Vietnam’s education sector stands at the forefront of Southeast Asia’s transformative growth, offering a dynamic landscape for foreign investors. Backed by a population exceeding 100 million with nearly 23% below 35 years old by 2030 (forecasted by ESCAP), and strong government commitment to education as a pillar of economic modernization, demand is rising across K-12, higher education, vocational training, and EdTech. Rapid urbanization and a growing middle class are boosting disposable incomes and accelerating enrollment in private and international schools. These developments make the sector highly attractive for foreign investors seeking growth and partnership opportunities.

 

Dynamics of Vietnam’s Education Sector & Growth Trajectory

Overview of Vietnam’s Education sector

According to Vietnam’s Ministry of Education and Training (MOET), for the 2023–2024 school year, Vietnam has approximately 25.6 million students across all education levels. Primary education accounts for the largest share, with over 8.8 million students enrolled, followed by lower secondary education with 6.5 million students and preschool education with 4.8 million children.

Source: Vietnam’s Ministry of Education and Training

Pre-primary and primary education are the levels with the largest number of schools in Vietnam, each totaling over 13,000 institutions nationwide. The majority of these preschools and kindergartens are public, with more than 11,000 public facilities. In higher education, there are 243 universities nationwide, including 176 public and 67 non-public institutions.

Source: Vietnam’s Ministry of Education and Training

(*) Note: General school has many tiers, including: (1) Basic general school is a school which combines primary school and lower secondary school. (2) Secondary school is a school which combines lower secondary school and upper secondary school (Link).

According to the Ministry of Education and Training, as of the end of the 2023-2024 academic year, Vietnam had a total of 1,251,377 teachers nationwide. Of this number, 1,102,818 teachers work in public schools, while 148,559 are employed in non-public institutions. Compared to the 2022-2023 school year, the number of teachers at the preschool and general education levels in Vietnam increased by 17,253. However, Vietnam still faces a significant teacher shortage, especially in preschool and general education, with nearly 120,000 positions unfilled as of May 2025. Pre-primary and primary education has the highest number of teachers, each with over 350,000, reflecting its large student population. At the university level, there are 84,031 lecturers, of which 60,009 are from non-public institutions, making higher education the level with the largest number of non-public lecturers.

Source: Vietnam’s Ministry of Education and Training

Growth Trajectory and Key Drivers

Vietnam’s education sector is undergoing a period of profound transformation, driven by rising societal demand for quality learning, ambitious government reforms and a clear vision for international competitiveness. Pursuant to Decision No. 1705/QD-TTg (December 31, 2024), the Vietnamese government has officially set in motion the Education Development Strategy through 2030, with an orientation toward 2045. The overarching goal is to elevate Vietnam’s education system to the standards of advanced Asian nations by 2030 and to global benchmarks by 2045. As the country enters a pivotal phase in 2025, the sector is set to accelerate its modernization and global integration, laying a solid foundation for the nation’s long-term socio-economic development.

Key growth drivers include:

  • Favorable demographic factor: The high school-age population of 24.5 million is forecast to grow by 0.6 per cent until 2030, so the demand for education is surging.
  • Expanding middle class: Urbanization and rising incomes are fueling greater demand for quality education, especially in private and international schools.
  • Expansion of access, quality and internationalization of higher education: Vietnam’s higher education sector is undergoing a major transformation under Decision No. 452/QĐ-TTg, which approves the Planning of the Network of Higher Education and Pedagogical Institutions for 2021-2030, with a vision to 2050.
    • Expansion: Vietnam is pursuing rapid growth in higher education access with a target of over 3 million university students by 2030. The country also aims to shift towards a more diversified education system: 70% public versus 30% private institutions by 2030.
    • Quality: Vietnam is restructuring universities to boost efficiency, prioritizing investment in STEM, health sciences, and teacher training. Vietnam currently has about 55 STEM students per 10,000 people, making up 30% of higher education enrollment. By 2030, 35% of students at each education level are expected to enroll in STEM, including at least 2.5% in basic sciences and 18% in digital technology fields.
    • Internationalization: Global integration is a central theme in Vietnam’s higher education reforms. The government is actively promoting the expansion of foreign university branches and promoting international academic partnerships.
  • EdTech Boom: Vietnam’s online education market, valued at $3 billion, has seen rapid growth, with leading startups like MindX, Prep, and NativeX attracting major funding. This momentum is fueled by a young, tech-savvy population, widespread internet access, and rising demand for personalized, AI/AR-powered learning solutions.

Foreign Investment Landscape

Vietnam’s education sector is increasingly attractive to foreign investors, supported by favorable policies, tax incentives, and a strong government commitment to internationalization. According to Foreign Investment Agency (Ministry of Finance), as of the end of February 2025, Vietnam had 707 foreign direct investment (FDI) projects in the education sector, with total registered capital nearing USD 4.64 billion.

The regulatory framework for foreign investment in Vietnam’s education sector has been significantly strengthened by Decree 124/2024/ND-CP, effective November 20, 2024. This decree updates foreign ownership rules, licensing, capital requirements, and curriculum standards for international schools and higher education institutions, while expanding partnership opportunities and introducing stricter quality and transparency requirements. Key highlights include:

  • Simplification of administrative procedures:  Streamlines 14 of 21 forms from Decree 86/2018/ND-CP, now allowing online application submissions and data sharing among government agencies.
  • Investment commitment: Requires foreign investors to commit at least 50% of total capital within five years of obtaining operational licenses.
  • Enhanced transparency: Mandates public disclosure of information on educational programs, foreign teachers, and student demographics on institutional websites.
  • Expanded foreign education partnerships and quality requirements
    • Vietnamese preschools and K-12 schools can now partner with both foreign educational institutions and organizations, not just schools.
    • Foreign partners must be legally established, operational for at least 5 years, and hold recognized quality accreditation.
    • Only foreign universities ranked in the global top 500 in the past three years can establish branch campuses in Vietnam, with a minimum investment of VND 500 billion (approx. USD 20 million), and at least 50% of capital realized at appraisal.
    • Foreign-invested institutions must offer programs accredited in their home country and operational for at least 5 years.
    • Foreign teachers must hold at least a college degree or equivalent.

Foreign investors have multiple entry options, including greenfield projects, joint ventures, and mergers and acquisitions. While foreign ownership limits exist for schools admitting Vietnamese students (e.g., maximum 50% foreign curriculum at preschool level), wholly foreign-owned international schools serving primarily non-Vietnamese students are permitted. Minimum investment capital requirements vary by education level, with significant thresholds for higher education institutions and university branches to ensure quality and sustainability. Hence, navigating the licensing, curriculum approval, and compliance requirements is essential to ensure a smooth market entry and ongoing operation.

With a large and youthful population, robust government reforms, and a clear commitment to internationalization and quality improvement, Vietnam’s education sector presents a range of opportunities for foreign investors. In higher education, the country is adopting a selective approach to foreign investment, raising standards for quality, capital, and operational capacity to foster a competitive, integrated, and sustainable system. As Vietnam continues to enhance its infrastructure and investment policies, this measured strategy is expected to attract partners who bring strong credentials and a long-term education vision.