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NGUYEN DUC MANH E2300494
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Module/Subject Code MKT302
Module/Subject Name Strategic Global Marketing
Lecturer/Tutor/Facilitator Jacob Kulleh
Due Date 14/02/2025
Assignment Title/Topic Assignment 1
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Word Count 2443
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I INTRODUCTION
In the current situation of globalization, countries do not only develop based on
internal factors but are also strongly influenced by the global macro-environments.
Economic, political and cultural integration between countries has created a multi-
dimensional competitive and cooperative context, requiring each country to clearly
understand external factors in order to have appropriate development strategies. To clarify
this influence, the PEST analysis model will be used to assess the impact of macro events
around the world on the domestic situation of individual countries. According to Yüksel
(2012), PEST analysis is a tool for analyzing political-legal, economic, social-cultural and
technological factors that impact the operating environment of an organization or country.
The objective of this essay is to assess the impact of global macro-environmental factors on
the political-legal, economic, socio-cultural and technological developments of a particular
country, and to analyze how that country responds to these environmental forces through
specific examples.
II MAIN BODY
Being a widely used tool to assess the impact of macro-environmental factors on the
operation and development of a country, the PEST stands for four main factors: Political-
legal, Economic, Social-cultural and Technological. Analyzing these factors helps to identify
the opportunities and challenges that a country is facing in the current context of
globalization. According to Kotler and Keller (2012), all the four letters or more particularly
four factors all have significant effects on the host country. The first letter is P which stands
for Political-legal, which is a factor related to the political system, policies and legal
regulations issued by the Government. It includes areas such as political stability, legal
system, international trade agreements, as well as the operating environment. These factors
not only affect the business environment but also impact national development strategies. The
second letter is E which stands for Economic. Economic factors focus on economic indicators
such as GDP growth rate, inflation rate, unemployment rate, per capita income, along with
economic policies such as tax rates and monetary policy. These indicators allow us to assess
the stability and potential of the country's economy, thereby helping to identify opportunities
and challenges in the global economic context. Letter S is Social-cultural, referring to aspects
of social life such as population structure, cultural values, traditions, educational levels and
consumption habits. Changes in the socio-cultural sphere can influence consumer demand
and behavior, affecting the economic development policies and marketing strategies of the
country. The final factor is T, also known as Technological, which is related to the
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enhancement and application of technology in production, communication, media and
management. The innovation in technology not only creates opportunities to improve work
processes and increase productivity but also brings challenges in terms of competition,
information security and market adaptability.
2.1 Letter “P” - Factor Political-legal
To understand the influence of the political-legal field better, we can take a typical
example of the trade war between the United States and China that started in 2018, when the
US Government imposed tariffs on imported goods from China to protect the domestic
economy and adjust the trade balance. According to a report by the Peterson Institute for
International Economics, tariffs on Chinese goods have increased sharply, significantly
changing the structure of the global supply chain and creating major economic fluctuations
(Bown, 2019). As we can see in the chart below, the tariffs that the US and China apply on
each other are much higher than the tariffs on rest of world (ROW) exports.
Figure 1 (Bown, 2019)
This event also had a significant impact on Vietnam. By taking advantage of the
opportunity to shift supply chains of multinational enterprises, high tariffs applied to goods
from China have been avoided. According to the World Bank (2020), in the period 2018-
2020, Vietnam recorded an increase of about 15-20% in FDI, contributing to promoting the
country's processing, manufacturing and export industries. At the same time, the shift in
production has boosted Vietnam’s export growth in many key industries such as electronics,
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apparel, and footwear. Some economic studies, such as Fajgelbaum and Khandelwal (2022),
have shown that the fluctuations from the trade war can have a strong impact on supply
chains and indirectly affect the economies of the countries involved. Although this study
focuses primarily on the impact of tariffs on prices and economic welfare in the United States
and China, the results also provide insight into how global supply chains adjust when trade
barriers change.
