MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

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FINAL ASSIGNMENT

TOPIC:
Write a literature of about 3000 words to discuss the impacts of the
increased cost of college on students in Vietnam.

NAME: Nguyễn Anh Phương

STUDENT ID: 11236946
SUBJECT: Eng100
CLASS: International Business
Management 65B_AEP
LECTURER: Đỗ Thị Kiều Loan, M.A

Hanoi, 2024
 Abstract
In recent years, students and parents all around the world have expressed serious
concerns regarding the increasing college tuition fees. As the financial burden on students
in regards to the surge of college expenses intensifies, a great number of scholars began to
conduct studies and reports covering this worrisome problem. Their findings implicate
detrimental effects on students’ mental and financial well-being, leading to some heavily
dreaded outcomes such as students dropping out of school, or a decline in the labor
quality of the workforce. Additionally, research shows that educational inequity adversely
affects marginalized groups, further stretching the already large socio-economic gap. In
Vietnam, where the education and economy scenes are interdependent to each other, it is
rightfully argued that the consequences of this trend must be acknowledged. This review
of literature synthesizes findings from numerous studies, using these findings to bring
awareness and recommend solutions to the problem.

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 Introduction
It is without a doubt that Vietnam is a country that honors education since the start
of its history. Following their ancestors’ footsteps, the Vietnamese people now possess an
unceasing fondness for learning and a constant thirst for knowledge. A prominent
example of this is more and more families are choosing to send their children abroad in
hope that their children could be exposed to a more internationalized education. There are
3.6% of undergraduate students enrolling to study abroad. This number, according to
Professor Le Anh Vinh claims, is considered to be average in comparison with countries
with the same number of college students, but it has proved to be growing more rapidly
compared to other countries in the region. In an economical point of view, as a country
that is in the developing process, education plays a pivotal part in changing the overall
scope of the Vietnam economy. This proves to be particularly true in the nation’s today’s
developing state, where education and economy go hand in hand with each other.

With a goal of universalizing education in the nation, prior to 1993, the

Vietnamese educational system did not charge tuition fees. If there were any additional
expenses, they were mostly for facility or graduation - factors that were considered
insignificant in comparison to the average household earnings. Since the emergence of
Decision No. 220-Ttg in 1993, there has been a steady increase in the cost of tuition. The
Decision was met with controversial arguments, as the quality of higher education has not
improved to go along with the additional price students now have to pay (Postiglione,
2011). Furthermore, in 2018, the employment rate among those graduated was at a mere
number of 65.5% (VNIES, n.d). This number stirred up a wave of opposition to the rising
amount of college fees from the people of Vietnam. Questions were raised about whether
the Government of Vietnam is doing the right thing, and numerous reports on its impacts
on Vietnamese students have emerged.

One of the reasons why tuition fees are getting more and more expensive is the
Ministry of Finance’s decisions regarding the budget spent for college education. It is
reported that in recent years, the Ministry takes out 0.18% of GDP to fund college
education each year. That fund only takes up 4.6% of total revenue for education as a
whole (Phạm, 2020). Without sufficient government support, along with the needs to
catch up with international development and modernization, institutions have had to make
profits off of attending pupils. This is the evolvement of postsecondary institutions from
being funded by the Government to being financially independent. It is noteworthy that
while it gives the impressions that universities are now entirely independent from the
Government, it is not the case. The Government are still implementing funding policies
for colleges and universities, but the School Boards are now in charge of directing where
the funds and revenue go.

In the Letter addressed to Students in the first Opening Ceremonies since the birth
of the Democratic Republic of Vietnam, President Ho Chi Minh wrote: Whether or not
will the land of Vietnam blossom, whether or not will our people achieve glory and be
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side by side with other great nations, it will largely be determined by your duty to study
and learn (Ho Chi Minh, 1945). Since then, the Vietnamese people have prioritized
learning and thrived to achieve greatness in education. Yet, the upward trend of increased
higher education fees over the past few years has proved to be a financial and mental
obstacle for students all over Vietnam. This literature review aims to explore and analyze
the impacts of increased costs of tuition on students in the Vietnam educational landscape,
through both national and international scholarly publications.

Review of Literature
Financial Struggle To Pursue Higher Education
Numerous studies have revealed that among the main issues that keep highschool
graduates from going to college, such as mental health, personal problems, or work-life
balance, financial barriers and school expenses are the most commonly recognized
obstacles (Buchanan, 2023). Other studies have demonstrated the pupils’ inability to keep
up with the rise of college tuition, especially associating with lower-income households,
highlighting the gap between students from wealthy families and students from
underprivileged families (Blanden, Doepke, & Stuhler, Educational Inequality, 2022);
(Đặng, 2017). As a result, the quality of labor in Vietnam is considered low compared to
other countries in the region, and compared to the requirements of the Vietnam economy -
an economy landscape where skilled workers and human resources are desperately
needed.

