FDI

Investment Opportunities in Vietnam in Education and Training Sector

Nora Setiawan

November 5, 2020

As we have already noticed that Vietnam has become a growing destination for foreign investors in Southeast Asia. Despite the manufacturing sector or any other prominent sectors, it turns out the demand for the education and training sector is reaching new heights. The education and training sector is becoming a favorable opportunity for foreign investors to enter the market. Now, you may ask yourself how does it go? Thus, this article provides you with information about Investment opportunities in Vietnam for foreign investors. You can also read here about how Viettonkin Consulting helps your business expand to Vietnam.


Overview of The Education and Training Sector in Vietnam

Investment opportunities in Vietnam for Education and Training Sector

Vietnam’s young population and the government’s commitment to improving education offers more opportunities to invest in for foreign investors. Since 2000, the government has committed approximately 15%-20% of public expenditure on education, and it has become one of the highest in ASEAN.

Furthermore, the education and training in Vietnam have made many successful achievements in the last 3 decades, it includes forming a unified and diverse national education system in all study and training levels.

According to data from the Statistical Yearbook 2019, Vietnam has more than 15.4 thousand pre-school institutions, 27.7 thousand general education institutions, such as primary schools, junior high schools, and high schools. Also, 237 formal universities, and more than 3.000 vocational education institutions. 

In the academic year of 2019-2020, the number of students nationwide has over 5.3 million children enrolled in pre-school, while 17 million students participate in general education, and over 1.5 million students enrolled in educational institutions. This does not include professional secondary schools and colleges that were managed by the Ministry of Education and Training.

Over the past decade, Vietnam has also achieved success to attract foreign investors in the Education and Training sector. Based on data from the General Statistics Office, it shows how foreign investors are optimistic and confident to invest in the education and training sector with large-scale projects in Vietnam.

Back in 2009, Vietnam had 128 projects of FDI in education and training with a total registered capital of 275.8 million USD. Then 10 years later, the cumulative number of projects has quadrupled to 526 projects and the registered capital has increased sharply by 15.8 times, and reached 4.376 million USD. 

In 2019, 72 projects were licensed with a total registered capital of 67.4 million USD. Hanoi and Ho Chi Minh City are the most attractive places for investment in this sector. With this huge number of FDI projects in the education and training sector, it gives a lot of opportunities for Singaporean and Southeast Asia investors. Let’s figure them out!


Investment opportunities in Vietnam for Singaporean and Southeast Asia investors

According to a Nielsen consumer survey, parents in Vietnam would rather spend the most on their children’s education, and it could be half of a family’s total expenditure with about 47%. In addition, parents also have more options to get their children to high-quality private schools, rather than going to public schools. With the private schools grew significantly, the requirement of a foreign language also increased, and this could have a positive effect on the job opening for people who speak those certain languages. 

Based on Decree No. 135/2018/ND-CP dated October 4, 2018, the regulation helps to simplify the legal requirements, administrative procedures, and increase enrollment quota for Vietnamese students, also boost the percentage of the students to receive foreign education.

When the COVID-19 strikes the world, including Vietnam, it gives impacts on the education and training sector. But in a good way, as the situation prompted the sector seeks to adapt and apply technology to redesign learning and teaching experiences. Many educational technology situations (Ed-tech) are entering the global education market that is estimated at $10.000 billion by 2030.

The social distancing rules also pushed the education institutions to use the technology for their learning and teaching. Virtual conference tools, learning management software, and many other digital solutions are useful to be applied at this time.

For instance, many educational technology companies offer Learning Management Systems (LMS), Open Online Courses (MOOCs), as well as after-school learning and tutoring services. Not only that, Biometrics and Facial Recognition technology, which can scan parts, such as eyes, fingerprints, and facial features can be applied in the educational institutions to identify students, and as well as improve safety on campus. 

Smart Classroom Technology can be an alternative to apply technology in the education sector. A digital interconnected space where devices and data come together can spur the imaginative and creative abilities of the students. This technology helps to save costs for educational institutions too, for example, the building with smart sensors that can detect classroom conditions, and it also can adjust power distribution whenever it’s used or not used.

This year in September, Vietnam – Singapore Investment Promotion Conference which was held online, has successfully attracted the participation of nearly 500 enterprises from more than 80 Singapore business associations. At the online conference, Deputy Minister of Planning and Investment Tran Quoc said, the investment cooperation between Vietnam and Singapore is complementary to support each other.

Moreover, foreign investment data from the Ministry of Planning and Investment shows that, from January 1 to September 20, 2020, the foreign investment in the education and training sector has reached 78.89 million USD, it was up nearly 58% over the same period last year. 

There are many opportunities to invest in the education and training sector in Vietnam, with a lot of young population who are skilled in digital literacy, can actually create a new world of education. Singaporean investors are also named as “the giant investor” that are pouring large capital in investing in the education and training sector this year in Vietnam.

In addition, MS English 2 Pte.Ltd from Singapore, a subsidiary of Myanmar Strategic Holdings Ltd holds 100% capital, and has acquired Wall Street Company Limited in Ho Chi Minh City. The representative of Myanmar Strategic Holdings confirmed to the Investment Newspaper that the acquisition of Wall Street English has completed in July 2020.

In conclusion, the education and training sector in Vietnam is enticing for many foreign investors, especially from Singapore and Southeast Asia. As it can create more opportunities for both domestic and international workers, yet develop the world of educational technology in Vietnam.

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