2.1.1 Vietnam’s response to the environmental force
Recognizing the opportunities and challenges brought about by the US-China trade
war, Vietnam has had strategic responses to optimize benefits and minimize risks: Firstly, the
Vietnamese Government reforms the legal and business environment. The Vietnamese
Government revised the Investment Law in 2020, focusing on reforming administrative
procedures, improving transparency and creating a favorable investment environment for
international investors (Phạm, 2020). These reforms are considered necessary to meet
international standards and create confidence for businesses when deciding to shift
production. Secondly, Vietnam has signed Free Trade Agreements (FTAs). Vietnam has
proactively signed many free trade agreements, typically the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) and the European Union–Vietnam Free
Trade Agreement (EVFTA). These agreements not only expand export markets but also
attract FDI capital flows, technology transfer and support sustainable economic development
(Nguyễn & Trần, 2021). Moreover, the nation is also investing in infrastructure and
improving technology. In order to improve its competitiveness in the international arena,
Vietnam has increased investment in infrastructure, human resource training and modern
technology transfer. According to the World Bank (2020), programs such as the “National
Innovation Program” and so have contributed to improving the efficiency of the supply chain
and meeting the needs of global investors.
We have the following table illustrating the growth of FDI and exports in Vietnam
during the period 2018–2020:
Year FDI growth in Export growth (%)
manufacturing (%)
2018 12% 8%
2019 17% 10%
2020 20% 12%
Table 1 (World Bank, 2020; Nguyễn & Trần, 2021)
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2.2 Letter “E” - Factor Economic
When it comes to global economic fluctuations that affect the whole world, events
such as the 2007-2008 financial crisis or the oil crisis are often listed, but in recent years, the
event that has had the greatest impact on the world economy as well as Vietnam is the Covid-
19 pandemic. The Covid-19 pandemic has caused a global economic shock, leading to a
decline in GDP growth, disruptions in supply chains and changes in consumer behavior.
Many studies have shown that the outbreak of the pandemic has reduced economic growth in
many countries, while causing strong fluctuations in financial markets and global supply
chains (Pinshi, 2020).
2.2.1 Impact of the Covid-19 pandemic on Vietnam
Despite its relative success in containing the pandemic, Vietnam has not been immune
to the economic impact of the pandemic. The country’s economy contracted significantly in
2020, with GDP growth falling to 2.9% from pre-pandemic levels. The pandemic disrupted
both domestic production and international trade. For example, key sectors such as
manufacturing, tourism, and services were severely affected by lockdowns and supply chain
disruptions. According to Morisset (2020), economic activity in Vietnam declined
significantly in the first few months after the outbreak, but fortunately, the Government’s
swift response minimized long-term damage.
Figure 2 (Lăng, 2022)
2.2.2 Vietnam’s response
To cope with the negative effects of this pandemic, the Vietnamese Government has
implemented policies to stabilize the domestic economy. According to Pham (2021), the State
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Bank of Vietnam has used a flexible management approach to contain inflation, stabilise the
macroeconomy, promote production and economic activities, and build momentum for a
recovery economy. Moreover, the State Bank of Vietnam also cuts interest rates, supports
liquidity and supports businesses from there to the shared aim of boosting the economy (Bui,
2020). The outcomes of coordinating and implementing Vietnam's macro policies serve as an
important basis for the operation direction in 2021.
2.3 Letter “S” - Factor Social-cultural
One of the most famous recent socio-cultural events is probably the #MeToo
movement. The #MeToo movement emerged in 2017 and quickly became a global
phenomenon, raising awareness about sexual harassment, abuse of power and gender-based
violence. According to Fileborn and Lonely‑Howes (2019), the #MeToo movement has
contributed to restructuring power relationships within organizations, increasing transparency
and accountability in human resource management policies. They say that, through its spread
on social media, #MeToo has created a “cultural shift” in the workplace, as businesses are
forced to reassess how they handle complaints of sexual harassment and abuse of power. In
addition, the #MeToo movement has not only promoted and denounced misconduct, but also
promoted in-depth discussions about organizational culture, creating momentum for legal and
policy reforms in areas related to women's rights. They emphasized that the strong
participation of the online community has helped reduce the silence surrounding harassment
and thereby pressured businesses to change their management practices and establish new
policies to protect employees (Mendes et al, 2018). One of the countries that is most affected
by the #MeToo movement is India, this movement has contributed to promoting rapid
changes in social awareness as well as internal policy reforms in organizations and
businesses.