The Lumina Foundation-Gallup State of Higher Education report (2023) was

conducted with over 12,000 adults aged from 18 to 59 in the United States. The
participants were all in possession of a high school diploma or those of equivalence, and
have not yet attained a college degree. The study found that lack of ability to pay for
tuition fees was the biggest factor contributing to the individuals’ difficulties of
completing education and pursuing a degree. Three most reported causes that make up the
financial barriers to higher education are the cost of the program (55%), affordability due
to inflation (45%), and the need to work (38%) (Gallup and Lumina Foundation, 2023).

Since the constant growth of college tuition fees, there has been an alarming rate of
students dropping out and quitting college in Vietnam. According to a study by Đặng
(2017), there are 28% of undergraduates facing the possibility of having to cease
enrollment with the rise of college expenses. The survey used in the study was conducted
with more than 1000 households in 11 cities and provinces. It is hypothesized that
students are more inclined to have a job to financially support their education, in turn
taking off their studying time to work. Results from the study shows that 51% of pupils
are working part-time because of high tuition fees, in which the least financially
supported group yields the highest number of 79%. Most of the participants said that
working too many hours resulted in their poor outcome in school, which prevented them
from meeting the academic requirements to continue to stay in school, or dropping out
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voluntarily to prioritize finding full-time employment and to focus on earning income in
order to support themselves.

Both of the studies stated came to a mutual conclusion: the rapid growth of tuition
fees is one of the major causes contributing to the fall of enrollment rate or the rise of
dropout numbers in colleges and universities. In this day and age, it is of no doubt that
postsecondary education contributes a large part to the advancement of society, especially
in such a technology-centered time.

Well-being Of Students
Possessing and maintaining a state of stability of mental health is a determining
factor to assure the thriving and living to pupils’ full potential in a college environment.
Unfortunately, their ability to achieve said stability could be heavily affected by the
constant worrying of paying tuition fees. A notable example of students’ wellness being
strongly affected by financial burden appears in the United States, which is second only to
the United Kingdom in terms of student debt rate (Push, 2022).

A qualitative research by Moore, Nguyen, Rivas, Baby-Mohammed, Majeika, and

Martinez (2021) was conducted to shed more light on college students’ experiences by
analyzing the effects of financial stress on their wellness. The research was carried out
with four focus groups consisting of 30 students (primarily Asian and White females).
The number of undergraduates and graduates were roughly the same. Participants’
household income ranged from less than 25,000 USD to over 100,000 USD a year. The
findings yielded two major themes: one theme being that financial stress interferes with
their academic achievements, the other one being that it has a stressful impact on their
social lives. It can be difficult for students that are struggling financially to interact and
build healthy relationships with their more well-off friends, which can frequently result in
feelings of humiliation and self isolation. The research also revealed that participants
experienced problems such as inability to purchase textbooks, distraction from academics
due to financial stress, or feeling self-conscious and ashamed as a result of their financial
status (Moore, et al., 2024). These are all factors of the financial burden aftermath,
impeding students’ progress of learning.

The general education systems in Asian countries are famous for generating top
notch pupils (World Bank, 2018). However, along with this admirable reputation, Asian
students are often overwhelmed with stress and exhaustion (Tan & Yates, 2011). This can
stem from the pressure to be seen as equal as their peers by society’s observation and
parental expectations. Combined with the financial strain on students caused by increased
college costs, it puts pressure on both the students and the parents’ back, in both the
context of Vietnam and in the Asian region.

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Educational Inequality
Educational inequality is at the root of low social mobility across generations
(Blanden, Doepke, & Stuhler, Educational Inequality, 2022). They argued that if only the
children that come from well-off families could get access to educational opportunities
and growth, it contributes to an endless cycle of socio-economic disparities, whereas a
society in which education is less dependent on family background may be more open and
beneficial. Furthermore, it is proven by researchers that performance based on social class
begins to exist in a student’s early years of education, and does not go away in later years
(García & Weiss, 2017). As a consequence, if by any means the underprivileged students
manage to complete their college training, they would still find themselves amidst the
chaotic and aggressive labor market, in difficulty to secure a well-paying job. Thus,
inequality in education may lead to inequality in the workforce.

Inequality in education could be considered a direct result from the struggle to

pursue higher education, as the poverty-stricken groups are often the ones suffering the
financial burden of the increasing tuition costs. 85% of impoverished families think that a
college tuition cost of 13-17 million VND/year is extremely high, and 37% of those said
they could not afford to get their children into college (Dang, 2017).

