Vietnam’s policy for foreign investment in higher education

Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.Vietnam’s policy for foreign investment in higher education.

Rationales for the Research

Over the recent years, research into the policy for foreign investment has been emerged as one of the key themes of discussions on its significance in enhancing and governing educational internationalization (Kosmützky & Putty, 2016) Meanwhile, there are a few publications that address the spectrum of national policies and regulatory frameworks for cross-border mobility of programs and providers on an overall worldwide arena, such as studies by Ilieva and Peak (2016); McBurnie and Ziguras (2006); Verbik and Jokivirta (2005b); Ziguras and McBurnie (2015) However, these studies have been mainly conducted from the perspectives of exporting countries, with an aim to obtain an understanding of the policy contexts generally, build policy frameworks, and categorise the studied countries into relevant groups to understand the opportunities and challenges of managing foreign investment activities in host countries

On the other hand, a number of studies have investigated internationalisation policies in specific regional and local contexts, with a focus on the individual host countries, such as

China, Hong Kong, Japan, Korea, Malaysia, and Singapore (Aziz & Abdullah, 2014; Byun & Kim, 2011; Chan & Ng, 2008; Daquila, 2013; Huang, 2003b, 2006a, 2009; Lee, 2014, 2015b; Maclean & Lai, 2012; Mok, 2011; Peak et al., 2018; Richardson, 2015; Sidhu et al., 2011; Tham, 2013; Vyas, 2018) However, a review of these studies reveals a dearth of analysis of the policy for foreign investment in HE

In Vietnam, where educational internationalization has been embraced over the last two decades, policy for foreign investment in HE in Vietnam have received considerable attention from a handful of researchers (e.g., Hoang et al., 2018; Nguyen & Shillabeer, 2013; Nguyen & Lee, 2020; Nguyen & Tran, 2018, 2019; Ziguras & Pham, 2014, 2016) The country has also been included within the scope of research studies conducted by organisations such as OECD and the British Council (Ilieva et al., 2017; Ilieva & Peak, 2016; Knight & McNamara, 2015; McNamara et al., 2013; Peak et al., 2018; Verbik & Jokivirta, 2005b) These earlier studies focused on the analysis of policy documents, with empirical data and insightful views from relevant policymakers, government officials and relevant context informants such as academics and managers from Vietnamese and foreign higher education institutions/providers Policy document analysis is useful in providing a foundation for understanding these government policies However, earlier studies offer limited insights into the determinants on the process of framing the policy for foreign investment in HE in Vietnam, nor the spillover effects of those policy on higher education and investment environment in Vietnam

In an attempt to address some of these gaps, this study focuses on the policy for foreign investment in Vietnam Vietnam presents an interesting case study because it is a fast-growing site for internationalization in education, and potential growth in foreign investment in education is projected As a result, insights into the country’s policy for foreign investment in

HE are essential for the host government in their efforts to develop a properly informed regulatory framework.

Research Objects and Scope

Acknowledging that there are various ways to investigate the policy for foreign investment in HE and phenomenon, this section defines a set of limits to guide the study

Research objects: First, the education sector is large and diverse, incorporating schools, vocational colleges, and HEIs and foreign investment occurs at all levels It is therefore impossible to engage all education levels within the limited time and resource parameters of a Master Foreign investment at school and vocational education levels are outside the scope of this study.

Second, due to the nature of of foreign direct investment (FDI) and foreign indirect investment (FII), this study focuses only on FDI The explanation is the fact that Vietnamese Government do not allow foreign investment in the form of stocks into education sector

Third, foreign investment can be delivered in multiple forms; however, this study excludes online and distance provision Instead, it will only focus on the foreign investment in the form of partner-supported programs, international branch campuses and foreign invested universities This is because foreign invested online provision has recently been officially approved by the Vietnamese Government in October 2020 That is to say, the phenomenon of online provision is relatively new in Vietnam, and at the time of writing this thesis, the delivery of online programs is still in the pilot stage There is a need for investigation of the online provision in Vietnam However, it requires a certain period of time of implementation before it can be comprehensively and extensively investigated.

Scope of time: The research focuses on the policy foreign investment in HE within the timeframe from 2000 to 2020.

Scope of geography: The research focuses on the policy foreign investment in HE in Vietnam.

The scope and objects of the Thesis has drawn the limitations of the Thesis while suggests research in the future at the same time.

Research Objectives

Establishing why this is the case requires identifying factors which both facilitate and impede the flow of foreign investment into HE sector in Vietnam, it also means highlighting possibilities for overcoming the barriers that are in place To contribute to this task, this Thesis was informed by three key objectives:

1 To improve understanding of the policy contexts in Vietnam around the foreign investment in HE.

2 To identify any situations in Vietnam that the policy for foreign investment in HE confronts with.

3 To identify recommendations to Vietnam to collaborate and provide support to stakeholders to reduce barriers to the foreign investment in HE.

Research Questions

To achieve the research objectives, this research is guided by the following overaching research question:

How has the Vietnamese policy for foreign investment in higher education been shaped and implemented since the 1990s?

This central question is divided into three sub-questions:

Question 1: What is the overview of theory and practice of policy for foreign investment in higher education?

Question 2: How has the policy for foreign investment in higher education in Vietnam been shaped the development of HE in Vietnam?

Question 3: What are recommendations for policy for foreign investment in higher education in Vietnam?

Research Methodology

To carry out the study, the author combines the research methodology as follows:

Analysis of policy document related to HE development and regulations on foreign cooperation and investment in the HE sector to understand Vietnamese Government’s policy objectives, the contexts and the effects by the policy

The data is collected, quoted from reports, research of experiential and trusted researchers and organizations in the field of foreign investment in HE Since primary data for such study is hard to conduct due to the limitation of resource of the author, secondary data are mainly used.

Literature Review

Given the dynamics of foreign higher education services in the Vietnamese market and growing awareness of the role of policy as an essential part of foreign investment in higher education, a handful of researchers have shown strong interest in Vietnam’s national policies for internationalisation of higher education and regulatory framework for cross-bordered HE (Dang, 2011; Hoang et al., 2018; Nguyen & Shillabeer, 2013; Nguyen & Lee, 2020; Pham, 2014; Welch, 2012; Welch, 2010; Ziguras & Pham, 2016).

Hoang et al (2018) reviewed the history of Vietnamese Government policies on internationalisation since 2001 The researchers argue that Vietnamese Government rationales for internationalisation has shifted from a reluctant, passive, and simplistic approach to proactive engagement and strategic planning The regulation on foreign cooperation and investment in education sector (i.e., related to transnational education) was briefly discussed in Hoang et al.’s (2018) paper, however, no insights of the regulatory framework has been provided Ziguras and Pham (2016) are among TNE scholars that are interested in the regulatory framework for borderless education in Vietnam In their review of the internationalisation in Vietnamese higher education, the researchers expressed their concerns on the unclear rationale for requirements on wages, employees, foreign lecturers, campus size, and investment money that are specified in the regulatory framework for foreign investment in

HE The researchers argued that such a regulatory approach focusing on inputs rather than educational outcomes for students, which may place risks on increasing costs, resulting in less investment, higher fees and smaller enrolments Ziguras and Pham’s (2016) research is supported by other studies in different ways Earlier, Pham (2014) argued that the cross-border higher education activities in Vietnam were regulated by a supply-focused regulatory framework From the perspectives of CBHE institutions, the researcher argued that Vietnam’s regulatory framework has become more complex to existing institutions and restrictive to coming providers This may cause some hesitation and/or confusion in foreign cooperation and/or investment into Vietnam’s higher education sector

More recently, Nguyen and Lee (2020) conducted research on the governance of transnational education in Vietnam They point out the issues and challenges in foreign investment governance, which include: the compromise of quality, low governance capacity, incoherent and inadequate regulatory framework, limited university autonomy The researchers also conclude that foreign investment governance in Vietnam has appeared to be less efficient, with loopholes in regulations This is partly due to the fact that the policy for foreign investment in HE in Vietnam has placed emphasis on ex-ante measures like licensing procedures, rather than ex-post measures such as implementation enforcement and creating enabling factors to incentivise improvements and innovations These findings are concurrent with Nguyen and Shillabeer (2013), who argued in their document analysis of regulations for transnational education in Vietnam that Vietnamese regulations for foreign investment in HE are complex, ambiguous, opaque and poorly implemented and monitored As pointed out by the authors, foreign institutions have been facing with challenges in the implementation, control and monitoring of the regulatory framework, which is unclear and the overlapping roles among governmental agencies in governing transnational education Nguyen and Shillabeer (2013) suggested that the regulations and governance models should be reviewed to provide clarity for all stakeholders and to ensure longevity for education reform in the country.

