Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Viet Nam, education management agencies and educational institutions are responsible for administering and efficiently utilising their assigned budgets and other revenue sources in accordance with legal provisions. The Ministry of Education and Training (MOET) serves as the principal authority overseeing the sector, but the management of schools, teachers, and financial resources is largely decentralised to the local level. Budget estimates are reviewed, approved, and allocated at district and provincial levels through People’s Councils. Consequently, each locality operates its own financial management system, and there is no standardised approach to reporting or unified financial management across the country.
UNESCO UIS (2016, p. 23) provides a detailed illustration of the various dimensions and flows of education financing in Viet Nam.
1. Education resources to subnational governments
The distribution of the central education budget to local areas in Viet Nam is governed by Prime Minister’s Decision No. 30/2021/QD-TTg, which sets out the allocation of the state budget from 2022 onwards. Under this decision, the Ministry of Planning and Investment provides population data for people aged 0–18 in each province or centrally-run city to the Ministry of Finance, which uses the data to calculate allocation norms.
Funding allocation is prioritised in four stages: first to areas with extreme difficulties, then to disadvantaged areas, followed by urban areas, and finally to all remaining regions. Each area receives a specific amount of funding per person per year, with areas of extreme difficulty receiving VND 7,076,200, disadvantaged areas VND 4,953,300, urban areas VND 3,008,400, and other remaining regions VND 3,538,100.
Additional funding may be allocated based on criteria such as supporting persons with disabilities, students in disadvantaged areas, and ethnic minority students. Educational institutions apply for these additional allocations by reporting on their qualifying student populations. These reports are compiled at the local level before being submitted to the national level for final budget distribution.
2. Education resources to schools
Tuition Exemptions and Reductions for Schools with Disadvantaged Students
“Tuition Exemption and Reduction Policy” provides schools with designated funding to cover the expenses of disadvantaged students. According to Decision No. 81/2021/ND-CP, in line with Education Law 43/2019/QH14, eligible students include those with disabilities, orphans up to the age of 22, students from poor households, children of officers and soldiers on active duty, and high school students attending ethnic minority boarding schools and pre-university schools. The decision also covers technical high schools in areas facing particular difficulties, such as ethnic minority regions, mountainous areas, or coastal and island zones. Pedagogical pupils and students receive financial support to cover tuition fees and living expenses throughout their course, while other eligible groups, including students from near-poor households, may receive a 70% or 50% reduction in tuition fees. In the event of a natural disaster or epidemic, provincial authorities may decide to waive tuition fees for general education institutions.
Public educational institutions submit a list of beneficiaries and the final total to the State Treasury, which then transfers the required funds to the Ministry of Education and Training. The Ministry compensates the institutions for the tuition fees that have been exempted or reduced. The government also plans to extend free tuition to all kindergarten and high school students in the 2025/26 school year.
According to the Ministry of Education budget outlined in Decision 323/QD-BGDDT 2024, VND 176,485,000,000 (approximately USD 7 million) is allocated for the tuition exemption and reduction policy. This represents 0.05% of total public education spending for the year and does not appear to include local budget contributions.
In 2018, tuition fee reductions or exemptions were provided to 97% of primary school students (ages 6–10), 25% of lower secondary students (ages 11–14), and 11% of upper secondary students (ages 15–17), affecting a total of 46% of students.
Lower Secondary Education for the Most Disadvantaged Regions Project
The Lower Secondary Education for the Most Disadvantaged Regions Project (2007–2014) was supported by the Asian Development Bank (ADB) and approved under MOET’s 2014 Decision No. 2178/QD-BGDDT. The project aimed to improve access to secondary education, for children aged 11–14, for ethnic minority communities, girls, and children from disadvantaged families in midland and mountainous regions frequently affected by storms and floods. Part of the funding was used to construct schools, classrooms, semi-boarding facilities, and teacher housing in remote areas. The project significantly increased the net enrolment rate in lower secondary education across 103 target districts.
The final project cost was USD 61.75 million over 7 years. The Asian Development Bank contributed USD 50 million (through a loan), while the government contributed USD 15 million.
3. Education resources to students and families
Ethnic Minority Student Support
Government Decree No. 57/2017/ND-CPv specifically targets children who are members of ethnic minority groups with a population of fewer than 10,000 people. In Viet Nam, 16 ethnic groups fall under this category. These children are prioritised in the education system and receive annual financial support. At the primary school level, families may receive up to 40% of the base salary per student per month. At the high school level, when students typically attend public or semi-boarding high schools, support increases to 60% of the base salary per month. Students attending boarding high schools for ethnic minorities and pre-university schools are entitled to full support equal to 100% of the base salary per student per month. To receive these funds, students or their families must submit applications to their public educational institutions, which then forward the information to the local departments of the Ministry of Education and Training (MOET). Payments may be made directly by the educational institutions or by the local MOET departments.
Based on the base salary of 2,340,000 VND/month as of July 2024, the average amount transferred to a student receiving 60% of the base salary would be approximately 1,404,000 VND per month.
Subsidies for Disadvantaged Students
The Vietnamese government also provides subsidies for students and families belonging to certain disadvantaged groups, including students with disabilities, ethnic minority students, orphans, students living in very rural or difficult areas, and those from poor households.
