Being the fastest growing economy in the Southeast Asian region, Vietnam has undertaken several initiatives to ramp up the educational infrastructure in the country. In the year 2021, 4.03% of the country’s total GDP was allocated toward the country’s education and training sector.
Moreover, in recent years, the annual expenditure on education and training has only been rising. As per a report by Opengovasia, Vietnam’s e-learning market is expected to generate revenues of approximately USD 3 billion by 2023 apart from recording a compound annual growth rate (CAGR) of about 20.2% from 2019 to 2023.
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This article discusses the reasons you should invest in Vietnam’s education sector and the how-to.
Recent years have seen an increase in the establishment of education services businesses, resulting in new jobs. Approximately USD 250 per month is the median gross salary for entry-level jobs, USD 345 for experienced staff, USD 561 for supervisors and leaders, and USD 863 for managers in the education and training sector in 2019.
Latest developments in the education sector in Vietnam
In the past, many socio-economic development plans have led to a number of steps being taken to modernize Vietnam’s education system in the country’s socio-economic development strategy 2011-2020. One of the measures was developing human capital and expanding access to higher education.
The Vietnamese government has also taken several measures to bring about a change in the country’s education system. It further strives to go beyond facilitating the internationalization of education.
Due to its fast-paced growth, the rate of foreign direct investment in the country has also witnessed a rise in the past few years. This in turn has led to many expatriates flocking to the country to live and work, creating the demand for international schools and high-quality educational institutions. Of late with the change in the country’s socio-economic status along with the ongoing tensions between the US and China, Vietnam is turning out to be an alternative to China for many foreign investors. This further provides an impetus for investment in education.
Set of Regulations for Investment in the Education sector
The legal bindings of the country mandate a regular check on the activities of institutions that run on foreign investments. Here are a few legal formulations that might be pertinent to foreign education providers:
- The Decree 31/2011/ND-CP extends on conditions to be met by any institution, namely, a government-approved contract and a well-kept infrastructure as mandated by the Law on Education. It also identifies the group of people who are eligible for Vietnamese Government subsidies. It further helps graduates of secondary vocational education and training institutions with their fees.
- Decree 70/2009/ND-CPA specifies the responsibilities of various government bodies (comprising local People’s Committees, Provincial Departments and Ministries ) in the VET sector. The Ministry of Labour, Invalid and Social Affairs (MOLISA) and General Department of Vocational Training (GDVT) are central to VET functioning and supervision.
- Decree 73/2012ND-CP, issued under the Investment Law (2005), addresses many education-related concerns. It is applicable to collaboration projects and foreign investment in education and VET in Vietnam. The decree is also mandatory for foreign-invested universities, colleges, schools and kindergartens, twinning programs, and representative offices of foreign education institutions.
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