Additionally, foreign investment policy in HE in Vietnam has been compared with other host countries in an international context In their comparative study, Verbik and Jokivirta(2005b) allocated Vietnam in the cluster of host countries that apply moderately liberal approach to regulate transnational education Informed by the divergence of business regulation and quality assurance, this study was revisited by Ziguras and McBurnie (2015), who placed Vietnam in the group that have restrictive business regulation and comprehensive quality assurance (Ziguras & McBurnie, 2015)

However, our understanding of how and why the Vietnamese Government has adopted this regulatory approach and the impacts of these regulations on borderless HE delivery is notably underdeveloped In 2015, Vietnam was one of the eight economies that participated in a research study undertaken to obtain greater knowledge and understanding of the policy context around the cross-border mobility of HEIs in eight Asia-Pacific Economic Cooperation (APEC) economies (Richardson, 2015) Insights into different policy contexts have been gathered from policy document analysis and interviews with 68 key HE stakeholders. Interviewees from Vietnam represented the government agencies (e.g., the Ministry of Education and Training), foreign agencies (the British Council), foreign HEIs (RMIT Vietnam, the University of Queensland) and Vietnamese HEIs (Hanoi University) Research findings of this study partially supported Verbik and Jokivirta (2005b) in the sense that the policies around HEI mobility in the eight APEC economies vary considerably, ranging from extremely rigorous and well-developed approaches, to much more laissez faire contexts (Richardson, 2015) However, it is important to note that policy contexts and policy implementation are not necessarily equivalent, with a number of participants arguing that while policies may appear welcoming to HEI mobility they are not always applied in this way, and can sometimes become onerous and bureaucratic (Richardson, 2015)

My thesis demonstrates that research into policy for foreign investment has been primarily based on policy document analysis, with very few exceptional studies that involved interviews with key stakeholders Policy document analysis is useful in providing a foundation for understanding these government policies and regulatory frameworks However, a broader inquiry is necessary to obtain a comprehensive and in-depth understanding of the policy framing, as well as its impacts and implementation in practice, which are not surfaced in the discourse

In conclusion, the literature review demonstrates that policy for foreign investment in

HE has been proliferating in terms of the number of students enrolled, the variety of modes of delivery, and the increasing number of partners and countries involved (Huang, 2006a;Tsiligiris & Lawton, 2018b) Although these studies have provided considerable insights into the spectrum of spillover impacts of foreign investment policy on higher education across academic, skills, economic and social/cultural dimensions, what is missing in these studies is the linkage between the policy and these effects It also rarely addresses how the TNHE regulatory instruments have served to chieve the goals set in the national policy on higher education development Therefore, the current study makes a significant contribution to research into policy for foreign investment in HE by investigating its provision in Vietnam and sheds light on the linkage between the policy and these effects.

The Structure of the Thesis

This study is organised into 03 chapters Following the Introduction, Chapter 1 outlines the overview of the policy, foreign investment, and higher education and the practice in China, Malaysia, and Singapore

Chapter 2 presents the context of foreign investment policy in higher education in Viet Nam This review specifically highlights and discusses further into the studied objects and its situation, relationships, and influences.

Chapter 3 discusses the recommendations in relation to the objectives of the thesis respectively

Finally, this thesis ends with Conclusions, which presents a summary of the key findings, contributions, and limitations of the study, ending with suggestions for further research.

OVERVIEW OF THEORY AND PRACTICE OF POLICY FOR

Overview of Policy for Foreign Investment in Higher Education

In this section, terminology, forms and determinants of policy for foreign investment in HE are gone through for an overview of the theory.

As the focus of this study is on the policy and regulatory framework for TNHE, it is important that these key terms be defined clearly to avoid any confusion about how these terms are used Below are the definitions of the three other key terms policy, regulatory framework, and implementation, which will be used frequently throughout this study.

Policy: The phrase "policy" has been defined in a variety of ways, and it is widely acknowledged that getting a universally accepted definition "is not an easy task" (Taylor et al., 1997, p 23) There are several definitions of policy, and how the term is conceptualised depends on the viewpoint of the policy researcher, as mentioned by Ozga (2000) (p 2).

What governments decide to do or not do can be regarded the first definition of policy (Dye, 2008, p 2). According to other academics (Ball, 1994b, p 18; Weimer & Vining, 2004), policies are "interventions into practise," which indicate the government's desire for change and are therefore intended to bring about change. Similar to this, policy is viewed as a change plan that identifies issues and areas that require improvement (Bacchi, 2009) Policies can also be thought of as problematizing actions (Bacchi, 2009; Bacchi & Goodwin,

2016) Osborne (1997) makes a similar argument to Bacchi and Goodwin (2016) that a government cannot start working without first problematizing its area.

As a result, policy may be seen as intrusions into practise (Ball, 1994b, p 18; Weimer & Vining, 2004). The concepts and practises of government pursuit of social, political, and economic goals are reflected in this account through government actions and inactions (Fawcett et al., 2010) Policies come in a variety of shapes It might be a "text" and a "discourse" that exemplifies "what is enacted as well as what is intended" (Ball, 1994b, p 10) However, Taylor et al (1997, pp 24–25) contend that policy can be thought of as "both process and product" involved in the formulation and production of the actual text, ongoing modifications to the text, and implementation processes in practise They claim that policy does not only exist in the form of "a specific policy document or text" The simplest definition of policy is that it "includes a government's expressed intentions and official enactments, as well as its consistent patterns of activity and inactivity" (Fowler, 2013, p 5).

Foreign Direct Investment: Investment, as defined by the United Nations Conference on Trade and

Development (UNCTAD), refers to the act of allocating resources, typically financial, with the expectation of generating future benefits or returns It involves the commitment of funds in various assets, projects, or enterprises, aiming to enhance productivity, create employment opportunities, stimulate economic growth, and foster sustainable development UNCTAD generalizes the concept of investment as:

“In a broad sense, investment is usually understood as a sum of money or other resources

(including, e.g knowledge or time) spent with the expectation of getting a future return from it Investment may, however, be viewed more narrowly along different dimensions, depending upon the context and purpose.”

According to UNCTAD, investment encompasses not only the acquisition of tangible assets like buildings and machinery but also intangible assets such as intellectual property rights and technology transfers.

It plays a crucial role in promoting trade, facilitating cross-border transactions, and attracting foreign direct investment (FDI) to both developed and developing countries UNCTAD emphasize the importance of creating a favorable investment climate characterized by stability, transparency, non-discrimination, and the rule of law, enabling investors to make informed decisions and mitigate risks

Meanwhile, Vietnamese legislation defines investment under the Law on Investment 2005. According to Article 4 of the Law on Investment in Vietnam (revised in 2020), investment refers to the use of capital, assets, labor, and other resources for the purpose of implementing investment projects in accordance with the law It encompasses activities such as establishing enterprises, contributing capital, purchasing shares, and making investments in the form of business cooperation contracts, public-private partnerships, and other investment forms recognized by the law.

The definition provided by Vietnamese legislation highlights the broad scope of investment, which covers a wide range of activities involving the allocation of capital and resources It recognizes that investment can take various forms and structures, depending on the nature of the project and the legal framework governing investment activities in Vietnam.

Both UNCTAD's perspective and Vietnamese legislation underscore the significance of investment in driving economic development and achieving sustainable growth While UNCTAD emphasizes the broader global perspective on investment and its role in promoting inclusive development, Vietnamese legislation provides a specific legal framework to govern investment activities within the country The alignment between the two perspectives highlights the recognition of investment as a crucial mechanism for mobilizing resources, transferring technology, creating employment opportunities, and fostering economic progress.

Higher Education: Throughout the recent years, in order to understand and properly interpret the inputs, processes and outcomes of education systems from a global perspective in general and educational programs in particular, UNESCO has researched and launched the International Standard Classification of Education (ISCED) with the latest one as ISCED 2011 This organization also defines higher education as:

“Higher education is a rich cultural and scientific asset which enables personal development and promotes economic, technological and social change It promotes the exchange of knowledge, research and innovation and equips students with the skills needed to meet ever changing labour markets For students in vulnerable circumstances, it is a passport to economic security and a stable future.”

There are 8 levels of education in ISCED 2011 According ISCED, tertiary education (level 5 to level 8) builds on secondary education, providing learning activities in specialised fields of education It aims at learning at a high level of complexity and specialisation Tertiary education incudes:

Short-cycle tertiary education programmes at ISCED level 5 (at least 02 years);

Bachelor’s or equivalent first-degree programmes at ISCED level 6 (three to four years);

Bachelor’s or equivalent long first-degree programmes at ISCED level 6 (more than four years); or Master’s or equivalent long first-degree programmes at ISCED level 7 (at least five years); or

The successful completion of ISCED level 7 is usually required for entry into ISCED level 8, usually refers as Doctor of Phisolophy.

According to this classification, higher education is composed of Bachelor, Master, and Doctor of Phisolophy In other words, tertiary education is an umbrella that encompasses all post-secondary education: it includes technical and vocational education and training (TVET) as well as higher education.

Analytical Framework for Policy for Foreign Investment in HE

This section outlines the analytical framework that informs this study As an overarching theoretical framework, this study employs Braithwaite and Drahos’s (2000) key concepts of actors, mechanisms, and principles The key analytical framework underpinning this study is outlined in Table 1.1 and will be discussed below.

