La lehongviet sum

1 ABSTRACT Introduction to the thesis - The overall structure of the thesis: The thesis consists of chapters with the main contents of 187 pages, in which: Chapter presents a brief overview of the State policy on attracting non-state financial resources for public universities; Chapter presents the content of theoretical and practical basis of State policy on attracting nonstate financial resources for public universities; Chapter states the Methodology for research on State policy on attracting non-state financial resources for public universities; Chapter analyzes State policy situation on attracting non-state financial resources for public universities in Vietnam; Chapter proposes solutions to state policy on attracting non-state financial resources to public universities in Vietnam - Significant findings: Theoretically, the thesis has contributed to the theoretical basis in the following aspects: - Systematizes the concepts and policies of the State on attracting non-state financial sources for public universities - Analyze lessons learned on state policies in some countries on attracting nonState financial sources for public universities - Propose the criteria system for assessment of State policy on attracting non-state budget sources for public universities Practically: The thesis proposes solutions to the State policy on attracting non-State sources for public universities in accordance with Vietnamese conditions and circumstances In addition, the findings of this thesis may serve as reference for further studies on state policy related to financial resources for universities in Vietnam Reason for choosing the topic For any organization, financial resources are always an important factor for maintaining operation, attracting high quality human resources, investing in facilities, machinery and equipment for operation and development For the university, financial resources play vital role in maintaining continuous operation, improving the quality of teaching and research In the financial structure of public universities, the financial resources from the State budget often account for a large proportion In most countries in the world, the increase in state funding for higher education has not kept pace with the increase in the scale of higher education This forces universities to gradually reduce their dependence on the state budget by increasing non-state financial resources to secure funding for maintaining and improving the quality of their education Non-state financial resources are decisive factors for the development of universities, so it is necessary that State policies which facilitate and encourage universities to attract financial resources in replacement of State Budget be promulgated (Estermann, 2010) In Vietnam, the scale of public higher education is expanding According to statistics from the Ministry of Education and Training (MOET), the number of students has doubled from 624,423 students in 1999 to 1,290,756 by 2014 Notwithstanding this encouraging achievement, public higher education in Vietnam still faces certain difficulties The ratio of student/ lecturer remains high, with an average of 25 students/1 lecturer in 2014 The facilities of the universities are also inadequate, and the supporting services in the universities remain poor, especially with schools in localities outside big cities This partly limits the quality of teaching and learning in public universities in Vietnam One of the causes of these constraints is the allocation and mobilization of resources, especially financial resources, which have failed to promote quality improvement at public universities According to statistics of the Ministry of Finance (2013), state budget for recurrent expenditures accounted for 63.5% of public finance in 2011, of which non-state revenues accounted for less than 20% The fact that public universities rely heavily on state budget has limited the ability to mobilize resources to maintain and improve the quality of public universities in Vietnam currently Being aware of the importance of attracting resources for higher education, the State has introduced a number of policies related to higher education financing in general and non-state finance for universities in particular, expressed in a wide variety of legal documents, such as Resolution No 05 of the Government dated 18 April 2005 on promoting the socialization of education, health, culture and physical training; Decree No 43/2006 / ND-CP dated April 25, 2006 of the Government stipulating the autonomy and self-responsibility in performance of tasks, organizational structure, staffing and finance of public sector; Resolution No 35/2009/QH12 dated 19/6/2009 of the 12th National Assembly providing guidelines and orientation for reforming some financial mechanisms in education and training from the academic year of 2010-2011 to the 20142015 and the Law on Higher Education 2010 These documents affirmed the continued implementation of the policy of renovating the mechanism of operation and finance for public universities The promotion of the socialization of some types of public services in the coming time is necessary; Operational and financial mechanisms need to be reformed more strongly, uniformly and comprehensively In that context, State policy on attracting non-state financial resources for public universities in Vietnam is becoming an important matter for research However, recent studies on the promotion of non-state financial resources and the policies on attracting non-state financial resources for public universities merely analyze the content of the policy In Vietnam, up to now, no study has successfully analyzed and assessed the policies on non-state financial resources for public universities in a comprehensive and systematic way This is a gap that needs to be fulfilled Therefore, I, the fellow chose the topic "Policies on attracting non-state financial resources for public universities in Vietnam (Research in universities under the Ministry of Education and Training)" as the research topic Objectives General objectives: To study and assess the situation of the State policies on attracting non-state financial resources for public universities To propose some solutions to state policy to attract non-state budget funding for public universities in Vietnam Specific objectives: - To build a theoretical framework for research on State policy on attracting nonstate financial resources for public universities on the basis of inheriting and developing research works at home and abroad - To summarize experiences of some countries in the world regarding to the State policy on attracting non-state financial resources for public universities - To assess the State policy on attracting non-state financial resources for public universities in Vietnam 3 - To propose solutions to State policy on attracting non-state financial resources for public universities in Vietnam Research tasks From the above-mentioned objectives and research questions, the thesis performs the research tasks as follows: - To collect, synthesize and systematize research works, concepts and scientific definitions at home and abroad regarding to the State policy on attracting on-state financial resources for public universities, which will serve as a basis for building a theoretical framework for the State policy on attracting non-State financial resources for public universities in Vietnam - To study, analyze and summarize experiences of some countries in the world on the State policy on attracting non-state financial resources for public universities and draw lessons for Vietnam - To formulate criteria for assessing the State's policies on attracting non-state budget funding sources for public universities Carry out an assessment of state policies on attracting non-state budget funding to public universities in Vietnam - Propose solutions to state policies on attracting non-State financial resources for public universities in line with Vietnam's conditions and circumstances Object and scope of the research 5.1 Research object The research object of the thesis is the State policy on attracting non-state financial resources for public universities managed by MOET Specifically, the thesis provides in-depth research and assessment of the State policy on attracting non-state financial resources for public universities under the Ministry of Education and Training and thereby proposing solutions to the State policy on attracting non-State financial resources for public universities 5.2 Research scope About the research content: The thesis carries out the systematization of theoretical foundation regarding to State policy on attracting non-state financial resources for public universities; Analyzing and assessing the experiences of