Twin Privatization in Vietnam Higher Education: The Emergence of Private Higher Education and Partial Privatization of Public Universities

Abstract

In higher education (HE), twin privatization involves permitting private providers to enter the higher education system and partially privatize public institutions. In the past decade, privatization has facilitated the growth of Vietnam HE. Private higher education (PHE) in Vietnam has experienced significant growth but remains a relatively small share, whereas public enrollment has witnessed remarkable expansion, making up most of the HE enrollment growth. The study characterizes the twin privatization phenomenon in Vietnam HE growth through inter- and intra-sectoral analyses of the private and public sectors. On the one hand, by examining public–private competitiveness using university admissions scores and quota by field of study, the study identifies PHE subsectors with demand-absorbing institutions assuming the access role and the emerging serious demand-absorbing PHE subsector with a few private institutions becoming more competitive than the average public provincial institutions. On the other hand, using public–private part-time enrollment as a gauge for the extent of privatization in public institutions, the study suggests that, while the growth of Vietnam HE enrollment is contributed mostly by the public sector, a majority of the public contribution comes from the expansion of part-time enrollment. Examining selected public university revenue sources also reveals a higher level of dependence on non-state budget.