Table 1.1 How the Analytical Frameworks are Used in this Thesis

- To understand the interaction between the host government (state actor), the foreign higher education institutions/ providers (non-state actors), the use of regulations (mechanisms), and the host government’s underlying rationales (principles) in regulating the establishment and operation of transnational higher education.

-To analyse foreign HEIs and providers’ responses to TNHE policy and regulatory frameworks.

-To explain how the regulatory frameworks (mechanisms) affect foreign HEIs and providers’ (non-state actors) TNHE modes of delivery

The three key concepts of actors, mechanisms, and principles by Braithwaite and Drahos (2000), as introduced in their seminal work of Global Business Regulation suggest that different actors employ different mechanisms to push for or against specific principles (p.9) These key concepts could be applied in research of TNHE policies and regulatory frameworks (McBurnie & Ziguras, 2001) In particular, the concepts provide a useful framework for analysing the role of national governments (actors), their use of legislation (mechanisms), and their rationales (principles) for regulating borderless HE activities.

Braithwaite and Drahos (2000) illustrate that there are different types of actors involved in any particular policy domain This may include state actors, such as national governments (for example, the US, the United Kingdom); organisations of state (for example, the World Bank or the World Health Organisation); and non- state actors, such as business organisations, corporations, nongovernmental organisations, the public and interest groups (Braithwaite & Drahos, 2000, p.24)

Mechanisms, as identified in the work of Braithwaite and Drahos (2000), are created by different actors and used as a tool in their attempts to achieve desired goals and intentions They are relatively specific actions, which may include legislation, economic rewards or sanctions, and military coercion (Braithwaite & Drahos,

2000) However, goals are not always clearly set and therefore the use of mechanisms may result in unintended and negative consequences (Braithwaite & Drahos, 2000, pp 16-17)

Underpinning mechanisms are principles such as transparency, national sovereignty,liberalisation/deregulation, and rule compliance The role of principles is to secure objectives and goals set by the actors involved (Braithwaite & Drahos, 2000) Principles may be defined as norms, which are abstract prescriptions that guide conduct, inform their application, and could be used to create new rules (Braithwaite & Drahos, 2000) Unlike rules, principles may or may be juridical in nature, have a lower degree of specificity and can conflict Braithwaite and Drahos (2000) argue that conflict occurs because decision-makers (actors) assign relative weight to the principles in question to decide which actions are to be pursued In this process, one principle may take precedence over another, which creates contestation among principles and among different actors (Braithwaite & Drahos, 2000) Understanding the conflict of principles “is integral to understanding the globalisation of business regulation The successful weighting of one principle over another has consequences at both the level of conduct and for regulatory change” (Braithwaite & Drahos, 2000, p 18)

Markets are where buyers and sellers meet and interact In the case of global markets, buyers, or sellers from one country/territory can cross the borders to meet (face-to-face, through agents or on online platforms) and conduct transactions with buyers or sellers from a different country/territory (Braithwaite & Drahos, 2000).

As argued by the authors, regulatory globalisation is the process in which different types of actors use various mechanisms to support principles that fit their goals and objectives or to push against principles that are not in favour Now, education is a service that can be provided in international trade Hence, in order to obtain comprehensive understanding of how trade in goods and services operate, Braithwaite and Drahos (2000) suggest that it is useful to investigate the relationship between actors, mechanisms and principles.

1.2.2 Host Country Governments’ Policy Rationales and Objectives of Foreign Investment in Higher Education

It is common knowledge that “a policy usually proposes a vision to achieve and sets goals to meet” (Viennet & Pont, 2017b, p 21) Therefore, it is important to understand what a host country government aims to achieve at the decision-making and policy formulation stage A wealth of literature has addressed government rationales for internationalising HE in importing countries such as China, Korea, Malaysia, and Singapore (see, for example, Byun & Kim, 2011; Daquila, 2013; Huang, 2003a; Knight, 2004; Lee, 2015b; Tham, 2013; Vincent-Lancrin, 2007a) Scholars have generally categorised the rationales for internationalisation into four groups: academic, economic, socio-cultural, and political rationales (De Wit, 2002; Knight, 2004; Maringe, 2010; OECD, 2004; Vincent-Lancrin, 2007a)

From the academic perspective, internationalisation is associated with the objectives of quality enhancement and increased access to HE Activities such as internationalisation of curricula, teaching and research, student and staff mobility, and collaborative research fall under this category In discussion of the economic rationale, internationalisation is viewed as a source of revenue generating from education services, as well as a measure to leverage HE to produce skilled workers to satisfy the labour market Human resources development, generating revenue and enhancing economic growth and competitiveness are typical objectives under this rationale The socio-cultural rationale emphasises the objectives of developing intercultural skills and promoting mutual understanding between different cultures and societies Finally, the political rationale views internationalisation as a strategy to enforce national security, build relationships with other governments and countries through initiatives such as technical assistance, scholarships for foreign students, and regional alliances for student mobility

The key objectives under this category are to exercise soft power and promote national prestige and reputation The rationales of host governments to allow or invite foreign universities to establish a presence in their country also encompasses the above-mentioned rationales and may differ across the various host countries (McNamara et al., 2013; OECD, 2004) The commonly cited objectives of foreign investment in HE, among many others, may include:

• To expand access to higher education

• To expose local students to global perspectives

• To foster economic and human resources development

• To enhance national prestige and reputation

(Healey, 2017; Knight & McNamara, 2017; Vincent-Lancrin, 2007a; Wilkins, 2011)

1.2.3 The Relationship Between Actors, Mechanisms, and Principles

In this study, policy for foreign investment in HE is categorised as mechanisms They are used by the host government (state actor) to govern the establishment and operation of foreign investment by foreign HE providers (non-state actors) in Vietnam In line with this theory, there may be different state actors involved in the design and implementation of policy for foreign investment in HE

Figure 1.1 Actors, Mechanisms and Principles

It is important to investigate if there are any dominant principles that might take precedence over another and if there are any contestation among principles and among different actors Put succinctly, approaching the

HE foreign investment policy from this perspective enables the researcher to consider the relationship between the host government (state actor) and foreign HE providers (non-state actors), shed light on how the implementation of the policy (mechanisms) facilitates or impedes the cross-border mobilty of HE providers(non-state actors), and uncover the underlying rationales for the host government (state actors) to establish the regulations in such a way.

Policy for Foreign Investment in Higher Education in some Asian Countries

As globalization continues to thrive, countries recognize the importance of attracting international institutions and fostering collaborations to enhance educational standards, promote knowledge exchange, and

Mechanism (policy for foreign investment in HE)

Non-state actors (Foreign HE providers)

Non-state actors (cross-border mobilty of HE providers ) develop a competitive workforce In this context, several Asian countries have formulated policies to facilitate and regulate foreign investment in their higher education sectors This article will focus on the policies of selected Asian countries, namely China, Malaysia, and Singapore.

These countries have been chosen for their diverse approaches and prominence in the Asian higher education landscape While China is governed by a similar legislation to Vietnam, Malaysia is an emerging but attractive international education hub and Singapore has long story in calling for foreign investment into its higher education By examining the policies of these countries, we can gain insights into the various approaches taken to attract foreign investment in higher education, the regulatory frameworks in place, and the opportunities and challenges faced by both foreign and domestic educational institutions

From 2012 to 2022, China's education has made significant progress China has adopted a comprehensive strategy to enhance upper secondary education since 2012 (Embassy of the People's Republic of China in the Kingdom of Belgium, 2022) China invested 64 billion dollars (466,6 billion yuan) in general education by 2022, up from 32 billion dollars (231.7 billion yuan) in 2012 The aggregate enrollment rate in postsecondary education will surpass 90% in 2020 and 91.4% in 2021, a 6.4% increase from 2012 China has the largest higher education system in the world based on the number of students to 44.3 million students (domestic and international) by 2022 (Embassy of the People's Republic of China in the Kingdom of Belgium,

2022) According to statistics, China's university enrollment rate in 2021 will be 57.8%, a 27.8% increase from

2012 The Chinese government has long encouraged exchange and international cooperation in the field of education through transnational forms of education in order to promote the development of education (QAA, 2020).

Foreign investment in higher education is a rapidly growing sector and accounts for an increasingly large share of the education system in China (Clayburn, 2022) At the local level, transnational education is encouraged by the governments of many Provinces/Cities in China and has become part of a joint development and investment plan, among other sectors According to Clayburn (2022), investment in education cooperation is considered as a key factor for provinces/cities in China to increase their position and competitiveness with other provinces/cities.

The development of foreign investment in China began nearly 30 years ago In 1995, the Chinese Ministry of Education issued a provisional regulation on international cooperation in educational activities, officially introducing cross-bordered education into the country's education system (British Council, 2022) In

2000, after becoming an official member of the World Trade Organization (WTO), China's education market officially opened to the world through its commitment to open the service market Accordingly, China commits to not restrict the provision of educational services across borders, to have no barriers to the acquisition of foreign education, and to not cause obstacles to cooperation between foreign institutions and individuals. foreign and Chinese in the management of educational institutions (Ding et al., 2009).