some countries in the world on attracting non-state financial resources for public universities and drawing lessons for Vietnam The thesis also analyzes the situation of State policy on attracting non-state financial resources for public universities The thesis provides in-depth research in four universities under the Ministry of Education and Training Thereby, we propose some solutions to improve state policies to attract non-state budget funding for public universities About research space: The thesis focuses on the case studies of four universities under the Ministry of Education and Training: National Economics University, Foreign Trade University, Hanoi University and the University of Economics Ho Chi Minh City About research time: The thesis reviews and assesses the State's activities and policies on attracting nonstate financial resources for public universities from 2009 to 2014 CHAPTER 1: OVERVIEW OF RESEARCH ON THE STATE POLICY ON ATTRACTINGNON-STATE FINANCIAL RESOURCES FOR PUBLIC UNIVERSITIES 1.1 Overview of research related to the thesis 1.1.1 Abroad research works Research on the role of State policy on attracting non-state financial resources for public universities Currently, many governments are facing pressure from expenditure on various sectors such as education, health and transportation Maintaining the budget for higher education is a challenge for a number of governments (Harman, 1999) In the area of higher education, besides financial pressure on the government, increased enrollment rates, rapid increase in unit costs and limited public sector management all contributed to the creation of the financial resources pressure for public universities (NCES, 2001) Under such pressure, it is essential for public universities to increase the attraction of financial resources from learners, businesses and sponsors Many abroad studies have addressed the role of State policy on attracting nonstate financial resources for public universities State policy is one of the most important factors for increasing the financial resources from learners and other institutions for public universities (Long, 2004) State policies also have an impact on raising non-state revenues for public universities through supportive, incentive-based mechanisms The capacity of universities to generate more revenue is closely related to the support and facilitation of the legal framework that universities must follow The policies which offer public universities the right to perform activities other than their primary function of training and research enabling them to actively engage in diverse financial activities (Etkowiz, 1999 and Paul, 2012) Research on State policy on attracting non-state financial resources for public universities In order to enhance the autonomy and independence of public universities in terms of financial activities, the government can offer solutions including the issuance of terms and regulations related to their financial activities, especially those improve their autonomy; offer incentives, financial support, build communication and interaction channels (provide information, two-way exchange and interaction, call for participation in management policies on financial resources for universities) Many researches have shown that these policies can help universities to be more self-reliant in their search for revenues as well as interaction with partners including learners, enterprises, and organizations using the services of the school (Jongbloed, 2005, Paul, 2012 and Guimón, 2013) Researches assessing State policy on attracting non-state financial resources for public universities Abroad studies also provide numerous assessments on State policy on attracting non-state budget funding to public universities based on the efficiency and benefits of the participating members in raising non-state financial resources and sustainability, flexibility and equality of policy (Etkowiz, 1999; Yokoyama, 2006; Orkodashvili, 2007; Ester Mann and Pruvot, 2011; Paul, 2012; Pelletier, 2012; FCCI, 2013) 5 1.1.2 Domestic research works Researches on the situation of attracting non-state financial resources of public universities in Vietnam In Vietnam, due to increasingly limited budget from the State, public universities are attempting to attract non-state revenues (Trinh Tien Dung, 2012) Public university institutions have been innovative in financial management; promote the dynamics of non-state financial resources; Improve management skills, perform professional tasks With such initiative, public universities has contributed to the efficient and economical use of state budget; Improve the quality of service delivery; Expand the forms of joint ventures and associated programs in education and training (Vu Nhu Thang and Hoang Thi Minh Hao, 2012, Hoang Van Chau, 2012, Ho Thanh Phong, 2012, Hoang Tran Hau, 2012, Phan Thi Bich Nguyet, 2012) Researches on State policy on attracting non-state financial resources for public universities Public higher education institutions in Vietnam are currently facing challenges such as increased demand for higher education, reduced government funding, increased global competition, increased education cost, shared profits, obsolete and unsustainable traditional education, etc Therefore, the State should promulgate policies to encourage and create conditions for universities to keep up with trends and ensure sustainable development through financial resources (Vu Nhu Thang and Hoang Thi Minh Hao, 2012) State policies that attract non-state financial resources for public universities in Vietnam are now integrated to the policy of socialization of higher education and the enhancement of university autonomy (Pham Thi Ly, 2012, Dang Quoc Bao, 2014, Pham Do Nhat Tien, 2014a) The policy of socialization of higher education emphasizes the responsibility of financial contributions of learners and society, and the accountability of universities and the State in public Improving university autonomy enhances the level of internal and external management, allocates financial resources in schools, and attracts external financial resources Autonomy must go along with accountability, ensuring that universities fulfill their social responsibilities in the highest way (Pham Thi Ly, 2012, Pham Do Nhat Tien, 2014b) 1.2 Summary of Chapter Chapter of the thesis synthesizes and analyzes the research works at home and abroad regarding to the State policy on attracting non-State financial resources for public universities Through an overview of research works at home and abroad, it can be seen that: - Abroad researches focus on the role and content of State policies on attracting non-state financial resources for public universities Some researchers have also conducted an assessment of a number of policies on attracting financial resources for public universities - Some domestic researchers have outlined the situation of attraction non-state financial resources for public universities in Vietnam, pointing out some limitations in State policy on attracting non-state financial resources for public universities and proposing some solutions thereto However, there has been no research providing assessment on policies Based on the literature review, the fellow identified the gaps to be research: researches at home and abroad have generally not conducted an assessment of policies on non-state financial resources for public universities systematically It is the basis for the fellow to identify and assess State policies on attracting non-state financial resources for public universities, proposing solutions to state policies to enhance the attraction of non-state public universities in Vietnam is the research topic of this thesis CHAPTER 2: THEORETICAL AND PRACTICAL BASIS OF THE STATE POLICY ON ATTRACTINGNON-STATE FINANCIAL RESOURCES FOR PUBLIC UNIVERSITIES 2.1 Financial resources and non-state financial resources for public universities 2.1.1 The concept of financial resources for public universities The term financial resources for higher education are widely used in the world Financial resources for universities are reflected in the cash inflows that universities attract, which are used to achieve educational development goals Financial resources are an important resource, affecting the activities and quality of universities (Do Thi Bich Loan, 2008) Typically, a university generally has the following financial resources: (1) financial resources from the state budget, (2) student financial resources, and (3) Use the services of the school through activities such as scientific research, technology transfer and other financial resources such as donations 2.1.2 The concept of off-budget financial sources for public universities Financial sources outside the state budget are financial resources