fbpx
Market intelligence for international student recruitment from ICEF

Vietnam’s cash economy and study abroad

We continue our From the Field series today with a feature video interview with Quynh Nhu Vu, the Vice-Director and Co-Founder of the Phuong Anh International Education Consultancy and Training Company Limited in Vietnam (AIT).

Vietnam is increasingly recognised as an important emerging market for international education. Outbound mobility has grown strongly over the past decade and demand for study abroad continues to be driven by concerns over capacity and quality in the domestic education system, but also by a hot economy and rising family incomes. The Ministry of Education and Training reports that 125,000 Vietnamese students studied abroad in 2013, with just five international study destinations – Australia, the US, Japan, China, and Singapore – accounting for about two thirds of total outbound enrolment that year. Quynh Nhu Vu is the Vice-Director and Co-Founder of the Phuong Anh International Education Consultancy and Training Company Limited in Vietnam (AIT), an education agency with offices in Hanoi and Ho Chi Minh City. In the following video interview, she highlights some of the practical challenges for Vietnamese students planning to study abroad, particularly with respect to visa requirements. As Ms Quynh points out, Vietnam remains very much a cash economy today, with families often preferring to hold savings outside of the banking system and with many transactions, large and small, conducted in cash. In that context, visa application guidelines with respect to proof of funds or other deposit requirements are a hurdle for many families that may not normally keep such funds on deposit with a bank several months in advance of their student’s planned programme of study. The share of cash transactions across the economy is certainly shifting as GDP per capita continues to increase in Vietnam, effectively bringing more and more of the population into the country’s financial systems. The government has also taken steps to strengthen the country’s banking system in recent years, and even to require that certain types of transactions (such as securities transfers or private lending) be conducted via non-cash means. "Even though Vietnam remains a highly untapped financial services market, economic growth is enhancing the number of people gaining access to bank accounts," notes one recent study. "Consequently, as more people and businesses are brought into the financial mainstream and are becoming aware of the benefits of electronic transactions, the use of cash as a payment method is decreasing."

Financial requirements for agents too

Education agents in Vietnam also operate under a system of deposit requirements as a result of the national government’s Decision No. 05/2013/QD-TTg ("Regulation on Overseas Study of Vietnamese Citizens"). Issued on 15 January 2013, the regulations established a new set of reporting and certification requirements for education agents in Vietnam. In particular, they specified that education agents must meet the following requirements (as of 10 March 2013) in order to operate legally in the country:

  • The agency must be legally established within Vietnam, with appropriate offices, facilities, and equipment to carry out overseas study consulting services.
  • The agency must have "sufficient financial capacity to ensure the settlement of the cases of risk" and must demonstrate this capacity by meeting minimum deposit requirements of VND500 million (US$23,000) with a commercial bank.
  • The owner of the agency, along with staff directly involved in student counselling, must have a university degree, be fluent in at least one foreign language, and have completed a professional training course with the Ministry of Education and Training.

Dr Mark Ashwill is an international educator and the Managing Director of Capstone Vietnam. He noted in 2013 that the new regulations for agents were a result of the rapid expansion of the study abroad sector, and the correspondingly rapid growth of the number of agents operating in Vietnam. "The winds of change are blowing in the regulation and oversight of education agents in Vietnam," he wrote at the time. "This is the result of recent scandals and demands from the public for closer scrutiny of education agents [and] is good news for students, parents and those companies that conduct their business in an ethical and transparent manner." Vietnam’s Ministry of Education and Training also maintains provincial-level Departments of Education and Training (DoET) and it is these departments that are responsible for implementing and enforcing the regulations. Not all DoETs currently publish a list of certified agents but the process of certifying agents appears to be unfolding, and it seems as well that Vietnamese families are becoming more demanding consumers of study abroad consulting services.

"More and more parents and students are becoming educated consumers," says Dr Ashwill. "This means that there is both official (i.e., government) and grassroots (i.e., consumer) pressure for [education agents] to become better."

Of the deposit requirements arising from the 2013 regulations, he adds, "The bottom line, quite literally, is that companies without sufficient [financial] resources will no longer be able to operate legally. Of course, bigger isn't always better. One potential drawback is that this financial requirement will exclude small companies that are trying to run a good business but don’t yet have the money to deposit for each office."

Most Recent

  • International education has a data problem. It’s time to do something about it Read More
  • Criticism mounts as Australian Senate committee hears it is “wrong to go ahead” with ESOS amendments bill as is Read More
  • Universities UK releases blueprint for higher and international education Read More

Most Popular

  • Recent policy changes slowing student interest in the UK, Canada, and Australia Read More
  • Germany confirms increase in proof-of-funds requirements for student visa applicants Read More
  • New Zealand expands work rights for accompanying dependants of foreign students Read More

Because you found this article interesting

Criticism mounts as Australian Senate committee hears it is “wrong to go ahead” with ESOS amendments bill as is The Australian government remains committed to passing into law a cap – intended to take effect as early...
Read more
Universities UK releases blueprint for higher and international education In a context of policy uncertainty and instability in the tertiary sector, Universities UK has released a blueprint...
Read more
The view from here: How the “Big Four” study destinations are adapting in a year of change All projections point to continuing, strong growth in international student mobility through the rest of this decade and...
Read more
France enrolled over 430,000 international students in higher education in 2023/24 Campus France has announced that France hosted 430,466 international students in 2023/24, a year-over-year increase of 4.6%. This...
Read more
What impact will a slowing economy have on Chinese demand for study abroad? The Chinese government is again reporting on youth unemployment rates after have suspending such data releases for the...
Read more
European study destinations now offering thousands of English-taught degree programmes English-taught programmes (ETPs) are becoming more prevalent in Europe, according to a new research report just released by...
Read more
ICEF Podcast: The future of ELT: A call to action Listen in as ICEF’s Craig Riggs and Martijn van de Veen recap some recent industry news, including Australia’s...
Read more
Canada announces updates for foreign enrolment cap and post-study work rules Canadian Immigration Minister Marc Miller announced today several new measures affecting international students in Canada. He stated, “The...
Read more
What are you looking for?
Quick Links