In China, the University of Nottingham Ningbo was established in 2004 as a joint venture between the University of Nottingham of the United Kingdom and Wanli Education Group in China’s Zhejiang Province (Garrett et al., 2017; Verbik & Merkley, 2006) In the meantime, as reported by the Beijing-based Venture Education (2020), Sino-foreign joint programs were 2,240 as of 2019 Online provision of education is not allowed by this Government Although the estimation of students enrolled in cross-bordered programs is not always accurate and reliable due to the lack of data, what is clear is that there has been a consistent upward trend in the TNE student enrolments

Malaysia is a country that actively pursues the development of foreign investment in higher education from a young age on all levels of education and has accomplished remarkable feats in comparison to other East Asian and Southeast Asian nations.

According to the Malaysian Ministry of Education, there are presently ten international branch campuses (IBC) in operation in Malaysia (Services, n.d.) (The Quality Assurance Agency for Higher Education, 2020) Notable IBCs such as Nottingham University Malaysia, University of Southampton Malaysia, and Monash University Malaysia have considerably contributed to Malaysia's development of transnational higher education Malaysia presently has more than 180 international high schools in 16 provinces and cities across the country.

Malaysia aimed to be a regional hub for higher education, as pointed out in Malaysian government policy studies, and has now successfully transformed from an importer to an exporter of higher education(Aziz & Abdullah, 2014; Mok, 2011; Tham, 2013) In order to realise their goals, Malaysia has been an early adopter of twining programs and developed policies to attract foreign universities from developed countries like the UK, Australia and the United States to open their branch campuses in Malaysia Currently, In Malaysia, there are illustrative examples of local governments (Sarawak and Iskandar), partnering with foreign universities (e.g., Swinburne University of Technology, Sarawak; Curtin University of Technology, Sarawak; University of Reading Malaysia, Iskandar; University of Southampton Malaysia, Iskandar) and making substantial contribution in terms of financial and physical resources and as a way to attract foreign institutions (Aziz & Abdullah, 2014; Lane, 2010; Lee, 2014).

The genesis of these remarkable developments is the Malaysian government's perception of the insufficient training capacity of public institutions, which cannot meet the high demand for higher education In the 1990s, according to UNESCO, only 7.2% of the university-age population of Malaysia was enrolled in tertiary institutions, compared to 35.8% in Argentina and 54.2% in Korea According to a report by the OECD, Malaysia confronted a massive influx of domestic students at the beginning of the 21 st century as it became one of the top 20 exporters of students to universities abroad In 1995, in response to this issue, Malaysia published the "Vision 2020" strategy to promote the comprehensive development of Malaysia's economy and society by

2020 According to this strategy, Malaysia's primary objective is to become an education hub in the region, emphasising the expansion of access to public higher education and the development of private higher education, including transnational education (Morshidi, 2006).

This reform provided the necessary legal framework for the privatisation of education on a large scale to satisfy the country's social and economic needs The Education Act of 1996, the Private Higher Education Act of 1996, the National Council of Higher Education Act of 1996, and the Council Act are all laws pertaining to education The National Accreditation Board Act of 1996 was enacted by the Malaysian legislature, paving the way for a variety of institutional structures and the provision of transnational higher education in Malaysia

Malaysia has established the Malaysian Qualifications Agency in order to accredit and certify its higher education programmes, including transnational education This agency ensures that the programmes offered by transnational educational institutions meet required standards and are consistent with national learning outcomes frameworks, thereby establishing a solid reputation among institutions In addition, the government of Malaysia has implemented flexible financial policies, enabling international educational institutions inMalaysia to collaborate with large corporations (Hou et al., 2018) For instance, the Sunway Group providedMonash University with land and financial support Land for the University of Nottingham Malaysia Campus was donated by Boustead Holdings Berhad and YTL Group, Executive Summary Malaysia Education Blueprint (Higher Education) 2013-2025, 2015.

Singapore has the most evolved education system in Southeast Asia In 2020, 10% more Singaporeans than in 2010 will possess a postsecondary degree, diploma, professional qualification, or university-level certificate 33% of the population has a bachelor's degree or higher, an increase of 9% since 2010 (Ong, 2021). This is due to the nation's promotion of transnational education

POLICY FOR FOREIGN INVESTMENT IN HIGHER EDUCATION

Overview of Vietnam’s Policy and the Landscape of Foreign Investment in Higher

Identifying Foreign Direct Investment (FDI)-friendly policies is crucial for policymakers FDI is an important source of revenue for several countries FDI helps fill the investment gap and is an excellent vehicle for technology transfer (Liu, 2008 and Keller, 2010) For these reasons, FDI-led growth is at the core of several growth strategies in many countries At the same time, the quality of human capital is an essential ingredient for attracting FDI Vietnam is not out of the trend and this country has been regulated an FDI-attractive environment Foreign investment in HE sector is also a key feature of internationalisation in Vietnam, with the successful development of the first 100% foreign owned branch campus of RMIT from Australia in 2001 (Huang, 2007) FDI in education in Vietnam has been developing since the early 1990s This section goes through distribution of FDI, foreign investors’ countries of origin and student enrolments into forms of foreign- invested HEIs/programs

2.1 Overview of Vietnam’s Policy and the Landscape of Foreign Investment in Higher Education in Vietnam

2.1.1 Evolution of Policies for Foreign Investment in Higher Education in Vietnam

At present, Decree 86 governs foreign investment in Vietnamese higher education Market entry standards include capitalization and performance requirements for buildings, curriculum, academic personnel, and Vietnamese student enrolment In August 2018, the Decree 86 replaced Decree 73, 2012 After almost two decades since the first regulatory framework for foreign education providers was introduced in 2000 (Decree 06), this is the third amendment with updates To understand the evolution of the Vietnamese policy on foreign investment in HE, it is helpful to briefly review Decree 06 and Decree 73 before looking at Decree 86.

Table 2.1 Policy relevant to foreign investment in HE

2000 Regulation for for-profit cooperation and investment with foreigners in health, education, and research (Decree 06)

Revised in 2012 (Decree 73) and in

2005 Investment Law Revised in 2014 and 2020

2012 Higher Education Law Amended in 2019

2018 Regulation for foreign cooperation and investment in education sector (Decree 73)

Replaced Decree 06 Revised in 2018 (Decree 86)

2019 Decree 99, providing guilines for Higher Education Law

Before joining the WTO in 2007, Vietnam had restricted foreign investment The socialisation Policy

1997 and Education Law 1998 legalised worldwide programme and institution mobility The Vietnamese government had to write a decree to restrict international education collaboration and investment In 2000, Decree 06 established the first regulations for for-profit foreign education providers in Vietnam RMIT Vietnam, the first 100% foreign-invested university in Vietnam, was founded in Ho Chi Minh City in the same year (Welch, 2010; Wilmoth, 2004).

Decree 06 regulates exclusively for-profit foreign education investment, while Decree 18/20001/NĐ-

CP (Decree 18) was enacted in 2001 to regulate non-profit education investment Decree 06 regulates foreign investment in education, healthcare, and research and technology Thus, in 2005, MOET and MPI produced Circular 14/2005/TTLT-BGD&ĐT-BKH&ĐT to give required implementation advice for for-profit foreign education investment Decree 06 and Circular 14 permitted wholly foreign-owned (WFO) education establishments at all levels, from early childhood to postsecondary

In 2007, a significant milestone was achieved with Vietnam’s successful accession to WTO membership after 11 years of negotiations with WTO’s Working Party (WP) and with each interested WTO member (Cling et al., 2009; OECD, 2018) The Vietnamese Government is committed to legal framework formulation and modification in response to demands from WTO members (Cling et al., 2009; OECD, 2018).This has resulted in numerous, successive regulatory reforms to bring Vietnam closer to its international commitments For example, Vietnam has vowed to comply with WTO’s “non-discrimination” principles,including mostfavoured-nation (MFN) and national treatment

Under Vietnam’s WTO commitments to educational services (see Table 2.2), the development of wholly foreign owned HEIs is officially permitted, starting in 2009 (Welch, 2010) However, some restrictions still remain by allowing foreign education providers to deliver educational programs only in certain fields, such as natural sciences and technology, business administration, economics, accounting, international law and language training, under the government’s guidelines (ICEF, 2012; WTO, 2006, p 34) It is also notable that there are no commitments for wholly foreign owned education institutions at the secondary education level andVietnam is not committed to cross-border supply in education services at all levels.

Table 2.2 Viet Nam’s WTO Commitments on Educational Services 1

Only in technical, natural sciences and technology, business administration and business studies, economics, accounting, international law, and language training fields.

With regards to points (C), (D) and (E) below: The education content must be approved by VietNam’s Ministry of Education and Training

Mode of delivery: (1) Cross-border supply, (2) Consumption abroad, (3) Commercial presence, (4) Presence of natural person

Sectors and Sub-Sectors Limitations on Market

(4) Unbound, except as indicated in the horizontal section.

(4) Unbound, except as indicated in the horizontal section.

E Other education services (CPC 929) including foreign language training)

Upon accession, only in the form of joint-ventures.

Majority foreign ownership of such joint ventures is allowed.