from learners, businesses, benefactors, alumni, and not from the government Financial resources outside the state budget are: "All the elements and means of monetary capital that the State allows universities to be mobilized directly within the framework of socialization, ensuring financial resources for higher education "(Do Thi Bich Loan, 2008) A significant difference between state and non-state financial resources is financial management The difference is that non-state financial resources are not required to be remitted to the state budget and used in accordance with regulations to meet university goals (Do Thi Bich Loan, 2008) This means that schools are fully autonomous in using non-state financial resources Esterman et al (2012) found that non-state financial resources helped schools diversify their revenues, increase revenues, and create more balance with state budget revenues in university income structures With non-state financial resources, universities can gradually reduce their reliance on the state budget Moreover, as more revenue comes from learners and enterprises, the quality of their training and research services is also improved 2.1.3 The role of non-state financial resources in the operation of public universities i) The role of financial resources in general Financial resources influence the activities and quality of the university Finance is a prerequisite for universities to invest in upgrading infrastructure, equipment in teaching and research, and student services and facilities (Getz, 2007; Kirshstein and Hurlburt, 2012) Financial resources are also one of the factors that help universities build good human resources and highly professional professors and lecturers In order to attract and retain human resources, universities need to provide reasonable incentives to motivate lecturers and researchers to work and contribute (Eurydice, 2008) i) The role of non-state financial resources In the context of pressure to tighten government spending, most countries tend to reduce the budget allocated to education in general and higher education in particular, hence, non-state financial resources become more and more important (Pelletier, 2012) The need to find new ways to raise fund for universities is becoming increasingly important and necessary, urging them to invest time and effort in developing and expanding financial resources The attraction of non-state financial resources is one of the three main pillars of sustainable finance in universities, ensuring the sustainable development of the university in achieving its mission of teaching and research (Estermann, 2010) 2.2 State policy on attracting non-state financial resources for public universities 2.2.1 The concept of state policy on attracting non-state financial resources for public universities Policy is a term that has multiple approaches at different aspects The policy serves to reflect an offer, an ongoing program, the goals of a program, or an important decision (Sharkansky, 1978) Public policy represents the goals and actions of the management in an effort to shape the quantity or quality of public service James and Scoones (1999) define policy as a conventional and ambiguous tool that carries complex content that is expressed in various angles, facets, and in many different directions yet correlated with each other 2.2.2 Objectives of the State policy on attracting non-state financial sources for public universities The objectives of policy are the ultimate goals that a policy should achieve The goal of the State policy on attracting non-state financial resources for public universities should be seen from two perspectives: (i) for public universities: increase of non-state financial resources help universities actively improve the quality of teaching, training and research; (ii) For the State, the increase of non-state financial resources for public universities will enable the State to allocate more funds to other necessary and important sectors 2.2.3 Principles of State policy on attracting non-state financial resources for public universities - Principle - Improve the quality of training and research - Principle - Increase the autonomy of the universities - Principle - According to strategy, plan - Principle - Transparency 2.2.4 Classification of State policy on attracting non-state financial resources for public universities 2.2.4.1 Method for classification of State policy on attracting non-state financial sources for public universities (i) Classification by level of impact (ii) Classification by activities generating financial resources (iii) Classification by policy instrument (iv) Classification by objects generating non-state financial resources for public universities 2.2.4.2 Classification of state policies for attracting non-state financial sources for public universities by object generating non-state financial resources for public universities (i) State policy on attracting financial resources from learners (ii) State policy on attracting financial resources from organizations buying and using services of public universities (iii) State policy on attracting financial resources from other objects 2.2.5 Assessment on the State policy on attracting non-state financial for public universities 2.2.5.1 Concept of policy assessment Policy assessment is an important phase of policy implementation OECD/DAC (1991) provides a definition of policy assessment; this definition is included in the DAC (2002) terminology as follows: Assessment is the most objective and systematic process possible in a project, policy, or program that is in progress, completed, designed or implemented and results of the policy The purpose of the assessment is to determine the relevance and responsiveness towards objectives, development effectiveness, efficiency, impact and stainability Policy assessment provides credible and useful information that allows for incorporation of lessons learned into the policy improvement process Assessment is a more in-depth inspection of the objectives, performance and results of a policy intervention 2.2.5.2 Criteria for the assessment on the State policy on attracting non-state financial resources for public universities Policy assessment criteria are important in the implementation of policy assessment Criteria for policy assessment should ensure that aspects of the policy are reviewed comprehensively and systematically The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP, 2003) proposes four key criteria for assessing a public policy These are also criteria used by the National Collaborating Center for Healthy Public Policy (NCCHPP, 2012) These four criteria include effectiveness, efficiency, equality and approval by stakeholders ESCAP also lays out two additional criteria for the six criteria for assessment of a public policy First, institutional constraints are understood to be an obstruction to policy because of existing constraints in the design and implementation of policies Second, flexibility can be used to assess policy suitability and adaptability to changes in markets, technology, knowledge, and society, political and environmental conditions 2.2.6 Factors influencing the state policy on attracting non-state financial resources for public universities 2.2.6.1 External factors - Economy - Culture and society 2.2.6.2 State factors - Views and thoughts of the State - Organizational structure 10 - Administrative institutions - Communication of policy - Resources 2.3 The experience of some countries on state policies on attracting non-state financial resources for public universities 2.3.1 Experiences of developed countries 2.3.1.1 The United Kingdom The UK is one of the countries having an education system of leading quality and revenues Currently, public universities have the following funding structure: about 44% of funding comes from government (including Congressional budget and government grants), 26% of funding comes student financial resources; And 11% of funding from cooperative activities and commercialization with enterprises and 19% from other sources such as university hospital services, food service, bookstore, student housing, investments, sponsorship and donations 2.3.1.2 The United State of America Higher education in the United States is known for being the best education system in the world with the best universities and high quality education programs in every field Universities in the United States are increasingly raising revenues from educational and research cooperation programs with corporations, and engaging in commercial activities through research parks, inventions, newly established companies, and venture capital funds Non-state financial resources account for 56% of total public school revenues in the United States Business, donations, investment