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Rising Middle Class in Vietnam Brings Rising Demands for Quality Education

11 Dec 2018, by Informa Connect Insights

New Regulations Set to Stimulate Growth of Education Sector

We see greater impetus by governments to review regulatory frameworks for education. In June 2018, the Vietnam Government issued the Decree 86 on foreign cooperation and investment in education sector, which came into effect and replaced the previous Decree 73 from 1 August 2018. Previously under the Decree 73, the number of Vietnamese students in a primary school or secondary school shall not exceed 10% of total students, whilst the number of Vietnamese students in a high school shall not exceed 20% of total students.

Following Decree 86, the restrictions on enrolment has relaxed such that it allows the number of Vietnamese students participating in foreign teaching programmes to form up to 50% of total students participating in foreign teaching programmes at an educational institution. In addition, Decree 86 also removes the restriction on the number of Vietnamese students aged 5 years and below from enrolling in foreign teaching programmes.1

The removal of these enrolment restrictions means that foreign-owned international schools would be able to attract more local Vietnamese students, which, in turn, opens the market, and manifests in opportunities for school growth and development.1

Growth Of The Middle Class In Vietnam

Vietnam’s development over the last 30 years has promoted rapid economic growth, resulting in an emerging middle class. It is estimated that approximately close to 2 million Vietnamese people will enter the middle-class group annually. This would lead to higher future demand and consumption of non-necessity items and services, such as quality education that is comparable to global standards, which is mainly available in international schools.1

As Vietnam progresses further on its economic development, growth is expected to spread beyond the current concentration in major municipalities. Several large industrial, health, and education facilities in Hanoi have relocated to outside of the city center or to neighboring provinces. In line with overall development, the education sector in provinces is expected to catch up with major cities in response to future demand for better teaching and learning experiences.1

1Based on “The International Schools Industry in Vietnam” research by Converging Knowledge Private Limited 

Ricky Tan
Founder and Executive Chairman
KinderWorld International Group, Singapore


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