As of 1 January 2009, 100% foreign-invested education entities are permitted After 3 years from the date of

(3) Foreign teachers who wish to work in foreign invested schools shall have at least 5 years of teaching experience, and their qualifications shall be recognised by the competent authority.

E Other education services (CPC 929) including foreign language training)

Mode 4: Movement of natural persons accession: none.

(4) Unbound, except as indicated in the horizontal section.

Decree 18 and Decree 06 were replaced with Decree 73 in 2012 as part of the regulatory reform following Vietnam's WTO membership Decree 73 was created in compliance with the Investment Law

2005, the Education Law 2005, and its 2009 Amendment As of early childhood through tertiary levels, Decree 73 includes both for-profit and non-profit foreign investment in education (ICEF, 2012) Additionally, this regulation document outlines the conditions for entering the market in the form of financial requirements for a minimal investment as well as operational requirements for facilities, academic staff, curriculum, and a certain percentage of Vietnamese students to enrol (ICEF, 2012; Pham, 2012)

Decree 73, which limited the enrollment of Vietnamese students in international schools to 10% at the primary (Years 1-5) and secondary levels (Years 6-9) and 20% at the high school level (Years 10–12), was criticised as a barrier to foreign education investors despite being intended to encourage international cooperation and investment in education (Ha Chinh, 2017) Additionally, no Vietnamese children younger than five were permitted to enrol in programmes for foreign early childhood education On the other side, there are no restrictions on participation in joint programmes or international higher education institutions Despite the criticisms, these limits did not breach Vietnam's WTO obligations in the area of educational services because there is no obligation to open the market to commercial presence at the primary and secondary levels of education.

In an effort to improve the quality of foreign investment in education and to encourage the cross-border mobility of international institutions and programmes, the most recent Decree 86 reinforces certain aspects of Decree 73

Examinations have been conducted on the requirements for the establishment and quality assurance of foreign education and higher education providers, such as minimum investment capital and quality assurance requirements (facilities, curriculum, and academic staff) In accordance with Decree 73, the minimal investment capital requirement for establishing a HEI with foreign investment has been increased to VND 1 trillion, or approximately US$45 million This increased investment amount is the subject of much debate, with industry professionals and some government officials expressing concern that it may have the unintended effect of discouraging the types of investors the government hopes to attract

Foreign-invested educational institutions are compelled to provide an average of 25 square metres of space per student, which is the same as Decree 73 Foreign-invested educational institutions are now permitted to lease facilities, per a new provision In addition, Decree 86 stipulates that all academic staff must possess a Master's degree and that foreign academics must have at least five years of experience Additionally, the percentage of academic personnel with PhDs is increased from 35% (Decree 73) to 50%

2.1.2 The Landscape of Foreign Investment in Higher Education in Vietnam

Under the support of the government, international program mobility has proliferated in Vietnam in various configurations, including advanced programs (chương trình tiên tiến) and joint training programs (chương trình liên kết đào tạo) The second form of international programs are the so-named “advanced program”, which were first introduced in 2006 (Hoang et al., 2018, p 29; Tran et al., 2018, p 56) These programs borrowed curricula from leading international universities ranked in the top 200 in the world, in an effort to give students access to materials and content from the most innovative programs in prestigious foreign universities (Tran, Le, et al., 2014; Tran et al., 2018) It should be noted that not only the content of the foreign programs, but also other aspects such as course design, teaching methodologies and assessment are imported. These programs are offered in selected disciplines, mainly STEM and business education, across almost 20 universities in Vietnam (Tran, Le, et al., 2014; Tran et al., 2018)

Although both advanced and joint training programs are categorised under the international program mobility, there are three main differences between these two forms of program mobility First, advanced programs are designed by importing foreign curricula of the world’s top 200 universities and are offered at selected Vietnamese universities In contrast, joint training programs could be delivered at any Vietnamese university in partnership with foreign universities, with no boundaries to the world’s top 200 Second, while graduates of advanced programs are awarded the Vietnamese universities’ degrees, students of joint training programs usually receive foreign partner university degrees For dual-degree programs, students are awarded one degree from their local university and one from the foreign university Third, while advanced programs are partially sponsored by the state budget, with 60% of total expenses funded by the government (Tran et al.,

2018), no government subsidy is provided for joint training programs

In addition to the joint training and advanced programs delivered at local HEIs, Vietnamese students also have opportunities to pursue foreign HE degree programs at foreign-invested universities There are currently five foreign-invested universities established in Vietnam between 2000 and 2017 The first is RMIT Vietnam, which opened its first campus in Ho Chi Minh City in 2001 and another campus in Hanoi in 2004 (Huang, 2006a; Wilmoth, 2004) This coincides with the introduction of the Vietnamese Government’s Policy of Socialisation in 1997, which encourages the participation of non-state actors in education provision. Recently, in August 2018, RMIT Vietnam expanded its physical presence in the central regional city of Da Nang (RMIT Vietnam, 2018), which serves as a foreign language training centre

Figure 2.1 New transnational programs at HE level and Foreign-invested Universities in Vietnam

Established each year (period of 1998 to 2021)

Source: Multiple sources by MOET

In addition to RMIT Vietnam, four other foreign-invested universities were established between 2008 and 2017 These include: the two Hanoi-based British University of Vietnam (BUV) (2008) and TokyoHuman Health Sciences University Vietnam (THUV) (2015); American University Vietnam (AUV) - the only foreign-owned university based in Da Nang, established in 2015; and Fulbright University Vietnam (FUV) in Ho Chi Minh City, established in 2016 The record of establishment of these new foreign-invested universities represents some success in achieving its objectives to expand study options for Vietnamese students This record of establishment of new institutions represents some success in achieving its objectives to expand high-quality study options for students The list of foreign-invested and intergovernmental universities is summarised in Table 2.1.

Table 2.3 Foreign-invested and Inter-governmental Universities in Vietnam

1 2000 RMIT Foreign-invested university Australia

2 2008 VGU Established by the Vietnamese and

3 2008 BUV Foreign-invested university Malaysia, The

4 2009 USTH Established by the Vietnamese and

5 2015 THUV Foreign-invested university Japan

6 2015 AUV Foreign-invested university America

8 2016 FUV Foreign-invested university America

(Source: Multiple sources by MOET) Foreign Investors’ Countries of Origin

Policy for Foreign Investment in Higher Education in Vietnam

With a growing economy and a focus on human capital development, Vietnam recognizes the importance of international collaboration and the contribution of foreign institutions in enhancing the quality of education and nurturing a skilled workforce This section explores the policy framework for foreign investment in higher education in Vietnam, using the analytical framework mentioned in Chapter One

2.2.1 Actors, Mechanisms, and Principles in Policy for Foreign Investment in HE in Vietnam

The State Actor: Vietnam act as state actor, the host government, to govern the establishment and operation of foreign investment The Government is responsible for creating and shaping policies related to foreign investment in HE with developing guidelines, regulations, and frameworks that govern the entry and operation of foreign educational institutions within their jurisdictions This includes setting criteria for approval,defining quality standards, determining financial requirements, and outlining the legal and regulatory framework for foreign investors It means that the governance of foreign investment in HE is subject to both public and private HE, depending on its mode of delivery and the ownership pattern of the local partners

Vietname Government follows the governance model of public and private HE by the Soviet model of centralised planning and monitoring (Evans & Rorris, 2010) Under this governance model, both public and private HE in Vietnam are tightly controlled by the government, with the engagement of various ministries and government instrumentalities at both central and provincial levels (Hayden & Lam, 2007; Pham & Hayden, 2018; Welch, 2010)

At the national level, the Ministry of Education and Training (MOET) is accountable to the state for managing and administering the nation-wide education system (Hayden & Lam, 2010; Salmi & Pham,

2019) As a regulatory and oversight body, MOET performs the nation’s management functions in the areas of curriculum framework, enrolment quotas, student admissions and enrolment, quality assurance and accreditation In addition to MOET, other four ministries also play important system-wide roles in HE governance These include the Ministry of Planning and Investment (MPI), the Ministry of Finance (MOF), the Ministry of Science and Technology (MOST), the Ministry of Home Affairs (MOHA) (Hayden & Lam, 2007; World Bank, 2020) In consultation with these ministries, MOET gives advice to the Government about national policy formulation, national target setting, scientific labour force plans, sectoral financing for HE, and governance protocol (Do & Do, 2014; Hayden & Lam, 2007, 2010; World Bank, 2020) MOET also collaborates with MPI and MoF to establish the enrolment quotas that universities can admit, allocate the educational sector budget each institution receives, and control the tuition fees rates that public HEIs can charge students (Do & Do, 2014; Salmi & Pham, 2019; Sheridan, 2010; World Bank, 2020).

Non-state actors: As a component of HE provision services, foreign HE providers takes a variety of form and are categorised into two groups: foreign HEIs and industry and business organizations While foreign HEIs focus on forms of investment such as international branch campus, parner-supported programs, industry and business organizations are mainly interested in forms of foreign-back university, which is foreign owned but locally established not by a foreign academic institution but rather by (wealthy) individuals, governments or enterprises (Lanzendorf, 2008) Currently, both types of foreign-invested institutions are hosted in Vietnam and categorised as private HE sector.