2.3.1 Impact of the #MeToo movement on India
India has always been famous for its sexual harassment problem, and the explosion of
this movement has created a lot of effects. According to Jain (2020), the #MeToo movement
in India has influenced both social and many businesses. In the entertainment and media
industry, the movement has spread to the Bollywood film and television industry, with many
actresses and industry employees going public with cases of sexual abuse and harassment.
This has led to the resignation of several employees and criminal investigations. As for the
social impact, the movement has helped raise awareness about sexual violence and
harassment, and encouraged many Indian women to share their stories. This has created a
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more supportive and inclusive environment for those who have been abused. Although the
movement has achieved many successes, it has faced many challenges, including opposition
from some male subalterns and accusations of abuse. However, the movement continues to
grow and promote positive changes in Indian society.
2.3.2 Indian Government’s response
In response to the strong stance from the #MeToo movement, the Indian Government
has taken steps such as improving laws, promoting educational programs or supporting
victims. The Government of India has introduced legislative reforms to strengthen the
protection of the rights of women and victims of violence. One of the key reforms is the
expansion of the scope of acts covered by the law to include sexual harassment in the
workplace. To directly impact people's awareness, The Government has promoted
educational programs to raise awareness about human rights and sexual violence. These
programs are implemented in schools and businesses to help raise awareness and create safer
working environments for women. Additionally, India has stepped up support measures for
victims of violence, including providing counselling and psychological support services, as
well as economic assistance programmes to help victims safely confront their attackers.
2.4 Letter “T” - Factor Technological
2.4.1 The birth and explosive development of Artificial Intelligence (AI)
Over the past few years, AI has transformed from a theoretical concept to a
technology with widespread applications in many fields, from manufacturing, healthcare,
finance to customer service. The explosive growth of AI has been fueled by advances in
cloud computing, big data and deep learning algorithms. According to a report published by
the McKinsey Global Institute, AI could contribute up to 16% of global GDP by 2030,
impacting many industries and changing the way the global economy operates. The report
also found that AI not only creates economic efficiency but also poses major challenges in
terms of managing employment and requiring a shift in labor skills.
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Figure 3: AI’s net economic impact (Bughin et al, 2018)
The progress of AI brings both positive effects and negative effects to many countries,
especially developing countries like Vietnam.
2.4.2 How the development of AI influences Vietnam (Duy, 2025)
AI has both positive and negative impacts on Vietnamese development. AI is creating
many opportunities in areas such as manufacturing, services and agriculture. The technology
increases efficiency by automating repetitive processes, reducing errors and improving
productivity. For example, in the field of healthcare, AI helps support disease diagnosis, early
detection of hazards, helping doctors make more accurate decisions. In the education sector,
AI helps personalize lessons so that students can learn more effectively. AI teaching systems
can adjust lessons based on the needs and learning speed of each student, thereby improving
the quality of education. In addition, AI technology also contributes to the development of
smart cities. Using AI to manage traffic, energy and other public services helps cities have a
better quality of life, reduce congestion and save energy. Last but not least, AI opens up
many opportunities for entrepreneurship and innovation.
On the other hand, it also brings up some challenges for Vietnam. One of the biggest
challenges is job loss. Automation could lead to job losses in some industries, especially low-
skilled jobs. The development of AI requires the workforce to acquire new skills, while
training and developing the workforce to meet these needs is still difficult. More seriously,
privacy and cybersecurity are also major challenges. The collection and analysis of personal
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data can violate users' privacy if not carefully managed. AI can also be hacked and abused for
malicious purposes, requiring us to be vigilant at all times.