income, and hospital services contributed significantly to the revenue structure of US universities: revenue from supporting businesses accounted for 8%, donation accounted for 3%, the investment accounted for 4% and the hospital accounted for 11% Student contributions through tuition only accounted for 17% 2.3.1.3 Japan Japan's higher education system is one of the world's major higher education systems In 2010, Japan had more than 2.8 million students studying at 778 universities Of which there are 86 national universities, 95 universities affiliated with districts and 597 private universities (Saito, 2013) 2.3.2 The experience of developing countries 2.3.2.1 India India's higher education system is one of the world's largest higher education systems with 13 million students enrolled in 45,000 institutions of higher education (FICCI, 2013) Indian universities can be categorized by funding sources: central government, state government and private sector (British Council, 2014) 2.3.2.2 Malaysia Malaysia is one of the countries with leading education system among countries in ASEAN and Asia In the context of competition and globalization, the Malaysian Government focuses its efforts on innovating education with the potential development of individuals in a comprehensive way to create citizens with balanced intelligence, mental, emotion and harmonious physical development Universities are encouraged to attract non-state budget resources and are allowed to institutionalize management activities (Lee, 2004; Siddiquee, 2006) In general, public universities in Malaysia largely depend on financial resources from the federal government However, schools are still trying to increase income from different sources 2.3.2.3 China China is a country with a longstanding culture China's open-door reform has attracted a number of important achievements, and great economic progress has made the Chinese government more and more focused on promoting the education development In recent times, China has launched a number of educational reform policies Policies to increase funding are one of the key factors for schools to achieve their goals of improving the quality of education 2.3.3 Lessons learned for Vietnam (i) For attracting financial resources from learners Firstly, the State should promote the internationalization of universities and focus on attracting international students Secondly, the State needs to speed up the inspection, supervision and quality assurance of university training programs Third, the State should have policies to encourage business activities to support and serve learners in the university (ii) For attracting financial resources from organizations buying and using services of public universities Firstly, the State should ensure the interests of schools, research groups on intellectual property and profit distribution so that universities can bravely register intellectual property rights, in-depth invest and commercialization of its research products Secondly, the state should encourage the establishment of technology transfer offices, promote technology transfer between universities and other organizations, such as enterprises Thirdly, the state should also speed up its support through innovative programs and the strengthening of state-university-enterprise cooperation Fourthly, the state should also supplement the forms of income tax exemption for cooperative activities between enterprises and schools, especially in the field of scientific research Fifthly, the state should have mechanisms that allow the school to market its brand Sixthly, the state should also provide autonomy to schools in using property such as the freedom to use land in carrying out its business activities (iii) For attracting financial resources from other objects In order to attract financial resources from others, the State should have a mechanism to encourage contributions from individuals and organizations such as the establishment of the Education Development Fund (China) or the implementation of 11 12 Income tax exemptions for those who donate to universities like the US, China and India In particular, India also specifies tax rates for conventional donors and donors for research activities 2.4 Summary of Chapter In Chapter 2, the thesis clarifies the following fundamental issues: - Firstly, the thesis has systematized the concepts of non-State financial resources for public universities as a basis for research; it then analyzes the need and factors that affect the non-state financial resources of public universities - Secondly, the thesis presented the concept and role of State policy on attracting non-state financial resources for public universities; identify the objectives, principles and role of the State policy on attracting non-state financial resources for public universities - Thirdly, based on the objectives, principles and elements of the State policy on attracting non-state financial resources for public universities, and a review of policy models, criteria for assessing state policies on attracting non-state financial resources on public universities including: (1) effectiveness of policy, (2) effectiveness of policy, (3) The sustainability of the policy - Fourthly, the thesis examines the experience of implementing state policies on attracting non-state financial resources for public universities in developed countries (UK, USA, and Japan) and developing countries (Malaysia, China and India) and draw some lessons for Vietnam CHAPTER METHODOLOGY FOR RESEARCH ON STATE POLICY ON ATTRACTING NON-STATE FINANCIAL RESOURCES FOR PUBLIC UNIVERSITIES 3.1 Research Framework The State policy on attracting financial resources for public universities in Vietnam - Financial resources in public universities in Vietnam - Non-state financial resources in public universities in Vietnam - System of State policy on attracting financial resources for public universities in Vietnam + Policy on attracting financial resources from learners + Policy on attracting financial resources from organizations buying and using services from public universities + Policy on attracting financial resources from other objects Analysis on - - - Success of the state policy on attracting financial resources for public university in Vietnam Limitations of the state policy on attracting financial resources for public university in Vietnam Advantages and disadvantage sin attracting financial resources for public university in Vietnam Solutions to policy improvement - - - Solution for improvement of policy on attracting financial resources from learners Solution for improvement of policy on attracting financial resources from organizations buying and using services from public universities Solution for improvement of policy on attracting financial resources from other objects 3.2 Process of research Study on domestic and abroad materials Interview with experts at MOET, MOF about State policy on attracting non-state financial resources for public universities Carry out survey by questionnaire in universities under MOET Build a theoretical frame work of policy and assessment of state policy on attracting nonstate financial resources for public universities Propose solution for improvement of state policy on attracting nonstate financial resources for public universities Analyze the situation of state policy on attracting non-state financial resources for public universities Assessment of state policy on attracting nonstate financial resources for public universities 3.3 Data sources 3.3.1 Secondary data source During the course of the thesis, the fellow has collected and analyzed the published materials through domestic and foreign research projects related to non-state financial resources and provided assessment on the State policy on attracting non-state financial resources for public universities These materials include reference books, specialized scientific papers and doctoral thesis At the same time, the thesis also collects and analyzes the legal documents related to the mobilization of non-State financial resources for public universities (such as the Law on Higher Education, Decrees, Instruction, Resolution and Circulars) The thesis uses data from MOET, MOF and World Bank Two sets of secondary data mainly used in the thesis are the World Bank data set 2005 and the Ministry of Finance data set in 2013 3.3.2 Primary data source Primary data was collected through questionnaire survey and expert interviewing method 3.3.2.1 Questionnaire survey method - The scope and duration of the survey The thesis is conducted at 100% self-funded universities under the Ministry of Education and Training The four universities are Foreign Trade University, Hanoi University, Hanoi National Economic University and University of