Joint Circular No. 42 42/2013/TTLT-BGDĐT-BLĐTBXH-BTC outlines policies on tuition fees, scholarships, and support for learning materials and supplies. Under this circular, persons with disabilities from poor or near-poor households studying at educational institutions are entitled to monthly scholarships equivalent to 80% of the basic salary in effect at the time. In addition, they receive funds to purchase learning materials at the rate of 1,000,000 VND per person per school year and are primary beneficiaries of books and supplies provided by their institutions.
Joint Circular No. 109/2009/TTLT/BTC-BGDĐT provides for students attending boarding or preparatory schools for ethnic minorities, granting them a policy scholarship equal to 80% of the State’s minimum wage (1,872,000 VND per month, calculated from the base salary as of July 2024). Students who are orphans, have disabilities, belong to poor households, or live in difficult areas may also be eligible for additional support for study expenses. According to Decision No. 81/2021/ND-CP, students may receive up to VND 150,000 (approximately 6 USD) per month for books, notebooks, and other learning supplies. The Ministry of Education and Training is responsible for disbursing and finalising these funds.
According to Report 3244/BGDĐT-KHTC, which outlines the three- and five-year financial plans for the Ministry of Education and Training, the Ministry assesses financial priorities to support ethnic minority students, students with disabilities, and other eligible groups, including the provision of tuition exemptions and reductions for qualifying populations.
According to the MOE budget Decision 323/QD-BGDDT 2024 publicly announcing the state budget estimate, VND 313,000,000 is budgeted for this programme for students with disabilities. MOE budget Decision 323/QD-BGDDT provides VND 39,623,000,000 for ethnic minority students in 2024. In 2024, 70,513,000,000 (USD 2.8 million) was allocated for vocational education scholarships.
On average, students under these subsidies receive 80% of the base salary. As of July 2024, the base salary is set at VND 2,340,000. 80% of that is VND 1,872,000 or USD 73.72. In 2018, about 9% of all students (ages 6-17) received education subsidies.
4. Social policies and family support programmes
The Ministry of Labour, Invalids and Social Affairs is the agency responsible for directing most social assistance activities.
Under Decree 20/2021/ND-CP, children who do not have sources of nurturing are provided monthly social allowances until the age of 16 or if they continue their education, until the age of 22.
Educational Development in Rural Areas Programme (NTP-NRD)
The National Targeted Programme for New Rural Development (NTP-NRD) comprises 11 main activities, which are implemented in 8,921 communes, including communities of ethnic minorities in rural mountainous areas, across all 63 provinces of Viet Nam. One of these activities focuses specifically on educational development in rural areas. Launched in 2010, the programme was renewed for the 2021–2030 period under Resolution No. 120/2020/QH14 and continues to prioritise education and training as one of its main areas of activity.
The estimated funding envelope for the NTP over five years (2021-2025) is VND 137,664 billion. VND 137,664 billion comes from the central budget, VND 10,016 billion from the local budget, and the rest comes from other legally mobilised capital sources.
Opportunity Programme
Developed in March 2013 as Component 2 of the Social Assistance System Strengthening Project (SASSP), a partnership with the World Bank, the Opportunity Programme was initially implemented in four pilot provinces. Through this programme, 210,000 poor households, comprising 392,865 beneficiaries with children aged 0–15, received a monthly benefit over a three-year period. The programme aimed to help parents make better health, nutrition, and education decisions for their children, thereby reducing the inter-generational transmission of poverty.
Eligible households included those listed as poor and with pregnant women, a child aged 0–3, or at least one child aged 3–16 who was out of school. The Opportunity Programme replaced previously existing subsidy schemes, providing families with cash to invest directly in their children while encouraging adherence to positive health and education practices. In addition, social collaborators visited households regularly to offer guidance on parenting and child development.
The total estimated cost of the Opportunity Programme was approximately USD 117 million. The Vietnamese government budget for the three programmes being replaced was estimated at around USD 92 million. The World Bank covered the financing gap of approximately USD 25 million. The monthly benefit varies according to the number of beneficiaries per household and the payment schedule for each type of benefit. The average annual benefit amount is VND 1,360,000.
5. School meal programmes
School Meal Programme
The Prime Minister’s Decision No. 1660/QD-TTg establishes the School Health Programme for 2021–2025, which mandates the organisation of school meals to ensure proper nutrition in schools. All schools are required to provide school meals and operate school canteens, further guided by Decision 41/QD-TTg and 2195/QĐ-BGDĐT. The Ministry of Education and Training and the Ministry of Health jointly lead the national school meal programme, while regional governments are responsible for procurement. The programme primarily targets primary and lower secondary public schools (grades 1–9) in disadvantaged areas.
Government Decree No. 116/2016/ND-CP provides additional support for students from communes and regions with difficult conditions, including ethnic minority students. It offers meal support, housing support, and rice provision for nine months per academic year. The decree specifically targets primary and lower secondary pupils attending schools in villages facing extreme difficulties, schools far from their homes, or schools in different regions. Meal support provides each student with an allowance equivalent to 40% of the base salary, housing support offers 10% of the base salary for students who must secure their own accommodation, and rice support provides 15 kg of rice per student per month.
For semi-boarding schools, the government funds school feeding at a rate equal to 135% of the base salary per month for 30 students, paid to the school as a lump sum. The Ministry of Education and Training coordinates this programme alongside the Ministry of Finance, the Ministry of Planning and Investment, the Committee for Ethnic Minorities, and the People’s Councils of the respective regions.
Funding for the School Meal Programme ranges from VND 220,000 to 700,000 (USD 8.7–27.6) per student per year. However, the majority of the cost is borne by the students and their families.
