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Education and the system of higher learning and technical schools is very important to business as it provides the
trained workers and also a system to transfer skills and train new employees needed in a modern business
society.
In Vietnam, the economy in recent years has had a remarkable performance. GDP growth increased 8.5% in
2006, 8.2% in 2007 and 8.5% in 2009. In 2009, according to the Asia Development Bank (ADB) in their latest
late September, 2009 revision the bank predicted that growth would be 4.7% for all 2009. Growth in 2010 is
projected at 6.5 percent according to the same source. Future growth is highly dependent on a high quality
workforce who are better skilled and trained in modern education and with better quality language skills.
Education has always had a central role in Vietnam culture and society. It is seen as the avenue of advancement
and families routinely sacrifice much to ensure their offspring get the required education. The government of
Vietnam has for some time set the priority of education in terms of its budget. Currently, education occupies
approximately 20% of all state budget expenditures and accounts for 5.5% of GDP (source: Department of
Finance and Planning, MOET, 2008). Below is a chart that shows the current education system in Vietnam:
The education system in Vietnam
With a country with over 86 million people and with more than 60% under the age of 35 (Source: General
Department of Statistics of Vietnam, 2009), Vietnams education needs for this young population are huge.
Despite attention by the government only about 1.6 million (about 2%) actually are now at higher education
institutions. Each year approximately 1.2 million students graduate from secondary education but the enrollment
to higher education is only around 300 thousand (Source: Department of Higher Education, MOET).
Since the combination of the Ministry of Education and the Ministry of Higher Education into the Ministry of
Education and Training (MOET) in 1990, MOET has had responsibility for all education and training at the national
level. Under Vietnamese government decree 322008-ND-CP, MOET is divided into 19 separate departments and
several related units, of which the most important are the following - units responsible for primary and secondary
education, higher education, teacher education, adult education and the finance and planning department. MOETs
responsibilities include every level of education including pre-school, general education, professional education,
tertiary education and continuing education. MOETs responsibilities include:
suggesting and initially drafting proposed legislation for submission to the government for regulations of
education matters such as establishment and construction of universities, policies on study abroad and
building of an educated elite, scholarship, etc.
Although MOET plays in many ways the lead role in education in Vietnam, there are several higher education
institutions in Vietnam that are under other line ministries or government agencies. Examples of this are the
Hanoi Medical College that falls under the Ministry of Health and the Water Resource University under the Ministry
of Agriculture and Rural Development. Also, a further example of this is the two National Universities who though
nominally under MOET operate independently as separate entities and report directly to the Office of the
Government of Vietnam.
Although MOET has the primary role in education, there is some change occurring. Decree 85/2003 and Decree
No. 166/2004/ND-CP allow local education authorities more power and responsibility to initiate long-term local
education programs in their respective areas. Further, Universities are increasingly obtaining autonomy over
financing(self management of funding), training, research, human-resources, and international cooperation.
Resolution No. 14/2005, dated November 2, 2005 and the Governments Higher Education Reform Agenda 20062020 have acted to require university and college managing boards to prepare their own spending plans and to
implement them under oversight from MOET. Much discussion is occurring about how these new policies and
others might facilitate better quality research and teaching while also providing a legal framework of responsibility
and with increased accountability.
The Education Law
The Education Law of 2005 sets forth more explicitly the requirements for the Vietnamese higher education
system. This law defined higher education as what one receives at the college or university level. It further set
the degrees available and the structure for pursuing them. Under the system described in the law, a person with a
high school diploma may pursue either a 4-6 year academic program for a bachelors degree or alternatively a 3year academic program at a junior college. A junior college degree holder may then continue for an additional 1-2
years to secure a bachelors degree. A student with a bachelors degree may pursue and additional two years to
qualify for a masters degree and 3-4 years more to obtain a doctorate.
The law further sets-out which institutions may grant what degrees. Junior colleges are responsible for 3-year
training programs but Universities also have some responsibilities in this area. Universities may also offer 4-6
year training programs and with permission of the Prime Minister, masters and doctoral degrees. Research
institutes are primarily responsible for doctoral degrees but also with the permission of the Prime Minister can
provide Masters Degrees in cooperation with Universities. Doctorate degrees in Vietnam are more comparable in
Math and Science disciplines to those in Europe and with less training than those of major U.S. institutions.
