EVBN Report Education Final Report

EDUCATION
IN VIETNAM
Edition 2018
RESEARCH REPORT
This project is co-funded
by the European Union
USEFUL CONTACTS MORE INFORMATION
EU-Vietnam Business Network (EVBN) General Statistics Office of Vietnam:

15th Floor, 5B Ton Duc Thang, District 1 http://www.gso.gov.vn
Ho Chi Minh City, Vietnam Vietnam Customs Statistics:
T: +84 (0)28 38239515 http://www.customs.gov.vn
www.evbn.org Vietnam Trade Promotion Agency (Vietrade):
en.vietrade.gov.vn
World Bank Vietnam:
http://www.worldbank.org/en/country/vietnam
The Landmark, 15th floor, 5B Ton Duc Thang St., District 1, This publication was produced with the assistance of the European Union.
Ho Chi Minh City, Vietnam The content of this publication is the sole responsibility of EVBN and
Tel. +84 (0)28 3823 9515 Fax +84 (0)28 3823 9514 can in no way be taken to reflect the views of the European Union.
www.evbn.org
EVBN Education in Vietnam 2

CONTENTS
Contents 3
Chapter 3: Competitive Landscape
Glossary 4 Public sector 43
List of Abbreviations 5 Private sector 43
Supplementary sector 45
Currency Exchange 5
Case Studies 47
List of Figures 6 Vinschool 47
Vietnamese-German University 49
Executive Summary 8
British Council Vietnam 51
Chapter 1: Vietnam Overview Chapter 4: Profile of End Consumer 53

Geo-demographics 10
Vietnam’s Economy 12
Structure of consumption expenditures 14 Chapter 5: Regulatory and Legal
Framework
Laws and regulations on education
in Vietnam 57
Chapter 2: Overview of Education
in Vietnam Legal framework for foreign investors 57
Relevance and Impact of EVFTA 59
Vietnam’s education landscape 16
Structure of education system 19
Public sector 23
Private sector 29 Summary 60
Supplementary sector 30 List of Trade Fairs and Exhibitions 61
Overseas study 33
Main Online and Printed Publications 64
Market trends 35
Useful Contacts 65
Market drivers 38
Market barriers 39 References 66
Opportunities and challenges for
European companies 40

GLOSSARY
Term Explanation
Early childhood education, for infants from the age of three months
Nursery
up to three years
Early childhood education, for infants from the age of three years up
Kindergarten
to six years
Early childhood education, incorporating the functions of both
Pre-primary school nursery and kindergarten, for infants from the age of three months up
to six years
Primary school General education, for students from age six to eleven, including
/ Elementary school grade 1 to 5
Lower secondary school General education, for students from age twelve to fifteen, including
/ Junior high school grade 6 to 9
General education, comprising both primary school and lower
Basic education
secondary school
Upper secondary school General education, for students from age sixteen to eighteen,
/ Senior high school including grade 10 to 12
General education, comprising both lower and upper secondary
Secondary school
school
College Higher education, narrowly focused in curriculum, duration 3 years
Higher education, multidisciplinary, with research capacity, duration 4
University
to 6 years based on field of study
Higher education, narrowly focused in study area, highly specialised
Research institute
research capacity
Public institution Educational establishment, owned and invested by the government
Education establishment, set up by the government, jointly invested
Semi-public institution
by the government and members of the public
People-founded Education establishment, owned and invested by social or economic
institution organisations
Education establishment, owned and invested by individuals or
Private institution
groups of individuals

LIST OF ABBREVIATIONS
ASEAN Association of Southeast Asian Nations
BC British Council
CAGR Compound Annual Growth Rate
CIT Corporate Income Tax
EU European Union
EVFTA EU-Vietnam Free Trade Agreement
FDI Foreign Direct Investment
FOE Foreign Owned Enterprise
FTA Free Trade Agreement
GDP Gross Domestic Product
GRDI Global Retail Development Index
K-12 Kindergarten to 12th Grade
MOET Ministry of Education and Training
OECD Organisation for Economic Co-operation and Development
PISA Programme for International Student Assessment
STEM Science, Technology, Engineering and Mathematics
TIMSS Trends in International Mathematics and Science Study
VGU Vietnamese-German University
WTO World Trade Organization
CURRENCY EXCHANGE
EUR/US$ 0.81
EUR/VND 27,998.64

LIST OF FIGURES
Figure 1: Map of Vietnam with key cities 10
Figure 2: Vietnam’s population 2013-20f 11
Figure 3: Forecast of rural and urban population in Vietnam and Asia Pacific, 2030 11
Figure 4: Nominal GDP and Real GDP growth, 2013-20f 12
Figure 5: Nominal GDP per capita, 2013-20f 12
Figure 6: Total registered FDI capital, 2010-2017 13
Figure 7: Total registered FDI capital by provinces, 2017 13
Figure 8: Structure of consumption expenditure, 2013-22f 14
Figure 9: Share of Education in GDP and Government Expenditure, 2000-2016 16
Figure 10: Government expenditure on education in ASEAN, 2016 (% of GDP) 16
Figure 11: Gross enrolment ratio in each level of education in Vietnam 17
Figure 12: Literacy rate, adult total (% of 15-35 age group) 17
Figure 13: PISA score of Vietnamese students and International Average in 2018 18
Figure 14: National education system of Vietnam, 2014 19
Figure 15: Top 10 Asian countries in EF English 2017 Proficiency Results 21
Figure 16: Number of institutions by education stage in academic year 2016-2017 22
Figure 17: Number of students by education stage 22
Figure 18: Number of schools in public education 23
Figure 19: Number of students in public education 23
Figure 20: Number of students in each educational level 24
Figure 21: Average number of general education student per class 24
Figure 22: Ho Chi Minh City’s tuition fees of school year 2017-2018 25
Figure 23: Hanoi’s tuition fees of school year 2017-2018 25
Figure 24: Higher education majors’ structure in terms of students, 2017 27
Figure 25: Comparison of university programmes 28
Figure 26: Number of schools in private sector 29
Figure 27: Number of students in private sector 29
Figure 28: Percentage of parents sending kids to extra-classes, 2014 31
Figure 29: Purpose of going to extra-classes, 2014 31
Figure 30: Venues for extra-classes, 2014 31
Figure 31: Number of overseas Vietnamese students, 2013-2016 33

Figure 32: Average private tuition fee in some countries, academic year 2015-2016 33
Figure 33: Number of Vietnamese students in some countries, 2013-2016 34
Figure 34: Total spending of Vietnamese students on studying abroad, 2013-2015 34
Figure 35: Proportion of students choosing different study programmes in the US, 2010-2017 34
Figure 36: Number of upper secondary schools and students, 2013-2016 35
Figure 37: Number of private universities and students, 2013-2016 36
Figure 38: Percentage of out-of-school children among different age groups, regions
and ethnicities in 2014 39
Figure 39: List of popular private pre-primary and general education schools 43
Figure 40: List of top private universities in Vietnam 44
Figure 41: Top popular English centres based on Facebook likes, 2015 45
Figure 42 Top English centres with most branches, 2015 46
Figure 43: Average listed tuition of English centres, 2015 46
Figure 44: Market share in terms of sales of high-end English centres, 2015 46
Figure 45: Vinschool’s logo and website 47
Figure 46: Vinschool’s five core values 47
Figure 47 Vinschool’s development over the 2013-2017 period 48
Figure 48: Vietnamese-German University logo and website 49
Figure 49: Programmes offered by VGU, 2018 50
Figure 50: British Council Vietnam’s logo and website 51
Figure 51: British Council Vietnam’s LearnEnglish website 52
Figure 52 Urban-rural spending on education, 2016 54
Figure 53: Reasons for studying English, 2016 54
Figure 54 Top 5 criteria for choosing an English school, 2016 55
Figure 55: Proposed changes to Decree 73/2012/ND-CP 58
Figure 56: Enrolment of Vietnamese students into foreign-invested education institutions
according to Decree 73/2012/ND-CP 59

Executive
Summary
With its young population and a long-standing embrace of education, Vietnam offers great
opportunities for investors in the field. Since 1975, education has been at the centre of policy discussions
and reforms. Moreover, since 2000 the government has committed 15% - 20% of its public expenditure
to education, the highest rate amongst all other ASEAN countries. Throughout the last decade, Vietnam
has made considerable headway in primary enrolment rate, literacy rate and PISA ranking, as readers shall
find in this report.
First, Vietnamese people prefer the private education sector over the public school system because of
its superior teaching method and outcome for students. This preference translates into a strong market
for ‘non-public’, ‘supplementary’, and ‘overseas’ services. Second, Vietnamese people increasingly value
supplementary attributes, such as language proficiency and soft skills, to enhance their employability.
Third, there is a growing demand for world-class education through abroad study.
This report seeks to shed light on the education market in Vietnam. First, it provides an overview of
Vietnam’s education landscape by introducing its education system, on-going trends, as well as the
underlying drivers, barriers, and opportunities and challenges for foreign investors. This section will
provide readers with more details on the public, private, and supplementary sectors, as well as overseas
studies of Vietnamese students.
In the second part, the report lays out the competitive landscape for the public, private and
supplementary sectors. Three cases studies are provided featuring Vinschool, a local private institution,
the Vietnamese-German University, a foreign-invested institution, and British Council Vietnam, a
language-training provider. The case studies are followed by a brief profile of end consumer. Interested
investors can find more about related laws and regulations in the final part of this report.
CHAPTER 1
VIETNAM OVERVIEW
Geo-demographics
Vietnam’s Economy
Structure of consumption expenditures

I. Geo-demographics
Vietnam comprises a landmass of 330,972.4 km2,

Hanoi a vast sea area including a large continental
shelf and a string of archipelagos stretching
from the Gulf of Tonkin in the North to the Gulf
of Thailand in the South. In 2017, Vietnam’s
population was 95.54 million people and is
projected to reach 98.4 million in 2020, an increase
of 1% on average between 2015-2020.
Major cities in Vietnam, namely Hanoi, Hai
Phong, Danang, Nha Trang, Ho Chi Minh City,
and Can Tho, are well-dispersed geographically.
Hanoi, the capital of Vietnam, is the second
largest city in Vietnam and is the country’s
political and administrative centre. Hanoi is
Da Nang known for its rich culture characterised by
South East Asian, Chinese and French influences.
Ho Chi Minh City, commonly known as Saigon,
is the country’s largest city and the commercial
hub of Vietnam. By 2030, Ho Chi Minh City will
continue to be the largest city in Vietnam by
population with over 10 million inhabitants
accounting for 23% of Vietnam’s total urban
population.
Nha Trang
Image from www.wikipedia.org

Ho Chi Minh City
Can Tho
Image from www.vietnamtourism.gov.vn
Figure 1: Map of Vietnam with key cities

*Unit: million people
2013 91.50
2014 92.54
2015 93.57
2016e 94.57
2017f 95.54
2018f 96.49
2019f 97.43
2020f 98.36
Figure 2: Vietnam's population 2013-20f
Source: D&B
Although Vietnam remains predominantly

