Heated but not hot enough
Vietnam has been attracting more foreign investment in
educational projects. The total, however, is still below
expectations.
Foreign investment in education witnessed one
of the highest growth rates in Vietnam's FDI
(foreign direct investment) during 1999-2001. In
this period, the total investment capital in
educational projects was five times larger than
the amount committed over the four previous
years.
Promoted investment
Decree 35/ND-CP on
education and training promulgated by the
Government can be regarded as a boost to
foreign investment in educational projects in
Vietnam. The decree promotes public
participation in education which considers
international cooperation one of the major
spearheads in the strategies for educational
development for the 2001-2010 period.
Exhibitions held by foreign educational
institutions such as universities from Britain,
Australia, Singapore, France and Switzerland
have attracted quite a few Vietnamese
participants. The local interest shown in these
exhibitions has been a promising sign to foreign
investors in the field, who said they were
keeping an eye on the potential of the Vietnamese market. Some of the
investors have taken preparatory steps to enter Vietnam, where several
projects are already in place. Among the potential investors are
Washington State College from the United States and INTI College of
Malaysia. Some others said they would return soon to Vietnam to set up
facilities.
Despite the impressive five-time growth rate, the total foreign investment
capital pledged in education during 1999-2001 was only US$16.6 million,
making up a modest 0.12% of the total FDI capital in Vietnam during the
period.
Deputy Minister of Education & Training Le Vu Hung said current
foreign-invested educational projects have yet to satisfy the local
demand. He emphasized that the Government has created favorable
conditions for foreign investment in the educational field, as it is not as
profitable as projects in some other industries.
However, remarked Deputy Minister Hung, investment in technological
training institutions remains modest while Vietnam is desperately in need
of skilled personnel in this field. The overwhelming majority of the
educational projects are teaching English, information technology or
business administration-those regarded as moneymaking professions
by local students.
The three forms of investment
The Ministry of Education and
Training has identified three current forms of foreign investment in
education, namely wholly foreign-owned projects, cooperation, and
purchases of training trademarks, copyrights or technology.
Only a few 100% foreign-owned foreign educational projects are
operational in Vietnam. RMIT (Royal Melbourne Institute of Technology)
Vietnam from Australia and International School in Hanoi are running in
this form. The former enrolls mostly local students while the latter recruits
children of expatriates in Vietnam. SSIS, a U.S.-owned institution, is
allowed to accept only students of foreign nationalities. In addition,
several foreign communities in Vietnam have set up their own schools, for
instance, Taipei School, Korean School and Japanese School.
The investment form which requires small capital amounts from the
foreign side is purchasing and receiving technology from prestigious
training institutions around the world. Diplomas awarded to students will
be issued by the technology provider and are acceptable in many
countries. Most of the current foreign training schools in Vietnam adopted
this form as it enables investors to offer affordable courses to
Vietnamese learners.
For example, the HCM City-based APTECH School, has bought training
technology from an Indian firm which specializes in training computer
programmers. "We received the technology for US$30,000," said Le
Truong Tung, APTECH HCM City principal. "Compared with some US$10
million required to build a curriculum of equal quality, it's so cheap." The
training quality, as well as diplomas, are guaranteed by the technology
provider and are accepted worldwide, added Tung.
By the end of this year, there will be 15 APTECH centers in Vietnam
where computer programmers of international qualifications will be
trained. SaigonCTT, an institution which trains IT programmers with
technology transferred by Sun Microsystems, will open another center in
Hanoi.
The third investment mode is partnerships with Vietnamese institutions.
Typical of this form is the cooperation between the Business Executive
School under the Vietnam Chamber of Commerce & Industry and Kent
University in Australia.
In addition to higher education and vocational training, elementary and
high school education are also promising for foreign investors. Many
high-income Vietnamese families want their children to attend foreign-run
schools to gain better knowledge and skills. According to Gerry H.
Keener, principal of the Hanoi-based SSIS, he has had to refuse many
applications of Vietnamese parents who wished to enroll their kids at his
school. SSIS is running curricula adopted in the United States. "As ruled
by the Ministry of Education & Training, we are allowed to accept
Vietnamese applicants only to our kindergarten," said Keener. "We've
petitioned the ministry for enrolling Vietnamese students in other classes
at our school. We hope to open senior high school classes next school
year."
Some facts about foreign investment in education in Vietnam
The first educational project ever realized in Vietnam was the Hanoi
International School, a joint venture between the Center for Educational
Technology under the Ministry of Education & Training and a foreign
partner.
The foreign investment project in education with the largest registered
capital is the US$62 million RMIT.
Educational projects in Vietnam run by foreign loans, non-refundable aid
and cooperation between local and foreign partners are capitalized at
over US$500 million.
The annual tuition fee paid by Vietnamese students to attend a foreign
school in their own country may be a four-digit number in U.S. dollars.
However, although Vietnam's average per capita income was only about
US$450 last year, foreign-invested training institutions still fill their classes
with local students.
By Phuong Thanh - The Saigon Times Weekly - August 17, 2002.
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