Vietnam is policy for foreign investment in higher education

MINISTRY OF EDUCATION FOREIGN TRADE AND TRAINING UNIVERSITY MASTER THESIS VIETNAM’S INVESTMENT POLICY FOR FOREIGN IN HIGHER EDUCATION Specialization: International Trade Policy and Law PHAM THI THU HUYEN Hanoi, 2023 MINISTRY OF EDUCATION FOREIGN TRADE AND TRAINING UNIVERSITY MASTER THESIS VIETNAM’S INVESTMENT POLICY FOR FOREIGN IN HIGHER EDUCATION Major: International Economics Specialization: International Trade Policy and Law Code: 821107 Fullname: Pham Thi Thu Huyen Supervisor: Dr Ly Hoang Phu Hanoi, 2023 DECLARATION I hereby state that the work is that of the author solely acknowledgement has been made The contents and results completely honest The information, data and documents which various sources for analysis and evaluation have been fully cited except where due of this Thesis are are collected from in the main content and in the references list of this master thesis as well I make this statement in full knowledge of and understanding that, should it be found to be false, I will not receive a grade and may face disciplinary proceedings Pham Thi Thu Huyen July 2023 ACKNOWLEDGEMENTS It had been 10 years since my graduation from Bachelor of Business English, Foreign Trade University and I had one more time to be honored to be a student of Master course in International Trade Policy and Law, Foreign Trade University But this time, I have more people to say thanks for their supports during my study with their knowledge, encouragement and sharing My sincerest gratitude goes to my supervisor, Dr Ly Hoang Phu, for his intellectual advice and guidance over my thesis His experts and wise comments are a compass throughout my work Iam deeply indebted to the lecturers for their devotion and knowledge during interesting sessions Assoc Prof Dr Hoang Xuan Binh, Assoc Prof Dr Nguyen Thi Tuong Anh, Dr Luong Thi Ngoc Oanh, to name a few, have enlightened me their enthusiasm and delication with sharing us their expertise My special thanks go to the Faculty of Postgraduate Studies for their excellent support during the whole course, in which I and my classmates have a tight but effective schedule Last but not least, the completion of the work can not be fulfilled without the unconditional love and unceasing encouragement by my family members, who always believe in me even I am not that good sometimes iii TABLE OF CONTENTS DECLARATION ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS ABSTRACT Rationales for the Research Research Objects and Scope Research Objectives Research Questions Research Methodology nn eR Rw a4 eens INTRODUCTION Literature Review The Structure of the Thesis CHAPTER OVERVIEW OF THEORY AND PRACTICE OF POLICY FOR FOREIGN INVESTMENT IN HIGHER EDUCATION 10 1.1 Overview of Policy for Foreign Investment in Higher Education 10 1.1.1 Understanding Key Terms 10 1.1.2 Forms of Foreign Investment in Higher Education 15 1.1.3 Determinants of Policy for Foreign Investment in Higher Education 18 1.2 Analytical Framework for Policy for Foreign Investment in HE 19 1.2.1 Actors, Mechanisms and Principles 20 1.2.2 Host Country Governments’ Policy Rationales and Objectives of Foreign Investment in Higher Education 21 1.2.3 The Relationship Between Actors, Mechanisms, and Principles 23 1.3Policy for Countries 1.3.1 China Foreign Investment in Higher Education in some Asian 24 24 iv 1.3.2Malaysia 26 1.3.3 Singapore 28 1.3.4 Lessons learnt from the countries 30 CHAPTER POLICY FOR FOREIGN INVESTMENT IN HIGHER EDUCATION IN VIETNAM 32 2.1 Overview of Vietnam’s Policy and the Landscape of Foreign Investment in Higher Education in Vietnam 32 2.1.1 Evolution of Policies for Foreign Investment in Higher Education in Vietnam 32 2.1.2 The Landscape of Foreign Investment in Higher Education in Vietnam37 2.1 Policy for Foreign Investment in Higher Education in Vietnam 44 2.2.1 Actors, Mechanisms, and Principles in Policy for Foreign Investment in HE in Vietnam 44 2.2.2 Vietnamese Government’s Policy Rationales and Objectives of Foreign Investment in Higher Education 49 2.2.3 The Relationship Between Actors, Mechanisms, and Principles in Policy ‘for Foreign Investment in HE in Vietnam s1 2.3 Influences of Policy for Foreign Investment Vietnam 2.3.1 Positive influence of the Policy 2.3.2 Constraints of the Policy CHAPTER RECOMMENDATIONS INVESTMENT IN HIGHER EDUCATION FOR in Higher POLICY IN VIETNAM FOR Education in 33 33 56 FOREIGN 60 3.1 Strategic Vision of Policy for Foreign Investment in Higher Education in Vietnam 60 3.1.1 Raising Awareness of Foreign Investment in Education 60 3.1.2 Improving Institutions’ Capacity, Cooperation and Business Investment Environment 61 3.1.3 Moving from “Brain Drain” to “Brain Gain” 62 3.2 Opportunities and Challenges for Policy for Foreign Investment Higher Education in Vietnam 3.2.1 Opportunities 3.2.2 Challenges Posed to Foreign Investment in HE in Vietnam 3.3 Recommendations and Solutions to Stakeholders 3.3.1 Recommendations for Vietnamese Government 3.3.2 Solutions to Vietnamese Higher Education Institutions 3.3.3 Solutions to Foreign Higher Education Providers CONCLUSIONS LIST OF REFERENCES in 6 64 66 66 67 68 vi LIST OF TABLES Table Table Table Table Table 1ì 1.1 How the Analytical Frameworks are Used in this Thesis 2.1 Policy relevant to foreign investment in HE -2.