57%
RURAL
rural, it is expected to undergo significant
urbanisation in the next 14 years. By
2030, the urban population is forecasted
to increase by 37% from 2017, reaching
Vietnam 45.66 million people, or 43% of the
total population of Vietnam. This rapid
urbanisation is caused predominantly
43% by the growth of urban cities and the
URBAN expansion of the urban-based industrial
44%
RURAL
and services sectors. Moreover, high
urbanisation rate causes a pressure
on the construction sector to increase
the number of high-rise apartment
Asia buildings and office buildings.
Pacific
Figure 3: Forecast of rural and urban
population in Vietnam and
56% Asia Pacific, 2030
URBAN
Source:UNDP

II. Vietnam’s Economy
Gross Domestic Product
250 8
6.7 6.8 6.7
6.2 7
200 6.0
5.4 6
150 5
(€ bn)
248.8
(%)
228.6 4
208.1
100 182.0 193.9
172.5 3
128.4 140.0
2
50
1
0 0
2013 2014 2015 2016 2017 2018e 2019f 2020f
Nominal GDP (EUR bn) Real GDP growth (%)
Figure 4: Nominal GDP and Real GDP growth, 2013-20f

Source: BMI
Real gross domestic product (GDP) growth is expected to accelerate at 6.7% in 2018, reaching €208.1
billion in value. With this growth rate, Vietnam remains one of the fastest-growing economies in Asia. The
solid increase pace is foreseen to continue until 2020, to reach €248.8 billion. The outlook is underpinned
by ongoing Government policies regarding the privatisation of state-owned enterprises (SOEs), the
maintenance of price stability, the lowering of trade barriers and reduced tax rates.
3000
In 2017, Vietnam’s nominal GDP
per capita reached €2,029, an
2,529
2500 2,346 increase of 5.4% compared to
2,156
2,029 2016. Nonetheless, the country has
2000 1,924
1,843 been recognised for its effort to
1,512 increase the GDP per capita, and
(€)
1500 1,403
expects to reach a GDP per capita
1000 of €2,529 in 2020. A solid increase
in GDP per capita suggests that an
500
average Vietnamese will have more
0
disposable income to spend on
2013 2014 2015 2016 2017 2018e 2019f 2020f more goods than just basic needs.
Figure 5: Nominal GDP per capita, 2013-20f

Source: BMI

Foreign Direct Investment
(€ mn) In 2017, Vietnam received a

24,041 record €24 billion of foreign
direct investment (FDI). This is a
19,761 reflection of the increase in trade
18,436
17,577 and production in Vietnam as more
16,378
15,066 global manufacturing giants have
11,904
decided to move their production
10,530 facilities to Vietnam to reap the
benefits from the numerous
incentives to attract investments
from the government.
Figure 6: Total registered FDI
capital, 2010-2017
2010 2011 2012 2013 2014 2015 2016 2017 Source: GSO
Ho Chi Minh City, Vietnam’s commercial centre, continued to receive the most FDI in 2017 with a total
registered capital of nearly EUR 2.7 billion. Provinces such as Binh Duong and Bac Ninh, where LG and
Samsung established their manufacturing centres, also received large amounts of FDI at EUR 2.0 and EUR 2.6
billion, respectively. Thanh Hoa and Khanh Hoa are two provinces receiving the highest number of newly
registered capital, respectively, due to mega Build – Operate – Transfer Japan’s thermal power projects.
(Unit: EUR mn)

Ho Chi Minh City 2,684.4
Bac Ninh 2,640.6
Thanh Hoa 2,563.8
Khanh Hoa 2,104.7
Binh Duong 2,003.5
Other 12,054.1
Figure 7: Total registered FDI capital by provinces, 2017

Source: GSO

III. Structure of consumption expenditures
With this GDP growth and increase in disposable income, consumption expenditure is expected to grow
at a rate of 9% during 2016-22f. The increase in the standard of living will likely also raise the price and the
quality of goods purchased by Vietnamese consumers.
6,000
5,000
EUR per year per household
4,000
3,000
2,000
1,000
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Other 624 669 715 754 815 883 967 1,060 1,163 1,278
Leisure & education 212 228 244 258 279 303 332 365 401 441
Transport & communications 515 551 588 618 667 721 787 862 944 1,035
Health spending 69 74 79 84 91 98 108 118 130 143
Furnishing and home 149 160 171 180 195 211 231 253 277 305
Housing and utilities 396 422 450 472 508 548 598 653 714 782
Clothing & footwear 74 80 85 90 97 105 114 125 137 151
Food, beverages & tobacco 588 629 671 706 761 823 899 984 1,078 1,183
Figure 8: Structure of consumption expenditure, 2013-22f

Source: BMI

CHAPTER 2
OVERVIEW OF
EDUCATION IN VIETNAM
Vietnam’s education landscape
Structure of education system
Market trends
Market drivers
Market barriers
Opportunities and challenges for European companies

I. Vietnam’s education landscape
Education has always played a central Share of education in GDP (%)

role in Vietnam’s society and culture. Share of education in
Vietnamese families are willing to go to Government expenditure (%)
great lengths to ensure their offspring
get the required education.
The government of Vietnam spends

%
significantly more on education than
other countries in the region, with 15%
of its total public spending going to 20.0 20.0
education in 2000, and 20% in recent
15.1 16.0
years. The rate of government expenditure
on education as a percentage of GDP has
oscillated between 5.1% and 5.9% over
the 2009-2012 period and increased to
5.9 6.3
6.3% in 2016, indicating the government’s 5.1
growing commitment to increase access 3.3
to education and to improve its quality.
2000 2009 2012 2016
Figure 9: Share of Education in GDP and Government

Expenditure, 2000-2016.
Source: UNESCO, MOET, Ipsos Business Consulting analysis
% In 2017, education received EUR7.7

billion, which constitutes 20% of all state
expenditure on education according to
the Ministry of Education and Training
(MOET). The proportion of public
expenditure on education and training
on Vietnam’s GDP is much higher than
6.3
that of many countries in the region, even
6.1 countries with higher economic levels.
4.2 4.1
3.8
3.3 3.4 While it is hard to establish a direct link
2.9 between spending and performance,
2.0
Vietnam’s strong emphasis on education
correlates with its impressive results
in terms of enrolment, literacy and
Philippines
Cambodia
Brunei
Indonesia
Laos
Malaysia
Singapore
Thailand
Vietnam
Programme for International Student

Assessment (PISA) ranking (where
Vietnamese students scored high).
Figure 10: Government expenditure

on education in ASEAN, 2016 (% of GDP)
Source: UNESCO
Enrolment rate
Figure 11 shows an optimistic picture of %

universal education in Vietnam. For all 108.751 109.97
104.96 Primary
levels of education, enrolment rates show 97.047
Education
an upward trend. Therefore, Vietnamese 86.755
people have enjoyed better access to Pre-primary
70.652 Education
education and have become more 59.345
educated over the last decades.
40.513
28.26
22.661 Tertiary
16.031
9.413 Education
Remark: Gross Enrolment Rate: Total enrolment
in a specific level of education, regardless of age,
expressed as a percentage of the official school- 2000 2005 2010 2016
age population corresponding to the same level of
education in a given school year. The figures can be Figure 11:
higher than 100% because of early or late school Gross enrolment ratio in each level of education in Vietnam
entrance and grade repetition. Source: World Bank Source: InterNations
Literacy Rate
% Vietnam has made strides in literacy

98.1 99.0 over the last seventy years, thanks to
94.0 government policy reforms. In 2016,
98.1% of the population aged 15 to 35
was considered literate, compared to
more than 95% of the population being
unable to read or write in 1945 when the
country became independent. In 2016,
Vietnam still had more than 1.3 million
illiterate people, most of which are unable
to attend school due to living in remote
areas, being unable to afford tuition, or
because of old age. The government
expects the literacy rate to reach 99% of
individuals aged 15 to 35 by 2020.
Figure 12: Literacy rate, adult total

5.0 (% of 15-35 age group).
Source: Ministry of Education and Training
1945 2000 2016 2020f

PISA Ranking
PISA is a global study by the Organisation for ranks higher than the OECD average, which
Economic Co-operation and Development includes the US and European countries.
(OECD). It evaluates educational systems by However, sceptics noted that PISA rankings
measuring 15-and-over students’ scholastic normally correlate to the country’s GDP and
performance in mathematics, science, and prosperity, which would make Vietnam an
reading. Vietnam ranked among top performers outlier. One plausible explanation is the fact
in the developing East Asia and Pacific region that the Vietnamese education system is exam-
in 2018 according to the World Bank. Vietnam oriented and theoretical.
525
493 490 495 493 487
Science Math Reading
International Average Vietnam
Figure 13: PISA score of Vietnamese students and International Average in 2018
Source: World Bank

II. Structure of the education system
Age
Doctor of
24 Philosophy Master Equivalent levels Advancing levels
4-6 years 2 years
Higher
22 Education
University Education College Education

4-6 years 3 years
(Non-format Education)
18
Continuing Education
18 Professional Secondary
Upper Secondary School
School 3 years 3-4 years Vocational Training
15
General
Lower Secondary School
Education 4 years 1-5 years
11
Primary School 5 years
6
6 Early
Childhood
Kindergarten
3
Home-schooling
Nursery
3 months
0
Figure 14: National education system of Vietnam, 2014
Vietnam’s education system is divided into five levels:
PRESCHOOL AND KINDERGARTEN PRIMARY SCHOOL
For children aged 3 - 6. This level of education For children aged 6 - 11. The five years
is not compulsory and mostly popular in of primary school constitute the only
major cities such as Ho Chi Minh City, Hanoi, compulsory education in Vietnam. It used to
Hai Phong, Can Tho, Da Nang, Vung Tau, etc. culminate in a final exit examination, which
In the later years children learn the alphabet was abolished in the 2000s.
and basic arithmetic.
LOWER SECONDARY EDUCATION
For children aged 11 - 15. Before 2006, students had to pass the Intermediate Graduation Examination
(IGE) (administered by the local Department of Education and Training) to graduate, which is no longer
required. The Vietnamese government plans to universalise lower secondary education by making
education compulsory for nine years (from grade 1 to 9) by 2020.

UPPER SECONDARY EDUCATION HIGH SCHOOL GRADUATION
EXAMINATION
For students aged 15 - 18. Upper secondary
education culminates with the completion of At the end of grade 12, all high school
Grade 12. Admission to this level is competitive students are required to take the
and requires passing a rigorous entrance National High School Graduation
exam that is used to determine in which Examination, which is centrally
schools students can enrol. Students have to administered by the MOET, to get their
choose between natural sciences or social High School Graduation Certificate.
sciences as the focus of their programme. In 2015, high school graduation and
university entrance exams merged into
a single examination. With their results,
students can either qualify for high
HIGHER EDUCATION school graduation or apply for higher
education. Despite the measures taken to
Institutions of higher education are classified diversify choices for students taking the
into universities (dai hoc), junior colleges exam, pressure on candidates remains
(cao dang) and research institutes (hoc vien). significant. Before 2015, students were
Admission is determined by the students’ defaulted to take a number of subjects
scores in the entrance examination. Admission that varied each year. Such policy
to a public university is considered a great reduced students’ graduation exam
achievement, particularly for those coming results, especially for those who are not
from disadvantaged families or rural areas. specialised in the examined subjects.
Second language
Young Vietnamese are more and more proficient crucial for Vietnam to improve its English learning
in English, the predominant foreign language in system. In that effect, the Vietnamese government
Vietnam. Vietnam ranked 34th on the Education has ordered that public universities implement
First English Proficiency Index in 2017, and 7th English as a second language. Vietnam also plans
among Asian countries. With the launch of the to make English compulsory from grade 3 onward
ASEAN Economic Community and the country’s by 2018. As of the time of this report, English is
desire to compete in a global marketplace, it is mandatory only in upper secondary education.

