Vietnam - Universities are given more financial freedom

The Draft Law No. 3 on university training would let schools decide their own tuition fees.

Headmaster of National Economics University proposed letting the school settle on fees for themselves, "The Government should remove the cap so the schools can adjust fees and improve teaching quality."

Le Vinh Danh, Headmaster of Ton Duc Thang University said, "Subsidies should only be given to some students attending top universities, while other public schools should be able to decide on their own fees according to operational costs."

Professor Pham Phu, an education expert, suggested that foreign currency could be borrowed and re-lend to students who need financial aid.

However, former Minister of Education and Training, Tran Hong Quan, said that a new financial mechanism is needed that would provide direct support to students, whether they are attending private or public schools.

According to the draft law public schools will be able to decide their own fees, but must stay within the Government's price frame.

Private schools, on the other hand, would have complete freedom. They would have to announce their fees at admission time.

Tran Quoc Toan, former vice chairman of the Government Office said the Draft Law No 2 on university education still did not clear up the differences between non-profit and for-profit universities, making it impossible for the Government to make a comprehensive plan.

An amendment to the draft law attempted to clear up this distinction. All universities with foreign investment and private educational facilities would be considered non-profit if all the profit is reinvested in infrastructure and improving teaching quality. Shareholders of non-profits would not receive income more than the annual deposit interest rate.

Private schools would be tax exempt for up to 25% of their profit. That amount, however, would have to be spent on equipment and teacher training. The rest would be subject to normal taxes.

The value of equipment of any school, as well as the assets received from the Government or a third party would be considered common property.

Dantri

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