Proposal to calculate public university tuition fees based on average income per capita

On March 29, the Ministry of Education and Training announced a number of proposals to amend the Law on Higher Education, including how to calculate tuition fees.

Accordingly, universities are autonomous in setting tuition fees based on training quality. Public school tuition fees are determined as a percentage of the average income per capita as prescribed by the Government. The Price Law will be adjusted to ensure uniformity in tuition fees between public and private schools.

In 2024, Vietnam's per capita income will be more than 4,700 USD (120 million VND).

Currently, public university tuition fees are based on a roadmap to ensure the cost of education and training services, according to Decree 81 of the Government. The State sets a tuition fee ceiling for each major and each school year, which schools cannot exceed. For programs that have been quality-accredited, universities are allowed to determine their own tuition fees.

According to statistics, university tuition fees this year range from 10.6 - 250 million VND/year, the common level is 20 - 40 million VND (excluding international joint programs).

In addition, the ministry said that when amending the Law on Higher Education, the State will have a policy of financial support and scholarships for learners, with priority given to students in key professions and disadvantaged and vulnerable areas.

Universities are invested by the State based on specific, quantifiable criteria to ensure efficiency. The Ministry proposes that schools be exempted from land tax and do not need to pay land use fees; and exempted from corporate income tax for non-profit schools. Private schools are considered for tax exemption or incentives to encourage investment.

Authorities also plan to complete the linkage mechanism; regulations on cooperation and training links domestically and internationally; specific financial mechanisms for key schools and disadvantaged areas; supplement the legal framework for foreign experts and lecturers to teach; and empower schools in scientific and technological activities...

The Law on Higher Education was passed by the National Assembly in 2012 and was amended and supplemented in 2018. Explaining the continued amendment of the law, the Ministry of Education and Training said that the management of higher education is fragmented, causing overlap and reducing effectiveness. The country has 197 public universities but there are up to 60 management agencies.

On the other hand, when implementing autonomy, schools lack effective internal management tools and corresponding control and accountability systems. Regulations on financial and asset management are not specific, causing difficulties for public schools in implementation. The legal framework is not adequate for digital transformation, open education, and cross-system credit recognition; connections between universities and businesses are limited.

According to the ministry, the Law on Higher Education is amended according to the principle of overcoming the above-mentioned obstacles, increasing the autonomy and accountability of universities.