39 Indonesia 52.15
37 Japan 52.34
36 China 52.45
34 Vietnam 55.43
30 South Korea 55.32

29 Hong Kong 55.81
27 India 56.12
15 Philippines 60.59
13 Malaysia 61.07
5 Singapore 66.03
Rankings Proficiency Bands

Figure 15: Top 10 Asian countries in EF English 2017 Proficiency Results
Source: Education First
Types of educational institutions
Vietnamese schools are divided into two types semi-public (ban cong), people-founded (dan
– public (cong lap) and non-public (ngoai cong lap) and private (tu thuc). The various educational
lap). Amongst non-public institutions, schools establishments are defined in Article 44 of
are further classified into three types, namely Vietnam’s Law on Education as follows:
PUBLIC EDUCATIONAL ESTABLISHMENTS SEMI-PUBLIC EDUCATIONAL

ESTABLISHMENTS
Established and monitored by the State. The
State also nominates their administrators and Set up by the State and mobilises
determines staff quota. The State invests in organisations and individuals in the society
infrastructure and allocates funding for their to jointly invest in infrastructure.
regular expenditure.
PEOPLE-FOUNDED EDUCATIONAL PRIVATE EDUCATIONAL

ESTABLISHMENTS ESTABLISHMENTS
Social or economic organisations that Individuals or groups of individuals that

received permission from the State to set up received permission from the State to set up
an institution with non-State budget capital. and invest in the institution by themselves.
Notwithstanding the distinctions above, all schools use the same curriculum and must operate
according to Vietnamese laws (see more in the section Regulatory and Legal Framework).

THE NUMBER OF INSTITUTIONS AND STUDENTS SEGMENTED BY LEVELS OF EDUCATION
The network of education institutions throughout the country has expanded, thereby offering learning
opportunities for everyone and contributing to the achievement of a learning society.
Higher education 235
Upper secondary 2,391
Secondary 420
Lower secondary 10,155
Basic education 773
Primary 15,052
Pre-Primary education 14,881
Figure 16: Number of institutions by education stage in academic year 2016-2017

Remark: Basic Education includes Primary and Lower Secondary. Secondary includes Lower Secondary and Higher Secondary.
In recent years, the net enrolment rate increased significantly. The high number of students in every
stage of education reached a y-o-y growth of hundreds of thousands of students per year, in part
caused by the implementation of universal secondary education in certain regions.
2016-2017
1,767,879
15,514,259
5,085,635
2015-2016
1,753,174
15,353,785
4,627,316
2014-2015
1,824,328
15,082,381
4,416,852
2013-2014
1,670,025
14,900,686
4,227,047
Pre-primary Education General Education Higher Education
Figure 17: Number of students by education stage


1. PUBLIC SECTOR
Number of schools
Vietnam has a greater number of

2013 2014 2015 2016
public schools than private schools Number of schools
-2014 -2015 -2016 -2017
at all educational levels.
Nursery 17 14 13 13
However, over the past few years, Kindergarten 2,529 2,403 2,315 2,184
public pre-primary schools, Pre-primary 9,585 9,962 10,151 10,397
including nursery, kindergarten, Primary 15,232 15,171 15,145 14,939
and public primary schools have Basic Education 576 570 580 749
declined as the demand was
Lower Secondary 10,268 10,268 10,281 10,124
shifting to private schools.
Secondary 224 235 241 266
Figure 18: Number of schools Upper Secondary 2,062 2,092 2,107 2,110
in public education
Higher Education 156 159 163 170
Number of students
Nevertheless, the number of

2013 2014 2015 2016
Number of students students attending public schools
-2014 -2015 -2016 -2017
at all educational stage is on the rise.
Nursery 438,205 494,387 484,485 477,870
Kindergarten 3,186,387 3,280,109 3,470,478 3,771,612 According to the government,
Primary 7,391,329 7,494,983 7,732,994 7,733,318 pre-primary education achieved
Lower Secondary 4,898,901 5,061,734 5,094,220 5,178,829 a satisfactory enrolment rate in
2016-2017. The enrolment rate for
Upper Secondary 2,318,920 2,264,503 2,250,972 2,290,929
children aged three to five was 92%,
Higher Education 1,493,354 1,596,754 1,520,807 1,523,904 and for children aged five, 98.75%.
Figure 19: Number of students in public education

7,733 7,733
7,391 7,495 Primary
Thousand Students
5,062 5,094 5,179

4,899 Lower Secondary
4,249
3,955 Pre-primary
3,774
3,625
(Nursery & Kindergarten)
2,319 2,265 2,251 2,291

Upper Secondary
1,493 1,597 1,521 1,524
Higher Education
2013-2014 2014-2015 2015-2016 2016-2017
Figure 20: Number of students in each educational level

In the public school system, more students mean larger classrooms. An average public school class has
30 students. As a consequence, students do not always receive sufficient attention.
Unit: Student
Prel.
31.4
2016-2017
2015
30.6
-2016
2014
30.5
-2015
2013
30.4
-2014
2010
-2011 30.2
Figure 21: Average number of general education student per class

Source: General Statistics Office of Vietnam

Facilities
Another downside of the public education 50 years, accounting for 77.1% of total classrooms
system is the state of its facilities. Classrooms, (breaking down to primary 68.7%, lower secondary
teaching facilities as well as libraries of many 85.7%, upper secondary 93.9%). Many schools
public schools are sub-par. Currently, Vietnam in Northeast, Northwest, Central Highlands
has 419,903 classrooms, 323,551 of which are and Southwest, still do not have well-fortified
considered well-fortified and durable for at least classrooms and sufficient teaching equipment.
Tuition fees
According to Decree No. 86/2015/ND-CP, People’s Councils of provinces prescribes the specific annual
tuition fees suitable for their province. The Vietnamese public school system offers a reasonable tuition
fee, as can be seen below:
School year 2017-2018 In Figure 22, Group 1 refers to Ho

Chi Minh City’s urban districts, that
Ho Chi Minh City Group 1 Group 2
(EUR/student (EUR/student/
is, district 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
/month) month) 12, Binh Thanh, Phu Nhuan, Go Vap,
Nursery 7.4 5.2 Tan Binh, Tan Phu, Thu Duc, and Binh
Pre-primary 5.9 3.7
Tan. Group 2 comprises of suburban
districts, such as Binh Chanh, Hoc
Primary Free
Mon, Cu Chi, Can Gio, and Nha Be.
Lower secondary 3.7 3.1
Continuation lower secondary 3.7 3.1 Figure 22: Ho Chi Minh City's tuition
Upper secondary 4.4 3.7 fees of school year 2017-2018
Source: Ho Chi Minh Department of Education
Continuation upper secondary 4.4 3.7 and Training
The tuition fee in Hanoi School year 2017-2018

is divided into three
Hanoi Group 1 Group 2 Group 3
groups: Group 1 for
(EUR/student (EUR/student/ (EUR/student/
urban students; Group /month) month) month)
2 for rural students; and
Nursery
Group 3 for students 4.1 2 0.5
Pre-primary
from minority ethnic
groups. Primary Free
Figure 23: Lowera secondary
Hanoi's tuition fees of Continuation lower secondary
4.1 2 0.5
school year 2017-2018 Upper secondary
Source: Hanoi Department of
Education and Training
Continuation upper secondary

Public primary education became free in July 2014. The government is also considering making lower
secondary education free. Some of the upper secondary schools have already offered gifted students
tuition-free education. Free tuition might become a threat to private education institutions in Vietnam.
Enrolment requirements
Lower and upper secondary schools are either where the school is located (though not in higher
classified as normal or for gifted children. The education). Second, to attend a lower secondary
latter welcome students who have greater school for the gifted, students must achieve high
potentials in social sciences, natural sciences or scores in Mathematics and Vietnamese and take
foreign languages and offer intensive training in an English entrance test. As for enrolling in upper
those particular areas. secondary schools for the gifted, students must
score high on the secondary graduation exam
Public schools have a number of enrolment and write a competitive entrance exam.
requirements. First, students must reside in the area
Curriculum
All public schools in Vietnam, at every level of curriculum for gifted students. The MOET is
education, follow the standard programme planning to introduce English to first and second
prescribed by the MOET. Some top upper grade students. With the current programme,
secondary schools offer additional specialised English only starts in third grade.
Higher education majors’ structure
Business, finance, banking, education, and recently, information technology and foreign languages, are
the favourite majors of Vietnamese students.

Group 7
Humanities, Social sciences and behaviour, Group 1
Journalism news and information, Education science
Social welfare, Hospitality- tourism and Teacher education
-recreation and personal service, 15.5%
20.8% Group 2
Logistics, Environment,
National security and defence 4.4% Art
4.5%
14.7% Group 3
Business and
Group 6 management, Law
5.1%
Health 35.0%
Group 4
Life science,
Natural science
Group 5
Math and statistics,
Computer and information technology,
Engineering technology, Manufacturing and processing,
Architecture and construction, Agriculture-forestry-fishing, Veterinary
Figure 24: Higher education majors' structure in terms of students, 2017

Because the Vietnamese government offers tuition-free education to students majoring in Education,
Group 1 is significant. Group 3, 5, and 7 are the largest groups since the majority of students major in
Business Administration, Health, Law, English, Information Technology, Automotive Engineering or Pre-
primary Education.
New university programs
In recent years, transnational education programmes, advanced programmes and high quality programmes
have flourished.
Name Description Tuition fee Certificate

Offered by the
Based completely on the Ministry of Education An average of
Standard Vietnamese university
and Training’s programme, taught completely in EUR553 to EUR737
programme and is not recognised
Vietnamese, has no foreign professors. per year.
internationally.
Based completely on the programme of the Offered by the
High Quality Ministry of Education and Training, taught partly An average of Vietnamese university
programme in English, has foreign professors, applies modern EUR1,250 per year. and is not recognised
teaching methods of global partner universities. internationally.

