Vietnam’s Education Sector: Trends, Growth, and Investment Opportunities
- Linh Pham
- Apr 30
- 7 min read
This article is Part 3 of the series "Emerging Market Vietnam — The Next Big Move!"
By Linh Pham.
1. Market Overview and Growth Projections
Vietnam’s higher education market is projected to expand significantly, with an anticipated growth of US$528.6 million between 2023 and 2028, driven by a compound annual growth rate (CAGR) of 15.43 percent, according to a report from Research and Markets
Furthermore, online education is expected to generate US$364.7 million in revenue in 2024 with the market forecast to grow at a robust compound annual growth rate of 11.46 percent from 2024 to 2029, bringing the total market volume to approximately US$627.4 million by the end of the forecast period, according to Statista.
Meanwhile, Vietnam’s higher education market is forecast to expand by US$616.5 million, growing at a compound annual growth rate (CAGR) of 15.6 percent from 2024 to 2029, according to a report from Technavio. The market is undergoing significant transformations driven by the adoption of innovative content delivery methods and the increasing internationalization of the education sector, the report says.
Vietnam's higher education market specifically, according to Research and Markets, is projected to grow by US$528.6 million from 2023 to 2028, with a compound annual growth rate (CAGR) of 15.43%.
Similarly, online education is thriving. Statista forecasts that this segment will generate US$364.7 million in revenue in 2024 and reach US$627.4 million by 2029, with a CAGR of 11.46%.
Technavio offers an even higher estimate, expecting the higher education market to expand by US$616.5 million between 2024 and 2029, citing the adoption of innovative content delivery methods and increased internationalization as key drivers.
2. Structure of Vietnam’s Education System
Vietnam’s education system is composed of both formal and continuing education, categorized into the following levels:
Preschool education includes junior kindergartens and senior kindergartens;
General education consists of primary education, lower secondary, and upper secondary education, with primary education being the compulsory education stipulated under Vietnam’s Education Law;
Vocational education offers training at the elementary level, intermediate level, or college level, as well as other vocational training programmes; and
Higher education includes university education, master education, and doctoral education.
3. Recent Achievements and Statistics
Vietnam has made remarkable progress in access and quality:
Primary education completion rate exceeds 98%, with all provinces meeting national standards.
In the 2023–2024 school year, there were 522,000 general education classes, including:
280,000 primary
168,000 lower secondary
74,000 upper secondary
Despite a drop in the number of schools from 28,951 in 2015 to 25,783 in 2024, the education system has accommodated growing enrollments by merging into multi-level institutions.
Vocational education has also seen reforms, emphasizing decentralization, institutional autonomy, and accountability. Notably, the training quality of 11 Vietnamese universities is now globally recognized.
4. Education Prices and Inflation Trends
Education costs in Vietnam were down by 1.08 percent in December 2024 compared to December 2023, according to Vietnam’s Consumer Price Index. Month-on-month, prices rose by 0.16 percent from November.
Despite this end-of-year dip, education costs rose significantly by 5.37 percent for the whole year compared to 2023, reflecting adjustments in tuition fees, school supplies, and education-related services.
5. Foreign Direct Investment (FDI) in Education
Although not the largest FDI sector, education in Vietnam is gaining attention from international investors. By 2023, it had attracted 695 foreign-invested projects worth US$4.6 billion. That year alone saw 68 new projects, up from 41 in 2022, accounting for 2% of total FDI projects.
In December 2024, the sector registered 5 new projects with US$601,000 in capital, a rise from just 1 project in November. Overall in 2024, education attracted 38 new projects totaling US$39.6 million in registered capital.
Mergers and acquisitions (M&A) are a key entry strategy for investors, offering quick market access and operational infrastructure. Notable deals include KKR’s US$120 million investment in EQuest Education Group in 2023 and Taylor’s Education Group’s consideration of acquiring Koala House in 2024. Local firms are also active—Nutifood invested in Anne Hill International School, and edtech startup Vuihoc acquired IELTS Workshop.
This active M&A landscape is supported by favorable government policies: no cap on foreign ownership in education, simplified visa and work permit procedures (Resolution No. 35/NQ-CP), and flexible regulations under Decree No. 86/2018/ND-CP and its 2024 amendment (Decree No. 124/2024/ND-CP), which eases investment timelines for new institutions.
M&A Activity
Mergers and acquisitions are a preferred entry route for investors:
In 2023, KKR invested US$120 million in EQuest Education Group.
Taylor’s Education Group explored acquiring preschool provider Koala House in 2024.
Nutifood invested in Anne Hill International School, while edtech firm Vuihoc acquired IELTS Workshop.
Policy Incentives for FDI
The Vietnamese government encourages foreign investment by:
Allowing 100% foreign ownership in educational institutions
Resolution No. 35/NQ-CP (2019) easing visa/work permit processes
Decree No. 86/2018/ND-CP and its amendment Decree No. 124/2024/ND-CP providing flexible investment timelines and lowering entry barriers for new institutions
6. Vision 2030: Education Development Strategy
To align with its socio-economic development goals, Vietnam has set forth an ambitious Education Development Strategy to 2030, with a vision toward 2045 under Decision No. 1705/QD-TTg signed in December 2024. The strategy sets goals to improve the accessibility of education for all levels, as well as shifting the training programs to meet with the national demand in the workforce. In light of the growing number of school enrollments and the need for better education, the government also encourages the development of the private education sector of all levels.