Non-state actors in the form of educational institutions, both domestic and foreign, have a significant influence on policies related to foreign investment in higher education Domestic universities and colleges often advocate for or against foreign investment, as it can impact their competitiveness and funding Foreign educational institutions, seeking to establish or expand their presence in other countries, engage with policymakers to shape favorable policies Industry and business organizations recognize the potential for collaboration between educational institutions and industries, supporting policies that promote partnerships, research collaborations, and the development of a skilled workforce aligned with market demands.

Mechanisms: Policy Design and Interpretation

Vietnam does not have a statute that specifically regulates foreign direct investment (FDI), but its law on investment equally applies to both domestic and foreign investors FDI is further regulated by Vietnam’s law on enterprises, sector specific laws and policies, as well as international agreements (alongside the general legal framework that applies to all businesses) Foreign investment in HE in Vietnam is governed not only under the Law of Higher Education, but also under the Law of Investment, which measn MPI and MOET are both involved in the policy for foreign investment Foreign companies may invest up to 100% of the capital in an educational business and may either incorporate a foreign-owned education institution or a foreign-owned company to set up and operate the education institution.

Taking the objectives established in HERA 2005, for example, criticisms have centred on its unrealistic objectives established in its HE policy As indicated earlier in this chapter, the Vietnamese Government at that time announced a number of very ambitious growth targets, which included that:

 several research-oriented universities will be developed;

 40% of students will be enrolled in private HE;

 at least one university will be listed in the top-200 universities in the world league tables 20 universities will be listed in the world university rankings by subject;

 leading universities will be able to generate 25% of their income from research commercialisation

The interpretation issues occur repeatedly across programs and nations for several reasons, and more often, there are political reasons behind the puzzling existence of unclear orders.

Principles: Socialisation, National Sovereignty and Self-determination

Notably, the term socialisation, in the context of Vietnamese education, has been used to characterise the privatisation process in education It refers to the mobilisation of non-state financial resources, diversification of education forms of ownership, and highlights the individualisation of responsibility in support of the development of education (Le, 2006; London, 2011; M T N Nguyen, 2018) Vietnamese Government officials insist that socialisation is not synonymous to privatisation, because the private sectors are only engaged in delivering the public services under the state stewardship (M T N Nguyen, 2018) Another reason could be that the term privatisation does not reflect the political ideology of a socialist oriented country like Vietnam (Chau, Dang, et al., 2020)

Under the international integration scheme, the Vietnamese Government aims to attract “prestigious foreign universities” to establish their presence in Vietnam, either in the form of foreign-invested universities or partner-supported programs with local HEIs (Vietnamese Government, 2005a) In order to achieve this objective, the government is committed to provide favourable conditions and a conducive policy environment to facilitate the cross-border mobility of international programs and providers and attract resources from domestic and foreign investors to invest in HE sector In addition, Vietnamese public universities are encouraged to generate income from training, research, technology transfer and other business services, with the stated intention to share the cost burden of HE and reduce their dependency on the state budget (London,

The principle of national sovereignty provides that “the nation-state should be supreme over any other source of power on matters affecting its citizens or territory” (Braithwaite & Drahos, 2000, p 25) Similarly, the related principle of national self-determination denotes that a state has the right to choose freely its political, economic, social, and cultural systems As such, it suggests that international integration in education must respect national sovereignty, and that no individual foreign power is able to dominate and have influence on its independence and ideology Hence, the Vietnamese Government insists that international integration in education, as well as for the economy, must be undertaken via a multi-lateral approach, rather than unilateral In pursuing multi-laterism, Vietnam aims to make friends and gain supports from various powers to secure peace and stability, to maximise gains, to avoid overreliance on one single power for growth, and to guard against the potential pitfalls of uncertainty and future conflict (Chapman, 2017) Ultimately, Vietnam’s national sovereignty and territorial integrity will be protected, and national interest will be safeguarded.

The Vietnamese Government emphasises the supreme leadership of the state in education provision to its citizens (London, 2011; Tran, Marginson, & Nguyen, 2014) The Socialisation Policy 1997 insists that:

Socialisation does not mean the State should step back from taking responsibilities for social problems or reduce state budget; By contrast, the state is seeking to multiply different sources of funding on a regular basis, in order to increase the expenditure for these activities, and at the same time, optimise the effectiveness of the funding under management

As outlined in the Scheme for International Integration in Education by 2020, it is highlighted that the Vietnamese Government encourages proactive international integration to align with the world’s best practice

“on the principle of national independence and sovereignty, equality, and mutual benefits” (Prime Minister, 2013b, p 1) Earlier, the discourse of Strategy for Education Development 2011–2020 and the 2013 Fundamental and Comprehensive Reform of Education and Training suggests that Vietnam be “proactive in international integration in education” on an “in-depth and large scale”; however, it strongly emphasises that the international integration in education and training must be implemented on the basis of “preserving and promoting national identity and maintaining independence, self-reliance and socialist orientation” (Central Steering Committee of the Communist Party, 2013, p 2; Prime Minister, 2012, p 9)

2.2.2 Vietnamese Government’s Policy Rationales and Objectives of Foreign Investment in Higher Education

To transform Vietnamese HE quality to international and regional standards

In Vietnam, where HE quality is a matter of concern, the Government uses policy for foreign investment as “a knowledge-sharing device” dominates the discourse of this activity (Vincent-Lancrin, 2007b, p 53) The primary objectives are to enhance its HE quality and to benchmark with the international standards through internationalisation of curricula, research collaborations, faculty development and training, and building teaching capacity Another rationale is the fact that Vietnamese HEIs are unable to provide to improve academic quality and standards This has been witnessed in the research by Ilieva et al (2020), McBurnie & Ziguras (2001), McNamara et al (2013), Vincent-Lancrin (2007b), Wilkins (2011), Wilkins & Huisman

(2012) in researching on countries such as Malaysia, Singapore and China who have actively targeted foreign universities to collaborate with local universities and establish branch campuses It is expected that the mobility of foreign programs and providers provides a demonstration effect for the domestic Vietnamese HE, thus helping reform university culture and revitalise the HE sector (McNamara et al., 2013; Welch, 2011)

To expand access to HE so that the students’ increasing demands for high-quality programs are satisfied without having to leave their home and country

Influences of Policy for Foreign Investment in Higher Education in Vietnam

2.3.1 Positive influence of the Policy

Increased Access to HE: From an academic standpoint, foreign investment in Vietnam's higher education is evident in multiple ways, with increased access to HE being the most widely acknowledged benefit When enrolment in Vietnamese universities and colleges remained the lowest in Southeast Asia from

2000 to 2020, stakeholders of foreign investment in higher education (students, faculty, senior HE leaders, HE experts, government agencies, and employers) benefit from cross-border programmes, IBC, and foreign- owned universities.

The presence of foreign universities in Vietnam has injected a degree of competition into the domestic higher education sector, thereby encouraging Vietnamese HEIs to place a greater emphasis on accreditation and quality assurance procedures by adhering to international standards In addition, reports indicate that the import of foreign education has facilitated the internationalisation of education and contributed significantly to the quality enhancement of local higher education by directing local HEIs to benchmark with international standards.

Economic Benefits: Vietnam’s main source of income production has come from foreign investment in HE By retaining local students to study at home and producing income from the rising inflows of international students to Vietnam, collaborative programs and other types of foreign investment in HE may have decreased the enormous cash losses A further indication of the benefit to the economy is the rise in the number of local residents and expatriate families enrolling their children in local IBCs rather than sending them abroad As a result, money was saved on currency exchange related to studying abroad (Wilkins, 2011) IBCs and universities with foreign investment have also made economic contributions in various ways,from facility rent and license fees to housing and living expenses Additionally, it is noted that between 2008 and 2018, there were 4,000 more graduates than there were in 2018 This significant increase has helped Vietnam's labor market by fostering domestic labor forces in certain industries, such as banking, tourism, and hospitality.

On the other hand, there is disagreement over the financial effects of foreign investment in HE at the institutional and individual levels Although transnational higher education may be a more economical option than completing the complete degree abroad, the tuition for these programs is typically greater than that of local programs (McNamara & Knight, 2014; Wilkins, 2011) For instance, tuition costs for RMIT Vietnam programs are lower than those for domestic/Australian students in Australia, with rates for undergraduate and graduate programs ranging from AUD 35,000 to AUD 45,200 annually The cost of tuition for a comparable major at public colleges in Vietnam is currently under AUD 3,000 per year, if not even less This illustration shows that the tuition for studying in joint Vietnamese-foreign programs is significantly less than that of studying overseas However, because the costs for these locally delivered international degrees are often eight to ten times more expensive than those offered by local HEIs, the prevalent view is that these programs are unaffordable for the majority of domestic students in Vietnam (Nguyen et al., 2021).

Because high-achieving students could enroll in local programs in the same field of study that were five or ten times cheaper, the higher tuition rates paid by joint-training programs in Vietnam have made it difficult to attract them One of the most detrimental aspects of foreign investment in HE is often considered to be the high expense of joint programs in compared to local programs (McNamara & Knight, 2014).