Name Description Tuition fee Certificate
Higher entrance scores than High Quality

programme, teaching programme borrowed from Offered by the
Advanced reputable global universities, taught mostly in An average of Vietnamese university
programme English, has foreign professors, modern facilities, EUR2,581 per year. and is not recognised
and has the possibility to transfer abroad for one internationally.
semester or one year.
First 2 years: fees

according to
International programme regularly updated Vietnamese host
Transnational to world’s trends, taught mostly in English, has university. Internationally
programme foreign professors, modern facilities, comprises of
Last 2 years: fees recognised.
(2+2) 2 years in Vietnam and 2 years in foreign partner
university. according to the
foreign partner
university.
Figure 25: Comparison of university programmes
Source: Decree No.86/2015/ND--CP, Ipsos Business Consulting analysis
Post-graduate education
The number of public institutions offering post- programmes in 2010 to eight today. In Ho Chi
graduate programmes has increased over the Minh City and Hanoi, most institutions offer post-
years. According to the MOET, Vietnam had 180 graduate education. A number of universities
institutions offering post-graduate education has started to offer transnational education
in 2017. In the Mekong River Delta, for instance, programme for post-graduate education, such
there used to be only one institution offering a as the Ho Chi Minh City International University,
post-graduate programme. Now, almost every the University of Economics Ho Chi Minh City, the
university in the region offers this possibility. Foreign Trade University, the Academy of Finance,
Similarly, the Southeast region (excluding Ho the University of Finance – Marketing, etc.
Chi Minh City) has gone from two post-graduate

2. PRIVATE SECTOR
There is a huge demand for

2013- 2014- 2015- 2016-
education in Vietnam that the Number of schools
2014 2015 2016 2017
public sector cannot satisfy.
Wealthier families often send their Nursery 9 10 6 5
children to private institutions in
Kindergarten 180 117 127 127
Vietnam or overseas, as they do not
want their children to follow the Pre-primary 1,547 1,697 1,920 2,155
public curriculum which focuses
Primary 105 106 109 113
on rote memorisation and uses
one-way teaching methods. As Basic Education 16 15 17 24
a result, recent years have seen a
Lower Secondary 22 25 31 31
growth in the number of private
schools in pre-primary and general Secondary 130 146 148 154
education, especially in major
Upper Secondary 342 294 292 281
cities. These institutions offer top-
quality education to high-income Higher Education 58 60 60 65
Vietnamese families and expats.
Remark: Basic Education includes Primary Figure 26: Number of schools in private sector
and Lower Secondary. Secondary includes Source: Ministry of Education and Training
Lower Secondary and Higher Secondary
Private institutions charge higher

Number of 2013- 2014- 2015- 2016- tuition fees, which vary drastically
students 2014 2015 2016 2017
based on the quality of the teaching
Nursery 174,776 167,490 164,310 198,189 facilities.
Kindergarten 427,679 474,866 508,043 637,964 Figure 27: Number of students

in private sector
Primary 44,271 48,649 57,015 68,242 Source: Ministry of Education and Training
Lower Secondary 33,489 37,096 44,426 56,695
Upper Secondary 213,776 175,416 174,158 186,246
Higher Education 176,669 227,574 232,367 243,975
Private schools are generally more modern and better equipped than public schools. The private school
system has grown rapidly with the demand, both in quality and quantity. These private schools provide
a variety of learning options for students in major cities.

3. SUPPLEMENTARY SECTOR
Vietnam’s education system also includes a supplementary sector, which complements students’ formal
education by providing extra-curricular activities to develop skills that the formal education system
fails to cover adequately. This sector can be divided into three sub-sectors: language training, private
tutoring, and short courses.
Language training
With Vietnam’s involvement in cross-border resources in learning a second foreign language

trade, cooperation and multi-lateral agreements, to be more competitive at school or on the job
language training has become more and more in marketplace.
demand. Domestic and foreign companies have
higher expectations of language proficiency and Despite this interest, Vietnam does not rank high in
priority is given to candidates who are fluent in terms of language proficiency. Education First ranks
more than one foreign language. The rising interest the country 34th out of 80 surveyed countries in
for overseas study and independent travel has also terms of ability to use English for communication.
driven demand for language courses. Language In Asia, Vietnam ranks 7th after Singapore, Malaysia,
training can be divided into communication the Philippines, India, Hong Kong and South Korea.
classes and preparation classes for international This result confirms that language training in
standardised tests, such as the International English Vietnam is insufficient and more should be done to
Language Testing System (IELTS) or the Test of match up with other countries in the region.
English as a Foreign Language (TOEFL).
As long as the demand for language training
After English, the most popular foreign languages persists and the country’s language performance
are Japanese, Korean and Chinese, according to a remains average, there is market space for entrants
Q&Me survey. More and more young people invest who possess expertise in the field.
Private tutoring
Vietnam has an industry of private tutoring that complements formal education programmes. Based on a
survey by Thanh Nien News of 800 parents in 6 selected cities/provinces (Ho Chi Minh City, Hanoi, Da Nang,
Quang Nam, Can Tho, Binh Dinh), it is reported that nearly 75% of surveyed parents send their children to
tutorial classes after school hours or during weekends.

Supplementing basic curriculum
No 25.4%
Advancing beyond curriculum
Avoiding falling behind peers
Yes
Daycare when parents are too busy
74.6%
31.2%
25.7%
22.3% 21.7% Pressure from teachers
Figure 28: 4.3%

Percentage of parents sending
kids to extra-classes, 2014 Figure 29: Purpose of going to extra-classes, 2014
Source: Thanh Nien News Source: Thanh Nien News
Of these parents, more than 50% attributed the curriculum. Other notable reasons include not
demand for tutorial classes to the belief that wanting their kids to fall behind their peers,
normal school hours are not sufficient; 31.2% of and not having time to take care of them in the
parents want their kids to receive more practise evening. 4.3% of parents reported having to
on the knowledge taught at school; and 25.7% send their kids to tutorial classes under teachers’
want their kids to learn beyond the school pressure.
In the same survey, 39% of parents reported

Teachers' house sending their kids to their teacher’s houses for
tutorial classes, 16.3% to supplementary schools,
and 14.1% to their children’s school.
Figure 30:
Supplementary schools/centers Venues for extra-classes, 2014
Others Source: Thanh Nien News
School Home
39.0%
16.3% 14.1% 17.0%

15.3%
To regulate extra classes and private tutoring, the government issued Circular No. 17/2012/TT-BGDDT.
Some points worth noting are:
Extra classes shall not be provided for elementary students, except for extra-curricular activities, such
as arts, sports, or life skills..”
Extra classes shall not be provided for students who have attended curricular classes for 2 sessions per day.”
A teacher receiving salaries from wage-fund of public service agencies is banned from:
Holding external extra classes unless he/she conducts external extra classes;
Conducting external extra classes for students who are in his/her curricular classes without the
permit of the Head of his/her superior agency.”

Despite the restrictions, extra classes for pre- of the schools, they turn to supplementary
elementary and elementary students persist, due schools. At these centres, there is no monitoring
to parents’ concern that their children may not of whether teachers tutor their own students.
match up with their peers. Certain schools even
cut class hours from a full to a half day in order The extra-class market is dominated by local
to legally conduct extra classes. Moreover, since educators who have a sound understanding of
teachers cannot organise private tutoring classes the Vietnamese curriculum.
but are allowed to conduct extra classes outside
Short courses
Apart from language training and private tutoring, Vietnamese people also take short courses that go
beyond the curricula established by the MOET, such as soft skills, work-related skills, arts, sports, and life
skills.
Life skills, arts and sports courses are usually organised during the summer and with the main purpose of
increasing physical fitness and capabilities. Additionally, a number of parents who cannot take care of their
children during the summer send their kids to summer courses that provide boarding options.
Vietnamese people are increasingly aware of the value of soft skills. This is due to employers’ perception
that university graduates lack tacit knowledge and hands-on experience. Communication skills, teamwork,
computer literacy and responsibility are not adequately taught in universities. Navigos Search, a headhunting
company in Vietnam, commented that the lack of soft skills is the primary reason of unemployment for
recent graduates.
While the workplace becomes more complex and demanding, companies look for candidates with soft
skills in addition to their educational background. The demand for skills training creates many opportunities
for new investors in the field.

4. OVERSEAS STUDY
Since the 1990s Vietnam has been sending students

overseas, first to other Communist countries such
as the Soviet Union, Poland, and Germany, then 130,000
120,000
around the world. More and more Vietnamese 110,000
104,500
students are looking to studying abroad today
to avoid the antiquated Vietnamese curriculum.
According to the MOET, 130,000 Vietnamese
students studied overseas in 2016.
Figure 31:
Number of overseas Vietnamese students,
2013-2016
2013 2014 2015 2016
As a result of the post-Vietnam War immigration

Private tuition fee wave, United States and Australia are popular
charged by tertiary destinations for studying abroad since many
Country Unit institutions to full-time Vietnamese have relatives there. With the rising
foreign students (Bache- middle class in Vietnam, however, studying
lor’s or equivalent) abroad is no longer the privilege of a few very
rich people with foreign relatives. More and more
United States EUR 23,680 Vietnamese households send their children to
more affordable countries, such as Japan, Korea,
Singapore EUR 8,518 and Singapore. Japan is particularly popular
because of its retention of international students
Australia EUR 8.187
after graduation, its huge investments in Vietnam,
Japan EUR 6,827 and its relatively flexible study conditions and low
tuition costs.
South Korea EUR 6,646
Remark: The figures above consist of only the formal tuition
Figure 32: Average private tuition fee in fee charged by private tertiary institutions for Bachelor’s
some countries, academic year 2015-2016 level or equivalent, and do not include additional fees such
Source: OECD, CNBC as housing or textbook. Tuition fees should be interpreted
with caution as they result from the weighted average of the
main tertiary programmes and do not cover all educational
institutions.

Unit: Student
Japan
38,882 38,000
31,000
28,524 Australia
27,550
26,015 United States
28,000
19,000
16,082 16,579
14,726
13,000
2013 2014 2015 2016
Figure 33: Number of Vietnamese students in some countries, 2013-2016

2.4 It is estimated that Vietnamese people spent a total of EUR2.4

billion in overseas study in 2015. As more and more students go
Unit: EUR billion
abroad every year, the figure is expected to continue to grow.
The increasingly affluent Vietnamese are also less dependent
on scholarships, with only 4% of overseas students benefiting
1.5 from government scholarships in 2016, or approximately 5,519
students. The rising income has also changed the distribution
of Vietnamese students in US institutions from predominantly
community colleges to an equal distribution between
community colleges and 4-year institutions.
Figure 34: Total spending of Vietnamese students on

studying abroad, 2013-2015
2013 2015 Source: HSBC
Remark: The figures above consist of all expenses related to studying abroad, including tuition fees, housing fees, living fees,
travelling costs and other additional costs
Overseas study is a rising trend in Vietnam since

2010 2012 2017
the local education system is perceived as inferior
to that of developed countries. It is noteworthy Community college 90% 49% 30%
that many overseas Vietnamese students do not
return to Vietnam after their study. The scale and 4-year institution 23% 30%
impact of this is unknown as there are currently
Others 10%
no statistics on the subject. However, most (including high school, 28% 40%
international students cite Vietnam’s bureaucracy post-graduate, etc)
and lack of employment benefits as their reason
for not returning, especially if their studies abroad Figure 35:
were costly. Proportion of students choosing different
study programmes in the US, 2010-2017
Source: WENR, Capstone Vietnam

