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Annual Expenditure on Education by Purchasing Power Parity


Table 2.11: Annual expenditure on sex education at purchasing power parity


Nation

Year

Expenses per student

(US Dollars at Purchasing Power Parity)

Developed countries



France

2003

7,807 (11 times more than Vietnam)

Virtue

2003

7,368 (10 times more than Vietnam)

Japan

2002 – 2003

7,789 (11 times more than Vietnam)

Korea

2003

5,733 (8 times more than Vietnam)

America

2002 – 2003

12,023 (16 times more than Vietnam)

Newly developed countries



Malaysia

2003

3,031 (4 times more than Vietnam)

Thailand

2003 – 2004

3,170 (4 times more than Vietnam)

Vietnam

2006

723

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Annual Expenditure on Education by Purchasing Power Parity

Source: Ministry of Education and Training, Project on innovation of educational financial mechanism for the period 2009-2014 , June 2009.


The reality of the Government's priority in state budget expenditure has affirmed the proportion of expenditure on higher education in terms of both scale and proportion in total state budget expenditure to continuously improve the level of education enjoyment for all classes of people and truly improve and be more equitable in education.

Table 2.12: State budget expenditure for education and training in the period 2005 - 2010

Unit: billion VND

TT

Content

2005

2006

2007

2008

2009

2010


1


GDP


839,211


973,791


1,269,127


1,453,911


1,568,000


1,837,000


2


Total state budget expenditure


239,470


297,232


367,379


407,095


449,900


515,300


2.1


State budget for education and training


42,943


54,798


69,645


81,359


102,580


119,274



Ratio to GDP


5.10%


5.60%


5.50%


5.60%


5.80%


5.70%

Proportion in total state budget expenditure

17.9%

18.4%

19.0%

20.0%

22.8%

23.1%

Regular expenses

35,369

44,359

54,713

62,010

83,115

97,854

Investment expenditure

7,226

10,000

14,584

18,844

18,900

20,810

Source: Ministry of Finance, Ministry of Planning and Investment, Ministry of Education and Training


From the above analysis, it can be affirmed that the state budget expenditure for higher education has had impressive changes. The results of those changes have contributed significantly to the implementation of the goals.

The goal of public higher education reform. However, with the policy of diversifying investment capital sources, the reduction of the proportion of state budget investment capital in public higher education has led to many difficulties for training and scientific research activities of schools. Solving this problem requires schools to create a synchronous and effective operating mechanism in the economic conditions of the integration period in Vietnam.

Significant changes in the allocation of state budget investment for education and higher education are due to the impact of

the action of the following factors:

Firstly , due to the innovations in policy mechanisms and achievements in economic growth. The renovation in Vietnam started in 1996, after a few years of starting up, it has really aroused latent resources and created strong development steps. The most obvious manifestation is that the economy has achieved a high growth rate compared to before "In the period 1991 - 1995, the economy achieved a growth rate of 8.2%/year (exceeding the set target of 5% - 6.5%). In the period 1996 - 2000, it increased by 6.7%/year. On average, in 10 years, GDP increased by 2.06 times. However, GDP per capita only increased by about 1.8 times compared to 1990" [7]. In the 5-year period from 2006 - 2010, the average GDP growth of the whole country reached 7.01%/year; GDP per capita increased nearly 2 times (from nearly 11.7 million VND in 2006 to nearly 22.8 million VND in 2010). In USD (according to the average annual exchange rate), our country's GDP per capita during this period increased from 730 USD in 2006 to 1,168 USD in 2010, or 1.6 times. The innovation of mechanisms and policies during this period "unleashed" and liberated the productive forces of all economic sectors. The activities of all sectors took place in a vibrant manner, and the production value of all sectors increased rapidly. The diverse development of the service sector contributed to promoting the scale and growth rate of GDP. Under these conditions, budget revenue was also consolidated and increased rapidly.

Second , because of the innovations in education and training policies and the guiding ideology for education and training development in the period of industrialization and modernization [Resolution of the 8th Central Committee, Session VIII] are considered the compass, the foundation for innovations in education and training policies and have a decisive influence on the development of the quantity and quality of education and training. In this field, the Party's viewpoint on the role of education will determine the priorities for education in the allocation of the State budget, policies for teachers and other educational issues. For example, determining the role of education in human resource development will determine the Government's policy on the development of education levels. The viewpoint on solving the problem of social equity and the role of education in the development of education and training in the development of education and training in the development of education and training in the period of industrialization and modernization [Resolution of the 8th Central Committee, Session VIII] is considered the guideline, the foundation for innovations in education and training policies and has a decisive influence on the development of education and training in terms of quantity and quality. In this field, the Party's viewpoint on the role of education will determine the priorities for education in the allocation of the State budget, policies for teachers and other educational issues. For example, determining the role of education in human resource development will determine the Government's policy on the development of education levels. The viewpoint on solving the problem of social equity and the role of education in the development of education and training in the development of education and training in the period of industrialization and modernization.


