The draft decree, which is expected to replace Decree 73 on foreign investment and cooperation in education, has been proposed by the MOET in the context that education sector has received a very modest amount of foreign investment over the recent years. According to a report by the Vietnam Ministry of Planning and Investment in June 2016, education still ranked 17th among the 18 sectors receiving FDI in Vietnam. Obstacles in education policies are among the main reasons that deter foreign investors from investing in or expanding their education projects in Vietnam.

The draft decree demonstrates MOET’s efforts in responding to investors’ recommendations and the determination to clear significant legal barriers for investors in the education field, aiming to lift the education to global standards.

Among different aspects of the draft decree, the increase of minimum total investment capital required in opening a new university (USD 44 million or one trillion Dongs), and tougher requirements of teaching staffs’ degrees are important to ensure commitment of investors to the quality of higher education training.

At school level, the removal of cap on the proportion of local students attending foreign-invested schools is a big progress to pave the way for existing foreign-invested education projects at this level to enhance their student recruitment and expand their projects to second-tier cities outside Hanoi and Ho Chi Minh City.

The draft decree also creates more flexible options for new foreign investors to invest in local education projects, thus helping Vietnamese government to attract more foreign investment in the education field as well as mobilise the investment more effectively.

Sources:

http://english.vietnamnet.vn/fms/education/172053/new-policy-attempts-to-entice-foreign-investment-into-education.html
http://english.vietnamnet.vn/fms/education/172684/investors-need-at-least--45-million-to-set-up-foreign-university--decree.html