III. Market trends
Growing demand for private general education
More and more Vietnamese parents send their children to private primary and lower-secondary schools
because they find the public school curriculum heavy, inflexible and antiquated. Furthermore, public
school children are often forced to attend “extra classes” in order to keep up with their peers, somewhat
offsetting the affordability of those schools. Therefore, parents with rising income prefer private schools,
where the curriculum is lighter and students have free time to develop soft skills and have fun.
Decline in non-public upper secondary schools
While the demand for primary and lower secondary education is rising, there has been a steady decline in
non-public upper secondary education, both in the number of students and the number of schools. This
can be attributed to several factors, such as:
213,776
The quality of certain non-public upper secondary
schools does not match their high tuition fees. This
186,246
raises much concern, especially since high school’s
quality can decide whether a student would get 175,416 174,158
into a good university in the future.
There is increased competition from vocational

schools, which promise more secure jobs and
charge considerably lower tuition fees. 342
294 292 281
Other upper secondary schools are lowering their
entrance benchmark, drawing students away
from non-public schools (which typically do not
require any entrance exam score, if at all).
2013-2014 2014-2015 2015-2016 2016-2017
Figure 36: Number of upper secondary Non-public upper secondary schools
schools and students, 2013-2016 Non-public upper secondary students

More students are going to non-public universities
In the past, non-public universities were regarded as“expensive”and suitable only for people who could not get
into public universities. That perception has changed, and now more students choose to attend non-public
universities. These universities usually provide an international degree, either directly or through twinning
programmes, which satisfy the growing demand for a foreign, high quality education. The curriculum is
more flexible and generally taught in English, which better prepares students to the job marketplace.
232,367 243,975
227,574
176,669
60 60 65
58
2013-2014 2014-2015 2015-2016 2016-2017
Non-public universities Non-public universities students
Figure 37: Number of private universities and students, 2013-2016

Studying abroad gains popularity
Vietnam had 130,000 overseas students in 2016, with a CAGR 13-16 of 7.55%. Vietnamese students ranked
16th in the US, 3rd in Japan, 2nd in Korea, 9th in France and 30th in Germany in terms of number in 2017.
The growing number of study abroad consulting firms also evidences this trend. According to Department
of Training and Education, Ho Chi Minh City had approximately 1,000 studying abroad consulting firms in
2015. In Hanoi, there were 300 registered firms at the end of 2015, double the 2014 figure.

Increasing focus on STEM education
In preparation for Vietnam’s next major education Many supplementary schools and non-private
reform, increasing attention is paid to Science, institutions have added STEM programmes to
Technology, Engineering, and Math (STEM) their curriculum. In 2015, DTT Eduspec launched
education, defined as follows: an after-school programme named “Hoc vien
STEM” (STEM Institution) to help students with a
passion in STEM subjects. FPT Primary schools have
“STEM education is an interdisciplinary
also incorporated STEM into their compulsory
approach to learning where rigorous
curriculum, starting in 2017. The Prime Minister
academic concepts are coupled with real-
has mandated the MOET to incorporate STEM
world lessons as students apply science,
education into the next revision of the national
technology, engineering, and mathematics
curriculum. Currently, 16 primary and lower
in contexts that make connections between
secondary schools are experimenting STEM
school, community, work, and the global
education under the joint supervision of the MOET
enterprise enabling the development of
and the British Council. Many education reformers
STEM literacy and with it the ability to
hope that the STEM model will shift Vietnam’s
compete in the new economy”
national curriculum from theory to practice and
Tsupros, 2009 make Vietnamese’s workforce more competitive
in the future.
Soft skills are a priority
As mentioned earlier, Vietnam’s curriculum doesn’t provide graduates with essential soft skills such as
communication and presentation skills. In the 3rd quarter of 2017, approximately 237,000 recent graduates
were unemployed nationwide, which, many speculate, was caused by their lack of soft skills. Therefore, soft
skills classes and workshops have become popular amongst students who hope to avoid unemployment.

IV. Market drivers
Government’s commitment to education
Education takes 20% of the government’s annual expenditure. Vietnam’s spending on education
constituted 6.3% of its GDP in 2017, the highest among ASEAN nations and higher than that of more
economically developed nations. The country is also working on a major education reform that is
expected to come into effect in 2020.
A society that places great value on education
Rooted in Confucianism, the Vietnamese culture has always valued education. Education is seen as the
ultimate path to success and as a way to fulfil one’s filial duty and make the family proud. Teachers are
highly regarded in Vietnam and parents are willing to go to great lengths to ensure that their children
receive a good education. As the Minister of Education Phung Xuan Nha put it:
“Vietnamese parents can sacrifice everything, sell their houses and land just to give their children an education.”

V. Market barriers
Disparities in access to education
The proportion of out-of-school Unit: %

children is higher in rural areas
39.7
5 years old
and varies among different ethnic
34.5
groups. The Kinh ethnic group – Primary age (6-10)
the major ethnic group in Vietnam Lower secondary age (11-14)
28.4
that includes 80% of the population
24.4
– the Tay, the Thai and the Muong
minority groups have low out-of-
20.6
school children rates, whereas other
18.0
ethnicities have higher rates because
14.2
13.8
13.0
12.9
of poverty and the perception that

11.9
11.0
10.9
10.5
children should work to earn money.
9.7
8.4
8.1
6.2
Figure 38: Percentage of
5.2
4.5
3.6
3.3
3.0
out-of-school children among
2.8
2.6
2.5
1.9
different age groups, regions and

ethnicities in 2014 Urban Rural Kinh Tay Thai Muong Khmer Mong Other
Source:
2014 Global Innovation on Out-of-school children
ethnicities
Low teacher benefit
Despite being highly respected, teachers are not well paid, especially recent graduates. According to the
MOET, teachers with less than 60 months of experience make EUR116.6 to 141.24 per month, which is
lower than the minimum wage of EUR142.14 per month (for labour in sector I - urban areas according to
Decree 141/2017). This drives many well-qualified teachers away from the education sector, and caused the
emergence of “extra classes” as a supplementary source of income for teachers.
Theoretical and antiquated curriculum
Vietnam’s theoretical curriculum may help students fare well in academic competitions and might even
explain why Vietnam achieves high PISA rankings, but it does not make students competitive compared to
their global counterparts. Furthermore, the focus on memorisation is stressful for students and leaves them
with little capacity to develop themselves otherwise. Finally, the scope of knowledge in universities is severely
out-dated.

VI. Opportunities and challenges for European companies
1. OPPORTUNITIES
Favourable demographic
In addition to growing incomes and confidence in the future, Vietnam’s demographics also stand to
have a positive impact on the education market. As of 2017, around 60% of the Vietnam’s population, or
more than 90 million individuals, were under 35 years of age. The enrolment rate of school-aged children
has grown. Moreover, the recent growth in disposable income has allowed parents to better support
their children to acquire the skills and knowledge they need to be competitive in the workplace.
Shortage of high-skilled labour
Despite adding 1 million labourers per year on the job marketplace, Vietnam cannot meet the demand
for high-skilled workers. According to Vietnam Briefing, Vietnam’s labourers rank lower than those of
Thailand, Singapore and Malaysia, and fall behind in language, cognitive, behavioural, and technical skills.
The country faces a major skills gap, and domestic credentials are often not recognised. International
qualifications are regarded as a competitive advantage, and even viewed as essential in some fields.
Government support initiatives
The government continues to be interested in the development of education institutions, whether

private or public, from pre-primary education to vocational training and higher education. Additionally,
new policies were established to regulate the quality of education and to ensure that graduates meet
the needs of the market. Education features prominently in “Vietnam’s Socio-economic Development
Strategy for the period 2011-2020,” which seeks to improve human capital development, increase
enrolment rates in higher education, and modernise the education system.

2. CHALLENGES
Limited scope of investment
Vietnam’s liberalisation of the education sector for foreign investment is limited to selected fields. As of
2017, foreign investment in education was opened to programmes in engineering, natural sciences,
technology, business administration and business science, economics, accounting and international
law, and to language training. Most of these fields are suited for higher education studies.
Opportunities for foreign investments exist but are limited to general education related to early
childcare schools, primary schools and secondary schools.
Enrolment limitations
The number of Vietnamese children who can enrol in foreign- The restrictions placed by this
owned institutions is limited by Decree 73/2012ND-CP (“Decree decree are in contradiction with the
73”), passed on 15th November 2012, as follows: increased demand for international
• 0% for international pre-school; education, making investments in
this field less attractive.
• 10% for primary and secondary international school; and
• 20% or less for international high school.
Licensing
Obtaining licenses is another challenge in Vietnam. In order to Although the process to obtain
operate in the education sector, foreign schools must obtain these licenses is similar, they
three types of licenses: must be obtained separately
• Investment registration certificates and sequentially. And of course,
investors would have to navigate
• A decision permitting the establishment of educational
the Vietnamese bureaucracy.
institutions
• A license for educational activities
Teaching Staff
With regard to staffing requirements, Decree 73 stipulates that foreign teachers must have at least 5
years of experience to teach twinning programmes at Vietnamese or foreign-invested schools, colleges
and universities. At higher education institutions, 60% of courses must be delivered by permanent
teachers, and 80% of teaching staff must hold postgraduate degrees. The percentage of lecturers
with a doctoral degree in foreign colleges and universities must be at least 25% and 35% respectively.
These requirements are difficult to satisfy even for state-owned institutions.

CHAPTER 3
COMPETITIVE LANDSCAPE
Public sector
Private sector
Supplementary sector
Case studies

I. Public sector
Public universities are usually students’ first choice. They are attracted not by the low tuition fees but by the
quality of education and prestige of the degrees. Previously, all public universities had enrolment quota set
by the MOET due to limited funding. This has changed in 2014 when several public universities were given
financial autonomy and allowed to set their own enrolment quota.
II. Pivate sector
No Name Curriculum Fee Ages Description Location

TAS provides a world-class American-
A number of lunch and bus fees
The American based curriculum that promotes high
apply, as does a registration fee and
School of Vietnam standards of academic excellence Ho Chi
annual tuition fees. For a child in 3 to
1 American by enhancing student learning for Minh
theamericanschool. elementary school, the registration 18
leadership in a global world. At TAS, City
edu.vn) fee is EUR1,071 and tuition is
over 20 nationalities are represented
upwards of EUR6,286 annually.
in the faculty and student body.
With over 1,150 students from 40
Australian Application Fee of EUR114 per
countries, AIS is a truly international
International student, an acceptance fee from Ho Chi
IB and 2 to community. At AIS, all students are
2 School Vietnam EUR1,142 to EUR2,285, and then an Minh
IGCSE 18 given a high quality, fully accredited
annual fee starting at EUR11,909 City
(aisvietnam.com) international education across all
(can be paid in instalments).
year levels.
Application Fee of EUR120, then
a Registration fee of EUR2,430 per
child for Primary and Secondary BIS is a selective, independent and
British International school children (this is a one-off fee co-educational day school that Ho Chi
School IB and 2 to
3 paid on entry), followed by a security provides a diverse international Minh
IGCSE 18
(bisvietnam.com) deposit of EUR810 for Primary and education measured by British City
Secondary children. Annual fees standards.
start at EUR15,515 (can be paid in
instalments) from Year 1 (Primary).
European Administration fee of EUR150 per The European International
International student, registration fee of around School Ho Chi Minh City (EIS) Ho Chi
School Ho Chi Minh 2 to
4 IB EUR571 – EUR1,143 depending on focuses on academic excellence, Minh
City 18
children’s age, and an annual fee of multiculturalism and treating each City
(eishcmc.com) up to around EUR17,500 child as an individual.
ISHCMC, the most established
International Admission fee of EUR900 with an international school in the
School of Ho Chi Ho Chi
additional annual development fee. 2 to city, providing a broad-based
5 Minh City IB World Minh
Annual school fees start at EUR14,423 19 international education for
City
(www.ishcmc.com) (can be paid in instalments). approximately 950 students of 49
different nationalities.
Figure 39: List of popular private pre-primary and general education schools
Source: expatarrivals, edarabia, and Ipsos Business Consulting analysis
Remark: List is based on Community Ratings in terms of Curriculum, Quality of Teachers, Campus Facilities, Value for Money on
the Internet.