It is not surprising to see that employees in partner-supported programs receive significantly greater salaries than staff in non-partner-supported programs because those programs and institutions charge higher tuition rates It should be highlighted that even if compensation for those workforces may be greater than local wage rates, it is still considerably less expensive than the costs associated with flying professors from the host nation (Hou et al., 2018; Shams & Huisman, 2012).

Quality Enhancement of Vietnamese HE: According to Foucault (1982, p 208), Vietnamese policy discourse pits domestic HEIs of Vietnam and foreign HE providers against one another, which could be described to as "dividing practices." With regard to funding and quality, this division of labor places Vietnamese higher education below those offered by foreign countries While it may be true that international higher education can aid in the modernization of curricula and instructional methods, it cannot be assumed that foreign higher education is the magic bullet that will raise the caliber of Vietnamese higher education to the desired level

This argument is supported in part by the fact that numerous factors, including policy environments, organizational factors (such as available resources, organizational competencies, institutional strategies and motivations), or individual factors (such as leadership, staff capacity, and staff engagement), to name a few, affect the positive impacts of transnational education provision Similar to this, the conversation seems to be being muffled because there is not any research-backed information showing how the money made via joint projects helps to fund the costs of running the local institution or further its development.

What long-term repercussions this dialogue will have is a more pressing concern It is expected to influence Vietnamese HEIs to focus primarily on increasing foreign investment in order to diversify their funding sources and improve academic quality As was already mentioned, it is obvious that the discursive and subjectification impacts have elevated international higher education above local higher education in terms of funding and quality Therefore, the presence of foreign investment may indicate that their institutions are more globalized and of higher caliber, in line with global norms.

This framing is extremely problematic since it could support the idea that joint initiatives are necessary for local colleges to increase in quality As a result, regional colleges with few or no joint programs might be seen of as less global and less quality-focused This might influence other regional universities to adopt the trend of foreign funding in higher education to make their institutions appear worldwide without considering the need for joint programs.

While the government is keen to expand TNE, its success has been limited to partner-supported programmes Significant regulatory barriers that have prevented the growth of foreign investors from Vietnamese HE is namely minimum capital requirement, qualification of academic staff, and….

Constraints by minimum capital requirement: As discussed previously, many host countries do not set the financial capability as the market entry requirement By contrast, they have specific requirements on the ranking of foreign universities that consider establishing their international branch campuses in these countries.

As mentioned earlier, for an example, Singapore requires universities to be ranked in the top 100 in the world.

In the meanwhile, Vietnam set the requirements thatthe quality of a foreign-invested university are not solely measured based on the investment capital but should include other selection criteria for quality providers

This might narrow the list of foreign education providers that could establish their presence in Vietnam but would assist the country in attracting reputable foreign universities, a per the objective for enhancing the quality of HE in the period of 2019–2025 in HERA 2005, ETRA 2013, and Decision 69

The minimum capital requirement may deter foreign universities from establishing an independent outpost in Vietnam (lived effects) This could be explained by the fact that many universities around the world have been facing the state budget cut, and the delivery of TNHE is partly driven by an economic rationale to expand its reach to new students in the region and in the host country, thus generating more income for home universities This is to say, not many universities are willing to invest millions of dollars overseas without knowing if they will have a good return on this investment On the other hand, many other host governments have been providing generous support to attract top universities in the world to establish international branch campuses in their countries (Becker, 2009; Wilkins & Huisman, 2012), thus making Vietnam less attractive to foreign universities.

RECOMMENDATIONS FOR POLICY FOR FOREIGN

Strategic Vision of Policy for Foreign Investment in Higher Education in Vietnam 52

It is necessary to unify the awareness in the political system and the whole society about the role of international integration and foreign investment in education Entering a new phase, in order to continue to promote the strengths and limit the weaknesses of foreign investment for Vietnam's socio-economic development, the Government needs to issue a Resolution on the direction of perfecting the economy. mechanisms and policies to improve the quality and effectiveness of attracting and using foreign investment until 2030 to unify the awareness throughout the political system on foreign cooperation and investment in the field of education.

3.1.1 Raising Awareness of Foreign Investment in Education

Raising awareness of foreign investment in higher education is crucial to inform stakeholders, policymakers, and the public about the benefits, opportunities, and potential challenges associated with international collaborations and investments in the sector By raising awareness, Vietnam can foster a supportive environment, generate interest, and encourage participation in initiatives that enhance the quality and accessibility of higher education

In order to implement the policy of proactive integration and improve the effectiveness of international cooperation in education, the whole system needs to continue to thoroughly implement resolution and policies with fundamentally and comprehensively renovating education and training to meet the requirements of industrialization and modernization in the context of a socialist-oriented market economy and international integration" Fundamental and comprehensive reform of education and training must be identified as an important political task of the whole political system, which needs to be persistently implemented Authorities at all levels from the central to grassroots levels continue to deeply grasp and strengthen the leadership, direction, and organization to well implement the goals, tasks, and solutions.

Foreign policy of independence, self-reliance, diversification, and multilateralization of foreign relations; be a good friend, reliable partner, active and responsible member in the international community; for peace, stability, cooperation, and development, are orientation Vietnam put forward Vietnam is determined to build an independent and self-reliant economy associated with active, proactive, and active international integration that is extensive, comprehensive, substantive, and effective; internal force (with 3 main components: human, nature, historical-cultural tradition), is basic, strategic, decisive, long-term, external force is important, breakthrough The market model as a market economy, socialist orientation, socialist rule of law state, socialist democracy, with a cross-cutting point of view that takes people are the center, the subject, and the goal that Vietnam has been targets, and also is a driving force, a development resource, without sacrificing progress and justice, social security to pursue economic growth alone.

3.1.2 Improving Institutions’ Capacity, Cooperation and Business Investment Environment

Developing a national strategy on international integration in education: concretizing core values, main goals, and specific solutions for action, bringing Vietnamese education to a fundamental and comprehensive reform and integration international integration in the spirit of the legislation.

Developing an overall investment promotion strategy for the country, for each region and for each locality in the field of education and training and to build a coordination mechanism among localities in investment promotion are to improve in the soon time, along with amendment decrees to deal with foreign investors in Vietnam such as the issue of compulsory social insurance contributions for foreigners, the issue of work permits, etc motion The experience of some countries shows that it is possible to integrate the issue of work permits with the issuance of visas to help foreign workers reduce administrative procedures in Vietnam.

Regulations such as the scope of training cooperation with foreign countries, regulations on land conditions upon establishment setting up foreign-invested educational institutions; experience of foreign lecturers, output standards of associate programs; regulations on foreign language ability of candidates for joint training programs; regulations governing the opening of training majors of foreign-invested higher education institutions in Vietnam should also be revised for a more liberalized market.

Supplement regulations on international schools to ensure that they do not affect the operation of foreign-invested educational institutions established based on foreign investors buying shares or contributed capital of the institution domestic educational institutions or educational institutions owned by Vietnamese investors on the basis of acquisition of foreign-invested educational institutions; consider allowing private high schools to be allowed to teach all foreign curricula; review the calculation of the average area/student used in learning and teaching for short-term training institutions.

3.1.3 Moving from “Brain Drain” to “Brain Gain”

Focus on promoting the improvement of foreign languages, especially English, for Vietnamese students, students, and lecturers, ensuring students have integration tools In the immediate future, direct ministries, sectors and localities to focus on implementing the Prime Minister's Decision No 2080/QD-TTg dated December 22, 2017 on approving additional adjustments to the Scheme on teaching and learning foreign languages in the system, national education system for the period 2017-2020.

Focusing investment resources on developing domestic universities, thereby reducing the number and duration of Vietnamese students training abroad and attracting international students to study in Vietnam. Specifically, in the immediate future, it is necessary to focus resources on developing international schools that have been established by the Government with the support of the governments of other countries such as Vietnam - Germany University, Hanoi University of Technology, and Vietnam - Japan University

Studying the model of building an international education zone in order to attract foreign investment in the field of education; creating an educational environment of international quality at a reasonable price, thus attracting Vietnamese students to stay and study in the country, limiting the "brain drain" and waste of foreign currency Promote the socialization of education and adopt policies to attract foreign investment in Vietnamese schools to help improve the quality of training.

Opportunities and Challenges for Policy for Foreign Investment in Higher

Steering at a Distance: Policy for foreign investment in higher education in Vietnam can benefit from an enhanced role of the Government as a steward Setting up a new governance legal framework that is adapted to the twenty-first century challenges faced by modern higher education systems must be guided by a number of principles Under the ‘state supervisory’ model, the most important role of the state in higher education is to (a) set a vision for the future and elaborate a strategy to transform the vision into reality, (b) formulate the legal and regulatory framework that clarifies the powers of the agency responsible for higher education policy and defines the terms of institutional autonomy - including the responsibilities of the governing bodies of autonomous universities - and accountability, and (c) negotiate the overall budget for higher education with MOF and reach an agreement to put in place financial instruments and incentives to encourage HEIs to innovate and improve their performance.