Economics Ho Chi Minh City Time of questionnaires delivery: from January 2014 to March 2014 - Respondents Respondents at the four universities are representatives of the Board of Rectors, leaders of the Department of Planning and Finance and leaders of faculties and departments In addition, in these schools, the thesis also conducts surveys on teachers, students and some organizations buying and using the services of the school 13 14 3.3.2.2 Expert Interviewing Method The fellow interviewed 10 experts at MOET and MOF on issues related to state policy on attracting non-state financial resources for public universities, and consulted experts to come up with recommendations and solutions Primary data were used to analyze the financial status of the four selected universities for survey and assessment on the State policy on attracting non-state financial resources for public universities Primary data was also used by researcher to provide recommendations and solutions to improve the state policy on attracting nonstate financial resources for public universities 3.3 Data analysis method After collecting primary and secondary data, the fellow conducted the examination and purification of data before, during and after data encryption and data entry Next, SPSS 16 was used as a tool for processing data for research purposes In addition, for the analysis and processing of data, the descriptive, statistical, comparative, control, summative and practical methods are also used 3.4 Summary of Chapter In Chapter 3, the researcher presented the research methodology used in the thesis, in particular: - In Part and Part 2, based on the literature review domestic and foreign studies in Chapter and the theoretical basis compiled in Chapter 2, Chapter 3, a research framework has been set up and research process on policy on attracting non-state financial to public universities - Part presents data source and part describes data analysis methodology Data sources used by the thesis consist of primary and secondary data sources Secondary data sources were collected from published domestic and foreign research works At the same time, the thesis also used data from MOET, MOF and the World Bank The primary data was collected by questionnaire survey for management representatives and lecturers and students from universities under MOET and interviewing method for representatives of the management agencies on the attraction of non-state financial resources for public universities - On the basis of data collected, SPSS 16 software was used to process data and the method of description, statistics and expert methods have also been used to carry out data analysis to come to the conclusions on the situation of attracting non-State financial resources for universities, public universities and proposing solutions for improvement of state policy on non-state financial resources for public universities CHAPTER THE SITUATION OF STATE POLICY ON ATTRACTINGNON-STATE FINANCIAL RESOURCES FOR PUBLIC UNIVERSITIES IN VIETNAM 4.1 Brief overview of the public higher education system in Vietnam The system of public universities in Vietnam is part of the national education system As of 2015, the country has 159 public universities Between 2000 and 2015, the number of public universities has tripled, reflecting the ever-expanding scale of the higher education system Public universities have always played a key role in Vietnam's higher education system The increase in the number of universities in general and public universities in particular has met the learning needs of the people and the requirements of the country's socio-economic development 4.2 The financial status of public universities in Vietnam 4.2.1 Financial status of public universities in 2003-2011 According to calculations by the authors from the World Bank (2005) and the Ministry of Finance (2013), public universities have the financial resources of 41.1 billion VND in average in 2003 and 101 billion VND in 2011 In this period, the average financial resources of a public university increased by 2.67 times The gap between the university with the lowest / highest financial resources compared to the average revenue was 43.8 billion VND in 2003 and 63.1 billion VND in 2011, showing that the difference in financial resources between public universities has increased in the period 2003-2011 However, the difference between scales of universities also affects the financial disparities Geographic location factors also affect the financial resources of public universities Public universities in the Red River Delta, North Central and Southeast regions have higher financial resources than the rest in 2003 and 2011 4.2.2 The situation of non-state financial resources of public universities in the period of 2003 - 2011 For nearly 10 years, the financial resources of schools have focused much on activities to create non-state financial resources, in particular international high quality training activities; income from non-regular programs; Business consultancy and other funding sources By that reason, the state financial resources allocated to the schools has dropped from 68% in 2003 to 63.5% in the university's total income If regular school fees were included (as defined by Vietnam as state budget sources), this source structure accounted for 86% in 2003 and dropped to 80.7% in 2011 4.2.3 The situation of non-state financial resources of four universities surveyed Non-state financial resources of the four surveyed university increased from 225,656 million VND in 2009 VND 266,662 million to by 2013 However, the proportion of these funds compared to the total financial resources decreased during the period 2009-2013 This rate was 71.9% in 2009, 69.4% in 2011 and 59.6% in 2013 In spite of the reduction in proportion, external financial resources remain a key factor, accounting for the largest proportion of the financial resources of the four universities Considering the components of non-state financial resources, financial resources from learners accounted for the highest proportion, followed by those from the organizations buying and using the services of the university and the lowest financial resources came from other sources, mainly from sponsors 4.3 The situation of state policy on attracting non-state financial resources for public universities in Vietnam 4.3.1 Content of the State policy on attracting financial resources from learners for public universities 4.3.1.1 State Policy on tuition fees During the period 1998 - 2009, the college tuition fee for the mass program was from 50,000 VND to 180,000 VND/ student (Decision 70/1998 / QD-TTg) Since 2010, the State has issued a new tuition policy (Decree 49/2010 / ND-CP), which stipulates that the tuition fee for mass programs in public schools was set by training field According to the new regulations, the ceiling tuition fee in 2010 was adjusted up 60% over the tuition fee of 2009 From 2010 to 2014, the tuition fees were adjusted up nearly 90% Adjustment of tuition fees under Decree 49 helped schools to have more favorable conditions to ensure financial resources to implement the training program 15 16 From the 2015-2016 school year, Vietnam would apply the policy framework for higher education tuition under Decree 86/2015 / ND-CP with the ceiling tuition fee set for 2015-2021 Tuition fees are based on the principle of financial autonomy of educational institutions Tuition fees of public education establishments which are selffunded for recurrent expenditures and investment expenditures shall be determined on the basis of techno-economic norms and cost norms promulgated by competent authorities and calculation of the cost of higher education 4.3.1.2 State policy on the diversification of the type of training State policy allows universities to diversify their training products to meet the needs of society In addition to the mass programs, universities can offer high quality training programs, distance learning, part-time training, associated and inter-college program (Circular 23/2014 / TT-BGDDT) For distance learning programs, the State shall permit universities, colleges and professional secondary schools to conduct distance training programs after being granted the written permission of the Ministry of Education and Training (Decision No 40/2003 / QD-BGDDT) The state also allows universities and colleges to organize inter-college and parttime training programs, provided that the schools develop curriculum frameworks and have permission from the MOET (Decision 36/2007/QĐ-BGDĐT; Decision 06/2008/ QD-BGDDT) The State allows and specifies the conditions for public universities to implement joint international training programs (Decree No 43/2006 / ND-CP, Decree No 73/2012 / ND- CP) 4.3.1.3 State policy on ensuring the benefits