Like all instances of increased cost of living, the marginalized groups

(impoverished households, ethnic minority, disabled individuals, and individuals with
specific difficulties) are always the ones most harmed. Realizing that, over the years, the
Vietnamese Government has imposed policies to support these households, in hope that
more families would be able to afford an education for their children. With commodities
for primary through high school available, children from most rural areas are having a
chance to be exposed to standard public education training. However, with the
postsecondary education expenses being cut down by the Government, students can only
receive a free for all public education policy until they graduate highschool. As
disappointing as it sounds, this may even put a damper on the students, as they could be
discouraged from going to school if they are made aware of the low chances of getting
into college.

In a World Bank research article, Parajuli, Vo, Salmi, and Tran (2020) pointed out
that although the Vietnamese Government has achieved several accomplishments, they
are not yet as significant as they ought to be. According to the article, the government
lacks practical policies and actions to offer the underprivileged support to both financial-
related and other problems. Although the Vietnamese Government has imposed means of
funding such as offering scholarships, tuition fees discount, or student loans, they have
not been efficient (Parajuli, Vo, Salmi, & Tran, 2020)

The reality of the job market demand in Vietnam is tough on the less fortunate and
low-income families: as society moves forward, the competitive nature of the job market
enables the graduates from more reputable institutions to be employed with substantial or
high paying jobs, rather than those graduates of more minor universities and colleges. For
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example, according to the Ministry of Education and Training, the three highest revenued
universities in Southern Vietnam are FPT University, Hanoi University of Science and
Technology (HUST), and National Economics University (NEU). These three universities
are all among the top institutions that produce the highest rate of students with secured
employment opportunities after graduation. Out of these three institutions, HUST and
NEU are included in the group of universities that have the highest benchmark for the
National College Entrance Exam. Accompanying the fact that destitute students cannot
afford intensive training in preparation for the exam, they are deprived of opportunities to
pursue a better education. And thus, if actions are not being taken soon, the inequality gap
between the privileged and underprivileged will keep expanding.

Solutions
Upon the insights gathered from the studies’ findings, this section proposes a set of
potential suggestions of solutions to mitigate the negative impacts of increased college
costs on students in Vietnam. As most universities are now financially independent from
the government, the decision making now lies in the hands of the school boards and the
schools’ stakeholders. However, since each financial decision an institution makes
directly affects the economy of the whole nation, it is beneficial that the Ministry of
Education and Training, the school boards, and its investor join forces to solve the
financial problem the students are facing.

Firstly, to reduce education expenses, financial aid programs should not only be
expanded, they need to be more specific and tailored to meet the needs of different socio-
economic or marginalized groups. Low-interest loan and scholarship programs should
also be offered to relieve students of financial burden.

In the current context of a technology-centered society, online and remote learning

is a possible solution. Remote learning enables more students to get exposed to college
education, which could assist in diversifying the student pool, giving equal opportunities
to students nationwide. Moreover, it could help reduce the tuition fees for each pupil
while maintaining adequate income for the educational institution. The idea of online
learning also minimizes the expenses associated with facilities such as textbooks and
source materials.

Addressing the mental wellness of students, the Government should offer public
mental health support services to university students struggling with stress relating to
financial and social issues. Among that, messages aimed to bring awareness and to
destigmatize mental health disorders should be campaigned.

By putting a combination of these solutions into practice, it is possible to mitigate

the negative consequences of increased costs of college, fostering a welcoming and
inclusive postsecondary education environment for students in Vietnam.

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 Conclusion
This literature review acknowledges the impacts of the hike in Vietnam college
tuition fees on pupils. It directly thrusts great financial responsibilities and burden onto
the students in Vietnam, or in some cases, indirectly takes away their rights to education.
As evidenced by multitudinous scholarly reports, the escalating educational costs have
imprinted its impacts on various aspects of Vietnamese students’ lives, including the
financial ability to pay for postsecondary education, the state of their mental health, and
their future career prospects, which is irrefutably affected by the socio-economic gaps.

Some research highlights the negative psychological effects stemming from

increased financial stress, while others highlights the potential harmful effects on
admissions and academic persistence. In addition, this literature review also touches on
the problems regarding the socio-economic disparities, which sheds light on the
conditions of the marginalized groups. These studies’ findings serve as an urgent cry for
realistic actions and all-encompassing strategies to address the possibility of more
reasonably priced higher education in Vietnam.

The cooperation of the government, institutions, and investors could establish

sustainable solutions for the problems that rising cost of postsecondary education has
brought about. They could work to bring forth initiatives for scholarships, financial aid
programs, and most importantly a policy reformation aimed to ease the financial burden
on students, consequently sending a message advocating equitable access to education.

In conclusion, this literature essentially brings awareness about the surge of college
costs in Vietnam, acknowledging that this is not simply an economic issue, but also an
inclination that enables educational inequality and social imbalance. The synthesis of
current research establishes the foundation for interventions targeted at cultivating a more
financially accessible college education, in addition to formulating and imposing new
policies from the Government of Vietnam.

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 References
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Buchanan, C. (2023). Financial Barriers Biggest Issue Facing Higher Education. Fierce
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