Educational Institutions in Vietnam
Basically there are two broad grouping of educational institutions in Vietnam; the traditional mono-disciplinary or
specialized institution and the multi-disciplinary university. The first group was the more common in Vietnam
under the pre-Doi Moi (renovation) policy. It focusses on a single area or subject of focus, for example law, fine
arts, engineering, economics, etc. In the last several years many of these former single focus institutions have
taken on a multi-disciplinary focus. For example, Hanoi University of Foreign Studies was focussed most on
foreign language training now has a broader focus on business and other standard University subjects. Multidisciplinary universities are on the increase and there are currently 2 national universities, 3 regional universities
and 14 pilot universities with more being added all the time. Additionally, MOET has been authorized to allow the
private sector to set-up colleges and universities and companies such as FPT in Hanoi and Becamex with their Mien
Dong or Eastern International University in Binh Duong province are already doing this. Vietnam already has a
foreign university in the RMIT International University which opened in 2001 and now has over 3,000 students and
a German University is soon to open outside Ho Chi Minh City in the South as well. Additionally there are over 200
joint-degree or co-operation programs between Vietnam Universities and foreign institutions.
The Higher Education Reform Agenda 2006-2020 has built on a changing education environment which has seen a
growth in the number of public, semi-public and private higher education institutions. Between 1999 and 2007,
the total number of higher education enrollments increased by 72.5% (from 893 to 1,540,000). The number of
higher education institutions also grew markedly - from 153 in 2000 to 369 in 2008 and an even higher number
today. According to MOET, in 2008 there were more than 40 non-public universities, accounting for 25% of the
total number of universities and training 188,838 students or 11.7% of the total number of students.
Developing faculty has been a big challenge for higher education in Vietnam - both in terms of quality and also quantity.
The ratio of lecturers/students is around 1/30 which is relatively high. The number of PhD holders at higher education
nstitutions is still low. In some new universities there only one or two PhDs. MOET has announced a plan to train 20,000
PhDs of which 10,000 will be trained overseas by 2020. There also is a plan to attract Vietnamese overseas professors
and researchers to return to teach but so far the reality on this has been very disappointing with the government still
being very reluctant to make adequate use of this overseas resource.
Vietnam has a two step process of qualifying for University. First, students must first take and pass the Secondary School
Leaving Examination (SSLE). This exam consists of a comprehensive achievement test in six subjects (math, literature, a
oreign language, and three alternating subjects) each with a maximum value of ten points. In order to graduate, a
student at least needs to achieve a score of 30 points. A score below this will disqualify a student from sitting for
University entrance Examination. The next step is the University Entrance Examination (UEE) which usually requires that
a student take an exam of 3 of 4 fixed groups of subjects. MOET has proposed a plan to merge the SSLE and the UEE in
2-3 years from 2009.
Credit System
A credit system is now in place at a number of Vietnamese Universities to replace the older subject based system. In the
new credit system, each course is assigned a credit amount. Each credit represents one hour of theoretical lectures plus
one hour of preparation per week over a 14-16 week semester. A four year program will normally require a total of 210
credits. Five-year programs require 270 credits and six-year programs require 320 credits.
Grading System
Vietnam follows a 10-point grading system. The normal passing level is a 5. The following is MOETs published definition
of grades but at the tertiary level there is substantial variation. Here is the definition:
9-10 - Excellent
4 or below - Fail
Overseas education has become increasingly popular in recent years as it is viewed as offering the student likelihood of
better future employment. Overseas study can be either by scholarship or through personal finances.
The overseas-study consulting market in Vietnam is highly competitive. Hundreds of education consulting centers and
non-profit organizations are operating in the big cities. Moreover, the internet also gives students the ability to find the
scholarships and the school and the opportunities to go oversea to study by themselves. In addition, the oversea-study
exhibitions organized by the educational institutions have provided opportunities to the student and introduced the studen
o ways to assess the U.S educational institutes by themselves. This has also increased price competition in the market.