2.4.3 Vietnamese Government’s response to the growth of AI
According to a report on the UNDP homepage, Vietnam has made certain moves to
deal with the development of AI. Vietnam is well aware of the transformational potential of
AI and has laid the foundation through the "National Strategy for AI Research, Development,
and Application to 2030" (127/QD-TTg). This strategy guides the country to exploit AI for
socio-economic progress.Moreover, UNDP in Vietnam works with Chief Digital Office
(CDO) and Institute for Policy Studies and Media Development (IPS) to launch an AI
landscape assessment (AILA) to draft a stable path for AI development in the public sector.
In addition, UNDP in Vietnam is developing an AI-powered online public service chatbot
that uses AI-powered text and voice conversations to assist citizens on how to handle 15
essential administrative services.
III CONCLUSION
Through the analysis in the literature review above, the PEST model has shown that
the development of a country not only depends on the internal capacity of that country, but is
also greatly influenced by macro factors around the world in areas from political-legal to
technological. This requires each country to constantly innovate, to adapt promptly to the
major changes and fluctuations of the world to build the most optimal sustainable
development strategies for the country in line with the times.
IV REFERENCES
1. Yüksel, I. (2012). Developing a Multi-Criteria Decision Making Model for PESTEL
Analysis. International Journal of Business and Management.
2. Kotler, P. & Keller, K. L. (2012). Marketing Management. Prentice Hall.
3. Bown, C. P. (2019). US‑China Trade War Tariffs: An Up‑to‑Date Chart. Peterson
Institute for International Economics.
4. World Bank. (2020). Vietnam Economic Update: Navigating the Global Trade War.
World Bank Publications.
5. Fajgelbaum, P. D., & Khandelwal, A. K. (2022). The economic impacts of the US–
China trade war. Annual Review of Economics, 14(1), 205-228.
6. Phạm, L. (2020). Cải cách pháp lý và thu hút FDI tại Việt Nam trong bối cảnh toàn
cầu hóa. Tạp chí Pháp luật và Kinh tế.
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7. Nguyễn, V., & Trần, Q. (2021). Tác động của Chiến tranh Thương mại Mỹ–Trung
đến nền kinh tế Việt Nam. Tạp chí Kinh tế và Phát triển.
8. Pinshi, C. (2020). COVID-19 uncertainty and monetary policy.
9. Morisset, Jacques. 2020. Economic Costs Associated to the Coronavirus Pandemic for
Vietnam. COVID-19 Policy Response Note, No. 1. © World Bank, Washington, DC.
10. Pham Thanh Ha. (2021). Coordination of Fiscal and Monetary Policy: Achievements
in 2020 and Orientation for 2021. Financial Review 2021: 27–31.
11. Pham Thanh Ha. (2021). Operating Monetary Policy to Support the Economy against
the Covid-19 Pandemic and Orientation for 2021. Banking Review 6: 12–16.
12. Bui Duy Hung. (2020). Monetary Policy in the Context of Covid-19 in Some
Developed Countries and Vietnam. Banking Magazine 16: 50–54.
13. Lăng, T. (2022, October 7). The driving forces behind the astonishing GDP growth in
the first 9 months of Vietnam.
14. Fileborn, B., & Loney‑Howes, R. (2019). #MeToo and the politics of social change.
Feminist Media Studies, 19(2), 201–216.
15. Mendes, K., Ringrose, J., & Keller, J. (2018). #MeToo and the promise and pitfalls of
challenging rape culture through digital activism. European Journal of Women’s
Studies, 26(2), 236–246.
16. Jain, J. (2020, February 2). India and its #MeToo movement in 2020: Where are we
now? Feminism in India.
17. Bughin, J., Seong, J., Manyika, J., Chui, M., & Joshi, R. (2018). Notes from the AI
frontier: Modeling the impact of AI on the world economy. McKinsey & Company.
18. Duy T. Đ. (2025). Tác động và thách thức của trí tuệ nhân tạo (AI) đối với Việt Nam.
Thị Trường 24h.
19. AI for Public Good – Charting the path for an inclusive digital future in Viet Nam.
(n.d.). UNDP.
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V TURNITIN CHECK
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