📘 Section 1 covers market & industry data.
📊 Section 2 looks at key developments & trends.
🏭 Section 3 explores the policy & regulatory landscape.
💼 Section 4 details the future outlook & opportunities.
📚 Section 5 answers key frequently asked questions.
🧭 A floating table of contents is top-right for easy navigation.
💬 Reach out if you have any questions.
Vietnam’s education industry has experienced significant transformation and growth over the past few decades, positioning the country as a rising star in Southeast Asia.
In 2026, the education sector continues to be a critical area of focus for the government as it seeks to support rapid economic growth, modernise its workforce, and integrate into the global economy.
This overview outlines the key trends, challenges, and developments shaping Vietnam’s education industry in 2026.
To better understand Vietnam’s education landscape, it’s useful to look at key figures on market size, investment flows, and pricing trends.
Education in Vietnam in numbers
This section covers some key data points with respect to Vietnam’s education sector.
Market size
A range of reports is available with varied assessments of the growth prospects of Vietnam’s education industry.
These are a few of the most recent:
- 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.
Government investment in education
Vietnam’s Ministry of Finance estimated in August of 2026 that the 2026 education budget would reach VND 630 trillion (about US$23.9 billion), up VND 134 trillion (about US$5.1 billion) from 2025.
This would account for at least 20 percent of total state expenditure, with localities required to spend at least 5 percent of budget revenue on education and universities at least 3 percent on reinvestment.
✏️ SNAPSHOT: ADB to invest US$150 million in Vietnam’s private education sector
In March of 2025, the Asian Development Bank (ADB) announced its first private sector investment in Vietnam’s education sector, leading a US$150 million sustainability-linked loan to Vinschool.
The loan was reportedly made to support new facilities for 20,400 students in Hanoi, Ho Chi Minh City, and Hung Yen.
As Vietnam transitions to a middle-income country, education quality and accessibility remain critical.
The ADB’s first private education investment signals growing recognition of the private sector’s role in addressing these challenges.
Additionally, the sustainability-linked loan model sets a precedent for future education financing in Vietnam and other emerging markets.
Key Developments and Trends
Vietnam’s education sector is undergoing a significant transformation, driven by a combination of policy reform and investment.
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 encouraged foreign investment in education, resulting in an influx of international schools offering globally recognised programs such as the International Baccalaureate (IB) and British and American curricula.
Major players
International schools like the British International School, Saigon South International School, and Renaissance International School Saigon have expanded their campuses to cater to increasing student populations.
STEM and Digital Education Focus
Recognising the need for a tech-savvy workforce, Vietnam has prioritised STEM (Science, Technology, Engineering, and Mathematics) education.
Robotics, coding, and AI courses have become standard in many schools, and partnerships with tech companies provide students with hands-on experience.
E-Learning and edTech growth
Vietnam’s EdTech sector has expanded significantly, with online platforms like Edmicro, Kyna, and Topica spearheading digital learning.
This is further fueled by improved internet access and smartphone penetration.
Higher education
Vietnam’s higher education system has undergone substantial reforms to improve autonomy, research capacity, and global competitiveness.
International collaborations
Universities are forming partnerships with global institutions for joint research programs, exchange initiatives, and dual-degree offerings.
In 2024, Vietnam has seen increased partnerships with universities in countries like the US, Australia, and Japan.
Vocational training expansion
Vocational training is a key component of Vietnam’s educational strategy, aimed at equipping young people with the practical skills needed for industrial jobs.
The government has worked to enhance its vocational training programs, particularly in sectors like manufacturing, information technology, and construction.
This is part of an effort to meet the needs of Vietnam’s industrialization and its rapidly expanding export economy.
Top 10 universities by revenue, 2023
| University | VND bns | US$ mns | |
| Total | 17,833 | $724.77 | |
| 1 | RMIT Vietnam | 3,800 | $154.44 |
| 2 | FPT University | 2,918 | $118.59 |
| 3 | Hanoi University of Science and Technology | 2,137 | $86.85 |
| 4 | University of Economics Ho Chi Minh City | 1,679 | $68.24 |
| 5 | Nguyen Tat Thanh University | 1,475 | $59.95 |
| 6 | National Economics University | 1,410 | $57.31 |
| 7 | University of Technology HCMC (HUTECH) | 1,260 | $51.21 |
| 8 | Ton Duc Thang University | 1,141 | $46.37 |
| 9 | Industrial University of Ho Chi Minh City | 1,010 | $41.05 |
| 10 | HCMC University of Technology | 1,003 | $40.76 |
Source: Vietnam’s top universities by revenue pull in US$724 million in 2023
Key Challenges
Vietnam’s education system has made significant progress in access and outcomes, but it continues to face a number of structural and operational challenges that risk slowing further improvement.
Regional disparities
While education in urban areas like Hanoi and Ho Chi Minh City thrives, rural and remote regions face significant challenges.
Ethnic minorities and students in the northern highlands and Mekong Delta regions often struggle with fewer resources, poor infrastructure, and lower teacher quality.
📚 SNAPSHOT: HCMC English centre closes after collecting US$250,000 in tuition in advance
In May, 2025, over VND 6.58 billion or US$253,840 in prepaid tuition was lost following the sudden closure of Australia International English School (AIES) in Ho Chi Minh City, affecting more than 200 families across southern Vietnam.
Parents, some of whom paid up to three years in advance for discounts, were left without recourse after the school shut its doors without warning.
This mirrors previous collapses such as APAX English and American International School — both of which closed after collecting large lump-sum fees.
In each case, management disappeared, digital platforms went dark, and families were left with few means of receiving restitution.
Teacher shortages and quality
Despite ongoing reforms, Vietnam faces challenges related to teacher quality and availability, especially in rural areas.