Over 60,000 students in Vietnam are now studying overseas according to the Foreign Press Center and based on statistics
rom MOET. According to statistics of the International Education Institution (IIE), the number of Vietnamese students
studying in the U.S reached the 13th ranking in 2008. Even though most students would prefer going to the U.S. rather
han other countries, the rank showed here is relatively low due to perceived difficulty by many young people in getting a
visa from the U.S. Embassy and Consulate. I would note the word "perceived" in the above sentence. In actual fact, most
U.S. Consular officers make the point that they will approve any student who applies who has a realistic and well thought
out plan for their education. The U.S. Consul General in Ho Chi Minh City has also made this point repeatedly in speeches
and in talks with students and the sentiment is in my opinion real. The problem in Vietnam is primarily one that students
often work with education counselors that have insufficient knowledge of Universitities and their programs. They are
nsufficiently informed and professional and often do not represent their students adequately. Therefore many people
apply for Universities or Colleges that do not really have the programs that the student is seeking or the student can't
adequately explain the education needs and their plan in a logical and reasonable way to the Consular officer. Another
major problem is that students and parents are often only focussed on U.S. Universities close to known locations in the
U.S. or elsewhere with overseas Vietnamese populations like California and thereby miss many better opportunities in
colleges and Universities in other locations like Philadelphia, the Northeast U.S. or elsewhere. The numbers of the
students going overseas have also increased rapidly in the past years, particularly the number of Vietnamese students in
he U.S: 8,769 in 2008; 6,036 in 2007; 4,597 in 2006 and 3,670 in 2005. (Source : Tran Thang (IVCE) - Thanhnien
newspaper, 3 March 2009). Therefore, this market segment still has potential opportunities for growth in services.
There are an increasing number of types of scholarship available to study overseas. Each year there are approximately 25
U.S. Government Fulbright Fellowships and around 40-50 U.S. Government Vietnam Education Foundation (VEF)
Fellowships available for masters degree students only. Additionally there are approximately 10 Canadian government
scholarships, 70 scholarships to study in the UK, 200 scholarships for study in France, 150 for study in Australia, 70 shorterm and 10 long-term scholarships in Thailand. A large number of additional students receive scholarships directly from
universities, nongovernmental organizations, foundations and other bodies. The Vietnamese Government through MOET
also has a program to approve approximately 400 scholarships for state workers to study abroad to improve their skills.
n 2009, the Vietnam International Education Development (VIED - replaced the Management Committee of Project 322)
will on behalf of Ministry of Education and Training (MOET) select and award many scholarships for studies overseas.
These scholarships comprise the following:
Another estimated 20,000 students are studying abroad each year on institutional scholarships or on their own finances.
These figures are further growing yearly as the government implements its so-called 10,000 PhD program with a goal of
creating 20,000 new PhDs by 2020 through training abroad.
Based on data from MOET in 2007, access to higher education is still low and only about 2% of the population moves into
higher education study. This figure is low in both a regional and an international context.
Quality of faculty is not as high as needed an only 14% of faculty have a doctoral degree and 33% have a masters degree.
Enrollment is concentrated in a few academic disciplines. Nearly 50% of all students major in economics/business.
Future Goals
The Socio-economic Development Plan 2006-2010 and the Resolution on Comprehensive and Fundamental Reform of
Higher Education in Vietnam 2006-2020 (No. 14/2005) have set the following targets for higher education in Vietnam:
Increasing enrollment in universities and colleges by 10 percent annually, to reach a level of 200 students for
10,000 population by 2010 and 450 students per 10,000 populations by 2020
revenue from science and technology activities increased to 15 percent of total university revenue by 2010, and to
25 percent by 2020;
proportion of university teaching staff with masters level degrees increased to 40 percent by 2010, and to 60
percent by 2020;
proportion of university teaching staff with doctoral level degrees increased to 25 percent by 2010, and to 35
percent by 2020;
encouraging the establishment of private institutions, including high-quality, accredited and 100 percent foreigninvested institutions in science, technology, and economic management; encouraging foreign scientific and
educational experts and Vietnamese expatriates to teach in Vietnam.
As can be seen from the above, the government has set some substantial goals. Now the challenge will be in finding the
money and in getting continual supportive and consistent policies over time to achieve the goals set out.
Christopher W. Runckel, a former senior US diplomat who served in many counties in Asia, is a graduate of the University
of Oregon and Lewis and Clark Law School. He served as Deputy General Counsel of President Gerald Fords Presidential
Clemency Board. Mr. Runckel is the principal and founder of Runckel & Associates, a Portland, Oregon based consulting
company that assists businesses expand business opportunities in Asia. (www.business-in-asia.com)
Until April of 1999, Mr. Runckel was Minister-Counselor of the US Embassy in Beijing, China. Mr. Runckel lived and worked
n Thailand for over six years. He was the first permanently assigned U.S. diplomat to return to Vietnam after the Vietnam
War. In 1997, he was awarded the U.S. Department of States highest award for service, the Distinguished Honor Award,
or his contribution to improving U.S.-Vietnam relations.
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