Fee (excluding Application Year of
No Name Origin Description Location
Fee) entering
RMIT University Vietnam brings a world-class
RMIT University Vietnam
Undergraduate degree education and globalised study environment

to the heart of Asia. We are part of Melbourne-
(rmit.edu.vn)
programs: EUR22,623 – 29,250

Australia
(288 - 384 credits) based university RMIT - Australia’s biggest tertiary Hanoi and
1 2000 institution. RMIT University Vietnam offers programs Ho Chi
Postgraduate degree in business, technology, communication, design Minh
programs: EUR18,900 – 21,359 and fashion, and boasts an impressive range of
USD (144 - 192 credits) extra-curricular activities that encourage students
to break new ground in their areas of interest.
British University Vietnam
provides teaching for
University of London and
British University Vietnam
Staffordshire University British University Vietnam is the first full British

degrees university to offer a range of prestigious UK business
(buv.edu.vn)
degrees delivered entirely in Vietnam. The university

Singapore
- Staffordshire University
Programme (3 years): is committed to providing a world class education
2 2012 Hanoi
EUR23,500 and learning experience for our students. Our 100%
international faculty brings together academics
- University of London with extensive teaching experience as well as
Programme (3 years): practitioner and research capabilities.
EUR27,300
- MBA Programme (2 years):
EUR15,000
(psbcollege.edu.vn)
PSB College Vietnam is the official branch of PSB

PSB College
Vietnam
Undergraduate degree Singapore in Vietnam, and is 100% foreign-invested.

Ho Chi
U.K
3 Programme (15 months): 2003 PSB College Vietnam provides twinning options
Minh
EUR6,400 for bachelor programs, in collaboration with our
partners in Singapore, Australia and the UK.
American University
(auv.edu.vn)
AUV is ideal for those who demand superb

in Vietnam
instruction, advanced career skills, a supportive

U.S
4 Not available 2011 Danang

learning environment, and direct placement for
graduate studies in the USA.
University Vietnam Sciences University Vietnam
(tokyo-human.edu.vn)
Tokyo Human Health
Tokyo Vietnam Medical University, with their

Undergraduate degree: educational philosophy of “Bringing health and
Japan
5 EUR1,930 per year 2016 well-being to everyone”, will bring a lot of human Hung Yen
resources to Vietnam and train professionals who
will be able to provide the best quality.
(fuv.edu.vn)
Fulbright University Vietnam is a private non-profit

Fullbright
Undergraduate degree university in the Saigon Hi-Tech Park in Ho Chi Minh Ho Chi
U.S
6 2016
program (1 year): EUR14,822 City, Vietnam. It is one of Vietnam’s first private, non- Minh
profit institutions of higher education.
Figure 40: List of top private universities in Vietnam Source: expatarrivals, edarabia, and Ipsos Business Consulting analysis
Remark: List is based on Community Ratings in terms of Curriculum, Quality of Teachers, Campus Facilities, Value for Money on the Internet.

III. Supplementary sector
The most popular English language training centres are ILA, ACET, VUS, KTDC and British Council, with
the highest number Facebook likes, according to Q&Me. Meanwhile, the providers with the largest
coverage in terms of number of branches are Apax (with 50 branches), Than Dong (32), ILA (31), Apollo
(28), and VUS (23).
ACET ILA VUS KTDC British Council
(acet.edu.vn) (ila.edu.vn) (vus.edu.vn) (ktdcgroup.vn) (britishcouncil.vn)
ACET is an ILA is an English

VUS specialises in British Council
Australia-based language training Founded in 2009,
English courses provides a vast
education provider that KTDC focuses
for all groups, array of services
organisation, has existed on providing
ranging from in language
which provides since 2001, courses for IELTS
kids to adults training, UK
Description language specialising in preparation and
and corporates. education
training, courses for both business English.
The centre also promotion,
standardised communication KTDC also
provides test cultural
tests, and and test provides overseas
preparation exchange, and
overseas study preparation study consulting.
courses. capacity building.
consulting. purposes.
Facebook likes
139,746 47,187 190,836 7,496 198,175
(as of 5 May)
Number of
4 37 13 2 5
centres
Hanoi Hanoi
Location Nationwide Nationwide Ho Chi Minh
and Ho Chi Minh and Ho Chi Minh
Academic English
TOEFL, IELTS IELTS
Communication
Academic English Academic English
English
IELTS Communication Communication
Course Corporate IELTS
Academic English English English
training
Corporate Corporate
Summer abroad
training training
study
Cost of basic IELTS

training 7.82 7.63 3.78 5.49 10.00
(EUR per hour)
Native and Native and Native and

Teacher Native only Native only
Vietnamese Vietnamese Vietnamese
Figure 41: Top popular English centres based on Facebook likes, 2015
Source: Q&Me, Ipsos Business Consulting analysis
Remark: Tuition fee is based on most basic IELTS course. Upon completion, learners are expected to achieve the score band 4.5 – 5.5.

I Can Read 17
Saigon Vina 18
AMA 20
Cleverlearn 20
Outerspace 20
Apollo 28
Than Dong 32
ILA 37
Apax 50
Figure 42: Top English centres with most branches, 2015

Source: Q&Me
The market for English training can

be also be divided by tuition fee. VATC 3.2
The high-end segment comprises VUS 3.2
of centres charging hourly rates
Outerspace 4.1
above EUR5.67. The middle segment
AMA 4.9
charges EUR3.24 – 5.67 per hour,
while the low-end segment charges KTDC 5.5
below EUR3.24 per hour. YOLA 6.5
Apollo 6.5
Figure 43: ACET 7.3
Average listed tuition of English
ILA 8.1
centres, 2015
Source: Q&Me, Ipsos Business Consulting analysis Wall Street English 8.9
British Council 10.0
Within the high-end segment, ILA

Apax RMIT ILA currently holds the majority of the
I Can Read market shares (42%) and the lead
3% position in the market. Following
ACET 4% 4%
6% ILA are Wall Street English (15% of
Apollo market share), YOLA (10%), British
8% 42% Wall
Street Council and Apollo (8% each).
8%
British English
Council 10% Figure 44:
15%
Market shares in terms of sales of
high-end English centres, 2015
YOLA Source: Q&Me

Source: Fusion Resorts’ Website
IV. Case studies
1. VINSCHOOL
Established in April 2013, Vinschool started out as a not-for-profit education

service provider in Hanoi and was committed to dedicate 100% of its profits to re-
investment. The school is an affiliate of VinGroup, a conglomerate operating in real
estate, retail, tourism and entertainment, and healthcare. A venture of VinGroup,
Vinschool received EUR4.86 billion in chartered capital and is under full ownership
of VinGroup. Vinschool possesses certain advantages over other local private schools
in Vietnam. For example, Vinschool is able to partner with other members of the
VinGroup conglomerate to organise career orientation programmes for its students.
Figure 45: Vinschool's logo and website

Source: Vinschool
Figure 46: Vinschool's five core values

Source: Vinschool
The school enjoys generous tax incentives from After 5 years of operation, Vinschool has a
the government. In its first 4 years of operation, wide network of schools consisting of twelve
Vinschool was exempt from corporate income kindergartens, one primary school, one high
tax, and in the subsequent 5 years, enjoyed a school and two K-12 schools. Admission is
50% exemption from tax payable. Vinschool highly selective and requires students to submit
only started paying the full corporate income academic records and pass a unique entrance
tax rate, equivalent to 10% per annum, after this exam administered by the school. In addition,
period. priority is given to students who have attended
another Vinschool, whose family resides in
In its first year, Vinschool provided kindergarten VinHomes residences, or who are relatives of
education to 1,500 students exclusively. In its VinGroup employees.
second year, it expanded its operations to K-12
education with 6,300 students and recorded Vinschool’s education philosophy builds upon
its first profit. In 2017, Vinschool expanded its five core values: inquisitiveness, proactiveness,
network to Ho Chi Minh City with its Central integrity, caring, and respect. Its curricula
Park campus and changed its status from not- centres on five foci: knowledge, English,
for-profit to non-profit. The distinction is in the physique, arts, and soft skills. Once admitted
tuition fee structure, which is set by dividing the to the school, students choose between two
expected expenses by the expected number pathways: Vietnamese university preparation
of students, leaving no margin. Any loss would or overseas study. Vinschool’s tuition fees range
be marked up by VinGroup. This demonstrates between EUR268 and EUR418 per academic year
Vinschool’s commitment to non-profit making. depending on the level.
2013 2014 2015 2016 2017
Established as a Expanded to K-12

Award from the Award from the Expanded to Ho
not-for-profit school education system
Ministry of Ministry of Chi Minh with its
Education and Education and Central Park
Training for Training for campus
excellent excellent
Focused on Number of students: achievement in achievement in
kindergarten 6,300 implementing implementing
comprehensive comprehensive Changed to
education model education model non-profit
Number of students:
1,500 Number of students:
13,000
EUR14.4 million
No revenue EUR8.2 million EUR18.4 million EUR25.6 million
in the first 6 months
Figure 47: Vinschool's development over the 2013-2017 period
Source: Vinschool, Ipsos Business Consulting analysis

2. VIETNAMESE-GERMAN UNIVERSITY
First imagined in 2005, the Vietnamese-German University (VGU) launched in 2008 in Binh
Duong, a province adjacent to Ho Chi Minh City. VGU was a collaboration between Herr
Udo Corts, Hessen State Minister of Higher Education, Research and the Arts (HMWK), and
Dr. Nguyen Thien Nhan, MOET. This initiative soon became a German-wide cooperation
and broadened its stakeholder network to include the Federal Ministry of Education
and Research (BMBF), the Ministry of Higher Education, Research and the Arts in Baden-
Wuerttemberg (MWK), as well as the German Academic Exchange Service (DAAD), the
World University Service (WUS) and the VGU-Consortium. VGU is now recognised as the
world’s fourth largest bi-national university with German participation.
Figure 48:
Vietnamese-German University's
logo and website
Source: Vietnamese-German University

In the 2016-17 academic year, VGU had a body of nearly 1,200 students. With a new construction
project scheduled to conclude in late 2018, the university expects to have capacity to host up to 12,000
undergraduate and postgraduate students. There are two admission periods for undergraduate students
in May and July, and one in September for postgraduate students. For both levels, students must submit
previous academic records and take an entrance test. German is not required upon admission, but the
entrance examination tests English proficiency.
Below are the programmes offered by VGU and its German partner institutions:
Level of qualification Program German partner institution
Electrical Engineering and

