Education In Vietnam Edition 2018 | Tài liệu môn kinh tế học Trường đại học sư phạm kỹ thuật TP. Hồ Chí Minh

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:
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can in no way be taken to reflect the views of the European Union. www.evbn.org EVBN Education in Vietnam 2 CONTENTS EVBN Education in Vietnam 3 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 EVBN Education in Vietnam 4 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-1 2 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/VN D 27,998.64 EVBN Education in Vietnam 5 LIST OF FIGURES EVBN Education in Vietnam 6 EVBN Education in Vietnam 7 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 shal 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 wel 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 mil ion 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 wel -dispersed geographical y.
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 Ho Chi Minh City Can Tho
Figure 1: Map of Vietnam with key cities EVBN Education in Vietnam 10 le p 2013 91.50 eo p n 2014 92.54 illio it: m n 2015 93.57 *U 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, it is expected to undergo significant RURAL
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
by the growth of urban cities and the 43% URBAN
expansion of the urban-based industrial 44%
and services sectors. Moreover, high RURAL
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 EVBN Education in Vietnam 11 II. Vietnam’s Economy Gross Domestic Product 6.7 6.8 6.7 6.2 6.0 5.4 ) n 248.8 ) b 228.6 (% (€ 208.1 182.0 193.9 172.5 140.0 128.4 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.
In 2017, Vietnam’s nominal GDP
per capita reached €2,029, an increase of 5.4% compared to
2016. Nonetheless, the country has
been recognised for its effort to )
increase the GDP per capita, and (€
expects to reach a GDP per capita
of €2,529 in 2020. A solid increase
in GDP per capita suggests that an
average Vietnamese will have more disposable income to spend on 0 2013 2014 2015 2016 2017 2018e 2019f 2020f
more goods than just basic needs.
Figure 5: Nominal GDP per capita, 2013-20f Source: BMI EVBN Education in Vietnam 12
Foreign Direct Investment In 2017, Vietnam received a (€ mn) 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
decided to move their production 11,904 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 bil ion. 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
bil ion, 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 EVBN Education in Vietnam 13
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 ld o h 4,000 se u o r h e 3,000 ar p r ye e p R 2,000 EU 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 EVBN Education in Vietnam 14 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
years. The rate of government expenditure 15.1 16.0
on education as a percentage of GDP has
oscillated between 5.1% and 5.9% over
the 2009-2012 period and increased to
6.3% in 2016, indicating the government’s 5.9 6.3 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 3.8 4.1 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 i
in terms of enrolment, literacy and e ia s es d n d sia re o e in o am
Programme for International Student ru n Lao p B b tn o alaysia ap ailan d ilip g ie
Assessment (PISA) ranking (where am M h Th V C In P Sin
Vietnamese students scored high).
Figure 10: Government expenditure
on education in ASEAN, 2016 (% of GDP) Source: UNESCO EVBN Education in Vietnam 16 Enrolment rate
Figure 11 shows an optimistic picture of %
universal education in Vietnam. For al 108.751 109.97
levels of education, enrolment rates show 104.96 Primary 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 EVBN Education in Vietnam 17 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 EVBN Education in Vietnam 18
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 N C 18 o o n n - t f i 18 Professional Secondary o n r ui Upper Secondary mat School n g School 3 years 3-4 years Vocational Training E E d d 15 u u c c a a General Lower Secondary School t t i i Education 4 years 1-5 years o o n n ) 11 Primary School 5 years 6 6 Early Kindergarten 3 Childhood Home-schooling Nursery 3 months 0
Figure 14: National education system of Vietnam, 2014
Source: Ministry of Education and Training
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. EVBN Education in Vietnam 19 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. EVBN Education in Vietnam 20