University autonomy is beginning a new chapter with the promise of a better educational system in Vietnam. Many international universities have succeeded in implementing self-autonomy, but without proper adjustments, it may become a burden for Vietnamese universities and students.
The first step for Vietnamese universities
According to Mai Thanh Phong – the principal of Ho Chi Minh University of Technology (HCMUT), the tuition fee is the main source of income (approximately 70%) for any higher education facility in Vietnam when it comes to self-financing autonomy.
Low tuition charges have always been a decisive factor, an advantage of public institutions that shapes the rational choices (considering prices and quality) of many students and parents in Vietnam. By granting universities autonomy, the tuition gap between public and private institutions is gradually closing.
In an interview with the Media (Science and Development), Prof. Hoang Minh Son, president of Hanoi University of Science and Technology (HUST), stated that in order to run the university, they had to raise tuition fees and convince students, parents, and the general public that better educational quality is on the way. To be able to do so, HUST had to use its own reserve funds in the first few years to invest in infrastructure development and other necessities for higher-quality education.
Although this may appear to be an ideal solution, because HUST's outcomes remain quite admirable, it necessitates efficient systematic financial management, which is a bit of a conundrum for other universities with less reputation and budget.
More tuition fees but no more funding from the government
Huynh Quyet Thang, principal of HUST, suggested at the Vietnam Education Conference (VEC 2020) that relying on tuition fees will not result in a breakthrough in higher education quality. "We should diversify our revenue streams", he added.
Self-autonomy means that universities are now able to decide how to generate revenue and how to use that money to complete tasks assigned by the Government, this granted the universities the ability to manage their budget directly; theoretically, money will be spent efficiently, and the working processes between higher education facilities and the government will be minimized.
Adjustments in regulations are requested
Even so, there are always some major issues that arise when implementing new regulations, some of which cannot be solved solely by universities.
Creating multiple sources of income may help, but universities are still required to follow other legal documents, which prevents them from generating revenue. The Public Investment Law (2019), for example, states that universities cannot profit from available infrastructures, which are designated as public investments; not to mention the Law on Public Employees (2008), the Law on State Budget (2015), and other taxes.
Another puzzle to solve is the range of tuition fees; by resolving this issue, we ensure educational accessibility for all social classes while also maintaining educational quality. However, this is still a contentious issue. Universities can make education more accessible by offering scholarships and other support policies, but there are still limitations for students who are misjudged by the grading system.
Decree No. 81/2021/ND-CP recently broadened the range of tuition fees, allowing universities to increase their income in order to improve educational quality. According to Decree No. 60/2021/ND-CP (Article 4), instead of funding public non-business units, the state budget will give direct support to the social class with low socio-economic position. However, if the burden is transferred to the middle class, they will have to work harder, and sometimes working harder does not mean more money. There are no tools or any criteria for them to evaluate if the universities' quality improves over time.
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