Increased Autonomy and Accountability: To align with the good international practice, Vietnam should significantly empower institutional stakeholders, which thrive for autonomy and accountability Clear decision- making responsibilities and accountabilities should be defined and granted to strengthened councils, which would be responsible for appointing the university leader endorsing the strategic plan and commitment for partnerships Strengthened and empowered councils should have the authority to appoint their head.

It is important to outline that boards are not meant to be representative bodies, whether of the government or the university community While a few members could be nominated by the government or elected by their university peers, the main duty of board members is to work as trustees, not politicians or syndicalists The mission of board members is to promote the performance of the university through good governance and protect its long-term financial interests The board is also bound to hold the leadership of the institution, especially the President, responsible for how the institution is managed and how it performs In publicly funded tertiary education systems, board members have a crucial role of making sure that the use of resources is fully aligned with the country’s priorities and the good of the university.

3.2.2 Challenges Posed to Foreign Investment in HE in Vietnam

The Quality Assurance of Transnational Education: Undoubtedly, the most observable challenge for

Vietnamese Government as a host country is the quality assurance of cross-border program provision At national and institutional levels, one of the challenges of TNE delivery is the difficulty of managing academic quality, which has been widely researched from the home countries’ perspectives The issue of borderless program quality is important to home institutions and exporting countries in the way that their reputations are, to a large extent, based on the perceived quality of their academic awards Consequently, poor quality could result in reputational and financial damage If academic quality assurance is not monitored, providing education across borders exposes the home institutions to varying degrees of reputation risks

Sustainability of Transnational Education: Another danger is the sustainability of foreign invesment in

HE, as many cross-bordered ventures have unexpectedly collapsed or downscaled their operations, such as the branch campuses of UNSW Asia (Singapore, 2007), Carnegie Mellon (Greece, 2010) George Mason University (Ras al-Khaimah, 2009), and the University of Waterloo (Abu Dhabi, 2013) (Healey, 2015b) This may leave students in unfavourable situations of experiencing financial disadvantage, incomplete qualifications, and disruption to their education career (Ziguras & McBurnie, 2015) In the cases where host governments have provided financial support and other resources (e.g., land, infrastructure) to foreign universities to set up IBCs, the government can be exposed to the financial loss There can also be a danger of reputational detriment for host governments when having a prestigious institution withdraw (Ziguras & McBurnie, 2015), which might prevent other foreign universities from setting up a presence in the country.

Managing Curricula: the degree of customisation of curricula is of great concern for home institutions Transnational universities usually have a hub-and-spoke structure, in which offshore campuses occupy a peripherical position in relation to the main campus that there is a need for awarding institutions to guarantee the quality of offshore programs delivered with a collaborative partner However, another issue related to the quality of borderless program delivery is raised by Hughes (2011, p 19), who questioned “How far can/should you adapt your approach to the local context?” and “How do you ensure the quality of teaching and the maintenance of standards across sites?” Indeed, Hughes (2011) stresses the extent to which the curricular content and pedagogy could be adjusted and whether the administrators at home campus or offshore campus could make such decisions.

Recommendations and Solutions to Stakeholders

Vietnames Government can create an enabling environment that attracts foreign investment in higher education while safeguarding quality and promoting collaboration, innovation, and internationalization At the national level, the following recommendations will contribute to a more transparent and clearer operating environment that enables foreign investment and partnerships in higher education in Vietnam.

First of all, timely revision of current policies and regulatory rules to adjust to the changing operating environment is recommended With the context of unstable globalization, the Government should be adaptive and flexible while stay firm in regulating objects Regular reviews of policies and regulatory rules related to foreign investment in higher education should be conducted to ensure they remain relevant, effective, and aligned with the current global trends This review process should involve stakeholders, including educational institutions, industry experts, and student representatives.

Secondly, mutual recognition of international degrees and credits to facilitate seamless and flexible transfers of students across different programmes are to be considered to facilitate seamless and flexible transfers of students across different programs This can enhance international mobility, promote educational exchange, and provide students with greater opportunities for academic and career advancement Bilateral or multilateral agreements between Vietnam and other countries or regions to facilitate the mutual recognition of degrees and credits These agreements can establish frameworks for equivalency assessments, credit transfers, and recognition of qualifications, ensuring a smoother transition for students across borders Recognition processes and criteria align with internationally recognized standards and guidelines, such as those set by organizations like UNESCO and the European Higher Education Area can promote consistency and comparability of qualifications, making it easier for students to transfer between Vietnamese institutions and foreign ones.

Thirdly, development of searchable a national database that details TNE and international collaboration programmes is a recommendation to policymakers Such a database can serve as a valuable resource for students, institutions, and policymakers themselves Comprehensive information, user-friendly interface, updated and reliable data, integration with existing systems, data privacy and security, and stakeholder engagement are things to consider when developing such database By implementing these recommendations, policymakers can create a centralized and accessible resource that promotes transparency, supports informed decision-making, and fosters international collaboration in education

3.3.2 Solutions to Vietnamese Higher Education Institutions

Institutions should consider establishing robust quality assurance mechanisms to ensure the credibility and quality of programs offered in collaboration with foreign partner and adhere to international accreditation standards and engage in regular evaluations and assessments to maintain high educational standards.

International recruitment should be focused on as development targeted international student recruitment strategies to attract a diverse student body from different countries while providing comprehensive information on programs, scholarships, and support services in multiple languages to facilitate international student enrolment.

Support services for international student will help create dedicated supportive environment for international students, including orientation programs, academic advising, language support, and cultural integration activities Resources and assistance for visa and immigration processes will facilitate a smooth transition for international students.

Faculty development and exchange will encourage faculty members to participate in international conferences, research collaborations, and exchange programs to foster global perspectives and enhance teaching and research capabilities Those activity will provide professional development opportunities, such as cross-cultural training and workshops, to equip faculty with the skills necessary for effective international collaboration at the same time.

Vietnamese HEIs should promote student mobility programs, such as study abroad, exchange programs, and joint-degree initiatives, to encourage students to gain international exposure and expand their academic horizons They are recommended to facilitate seamless credit transfers and academic recognition for courses completed at partner institutions.

By implementing these recommendations, higher education institutions can actively contribute to the success of foreign investment and international collaboration, enriching the educational experience for students, faculty, and staff while strengthening their global reputation and competitiveness

3.3.3 Solutions to Foreign Higher Education Providers

Staying competitive: A foreign HE provider should design its devolved administrations, and regions to attract students, drawing on the distinctive higher education quality This competitiveness can be achieved through a number of strategies in quality assurance, rankings, and awareness to students Work on factors involving student decision-making process should be digged into with objectives to ensure the HE provider can reach their potential local customers and remain relevant to student demand The COVID-19 pandemic has reshaped the world, along with Generation Z’s thinking, their priorities, and their expectations Therefore,foreign HE providers need to update their understanding of decision-making factors and review the effectiveness of their brand To stay competitive, the foreign HE providers’ proposition must be engaging and competitive and be articulated internationally in a transparent and coherent way Engaging propositions for devolved administrations and in regions should be inclusive at the same time.

Sustainable global partnerships: Foreign HE providers should be involved in the global sustainability agenda to be an impressively integrated part of its country’s international proposition Research points to students’ increasing concern globally for sustainability and green agendas and for contribution to the public good One example is UN Sustainable Development Goals is through transnational education which the foreign HE provider’s government can be committed to supporting this However, for that support to translate into action in the most effective way, there needs to be a greater exploration of foreign investment engagement and its impact on countries and communities

Offering programmes overseas is a particularly complex undertaking, which poses significant challenges for institutional governance, leadership, and management Borderless HE is widely recognised as a complex and high-risk operation The programmes are developed in one country and delivered in another;teaching is often undertaken by staff of a partner, rather than by staff of the institution awarding the qualification.Local conditions, including methods of delivery and student expectations, and the political context and legislative framework, may be very different from the home country where the institution is based This form of education internationaliation poses a clear challenge for institutional leaders and managers, with important consequences for both students and staff However, whilst institutions and quality assurance agencies have paid particular attention to the governance and management of partner-supported programmes in recent years,empirical research, especially at the ‘micro” level of individual institutions, remains scarce./.

This study obtained insights of the policy for foreign investment in higher education in Vietnam in the period of 2000-2020 The study reviewed the literature on the Vietnamese policy for foreign investment, higher education, its situation, and influences and in Chapters 2 and 3 Therefore, the purposes of this study were threefold:

1 To improve understanding of the policy contexts in Viet Nam around the foreign investment in HE.

2 To identify any situations in Viet Nam that the policy for foreign investment in HE confronts with.

3 To identify recommendations to Viet Nam to collaborate and provide support to stakeholders to reduce barriers to the foreign investment in HE.

This study focused on the notions of actors, mechanisms, and principles in international business rules in order to determine the responses to the research questions that were put out (Braithwaite & Drahos, 2000) The study was completed utilizing a quantitative research methodology, with the primary techniques of data collecting being the analysis of policy documents