Lack of revenue from science and technology

To meet the standards for higher education institutions, in addition to standards regarding faculty, facilities, finances, and student recruitment and training, universities offering doctoral programs must meet the requirement that the proportion of revenue from scientific and technological activities in total income, calculated on average over the past three years, must not be less than 5%. This is a criterion in Standard 6 of the Circular promulgating the Standards for Higher Education Institutions.

N SCHOOL OUTCOME BELOW 1%

According to the Ministry of Education and Training's financial disclosure form, universities will publicly disclose their total revenue for each academic year. This form outlines the revenue structure of each university, including budget allocations, tuition fees, scientific research and technology transfer, and other legitimate sources.

Universities offering doctoral programs must meet the requirement of a certain proportion of revenue from science and technology activities to total income.

PHOTO: DAO NGOC THACH

However, according to statistics from the Ministry of Education and Training, tuition fees account for the majority of revenue, exceeding 80% of the total income of schools. In many schools, this proportion reaches over 90%. Other revenue sources are very low, especially from scientific research and technology transfer activities.

In the 2022-2023 academic year, the University of Economics and Law (Vietnam National University Ho Chi Minh City) had a total revenue of 311 billion VND, of which tuition fees accounted for 267 billion VND and scientific research for 2 billion VND, less than 1% of the total revenue. In the publicly available revenue data of the University of Law Ho Chi Minh City, the total revenue for 2022 was 289 billion VND, of which tuition fees accounted for 261 billion VND, with no revenue from scientific and technological activities. Da Lat University (2022-2023) had a total revenue of 156 billion VND, with scientific research accounting for 0.5 billion VND, or 0.3%. Nam Can Tho University's total revenue for 2023-2024 was 600 billion VND from tuition fees, with no revenue from scientific research or technology transfer.

In the 2023-2024 academic year, Can Tho University had a total revenue of 954.1 billion VND, of which scientific research and technology transfer accounted for 21.6 billion VND, or 2.26%. Ho Chi Minh City University of Industry had a total revenue of 843 billion VND in 2022-2023, with revenue from scientific research and technology transfer reaching 4 billion VND, or 0.47%. At Da Nang University of Economics in 2023, this revenue was only 0.17 billion VND out of a total revenue of 269.99 billion VND, representing just 0.06%.

At some "billion-dollar" universities, this proportion is also extremely low or low compared to the criteria stipulated for higher education institutions.

For example, Nguyen Tat Thanh University had a total revenue of over 1,454 billion VND in 2023-2024, of which 11.776 billion VND came from scientific research and technology transfer, accounting for 0.8%. Ho Chi Minh City University of Technology had a total revenue of 1,260 billion VND in 2023-2024, with 11 billion VND coming from scientific research, accounting for nearly 0.9%. Hanoi University of Science and Technology had a revenue of 1,070.8 billion VND in 2022, with 7.01 billion VND from science and technology, accounting for 0.65%. National Economics University had a revenue of 1,410 billion VND in 2023-2024, of which 42.95 billion VND came from science and technology, reaching 3% of the total revenue.

VERY FEW SCHOOLS MEET THE CRITERIA

Only a few universities met the criterion of 5% or more. For example, in 2023, Da Nang University of Technology had a revenue of 294.3 billion VND, with science and technology accounting for 14.2%, or 41.9 billion VND. Ton Duc Thang University had a total revenue of 1,067 billion VND in 2023, with scientific research reaching 56.5 billion VND, accounting for 5.2%. Ho Chi Minh City University of Science had a total revenue of 481.4 billion VND in 2022, with scientific research accounting for 25.5 billion VND, or 5.2%. Ho Chi Minh City University of Economics achieved a record when revenue from science and technology reached 25%, with 363.2 billion VND out of a total revenue of 1,443.4 billion VND in 2022.

