Vietnam invests heavily in education to boost economic growth

Graduate of Ernst Tälmann High School, Ho Chi Minh City Between 2011 and 2020, Vietnam spent an average of 4.9 percent of its gross domestic product (GDP) or 18 percent of its state budget on education every year, according to a new report by the Vietnam National Institute of Educational Sciences. State budget spending is higher than in many regional countries, such as Thailand (14.9%), Indonesia (17.5%) or Malaysia (17.7%). As a percentage of GDP, Vietnam spends 4.9% on education, which is also…

Between 2011 and 2020, Vietnam spent an average of 4.9 percent of its gross domestic product (GDP) or 18 percent of its state budget on education every year, according to a new report by the Vietnam National Institute of Educational Sciences.

State budget spending is higher than in many regional countries, such as Thailand (14.9%), Indonesia (17.5%) or Malaysia (17.7%). As a percentage of GDP, Vietnam spends 4.9% on education, which is also higher than most other regional peers, including Singapore (2.9%).

The huge spending on the educated is in line with World Bank recommendations, which said in a recent report that Vietnam will need a skilled workforce to transform itself into an upper-middle-income economy by 2035.

Economic transformation requires skilled workers

In its bi-annual report “The Stocktaking: Educational Growth” released in early August, the Global Development Bank said, “Vietnam needs a team with 21^stone century skill growth. As the economy shifts from being driven by low-skilled and low-wage jobs in manufacturing and services to an innovation-driven growth model based on higher value-added industries and services, Vietnam’s workforce will need to acquire higher levels and more relevant skills . “

The Vietnamese government’s 2021-2030 Socio-Economic Development Strategy reflects this, saying it aims to leverage “science, technology, innovation and digital transformation knowledge to build high-quality human resources as a key driver for increased productivity and future economic growth”.

To achieve these goals, Vietnam needs to reform its education system to improve quality and opportunities to provide the population with the necessary skills.

Le Anh Vinh, director of Vietnam’s National Institute of Educational Sciences, said the government has set a goal of spending 20 percent of its budget on education.