Teacher salaries remain relatively low, leading to high turnover rates, particularly in public schools.
The government continues to invest in teacher training, but maintaining a highly qualified and motivated workforce remains a challenge.
Pressure on public schools
Rapid urbanisation and population growth have increased pressure on public schools, particularly in major cities.
Overcrowding in classrooms, lack of facilities, and resource shortages strain the public education system, which must accommodate the rising number of students.
The government has responded by encouraging private and foreign investment in education to share the burden, but demand still often exceeds supply.
Policy and regulatory landscape
Vietnam’s education sector is governed by a dynamic policy framework that seeks to balance quality, equity, and international integration.
Law on Education 2019
The 2019 Law on Education, which continues to guide reforms in 2024, focuses on expanding access to education, improving the quality of teaching and learning, and promoting equality across different socio-economic groups.
Key elements include:
- Universalising early childhood education.
- Reforming the curriculum to align with global standards.
- Promoting public-private partnerships (PPPs) in education.
See also: Vietnam’s Law on Education
Higher education law reforms
In 2024, autonomy for higher education institutions remains a significant policy shift.
Universities now have more control over their academic programs, finances, and admissions, which has improved innovation and research capacity.
Decree 86 on foreign investment in education
Decree 86, officially known as Decree 86/2018/ND-CP, is a key piece of legislation in Vietnam that regulates foreign investment in the education sector. It is an appurtenance to the Law on Education.
Issued on June 6, 2018, this decree provides detailed guidelines on the establishment and operation of foreign-invested educational institutions and cooperation projects in Vietnam.
It plays a crucial role in Vietnam’s broader effort to internationalise its education system while ensuring compliance with national educational standards and policies.
See also: Foreign Investment in Education in Vietnam (Decree 86)
Amendments to Decree 86 in 2024
Note that Decree 86 was amended in October of 2024 with Decree 124/2024/ND-CP.
Key changes include:
- Foreign higher education institutions establishing branches in Vietnam must rank among the top 500 universities globally for the past three years; and
- Foreign-invested higher education institutions must meet a minimum investment capital requirement of VND 500 billion (around US$20 million). By the time of appraisal for branch establishment, at least VND 250 billion must be invested.
See also: New regulations on higher education for foreign universities in Vietnam
🎓GUIDE: Opening an English language centre in Vietnam
Demand for English education is booming, but navigating the legal and regulatory requirements can be complex.
From licensing and capital requirements to hiring foreign teachers and finding a location, the process involves multiple steps and government approvals.
For a full breakdown of costs, procedures, and compliance tips, read our guide: How to Start an English Centre in Vietnam
Future Outlook and Opportunities
Vietnam’s education sector is entering a phase of rapid transformation, driven by digital innovation, rising private and foreign investment, and growing demand for workforce-aligned skills.
Growth in international student mobility
Vietnam is becoming both a source and a destination for international students.
Vietnamese students are among the largest cohorts studying abroad, particularly in the US, Japan, South Korea, and Australia.
There is an increasing trend of foreign students enrolling in Vietnamese universities, attracted by the lower cost of education and growing reputation of Vietnam’s higher education system.
Corporate partnerships in education
Vietnamese universities and vocational institutions are increasingly collaborating with the private sector to align curricula with industry needs.
Multinational companies like Samsung, Intel, and Toyota have partnered with Vietnamese educational institutions to offer internships, research opportunities, and specialised training programs to students.
Continued growth in private and international schools
As Vietnam’s economy grows and the middle class expands, demand for private and international education is expected to rise.
The premium education market, particularly in large cities, will continue to grow, offering opportunities for investors and foreign education providers to establish and expand operations in Vietnam.
FAQ: Education in Vietnam
These are some of the most common questions about education in Vietnam.
How big is Vietnam’s education market?
Vietnam’s education industry is rapidly expanding.
The higher education market is forecast to grow by US$616.5 million between 2024 and 2029, while online education is projected to reach US$627.4 million by 2029, driven by widespread digital adoption and private sector growth.
What are the key trends shaping education in Vietnam?
Key trends in Vietnam’s education sector include the growth of international and private schools, expansion of vocational training, a strong focus on STEM and digital education, and increased government investment in infrastructure and teacher training.
Is foreign investment allowed in Vietnam’s education sector?
Yes. Foreign investment is regulated under Decree 86 and its 2024 amendment, Decree 124, which set conditions for establishing educational institutions and university branches.
These include minimum capital requirements and global university ranking criteria.
What are the top universities in Vietnam?
In 2023, the top three universities by revenue were:
- RMIT Vietnam – US$154.44 million
- FPT University – US$118.59 million
- Hanoi University of Science and Technology – US$86.85 million
These institutions lead in both local and international enrolment.
What are the biggest challenges facing Vietnam’s education system?
Major challenges include regional disparities, teacher shortages, and overcrowded public schools in urban areas.
The government continues to address these through public-private partnerships, curriculum reform, and foreign investment facilitation.
What’s next?
Vietnam’s education industry in 2026 reflects the country’s dynamic economic development and its integration into the global knowledge economy.
While challenges remain, particularly in addressing regional disparities and teacher shortages, the sector offers significant growth potential, especially in areas like private education, vocational training, and EdTech.
As Vietnam continues to reform its education system, it aims to build a workforce that is well-equipped to meet the demands of the 21st-century economy and foster sustained national development.
Vietnam’s regulatory environment, however, is dynamic and can change quickly.
With this in mind, to keep abreast of changes to said regulations, foreign firms operating in Vietnam should make sure to subscribe to the-shiv.
First published September 13, 2024. Last updated February 9, 2026.