In a short time, more private higher education institutions mushroomed in the country to give more opportunities for students.
Some of them have done its mission well. However, lately, the number of students enrolling in private universities has kept declining.
It is estimated that currently only 15 per cent of students nationwide register for private higher education. Many majors at private universities no longer exist because they did not enroll enough students.
A case of M&A is Ho Chi Minh City University of Economics and Finance (UEF). In early 2014, UEF had new investor, Hutch Company, who paid VND180 billion ($7.7 million). Another case is Phan Thiet University which has changed hand to other investors in 2013 at VND60 billion.
Before, Thai Binh Duong ( Pacific ) University in the central province of Khanh Hoa was bought by Asian Commercial Bank.
Furthermore, many large corporations jumped into investment in higher education institutions. Specifically, Thanh Thanh Cong Corporation bought Yersin institutions and Sonadezi. Thanh Tay University transferred to Vicostone Company. Nguyen Hoang Education Corporation has bought Hong Bang International University, Ba Ria- Vung Tau University and Gia Dinh University. Hung Hau Corporation continued buying four other schools after owning Van Hien University.
Chairman of the management board of a private school the government’s decree No.46 on investment condition in the field of education taking effect on April 21, 2017), purchasing an old school is easier that establishing a new one. Specifically, as per the new regulation, to set up a private school, investors must have at least VND1 trillion excluding land value. After receiving the Prime Minister’ approval, private schools can admit students.
Moreover, higher education institutions must be built on the area of 2 hectare plus minimum investment of VND250 billion excluding land value. Schools will be dissolved if they can’t serve socio-economic growth any more.
Nguyen Hoang Corporation poured a lot of money into Hong Bang International University to change its face and provide better learning and teaching condition. Around 6,000- 7,00 students enrolled in UEF now while just hundreds of students had applied for the school before.
At present, 65 private higher education institutions operate legally in Vietnam making up 27.6 percent of total universities in the country. Around 244,000 students enroll in private education institutions or 13.8 percent of total student.