of learners State policies are now aimed at ensuring the benefits of learners and students, as reflected in the Law on Education, the Law on Higher Education, Circular 09/2010 / TTBGDDT Learners are respected, treated equally, regardless of gender, ethnicity, religion, origin, provided information about learning, training Learners are also facilitated in learning and participating in science and technology, culture and sports In particular, the learners have the right to contribute ideas, participate in the management and supervision of educational activities and the conditions to ensure the quality of education (Law on Higher Education 2012) State policy also stipulates that learners participate in the training program while working on equal learning and are given maximum conditions as normal students (Circular 09/2010 / TT-BGDDT) 4.3.1.4 State policy on creating favorable conditions for public universities to organize business activities to support and serve learners State policy also facilitates public universities to organize supportive business activities for learners The State allows universities to organize business or service establishments in the form of enterprises or service centers for the provision of information, counseling and student services (Regulations on university, issued with Decision 70/2014 / QD-TTg) 4.3.2 Content of state policy on attracting financial resources from organizations buying and using services of public universities State policy on attracting financial resources from buying and using services of public universities includes state policy on the empowerment of public universities to provide services for organizations and state policies that encourage public universities to provide services to organizations and policies encouraging organizations to use the services of public universities 4.3.2.1 State policy on empowerment of public universities to provide services to organizations The State allows public universities to provide services to organizations as stipulated in Paragraph 2b Article of Decree No 43/2006/ND-CP, which clearly states the universities are allowed to carry out activities to meet the needs of enterprises in accordance with the law This provision allows universities to undertake cooperative activities with enterprise to increase financial revenues The state also grants public universities the right to set the level of fees from cooperative activities with enterprises on the basis of ensuring the necessary expenses for the operation and accumulation for investment and development (Item 1, Article 14 of Decree 69/2008 / ND-CP) 4.3.2.2 State policy encouraging public universities to provide services to organizations i) State policy on taxation and credit ii) State policy on intellectual property rights iii) State policy on infrastructure support iv) State policy on the use of state assets in production and business activities 4.3.2.3 State policy encouraging organizations to use the services of public universities i) State policy on taxation and credit ii) State policy on intellectual property rights iii) State policy to support infrastructure construction 4.3.3 Content of State policy on financial resources from other objects 4.3.3.1 State policy on the right to receive grants of public universities State regulations on grants for educational institutions in the national education system provide the principles and requirements for grants issued for the purpose of enhancing the school facilities and supporting teaching and learning activities, educational activities at educational institutions, well implementing the policy of socialization of education (Circular 29/2012/TT-BGDDT) 4.3.3.2 State policy on income tax exemption In order to encourage individuals and organizations to carry out educational sponsorship activities, especially for higher education, the State has implemented income tax exemption and income tax exemption for sponsor Grants and sponsorship received by universities shall be use in education and scientific research on the list of income tax exemption (Clause 7, Article 8, Circular 78/2014 / TT-BTC) For sponsors, the State stipulates that sponsors making active contributions to education and training development shall be honored by heads of educational institutions and educational management agencies according to their competence or propose to higher levels appropriate forms of honor for recognition of contribution to educational institutions Organizations and individuals sponsoring education are entitled to tax incentives (Article 10, Circular 29/2012/TT-BGDDT) For educational sponsoring organizations, the State applies a 10% tax rate during the period of operation for the income of enterprises operating in the education and training sector (Clause 2, Article 15, Circular 78/2014/TT-BTC) For individuals, the State shall deduct the charity, donations, contributions against taxable incomes and salaries and wages before tax calculation for taxpayers as residents 17 Charity, educational incentives earned during the year are deducted from the taxable income of that year, if not deducted in the year, they shall not be deducted from the taxable income of the taxable year The maximum deduction level shall not exceed the taxable income from salaries, wages and business income of the year in which charitable humanitarian contributions are made (Section I, Part B of the Circular No 84/2008 / TTBTC) 4.3.4 Summary of state policies on attracting non-state financial resources for public universities in Vietnam by groups Object Policy References State Policy on tuition fees - Decree 43/2006 / ND-CP Schools - Decree 49/2010 / ND-CP - Resolution 77 / NQ-CP - Decree 16/2015 / ND-CP - Decree 86/2015 / ND-CP State policy on the diversification - Decision No 40/2003 / QDof the type of training BGDDT - Decree No 43/2006 / ND-CP - Decision 36/2007 / QD-BGDDT - Decision 06/2008 / QD-BGDDT - Decree 73/2012 / ND-CP - Circular 23/2014 / TT-BGDDT State policy creates conditions for - Decision 202/2006 / QD-TTg - Decision 70/2014 / QD-TTg public universities to organize business activities to support and serve learners - Decree No 43/2006 / ND-CP State policy on empowerment of public universities is provided for - Decree No 69/2008 / ND-CP the provision of services to organizations State Policy on Taxation and - Law on technology transfer Credit - Law of Science and Technology - Decree 209/2013 / ND-CP - Circular 219/2013 / TT-BTC State policy on intellectual - Decision 78/2008 / QD-BGDDT property rights - University Regulations 2010 State policy on supporting - Decision 592 / QD-TTg infrastructure construction State policy on the use of state - Decision 202/2006 / QD-TTg property in production and business activities State policy on the right to receive - Circular 29/2012 / TT-BGDDT grants from public universities State Policy on tuition fees - Decree 49/2010 / ND-CP Learners - Decree 43/2006 / ND - CP - Resolution 77 / NQ-CP - Decree 16/2015 / ND-CP 18 Object Policy State policy on the diversification of the type of training State policy creating favorable conditions for public universities to organize business activities to support and serve learners State Policy on Student Rights Protection Organizations State Policy on Taxation and Credit buying and using services of public universities State policy on intellectual property rights State policy on supporting infrastructure construction State policy on income tax exemption References - Decree 86/2015 / ND-CP - Decision 40/2003 / QD-BGDDT - Decree No 43/2006 / ND-CP - Decision 36/2007 / QD-BGDDT - Decision 06/2008 / QD-BGDDT - Decree No 73/2012 / ND-CP - Circular 23/2014 / TT-BGDDT - Decision 202/2006 / QD-TTg - Decision 70/2014 / QD-TTg - Education Law - Higher Education Law - Circular 09/2010 / TT-BGDDT - Technology Transfer Law 2004 - Science and Technology Law 2013 - Circular 78/2014 / TT-BTC - Intellectual property law - Law of science and technology - Decision 592 / QD-TTg - Circular 84/2008 / TT-BTC - Circular 29/2012 / TT-BGDDT - Circular 78/2014 / TT-BTC 4.4 Assessment on State policy on attracting non-state financial resources for public universities 4.4.1 Assessment by policy assessment criteria 4.4.1.1 Assessment of Universities on State Policy on attracting financial resources for public securities a) Effectiveness b) Efficiency c) Sustainability 4.4.1.2 Assessment of learners on state policies on attracting financial resources for public universities a) Effectiveness b) Efficiency c) Sustainability 4.4.1.3 Assessment of organizations buying and using services of the schools on state policy on attracting non-state financial resources for public universities a) Effectiveness b) Efficiency c) Sustainability Other objects 19 20 4.4.2 The success of the State policy on