What is the State's management role in universities? Thus, the views of the Party and leaders at all levels on education will have a decisive influence on the goals of higher education development as well as measures for education development in each period.

The viewpoint of “developing education one step ahead” has been affirmed by the Party and the State in three contents: being ahead in investment, being ahead in planning and direction, and being ahead in operation. Investing in education is investing in development, that is, preparing non-material infrastructure for the future to contribute to promoting economic growth. Therefore, the State budget has allocated an increasingly larger proportion to education and training to meet the needs of improving the quality of human resources for the economy. From there, the State budget also creates opportunities for everyone to study, provides financial support for education in remote, isolated, disadvantaged areas, and social policy subjects to ensure fairness in learning opportunities.

Current status of revenue sources and non-state budget revenue levels of public universities

Tuition collection

Since 1998, the collection and use of tuition fees in public educational institutions has been implemented on the basis of the tuition fee framework stipulated in Decision No. 70/1998/QD-TTg dated March 31, 1998 of the Prime Minister and Joint Circular No. 54/1998/TTLT. Ministry of Education and Training-TC dated August 31, 1998 of the Ministry of Education and Training and the Ministry of Finance.

On August 21, 2009, the Prime Minister signed Decision 1310/TTg August 21, 2009 replacing Decision 70/1998/QD-TTg dated March 31, 1998 on adjusting the tuition fee framework for public vocational and higher education institutions in the national education system in the 2009-2010 period. Accordingly, the tuition fee framework is specifically regulated for each training level: vocational training, professional secondary school, college, university, master's training and doctoral training. Specifically:

Table 2.13: Tuition fee collection framework according to Decision No. 1310/QD-TTg

Unit: VND/month/student


University

50,000 – 240,000

Master's training

75,000 -250,000

Doctoral training

100,000 – 330,000

Source: Decision No. 1310/QD-TTg Joint Circular of the Ministry of Finance and the Ministry of Education and Training No. 46/2001/TTLT – BTC-BGDDT dated June 20, 2001 on guidance on management of tuition fees for non-formal training activities

in public schools and training institutions.


Table 2.14: Tuition fee framework according to inter-ministerial circular No. 46/2001/TTLT – BTC-BGDĐT


In office

100,000 – 350,000

By 2

150,000 – 380,000

Other (remote)

The school determines its own tuition fees, provided they do not exceed the fee level.

the highest of the above mentioned forms of training

Source: Joint Circular No. 46/2001/TTLT – BTC-BGDĐT Then, on May 14, 2010, the Prime Minister signed Decree No. 49/2010/ND-CP regulating tuition fee exemption and reduction, support for learning costs and the mechanism for collecting and using tuition fees for

national educational institutions from the 2010-2011 school year to the 2014-2015 school year, accordingly:

For vocational education and public higher education, tuition fees are based on the principle of sharing training costs between the State and learners. Tuition fees at public universities are determined by the formula: Tuition = Minimum regular costs – State support [8].

- Public educational institutions that offer high-quality programs are allowed to charge adequate tuition fees to cover training costs.

Table 2.15: Tuition ceiling for university level training at public schools by major group of mass training programs from the 2010-2011 school year to the 2014-2015 school year

Industry Group

Year

2010-

2011

Year

2011-

2012

Year

2012-

2013

Year

2013-

2014

Year

2014-

2015

1. Social sciences, economics, law

290

355

420

485

550

2. Natural sciences; engineering, technology; sports; arts; hotels, tourism

310

395

480

565

650

3. Medicine

340

455

570

685

800

Source: Synthesis report - Analysis of current status of university financial management, Ministry of Education and Training

Table 2.16: Tuition ceiling for vocational colleges, colleges, master's and doctoral training from the 2010-2011 school year to the 2014-2015 school year is determined by the adjustment coefficient

Education level

Coefficient compared to university

1. Intermediate professional

0.7

2. College

0.8

3. University

1

4. Master's training

1.5

5. Doctoral training

2.5

Source: Synthesis report - Analysis of current status of university financial management, Ministry of Education and Training


- Tuition fees for public vocational education and university education institutions with mass programs: based on the tuition ceiling for each school year, characteristics and development requirements of the training sector, training forms, circumstances of students, education of academies, principals and heads of schools, training institutions under central management, regulations for each type of subject, each training level.