Frankfurt University of Applied Sciences
Information Technology
Frankfurt University of Applied Sciences, TH Köln
Computer Science
and Bonn-Rhein-Sieg University of Applied Sciences
Bachelor
Ruhr-University Bochum and
Mechanical Engineering
Otto-von-Guericke University Magdeburg
Business Administration Goethe University Frankfurt
Finance and Accounting Goethe University Frankfurt
Computational Engineering Ruhr University Bochum
Mechatronics and Sensor
Hochschule Karhsruhe
Systems Technology
Sustainable Urban
TU Darmstadt
Development
Master
Global Production Engineering
TU Berlin
and Management
University of Science of Furtwagen and
Business Information System
University of Science of Heilbronn
SEPT MBA Leipzig University
Figure 49: Programmes offered by VGU, 2018
Source: Vietnamese-German University
VGU’s seeks to provide world-class and well- scholarship-funded study visits to its German
recognised qualifications to its students. partner universities.
Teaching is conducted by visiting guest lecturers
from Germany and high-ranking Vietnamese VGU’s programmes and curricula are delivered
lecturers with international experience. With its in cooperation with German partner universities,
close relationship with the German industry, VGU following German degree programmes. Upon
is able to establish research collaborations and completion, students receive German degrees,
knowledge exchanges between Vietnam and which are recognised worldwide. Besides English,
Germany. In 2010, VGU’s first research centre was the main language of instruction, students
founded, in conjunction with TU Darmstadt and are required to complete at least 4 courses of
the University of Transport and Communications. German language, equivalent to a B1 level on
VGU’s wide network also allows students to take the CEFR framework.

3. BRITISH COUNCIL VIETNAM
British Council (BC) Vietnam promotes UK’s culture, language and education in
Vietnam. With a presence in Hanoi and Ho Chi Minh City (3 teaching centres in
Hanoi and 2 in Ho Chi Minh), BC Vietnam covers a vast array of services in language
training, UK education promotion, cultural exchange, and capacity building.
Figure 50:
British Council Vietnam's
logo and website
Source: British Council Vietnam
BC Vietnam was founded in 1993 as the cultural the coordinator of two prestigious British
section of the British Embassy in Hanoi. It scholarships, the Chevening Scholaship and
has many achievements and has made great the Technical Cooperation Training (TCT). It
contributions to the UK – Vietnam relations expanded to Ho Chi Minh City in 1997. In 1999,
since its foundation. In 1995, BC Vietnam was BC Vietnam started promoting UK education and

in 2000 held the first Education UK Exhibition,
which welcomed 4,500 visitors. In 2001, BC
Vietnam became independent from the British
Embassy. Until 2002, BC Vietnam worked mainly
with Vietnamese universities, institutions, and
government officials; after 2002, it became open
to public members and started its first English
language teaching courses in Hanoi and Ho Chi
Minh City. In 2009, the government awarded
BC Vietnam the status of ‘Foreign Independent
Cultural, Education and Non-Profit Organisation’
in recognition of its work in Vietnam.
BC played a key role in the establishment of the

Vietnam-UK International Standards University
under a Memorandum of Understanding
between the two countries, and launched the
Vietnam-UK Institute for Research and Executive
Education. In 2016-2017, 13,000 students studied
at BC Vietnam’s language centres, 2,500 English
teachers participated in its programme for
language instructors, and 72 government officials
received full-time language training.
Today, BC Vietnam is renowned for its high-quality

language training and the promotion of UK culture.
Its language centres provide English courses
for general purpose as well as for standardised
test preparation (e.g., IELTS, GCSE, and A-level
test), targeting youth, adults and the corporate Figure 51: British Council Vietnam's
sector. BC offers a resourceful online learning LearnEnglish website
system, comprising of the LearnEnglish website Source: British Council's LearnEnglish
(learnenglish.britishcouncil.org) and mobile
applications. It also serves as the authorised test university profiles, information on the application
centre for the IELTS, GCSE, and A-level tests. BC process, and scholarships and financial support.
also supports teachers with is Virtual Teacher BC hosts education fairs and alumni functions and
Support website. works extensively in arts and creative industries,
capacity building and community projects in
In addition to language training, BC Vietnam Vietnam.
carries out activities to promote UK-Vietnam After 25 years in the country, BC Vietnam has gone
relations as well as UK culture and education. from a language training centre to a one-stop shop
Interested readers can consult BC’s online for academic exchange and cultural promotion, as
resources for studying in the UK, including well as a highly recognised capacity builder and
information on living and studying abroad, partner to the government of Vietnam.

CHAPTER 4
PROFILE OF
END CONSUMER
In 2015 - 2016, the National Centre for Socio-
110
Economic Information and Forecast surveyed
households with children attending school in Unit: EUR/child/month
six provinces/cities (Hanoi, Phu Tho, Thanh Hoa,
Ha Tinh, Dong Nai and Ho Chi Minh). The total
number of households surveyed was 3,200.
Results have shown that Vietnamese household’s
spending on education is relatively high. On
average, a household spends about EUR93 per
41
child monthly, with households in urban cities
spending 2.7 times more than those in rural areas
(EUR110 to EUR41 per child per month). The
average household’s education spending rate was
34.7%, higher in urban cities than in rural areas
(35.5% compared to 30.5%). Education spending
rates in Hanoi and Ho Chi Minh City are similar
Rural Urban
and the highest amongst the six provinces/cities
(about 36.5%). Ho Chi Minh City has the highest Figure 52: Urban-rural spending on education, 2016
average expenditure of the six provinces/cities Source: National Centre for Socio-Economic Information and Forecast
(EUR125 per child each month); Hanoi came
Methodology: Survey was conducted on 3,200 households
second (EUR100 per child each month). in six cities/provinces in Vietnam (Hanoi, Phu Tho, Thanh Hoa,
Ha Tinh, Dong Nai and Ho Chi Minh).
Education accounts for the major part of Vietnamese household’s expenditures. In the urban areas such
as Ho Chi Minh City, it was recorded in 2016 that nearly 500,000 out of almost 600,000 primary students
were taking foreign language supplementary classes, mainly in English (accounting for 50%). Another
10,000 students were learning other foreign languages such as French, Japanese, Korean, Spanish, and
Chinese. The reasons for this include genuine learning demand from students, insufficient curriculum
coverage, teachers making a living due to low salary and high expectations from parents.
Datasection Vietnam conducted a data mining research of online forums and found that most people
take English classes for work purposes, that is, job interviews, communication with customers, and
travel. This is great news for centres focusing on teaching Communication English.
Other 8.9%
IELTS test 3.4%
University entrance exam 4.4%
TOEIC test 4.7%
Enhance 6.9%
Basic knowledge 8.9%
Communication at work 62.8%
Figure 53: Reasons for studying English, 2016

Source: Datasection Vietnam
Methodology: Online data mining and analysis of online discussion threads on related topics.

When choosing an English centre, people list as their top priority flexible schedules for a variety of levels.
Trial classes 12.1%
Location 12.5%
Program 16.8%
Fees 17.2%
Time
26.4%
Figure 54: Top 5 criteria for choosing an English school, 2016

Source: Datasection Vietnam
Methodology: Online data mining and analysis of online discussion threads on related topics.

CHAPTER 5
REGULATORY AND
LEGAL FRAMEWORK
Laws and regulations on education in Vietnam
Legal framework for foreign investors
Relevance and Impact of EVFTA

I. Laws and regulations on education in Vietnam
The Law on Education 2005, the Law on education and continuing education. The MOET’s
Vocational Training 2006 and the Law on Higher responsibilities cover a vast array of aspects in
Education 2012 constitute the legal framework education, from education policy to curriculum,
for education institutions that operate in Vietnam. textbook, student enrolment and management,
The first two laws set out the education system assessment procedure and quality assurance,
structure, quality assurance mechanisms, levels infrastructure and facility, and staffing. Moreover,
of qualification, objectives, duration, and syllabi the MOET is in charge of education development
for both education and vocational training. The plans and policy proposals related to education.
Law on Higher Education 2012 governs tertiary- In short, the MOET is the highest authority in the
and-above education, and deals with quality field of education in Vietnam.
assurance, research, scope of universities, and
classification and ranking. Beside laws on general education, investors
should also refer to laws on supplementary
The MOET is the government body responsible education, such as the Vietnam’s Language
for the governance of all education and Proficiency Framework, Circular 17/2012/TT-
vocational training activities in Vietnam. The BGDĐT on private tutoring, and Circular 04/2014/
MOET’s centralised authority covers every level TT-BGDĐT on Promulgating the Regulation on the
of education in the country, including pre-school, management of life skills education and extra-
general education, professional education, tertiary curricular educational activities.
II. Legal framework for foreign investors
Foreign cooperation and investment
The most important regulation for foreign and kindergartens, twinning programmes, and
investors is Decree No.73/2012/ND-CP, which representative offices of foreign education
specifies requirements for foreign-invested institutions. The decree is being reviewed to
education institutions about chartered capital, include quality assurance mechanisms for
facility, curriculum and teaching staff. This decree tertiary education. The proposed changes are
applies to education and vocational training, outlined in Figure 55 on the next page.
foreign-invested tertiary institutions, schools

Decree No.73/2012/ND-CP on
the foreign cooperation and Draft decree on foreign investment in education
investment in education
Minimum required
300 billion VND 1,000 billion VND
investment capital
Each school will determine the proportions of
Children under 5: Not admitted
Limits on number of international and domestic students. Foreign-
Primary & middle school: Not
enrolled Vietnamese invested institutions are required to include a
exceeding 10%
students basic Vietnamese curriculum such as Vietnamese
High school: Not exceeding 20%
language, history, geography and culture.
Institutions with registered plan
to operate for more than 20 years Foreign investors are allowed to use existing
Facilities
need to establish their own facility education facilities.
prior to recruiting students.
80% of instructors must hold a All instructors are required to hold a master’s
Qualifications of master’s degree or higher.
degree or higher.
instructors in HEIs 35% of instructors must hold a
doctorate. 50% of instructors must hold a doctorate.
Types of legal Foreign-invested institutions are Foreign-invested institutions are affiliates of the
entities Vietnamese legal entities. investment entities.
Figure 55: Proposed changes to Decree 73/2012/ND-CP

On investment and enterprise
The Law on Investment 2014 considers education and vocational training a priority and offers the
following incentives for foreign investments:
• 10% CIT for entire life of the project

• 4 years of CIT exemption
• 5 years of 50% reduction on payable CIT
Meanwhile, the Law on Enterprises 2014 defines different entity structures for foreign education
institutions:
• 100% foreign-owned institutions: An entity that receives 100% capital from the foreign investor(s).
• Joint venture: An entity jointly established by one foreign and one Vietnamese investor.
• Business cooperation contract: Most frequent form of foreign investment in education in Vietnam, in
which foreign investors cooperate with Vietnamese investors without the need to create a new entity.
• Representative office: A cooperation form that allows foreign institutions to build local relationships and
investigate the market prior to its official entry into the market.