7. Emerging Trends and Opportunities
Increased government investment in education
The Vietnamese government remains committed to improving access to and the quality of education at all levels. The 2024 budget continues to allocate a significant portion of national GDP (approximately 5-6 percent) to education. Investments focus on infrastructure, teacher training, and expanding digital education. The ongoing implementation of the 2019 Law on Education has modernised the sector, promoting equity, innovation, and global competitiveness.
Private and international schools expansion
Private education has seen tremendous growth, especially in urban centres like Ho Chi Minh City and Hanoi. In 2024, private schools and international institutions continue to meet growing demand from the rising middle class and expatriate communities. The government has actively encouraged foreign investment in education, resulting in an influx of international schools offering globally recognized programs such as the International Baccalaureate (IB) and British and American curricula.
8. Key Sub-Sectors
Leading Sub-Sectors in Education and Training
Higher Education Vietnam is a top source of international students in the U.S., with 21,900 Vietnamese students in 2022–2023 contributing US$816 million to the U.S. economy. Most pursue undergraduate and graduate programs, especially in business, STEM, and health. Key players in higher education include:
Vietnam National University (VNU) – Hanoi & Ho Chi Minh City
Ton Duc Thang University
Hanoi University of Science and Technology (HUST)
Fulbright University Vietnam
RMIT University Vietnam
Secondary Education Vietnamese students are increasingly enrolling in K–12 programs abroad, with 2,933 in the U.S. in 2022. International schools are expanding domestically as well. Key players include:
British International School (BIS)
International School Ho Chi Minh City (ISHCMC)
Hanoi International School (HIS)
Vietnam Australia International School (VAS)
The American School (TAS)
Online Programs Vietnam’s online education sector is growing due to mobile and internet accessibility, though issues like time zone differences and learning quality persist. Key online education platforms include:
EdTech Vietnam is emerging as an EdTech hotspot in Southeast Asia, with over 300 startups and US$103 million in investments. Notable EdTech companies include:
Edmicro – personalized learning through adaptive testing
Vuihoc.vn – K–12 digital learning platform
Hocmai.vn – early mover in online tutoring
Topica Edtech Group – online university and certification provider
TEKY Academy – STEM-focused coding and robotics for children
Gitiho - online training platform for working people that provides a program to develop skills and knowledge
STEM and Digital Education Vietnam is integrating STEM into mainstream curricula with increased government and industry collaboration. Leading initiatives and players:
TEKY Academy – early STEM education
FPT University – tech-oriented university offering AI and coding
CodeGym – coding bootcamps
MindX Technology School – tech training for teens and young adults
Samsung Innovation Campus (in partnership with MOET) – supports STEM learning in public schools
Higher Education Reforms Vietnam is pushing university autonomy, quality assurance, and global rankings. Institutions leading reform efforts:
Vietnam National University (VNU)
Ton Duc Thang University
Hanoi University of Science and Technology (HUST)
Ho Chi Minh City University of Technology (HUTECH)
Foreign Trade University (FTU)
International Collaboration Joint research, student exchanges, and dual degrees are increasing across Vietnamese universities. Active partnerships include:
Fulbright University Vietnam & Harvard Kennedy School
RMIT Vietnam & RMIT Australia
Vietnam Japan University
Vietnam-Germany University
University of Economics Ho Chi Minh City (UEH) with partners in Korea, the U.S., and Europe
Vocational Training Vietnam’s vocational training expansion targets workforce readiness in industry and services. Major providers and partners:
LILAMA 2 Technical & Technology College – German-supported training
Viet Nam Vocational College of Technology (VVC Tech)
KOTO (Know One Teach One) – hospitality training for disadvantaged youth
Aptech Vietnam – IT and software vocational training
iSPACE College – digital skills and cybersecurity training
9. Key Challenges
Urban-Rural Divide
While urban education flourishes, remote areas still face issues with infrastructure, teacher quality, and access.
Teacher Shortage and Retention
Low salaries and high turnover affect public schools. Although training programs have improved, qualified teacher shortages persist, especially in rural areas.
Overcrowded Public Schools
Urban population growth strains school resources. The government encourages private investment to ease the burden, though demand often surpasses supply.
Stringent Standards for Foreign Institutions
Under Decree No. 124/2024/ND-CP, foreign institutions must:
Rank in the global top 500 for 3 consecutive years
Invest minimum VND 500 billion (≈US$20 million) for university branches
10. Legal Framework and Reforms
Law on Education (2019)
Ongoing reforms prioritize:
Universal early childhood education
Curriculum updates
Public-private partnerships
University Autonomy
By 2024, universities gained greater control over finances, curriculum, and admissions, boosting innovation and competitiveness.
11. Future Outlook
Rising International Student Mobility
Vietnam is both a source and destination for international students. More foreign students are enrolling in Vietnamese institutions due to affordability and improving quality.
Industry Partnerships
Companies like Samsung, Intel, and Toyota are collaborating with universities to offer hands-on training and research opportunities.
Private Sector Expansion
With a growing middle class and increasing demand, private and international schools are expected to expand further—especially in major cities.
Conclusion
Vietnam’s education sector in 2024 showcases its ambition to become a knowledge-driven economy. With proactive reforms, rising FDI, and a tech-savvy population, the country presents vast opportunities in private education, vocational training, and EdTech.
While regulatory and infrastructural challenges remain, Vietnam is steadily positioning itself as a regional education hub.
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