Universities that "almost" reached 5% include: Ho Chi Minh City University of Technology (HCMUT) in 2023 with revenue of 1,003 billion VND, of which scientific research and technology transfer accounted for over 44 billion VND, or 4.4%. Ho Chi Minh City University of Information Technology had a total revenue of 259 billion VND in 2023, with scientific research contributing 12.4 billion VND, or 4.7%. Hanoi University of Industry had nearly 37.3 billion VND in this revenue source, reaching 4.2% of its total revenue of 878.1 billion VND in 2023. Hanoi University of Science had a rate of 19.3%, with 55.5 billion VND out of a total of 286.4 billion VND in 2023.

University lecturers carry out research and production projects commissioned by businesses.

OBSTACLES IN MECHANISMS AND POLICIES?

Dr. Tran Huu Duy, Head of Training Department at Da Lat University, believes that there are many difficulties for universities to achieve the 5% target, however, the biggest obstacle is the mechanism and policies.

"Currently, lecturers are very talented and dynamic, and they can absolutely enrich themselves with their knowledge and generate revenue for the university through scientific and technological services. However, in practice, the mechanism discourages many teachers because the procedures are too complicated and cumbersome," Dr. Duy commented.

According to Dr. Duy, in other countries, when lecturers conduct research projects, the commissioning unit will evaluate the final product, while how the funds are used is at the discretion of the project leader. However, in Vietnam, project leaders have to go through many administrative procedures such as preparing documents, explanations, bidding, issuing invoices, and providing price quotes... Not to mention that after completing the project, they also have to audit and inspect the revenue and expenditure activities...

"The current system is heavily reliant on administrative procedures, creating difficulties and forcing lecturers to resort to dishonesty or become discouraged, while the most important aspect—the product—is neglected. Therefore, many lecturers consider establishing private businesses or partnering with businesses to monetize their knowledge, escaping cumbersome and complex procedures. These obstacles significantly impact the university's scientific and technological services, affecting revenue from these activities," Dr. Duy stated.

Therefore, Dr. Duy suggested that lecturers, especially professors, associate professors, and doctors, should be given autonomy to decide on all topics, projects, and the use of funds, as long as the final product meets the acceptance criteria.

Actively seek out and understand practical needs.

It is no coincidence that the Ministry of Education and Training requires universities offering doctoral programs to meet the criterion that revenue from scientific and technological activities must account for 5% of total revenue. This demonstrates dynamism and affirms the value derived from the intellectual contributions of highly qualified faculty members. Furthermore, diversifying revenue sources reduces universities' over-reliance on tuition fees, thus easing the financial burden on students.

Associate Professor Tran Thien Phuc, Vice Rector of Ho Chi Minh City University of Technology, commented: "From 2025, all universities will be required to be autonomous. However, most universities are still dependent on the stable source of revenue from tuition fees. To obtain revenue from scientific and technological activities, universities and faculty members must be more proactive and do more. They cannot sit still but must actively seek out research topics, approach businesses and localities to see what their needs are in the field they are training. Certainly, universities will face fierce competition with each other and with businesses, thus requiring very high capabilities."

Ho Chi Minh City University of Technology (HCMUT) has a Center for Industrial Technology and Equipment Research that has been operating since 1994, providing research, manufacturing, and installation services. Through this center, the research of faculty members is brought to market, with annual revenue reaching 200 billion VND in some years. Currently, this center has been transformed into HCMUT Science and Technology Joint Stock Company (BKTECHS), generating hundreds of billions of VND in revenue annually. HCMUT holds a 30% stake, contributing tens of billions of VND in revenue to the university each year.

Drawing on the experience of an educational institution that generated over 360 billion VND from science and technology activities, Associate Professor Bui Quang Hung, Vice Rector of the University of Economics Ho Chi Minh City, believes that universities need to link training, research, and consulting with practical applications, aligning with the needs of businesses and the market. "We work with them to understand their needs and design training programs and projects accordingly. A sustainable ecosystem needs to be formed between universities and businesses, partners, etc., based on each other's strengths and needs. From there, universities can focus their resources on this activity, develop core training and research products, and adapt them to practical realities, creating competitiveness and brand recognition," Associate Professor Hung shared.

Source: https://thanhnien.vn/gian-nan-dat-chuan-co-so-giao-duc-dh-thieu-nguon-thu-tu-khoa-hoc-cong-nghe-185240920220403951.htm