attracting non-state financial resources for public universities Firstly, the state policy on attracting financial resources from learners has changed markedly, reflected in Decree 49/2010/ND-CP Secondly, the state policy on attracting financial resources from learners has encouraged the active participation of public universities in diversifying the types of training, including Joint International training programs, part-time learning, distance learning and short courses The regulations and legal framework for organizing these program are more clearly promulgated, encouraging schools to specify the requirements of the international program Thirdly, state policies on attracting financial resources from organizations buying and using services of universities have made it more convenient for public universities to strengthen partnerships with such organizations Fourthly, the state is also interested in the rights of individuals and organizations who provide funding to university activities Fifthly, policies have shown efficiencies in increasing non-state financial resources for public universities, enabling public universities to maximize the resources that can be approached by them At the same time, policies ensure the level of government supervision and oversight of policy beneficiaries and enhance transparency in the school's financial resources 4.4.3 Limitations and causes of limitations of State policy on attracting non-state financial sources for public universities 4.4.3.1 Limitations of State policy on attracting non-state financial resources for public universities i) For attracting financial resources from learners ii) For attracting financial resources from organizations buying and using services of public universities iii) For attracting financial resources from other objects 4.4.3.2 The limitations of the State policy on attracting non-state financial resources for public universities i) For attracting financial resources from learners ii) For attracting financial resources from organizations buying and using services of public universities iii) For attracting financial resources from other objects 4.5 Summary of Chapter - Firstly, the thesis presented an overview of the development of the public higher education system Public higher education is expanding Public universities have been established and developed in many different regions rather than in large cities to ensure that they serve the needs of local education - Secondly, the thesis presented the financial status of public universities Financial resources of public universities increased rapidly in the period 2003-2011 Financial resources of public universities vary between geographic regions, in particular the schools in the Red River Delta and the South East have higher financial resources than those in the remaining areas The thesis also analyzed and pointed out the differences in the financial resources of public universities belonging to different governing bodies or training fields The thesis also looked at the financial structure of the universities, and found that the funding from the state budget tends to decrease, while non-state financial resources were increasing Particularly, the financial resources from the learner through the joint international training programs, part-time training, distance training occupy a high proportion of non-state financial resources and tend to increase - Thirdly, the thesis analyzed the results of the survey of universities, learners and organizations buying and using services of public universities Non-state financing activities at the four public universities are diversified, focusing on training, technology transfer, and consultancy As a result, financial resources from regular tuition accounted for a large part of the financial structure In non-state financing not including formal tuition fees, financial resources from learners accounted for the largest proportion, followed by those from organizations and other sources - Fourthly, the thesis provided assessment on situation of the State policy on attracting non-state financial sources for public universities and summarizes questionnaire survey results of representatives of the Board of Rectors, Head of the Department of Planning and Finance, leaders of faculties, departments and lecturers of four public universities, learners and organizations buying and using services of these four universities State policies are assessed on three criteria: effectiveness, efficiency and sustainability - Fifthly, in this chapter, the thesis carried out the assessment of the successes and limitations of the State policy on attracting non-state financial resources for public universities Since then, the thesis has pointed out the causes of success and limitations of the policy It is important to be able to provide policy improvement measures for attracting non-state budget financial resources for public universities CHAPTER SOLUTION FOR IMPROVEMENT OF STATE POLICY ON ATTRACTING NON-STATE FINANCIAL RESOURCES FOR PUBLIC UNIVERSITY COLLEGES IN VIETNAM 5.1 Viewpoints on improvement of the state policy on attracting non-state financial resources for public universities Firstly, education is a special kind of commodity, thus forming a market mechanism for educational goods, in other words, education is an economic-service sector Secondly, give full autonomy to universities The granting of full autonomy to schools ranged from asset autonomy, finance, autonomy in terms of tasks, organizational structure, personnel, academic autonomy, training, training subjects) Thirdly, consider universities as social enterprises When given autonomy, public universities will operate in a market-like manner Fourthly, link financial autonomy with the aim of improving the quality of education Fifthly, support should be given to promote socialization of education and training, encouraging enterprises and individuals to use labor force to support training activities 21 22 Sixthly, ensure equality, ensure the benefits of the universities, learners, organizations buying and using services of public universities as well as other objects such as sponsors Seventhly, it is necessary to ensure openness and transparency in the attraction and use of non-state budget resources It is necessary to strengthen the inspection and examination of the implementation of the law; promote the role of mass organizations, especially professional associations in overseeing service activities 5.2 The goal of improvement of the State policy on attracting non-state financial resources for public universities Goal 1, by 2020, regular tuition is recognized as non-state revenues Regular tuition fees represent a significant proportion of the total revenues of public universities Considering regular tuition as non-state revenue will create conditions for public universities to be more proactive and flexible in using revenue to cover training and investment costs Goal 2, by 2020, public universities are autonomous, fully responsible for the implementation of their training and scientific research, organization, personnel and financial responsibilities (This includes the determination of appropriate tuition fees to ensure reasonable cost recovery and accumulation) Goal 3, by 2020, public universities in the country are ranked and stratified This will promote competition in public higher education, and provide useful information for learners' choices Goal 4, by 2020, the State shall adopt specific policies to encourage public universities to organize business activities and services to support learners Goal 5, by 2020, the State shall adopt policies to protect intellectual property rights for scientific and technological research results of universities; Universities are entitled to own state-funded science and technology research results to encourage the application and transfer of technology between the universities and other organizations Goal 6, by 2020, the State shall promulgate complete policy of donation and funding to universities, which specifies the forms of funding and the corresponding form of incentives from the State This will create conditions and mechanisms for schools to attract financial resources from benefactors, which are an important source of revenue for universities in many countries around the world 5.3 Solutions for improvement of the State policy on attracting non-state financial resources for public universities 5.3.1 Solutions for improvement the state policy on attracting financial resources from learners Solution 1:The State sets the tuition fee only when determining the cost of training that assures the quality of training and gives autonomy in determining the tuition fees for public universities (whether the state issues fee frame or not) Solution 2: Consider formal