+ 2+.22 2.2 Viet Nam’s WTO Commitments on Educational Servies 2.3 Foreign-invested and Inter-governmental Universities in Vietnam 2.4 Distribution of Foreign Providers of Programs by Source Regions cu 19 33 35 40 41 vii LIST OF FIGURES Figure 1.1 Actors, Mechanisms and Principles .c.0cssssciestetetsenteieee 23 Figure 2.1 New transnational programs at HE level and Foreign-invested Universities in Vietnam Established each year (period of 1998 to 2021) 39 Figure 2.1 Top 10 Partner Countries for Partner-supported Program Delivery in Vietnam (as of luly 2022) -22222222212 7212.ca 42 Figure 2.2 Collaborative Programs by Number of Students Enrolled (as of July viii LIST OF ABBREVIATIONS BC ‘The British Council BUV British University Vietnam CPCC Communist Party Central Committee DAAD German Academic Exchange Service FDI Foreign Direct Investment HCMC Ho Chi Minh City HE Higher Education HE(s) Higher Education Institution(s) HERA Higher Education Reform Agenda IBC Intemational Branch Campus IcD International Cooperation Department MOET Ministry of Education and Training MOF Ministry of Finance MOHA Ministry of Home Affairs MOST Ministry of Science and Technology MOLISA Ministry of Labour, Invalids and Social Affairs MPI Ministry of Planning and Investment NGO Non-Governmental Organisation OCED Organisation for Economic Co-operation and Development WTO World Trade Organisation 69 international proposition Research points to students’ increasing concem 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./ 70 CONCLUSIONS 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 and Therefore, the purposes of this study were threefold: To improve understanding of the policy contexts in Viet Nam around the foreign investment in HE To identify any situations in Viet Nam that the policy for foreign investment in HE confronts with 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 This thesis adds to the present understanding of borderless higher education by giving a thorough understanding of Vietnam's foreign investment policy It was challenging to comprehend the justifications for the policy and regulatory measures used by the Vietnamese Government, as well as how these approaches affected the nature of foreign investment in HE, due to the lack of a sound theoretical foundation By identifying the problems with the researched policy, the policymaking is revealed It was not possible to fully explore the policies and rules governing foreign investment in higher education in this thesis For instance, this study only looked on Vietnam's HE sector policy I was unable to perform a comprehensive study on the policy for foreign investment in HE in many circumstances, nevertheless Instead, the study concentrated on Vietnam, a developing nation in Southeast Asia with 71 relatively small levels of HE when compared to other host countries This constraint limits the findings’ generalisability, which is mostly restricted to Vietnam's foreign investment in HE policy Despite these drawbacks, the report nonetheless provides a sophisticated insight of Vietnamese policies for foreign investment in HE Future policy studies, in my opinion, will be able to shed light on the opaque nature of policymaking and enhance knowledge of the examined policy's implications on other policies It is necessary to acquire a more thorough analysis and insights into the researched policy Second, the current study can be expanded to analyze the foreign investment policy and regulatory framework in the school and/or vocational education sectors, and the findings of other studies can be compared to the findings of this study Future research using mixed techniques is strongly advised to solve the shortcomings of the qualitative research in this study This would probably result in richer and more insightful findings that would help to shape a more thorough understanding of Vietnam's foreign investment strategy and support a deeper comprehension of the various pieces of the cross-border education puzzle in national development plans Since online provision was recently permitted in Vietnam in October 2020, it was emphasized in the introduction that it was outside the purview of this study However, there are many opportunities for further investigation into this mode of delivery A further finding of this study was that corporations and non-academic institutions created more foreign-funded universities in Vietnam than academic institutions did (see Chapter 2) Despite the fact that some have been around for a while, 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