FiinGroup: 'Spending on private education is increasing rapidly'

The report "Vietnam Education: Increasing demand for private education" recently released by data and credit rating firm FiinGroup shows that spending on private education is increasing rapidly, attracting the attention of investors. domestic and foreign investment.

This data and credit rating company said that the number of students at private schools in Vietnam increased by 10,9% between 2017 and 2022. In particular, high school students increased by 10,4% and high school students increased by 11,5% and high school students. University degree or higher increased by XNUMX%.

Data from the Ministry of Education and Training also shows significant growth of private education. Accordingly, in the 2023-2024 school year, the whole country has 3.928 non-public educational establishments (accounting for 9,5%) with 1,2 million students, accounting for 6% of the country's students.

Compared to the 2013-2014 school year, the number of non-public educational establishments nationwide increased by 1.286 establishments. Thus, in the past decade, the number of non-public educational institutions increased 3 times.

“Spending on the education sector grew steadily, showing higher awareness and high demand for education, especially private education, foreign languages, entrance exams and extracurricular activities,” FiinGroup said. .

Previously, in February, a report from the global consulting and research organization on international education ISC Research (UK) said that the number of new international schools opening in Vietnam increased by 2% in the past two years, on par with Japan. Ban and is in the top 5 in the world.

"The demand for studying at international schools in Vietnam is increasing significantly," ISC Research assessed. If calculated from 2019, the number of international schools in Vietnam increased by 42%, and the number of students increased by 30%. Total revenue of the schools increased by 58%.

Rapidly increasing private education spending has attracted the attention of both domestic and international investors looking to seize opportunities in this growing market. Recently, notable cases include KKR investing 120 million USD in EQuest - the owner of the Canadian International School System (CIS) and Broward Vietnam, or BPEA purchasing VUS for an undisclosed value. highway.

Investment in the private education sector is assessed by FiinGroup as having a lot of untapped potential thanks to a favorable demographic base, increasing people's income and desire for higher education.

According to the report, spending on education witnessed solid growth as 47% of household spending in major cities was on education. During the period 2017-2022, spending on education of Vietnamese households increased by about 7%.

Along with that, Vietnam's high school age population is currently 24,5 million people and is forecast to increase by 0,6% until 2030. Meanwhile, the presence of private education is still small. . For example, in Hanoi, international and bilingual schools in the 2023-2024 school year are 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 USD per year and 4.000-8.000 USD per year for bilingual schools.

Yi Tung