On education programmes, curriculum and textbooks
Foreign investors should also note that the MOET Government’s Decree No. 75/2006/ND-CP of
has the authority to regulate the programmes, August 2, 2006, Detailing and Guiding a number
curricula and textbooks used in general education, of articles of the Education Law. At the higher
according to Decree 31/2011/ND-CP on Amending education level, MOET mandates compulsory units
and supplementing a number of articles of the without clearly specifying which ones.
III. Relevance and Impact of EVFTA

In response to the demand for high-quality, world-class education in Vietnam, many foreign investors,
including European companies, are looking to enter the market. The EU-Vietnam Free Trade Agreement
(EVFTA), which is set to come into force in 2018, is aligned with the Most-Favoured Nation principle.
Accordingly, if a World Trade Organisation (WTO) member offers lower customs duty to another country,
this favourable treatment must be applied to all other members of the WTO. As such, European countries
can expect to be treated at no disadvantage to other countries.
It should be noted, nonetheless, that Vietnam’s education field is not fully open to foreign investors. The
higher education space is restricted to a number of selected disciplines, i.e., engineering, natural sciences,
technology, business administration, business science, economics, accounting, international law, and
language training. Other fields such as medicine, civil law, policy, etc., are not yet open to foreign investors.
In the general education space (from pre-school to high school), the government places restrictions on the
number of Vietnamese students that foreign-owned institutions can recruit, as per Decree No.73/2012/ND-CP.
Level of institutions Regulation

Vietnamese children under five years of age are not allowed to enrol in foreign
Pre-school
education programmes
Primary and middle school 10 per cent limit on Vietnamese pupils
High school 20 per cent limit on Vietnamese pupils
No limitation on the percentage of Vietnamese students at foreign-invested
Tertiary
universities and colleges
Figure 56: Enrolment of Vietnamese students into foreign-invested education institutions

according to Decree 73/2012/ND-CP.
To see the complete tariff schedule under the EVFTA, please follow this link:
http://wtocenter.vn/content/full-text-vietnam-eu-free-trade-agreement-evfta

Summary
Vietnam’s education industry is dominated by public institutions. However, Vietnamese people find the
private sector and overseas institutions more and more appealing. They are also looking to enhance their
profile by taking supplementary language and soft skills courses. Noteworthy trends in education
include a growing demand for non-public general education and non-public higher education, more
interest in overseas study, a rising attention to STEM education, and more emphasis on soft skills training.
Overall, Vietnam is a promising destination for education investments. Interested investors will benefit
from the government’s support, Vietnamese’s favourable attitude towards education, and rising
spending on education throughout the country. As of 2017, the government’s spending on education
reached 6.3% of the total GDP and accounted for 20% of public expenditure. A major education reform
is expected in 2020. Meanwhile, Vietnam’s demographics is favourable to foreign education investors:
people place great value on education, and parents are willing to go to great lengths to get adequate
education for their children. The population is young and enjoys higher disposable income, which can
be spent on education services.
At the same time, foreign investors should be aware of a few caveats. Vietnam has only opened a few
selected fields of education to foreign investments. The government does not allow children under 5 to
attend foreign-invested pre-schools. It also restricts the recruitment of Vietnamese students in primary
and secondary schools. Applying for the required licenses is a lengthy and bureaucratic process. Finally,
instructors in foreign-invested higher education institutions must have 5 years of teaching experience
and 80% of the teaching staff must have postgraduate degrees.
A few laws and regulations should be kept in mind when investing in education in Vietnam. The Law on
Education 2005, Law on Vocational Training 2006, and Law on Higher Education 2012 set out the legal
foundations for Vietnam’s education system. The MOET is the centralised authority for education policy
and planning in the country. Any programme structure, curriculum and textbook is regulated by the
MOET, and the government mandates compulsory units in higher education. Investors should also be
mindful of Decree 73/2012/ND-CP on the foreign cooperation and investment education and its new
draft, which is expected to be adopted soon. Finally, investors should refer to the Law on Investment
2014 and the Law on Enterprises 2014 for investment incentive and market entry forms.

LIST OF TRADE FAIRS AND EXHIBITIONS
Name & Content Time Venue Organiser
Vietnam Global Education Fair Danang, Hanoi,

(https://vietnam.globaleducationfairs.net) Ho Chi Minh City
International higher education HCMC: Sheraton
Annually BMI Media
Saigon Hotel
HN: Pullman
Hanoi Hotel
GSE-beo International Education Fairs

(http://www.beo-corp.com/services/exhibitions.html#201705) Hanoi,
International higher education Annually GSE-beo
Ho Chi Minh City
Vietnam Education Conference

(http://vec2018.vn/home) National
Assembly’s
Improving Vietnam’s education Committee
Annually Hanoi for Culture,
Education, Youth
and Children
(CCE)
SEAMEO International Conference on TESOL

(http://www.vnseameo.org/events/9th-annual-international-
conference-on-tesol-breakthroughs-in-english-language-
teaching-in-the-21st-century/)
Improving Vietnam’s education
Annually Ho Chi Minh City SEAMEO RETRAC

SEAMEO International Conference
(http://www.vnseameo.org/InternationalConference2018/)
Improving Vietnam’s education
Annually in
Ho Chi Minh City SEAMEO RETRAC
July
EduExpos
(http://eduexpos.edufindme.com/)
Hanoi and FPP EDU Media
International Higher Education Annually in
and EDUFINDME.
Spring Ho Chi Minh City com
StudyUSA Higher Education Fair

(http://recruit.capstonevietnam.com/) Big cities
US Higher Education including Hanoi,
Capstone
Bi-annually HCMC, Da Nang,
Vietnam
Hai Phong and
Nha Trang
International Higher Education Day in Vietnam

(http://vied.vn/en/)
International Higher Education Vietnam
International
Hanoi and Ho
Annually Education
Chi Minh City
Development
(VIED)
Study UK Exhibition
(https://www.britishcouncil.vn/en/study-uk)
UK Education
Big cities
including Hanoi,
Annually British Council
Hai Phong, Da
Nang and HCMC

New Zealand Education Fair
(https://www.studyinnewzealand.govt.nz/)
New Zealand Education Hanoi and Education New
Annually
Ho Chi Minh City Zealand
Canada Education Fair

(https://vietnam.canada-edu.org/trang-chu/hoi-thao-trien-lam.html) Embassy of
Canada Education Hanoi, Da Nang Canada and
Annually and Ho Chi Minh Consulate
City General of
Canada

MAIN ONLINE AND PRINTED PUBLICATIONS
PwC’s Report Spotlight on Vietnam: General Statistics of Vietnam’s Report Technavio’s Report on K-12 Education
The leading emerging market Vietnam Yearbook 2016 – Education Technology Market in ASEAN
UNESCO’s Reports on Higher Asian Development Bank’s Reports HSBC’s Reports on ASEAN
Education in Asia: Expanding Out, on Viet Nam: Preparing the Higher Connected
Expanding Up Education Sector Development Project
Australian Government’s Overview Hogan Lovells’ Report on The Consulate General of Canada
on the Legal Framework affecting Vietnamese Higher Education: in Ho Chi Minh City’s Report on
the Provision of Foreign Education Opportunities and Challenges for International Education Market in
in Vietnam foreign institutions Vietnam

USEFUL CONTACTS
Ministries and Administrations:
Ministry of Education and Training (MOET)
35 Dai Co Viet, Hoan Kiem District, Hanoi, Vietnam
Phone: +84 243 869 5144
Website: https://www.moet.gov.vn
Vietnam International Education Cooperation Department (VIED)

21 Le Thanh Tong, Hoan Kiem District, Hanoi, Vietnam
Phone: +84 243 933 5795
Website: http://vied.vn/en/
Associations:
Vietnam Association for Education for All (VAEFA)

7th floor, 27 Huynh Thuc Khang, Dong Da District, Hanoi, Vietnam
Phone: +84 243 773 5303
Website: http://vaefa.edu.vn

REFERENCES
REPORTS AND PUBLICATIONS
ADB. (2010). Viet Nam: Preparing the Higher Education Sector Development Project (HESDP).
Education First. (2017). EF English Proficiency Index.
https://www.ef.com/__/~/media/centralefcom/epi/downloads/full-reports/v7/ef-epi-2017-english.pdf
European Chamber of Commerce in Vietnam. (2018). Whitebook 2018.
https://www.eurochamvn.org/Whitebook
General Statistics Office Vietnam. (2016). Vietnam Education Yearbook.
Hogan Lovells. (2018). Vietnamese higher education: Opportunities and challenges for foreign
institutions 22 January .
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EDUCATION

EU-Vietnam Business Network (EVBN) General Statistics Office of Vietnam:

EVBN Education in Vietnam 2

Chapter 1: Vietnam Overview Chapter 4: Proﬁle of End Consumer 53

EVBN Education in Vietnam 3

EVBN Education in Vietnam 4

EVBN Education in Vietnam 5

EVBN Education in Vietnam 6

EVBN Education in Vietnam 7

Structure of consumption expenditures

Vietnam comprises a landmass of 330,972.4 km2,

Image from www.wikipedia.org

Figure 1: Map of Vietnam with key cities

EVBN Education in Vietnam 10

Although Vietnam remains predominantly

EVBN Education in Vietnam 11

Gross Domestic Product

Nominal GDP (EUR bn) Real GDP growth (%)

Figure 4: Nominal GDP and Real GDP growth, 2013-20f

Figure 5: Nominal GDP per capita, 2013-20f

EVBN Education in Vietnam 12

(€ mn) In 2017, Vietnam received a

(Unit: EUR mn)

Bac Ninh 2,640.6

Thanh Hoa 2,563.8

Khanh Hoa 2,104.7

Binh Duong 2,003.5

Figure 7: Total registered FDI capital by provinces, 2017

EVBN Education in Vietnam 13

Figure 8: Structure of consumption expenditure, 2013-22f

EVBN Education in Vietnam 14

Structure of education system

Opportunities and challenges for European companies

Education has always played a central Share of education in GDP (%)

The government of Vietnam spends

Figure 9: Share of Education in GDP and Government

% In 2017, education received EUR7.7

Programme for International Student

Figure 10: Government expenditure

Figure 11 shows an optimistic picture of %

% Vietnam has made strides in literacy

Figure 12: Literacy rate, adult total

1945 2000 2016 2020f

EVBN Education in Vietnam 17

Science Math Reading

International Average Vietnam

EVBN Education in Vietnam 18

University Education College Education

Vietnam’s education system is divided into five levels:

PRESCHOOL AND KINDERGARTEN PRIMARY SCHOOL

LOWER SECONDARY EDUCATION

EVBN Education in Vietnam 19

EVBN Education in Vietnam 20

30 South Korea 55.32

Rankings Proﬁciency Bands

Types of educational institutions

PUBLIC EDUCATIONAL ESTABLISHMENTS SEMI-PUBLIC EDUCATIONAL

PEOPLE-FOUNDED EDUCATIONAL PRIVATE EDUCATIONAL

Social or economic organisations that Individuals or groups of individuals that

EVBN Education in Vietnam 21

Higher education 235

Upper secondary 2,391

Lower secondary 10,155