- Tuition fees for vocational training institutions and universities of state-owned enterprises: based on training costs, educational institutions proactively set tuition fees for groups of majors according to the principle of ensuring compensation for training costs, and submit them to the Ministry of Education and Training and the Ministry of Labor, Invalids and Social Affairs for approval. Tuition fees must be made public for each school year and expected for the entire course so that learners know before enrollment.

- Tuition fees for continuing education training shall not exceed 150% of regular tuition fees for the same level of education and the same training group.

- Tuition fees for credit-based training are regulated: the tuition fee for 1 credit is determined based on the total tuition fees of the entire course according to the training group and the number of credits according to the formula:

Credit tuition = Total tuition for the entire course / total number of credits for the entire course

In which: Total tuition fee for the entire course = tuition fee for 1 student/1 month x 10 months x number of school years.

- Tuition fees of public vocational education and higher education institutions implementing high-quality programs are proactively set at appropriate tuition levels to cover training costs, subject to approval by the Ministry of Education and Training and the Ministry of Labor, Invalids and Social Affairs, and must be made public to learners upon enrollment.

- Tuition fees for foreigners studying at Vietnamese educational institutions are decided by the educational institutions.


Analyzing the current situation of non-state budget sources invested in higher education is necessary, helping to assess the impact of each source of capital; contributing to eliminating the widespread subsidy regime from the state budget in providing educational services, creating conditions for the State to allocate state budget resources to focus on prioritizing educational development in regions with difficult socio-economic conditions and supporting the poor, the disabled, and beneficiaries of social policies to ensure social justice in education.

Non-state budget sources contribute to mobilizing significant financial resources from learners and their families.

families of learners together with state budget resources to invest in developing higher education; raise awareness


and the responsibility to care for the educational development of the people, thereby promoting the process of socialization of investment capital for the development of higher education. (Table 2.17)

Table 2.17: Tuition fees from non-state budget sources

Unit: Billion VND


Content

Year

2005

2006

2008

2009

2010

State budget investment in education and training

42,943

54,798

69,645

91,595

118,664

Tuition collection

1,326

1,839

2,327

3.306

4.241

Tuition revenue compared to state budget investment

for education and training

3.09%

3.36%

3.34%

3.61%

3.57%

Source: Ministry of Finance, Ministry of Planning and Investment, Ministry of Education and Training. Tuition fees in universities increased in both absolute and relative numbers. In 2005, total tuition fees in colleges and universities were 1,326 billion VND, reaching 3.09% of the total state budget invested in education. By 2010, this figure had reached 4,241 billion VND, reaching 3.09% of the total state budget invested in education.

3.57% of total state budget expenditure on education and training.


According to a report by the Ministry of Education and Training, revenue from tuition fees accounts for about 70% of total non-state budgetary resources of educational institutions.


According to Professor Mai Ngoc Cuong - National Economics University, the current revenue of public universities is formed from the state budget and non-state budget sources. Of which, the budget source accounts for about 54% - 57%, non-budget revenue accounts for about 43% - 46%, mainly from tuition and fees.

Except for universities in the fields of Economics and Law, which are able to cover over 50% of their expenditures from non-state revenue sources, other universities can only cover less than 50%. Particularly difficult are universities in the fields of medicine, sports, and culture and arts. Due to difficulties in non-state revenue sources, many universities are unlikely to be able to increase their resources to balance their own revenues and expenditures.

Tuition fee framework is differentiated by region and training level, with training regimes, exemptions and reductions for the poor, the disabled and beneficiaries of the State's social policies, thus contributing significantly to the implementation of social equity in education; limiting tuition fee barriers to the access and enjoyment of education for the poor, the disabled and social policy beneficiaries.

The regulations on tuition fee framework and tuition fee exemption regime clearly demonstrate the viewpoint on the principle of collecting tuition fees in accordance with the payer's ability, linked to the cost level according to the regulations.


The training level, taking into account the implementation of the State's socio-economic policies, has actively contributed to the implementation of social justice in education.

