Spending on private education has been increasing continuously for over 5 years and the investment space in this field is still wide open, according to FiinGroup.
The report "Vietnam Education: Demand for private education is increasing" recently released by FiinGroup, a credit rating and data firm, said that spending on private education is increasing rapidly, attracting the attention of domestic and foreign investors.
The data and credit rating agency said the number of students at private schools in Vietnam increased by 10.9% from 2017 to 2022. Of which, high school students grew by 10.4% and university and above students increased by 11.5%.
Data from the Ministry of Education and Training also shows significant growth in private education. Accordingly, in the 2023-2024 school year, the country will have 3,928 non-public educational institutions (accounting for 9.5%) with 1.2 million students, accounting for 6% of the total number of students nationwide.
Compared to the 2013-2014 school year, the number of non-public educational institutions nationwide increased by 1,286. Thus, in the past decade, the number of non-public educational institutions increased 3 times.
"Spending on education grew steadily, reflecting higher awareness and high demand for education, especially private education, foreign languages, entrance exams and extracurricular activities," FiinGroup commented.
A class of students at ISHCMC - the first international school in Ho Chi Minh City, established in 1993. Photo: ISHCMC Fanpage
Previously, in February, a report by the global research and consulting organization on international education, ISC Research (UK), said that the number of new international schools opened in Vietnam increased by 5% in the past two years, equal to Japan and among the top 5 in the world.
"Demand for studying at international schools in Vietnam is increasing significantly," ISC Research assessed. Since 2019, the number of international schools in Vietnam has increased by 42%, the number of students has increased by 30%. Total revenue of schools has increased by 58%.
The rapid increase in private education spending has attracted the attention of both domestic and international investors looking to seize opportunities in this growing market. Notable cases include KKR investing $120 million in EQuest - the owner of Canadian International Schools (CIS) and Broward Vietnam, or BPEA buying VUS for an undisclosed amount.
Investment in the private education sector is assessed by FiinGroup as having much untapped potential thanks to favorable demographics, rising incomes and a desire for higher education.
According to the report, education spending has seen steady growth as 47% of household spending in major cities is on education. During the period 2017-2022, Vietnamese households’ spending on education is expected to increase by about 7%.
Meanwhile, Vietnam’s secondary school-age population is currently 24.5 million and is expected to grow by 0.6% by 2030. Meanwhile, the presence of private education remains small. For example, in Hanoi, the number of international and bilingual schools in the 2023-2024 school year is 69,000, accounting for less than 4% of the capital’s total student population of over 2.2 million. Tuition fees for international schools here range from $11,000-30,000 per year and $4,000-8,000 per year for bilingual schools.
Di Tung
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