In short, they need to revisit the institutional, functional, and commodity approaches to marketing (see Shaw and Jones, 2005). By doing so, they and their students will learn more about marketing concepts and, ultimately, marketing management. Studies of local marketing in Vietnam might include descriptions of Vietnamese marketing institutions (e.g. traditional v. global grocery retailing and food service) and how different products are marketed in Vietnam (e.g. differences between agricultural commodities v. consumer durables and nondurables). We do not argue that Vietnamese marketing educators should completely reinvent marketing and, in so doing, isolate their discipline from knowledge created by the global field. However, we do believe that some marketing pedagogy lacks relevance locally. We also believe that marketing is more than just a corporate managerial responsibility. Because marketing is an important institution having profound social consequences, it also needs to be studied from a macro perspective, which, as a practical matter, means understanding local marketing systems.

Conclusions and Further Research

Marketing education in Vietnam is still a very new field that faces numerous challenges ranging from inadequate facilities, poorly conceived curriculums and mediocre teaching, to inadequately trained and overworked faculty. All of these areas can be improved, but faculty need to be proactive in developing new instructional materials that convey current global knowledge, while at the same time remaining relevant to local conditions. The long-standing cultural emphasis 7

on education in Vietnam, combined with general shift toward market entrepreneurialism, provide high hopes that marketing education will keep pace with the nations rapidly developing economy and society. Currently, we are collecting additional oral interview data from Vietnamese marketing faculty, students, and hiring managers. From the faculty we hope to learn more about their professional preparation, views on teaching, and research and consulting activities. The students, in turn, will provide a learners perspective on the marketing education being received and how it relates to the current job market. Finally, we are asking the managers, among other issues, their opinions about the strengths and weaknesses of the training received by Vietnams marketing graduates. Thus, the descriptions and normative recommendations given above will be subject to confirmation and/or revision depending upon what respondents tell us.

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