Thus, along with the increase in state investment, people's investment in the form of tuition fees at public schools increased from 3,869,715 million VND in 2005 to 14,647,000 million VND in 2010, an increase of 3.78 times due to the increase in the number of people studying in public institutions and tuition fees collected at the ceiling of tuition fee brackets. In 2005, tuition fees accounted for 7.3% of total expenditure on education at public institutions, and in 2010, it accounted for 26.2% (Table 2.18). The total amount of tuition fees collected in public educational institutions nationwide during the period 2001 - 2008 is detailed by level of education as shown in Table 2.18 below.

Table 2.18: Tuition structure in public educational institutions

Unit: Million VND



TT

Grade level,

training level

Year

2005

Year

2006

Year

2008

Year

2009

Year

2010

1

Total revenue HP, general, MN

1,379,018

1,368,151

1,713,612

4,635,000

6,010,000


Percentage of total tuition revenue

36%

32%

33%

44%

41%

2

Vocational training, college, university and postgraduate






2.1

Vocational training (long term, short term)

685,730

794,400

752,679

1,680,000

2,946,000


Percentage of total tuition revenue

17.7%

18.4%

14.4%

16.1%

20.1%


2.2.


Intermediate professional


287,748


326,816


444,881


838,000


1,449,000


Percentage of total tuition revenue

7.4%

7.6%

8.5%

8.0%

9.9%

2.3

College

283,055

384,370

515.253

478,000

768,000


Percentage of total tuition revenue

7.3%

8.9%

9.8%

4.6%

5.2%

2.4

University

1,163,580

1,366,729

1,702,997

2,683,000

3,207,000


Percentage of total tuition revenue

30.1%

31.6%

32.5%

25.7%

21.9%

2.5

Postgraduate

70,584

88,217

108,750

146,000

267,000


Percentage of total tuition revenue

1.8%

2.0%

2.1%

1.4%

1.8%


Total HP training revenue

2,490,697

2,960,532

3,524,560

5,825,000

8,637,000


TOTAL

3,869,715

4,328,683

5,238,172

10,460,000

14,647,000

Source: Ministry of Education and Training

Analysis of tuition fee structure shows that tuition fee revenue at university level is the largest, accounting for 32.5% of total tuition fee revenue in 2008. In 2010, other forms of training developed, in particular, the concept of vocational training and academic learning is no longer too heavy, so the proportion


Revenue from universities decreased to 21.9% compared to 2008. Next is revenue from short-term and long-term vocational training, accounting for 17.7% of total revenue from tuition fees (in 2005) and up to 20.1% in 2010. These two sources of tuition fees from this level of training accounted for 42% (in 2010). It can be concluded that tuition fees from training account for the majority of the total tuition fees of the sector, which correctly reflects the State's policy of prioritizing universalization of general education and mobilizing finance from learners at other levels of training.

The implementation of the tuition fee policy has had great significance in implementing the Government's policy of socializing education, demonstrating the people's sharing of responsibility with the State in the context of limited state budget resources but facing great challenges in terms of scale and learning needs of society. Revenue from tuition fees and other career revenues has also actively supported regular expenditures in schools. Some public training institutions have ensured all regular expenditures of the school through tuition fees and other career revenues, implementing a financial autonomy mechanism with public and transparent accounting of revenue and expenditure.

Aid revenue

ODA capital plays an important role in education investment, including non-refundable aid from international organizations and loan projects with preferential conditions. Aid projects are often of small value, donors often directly support specific schools: laboratories, machinery and equipment, books and documents, scholarships, etc. Loan projects (started in 1994) are mainly loan projects from the WB and ADB. The operation and management of loan projects are entirely based on the Agreement signed by the Government with the donors. Disbursements comply with the activities specified in the project documents, with regular supervision by Government agencies and donors, and each year the projects are independently audited in accordance with Government regulations.

In recent times, ODA capital has accounted for a significant proportion of the total budget for education and training (on average, ODA capital accounts for about 7.5% - 8% of the budget for education and training each year). Projects implemented in the education and training sector have supported the improvement of school facilities; purchased additional teaching equipment and supplies; supported teacher training, contributed to innovation in teaching methods and content, and enhanced the capacity of teachers and education managers in the provinces and schools participating in the project.

Currently, the Ministry of Education and Training is implementing 08 ODA capital projects for all levels of education from primary to university with a total investment of 685.345 million USD. Of which: preferential loans 460.997 million USD; non-refundable aid 76.785 million USD and counterpart capital 147.563 million USD. Specifically summarized in the following table:

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