tuition is non-state financial resources Solution 3: Ensure the benefits of learners by tuition fee mechanism consistent with the quality of training Solution 4: Encourage public universities to carry out production and business activities for learners Solution 5: Internationalize universities and focus on attracting international students 5.3.2 Solutions for improvement of state policy on attracting financial resources from organizations buying and using services of public universities Solution 1: The State should simplify the procedures and regulations relating to tax exemptions, incentive credit loans to public universities and enterprises involved in scientific research projects and technology transfer Solution 2: The State needs to support in infrastructure, laboratories for public universities that are still limited in terms of conditions; Support in co-operative projects between advantageous public universities and inferior universities Solution 3: Effectively implement intellectual property rights and commercialization of intellectual property Establish technology transfer offices in universities Solution 4: Attract enterprises, especially large foreign corporations, to invest in building and financing research facilities in universities Solution 5: Encourage and facilitate mechanisms to support universities in registering and conducting business and promoting their trademarks abroad Solution 6: Promote support through innovative programs and strengthen stateuniversity-enterprise cooperation Solution 7: Increase the autonomy of schools in using assets to carry out business activities 5.3.3 Solutions for improvement the state policy on attracting financial resources from other objects Solution 1: Implement tax policies for enterprises or financial institutions Solution 2: Create a transparent management mechanism for the financial contributions of society to the universities Solution 3: Disseminate and call for socialization of education Solution 4: To allow the formation of a trading floor for education Solution5: Strengthen internal capital mobilization to build and develop universities 5.3.4 Other supporting solutions Solution 1: Complete the mechanism of state management policy Solution 2: Promulgate policies to support and invest in the construction of public school infrastructure after autonomy Solution 3: Improve the way organizations monitor and assess the quality of education of schools Solution 4: Strengthen investment incentives of economic sectors in the education sector Solution 5: Support and encourage universities to invest abroad, to form Vietnamese educational establishments in foreign countries 5.4 Recommendations for universities Recommendation 1: Proactively improve the quality of training Recommendation 2: Build a communication network between schools and students after graduation Recommendation 3: Collaborate with enterprises in developing training 23 24 programs meeting the needs of the business Recommendation 4: Expand the types of services provided to learners or for different audiences Recommendation 5: Strengthen scientific research, use the school's budget to raise the capacity of scientific research, and raise the level of practical applications from research works in schools Recommendation 6: Invest in the construction of technical infrastructure in the direction of modernization, strengthening the infrastructure for the practice and research of students Recommendation 7: Construction investment, trademark registration Recommendation 8:Effectivelymanage resources in universities 5.5 Summary of Chapter - Firstly, it is necessary to identify the direction of renovation and improvement of State policy on attracting non-state financial resources for public universities This is reflected in the views of the Party and the State toward state policy on attracting non-state budget resources for public universities Based on these views, the fellow has proposed specific objectives for improvement of the state policy on attracting non-state financial resources for public universities - Secondly, based on the analysis in the thesis, the fellow proposed solutions to improve the state policy on attracting non-State financial resources for public universities These solutions address specific financial resources such as those from learners, from organizations buying and using services from public universities, and other sources In addition, the fellow also proposed some other supporting solutions for improvement of state policy on attracting non-state financial resources for public universities These solutions focus on ensuring the stability of the macro-economy, reforming the state budget allocation mechanism for universities in line with tuition and output for each sector, ensure transparency in State administrative management and integrated information management system between universities and state management agencies These will be the conditions to ensure the policy is implemented successfully and effectively - Thirdly, the fellow has made some recommendations to universities to ensure that the solution of autonomy is effective Universities should, prior to support mechanisms from the state, should also actively improve the management system, and improve the quality of teaching and training services to be able to create trust The recommendations for public universities in Vietnam focus on a number of issues such as: (1) actively improve the quality of training; (2) build information network between the universities and students after graduation; (3) Collaborate with enterprises in developing training programs meeting the needs of the enterprises; (4) expand the types of services provided to learners or for different objects; (5) Enhance scientific research, use the school's budget to raise the capacity of scientific research, raise the level of practical application from research works in universities; (6) invest in the construction of modern technical infrastructure, enhance the infrastructure for students' practice and research; (7) Construction investment, trademark registration; (8) effectively manage resources in universities CONCLUSION Firstly, the thesis researches comprehensively and systematically the theoretical basis of non-state financial resources for public universities, clarifying the role of nonstate financial resources for the operation of universities In addition, the thesis provides in-depth analysis on the concept, objectives, principles and components of policy on attracting non-state financial resources for public universities Secondly, the thesis examines the groups of factors influencing policy and policy assessment criteria This is an important theoretical basis for the process of researching and assessing universities in activities of attracting non-state financial resources and assessing the policy on attracting non-State financial resources for public universities in Vietnam Thirdly, the thesis explored the implementation of policies on attracting non-state financial resources for public universities in some countries around the world Although each country has different conditions and policies on attracting non-state financial resources for public universities vary significantly, but through this research, the thesis has drawn important lessons learned for reference in the process of renovation and improvement of policies on attracting non-state budget resources for universities in Vietnam Fourthly, the thesis has studied, reviewed and assessed the situation of attracting non-state financial resources for public universities in Vietnam, the situation of policy of attracting non-state financial resources for public universities in Vietnam The thesis has conducted a practical survey with four universities implementing financial autonomy in Vietnam on the contents of policy and policy assessment to have an objective and scientific view for policy assessment and solutions Fifthly, the thesis has introduced solutions for improvement of the state policy on attracting non-State financial resources for public universities in Vietnam These solutions are built on the basis of socio-economic conditions in Vietnam, in line with the socio-economic development lines of the Party and the State and the orientation for the development of higher education in Vietnam According to the thesis, policy improvement should affect all subjects involved in attracting non-State financial resources for public universities Sixthly, the thesis has pointed out the necessary conditions for the State, universities, learners, organizations buying and using services of public universities for the process to make sure that improvement of state policy on attracting non-state financial resources for public universities in Vietnam would be implemented successfully