Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
Total higher education enrolment in Laos rose from 2000 to 2013 and then began to decline. In 2023, the total enrolment ratio for both sexes was 14.88%.
Initial government funding per tertiary student as a percentage of GDP per capita fluctuated significantly, rising from 71% in 2000 to a peak of 112% in 2001, then dropping sharply to around 21% by 2009 and remaining near that level through 2014.
Tuition-free status
While tuition for Higher Education Institutions (HEIs) is not free, the MOES controls the tuition fee levels for public higher education institutions to ensure that the fees are well within the financial capacity of all but the poorest households.
Governance
Tertiary education is managed or regulated by the Ministry of Education and Sports (MOES) through the Department of Higher Education. Many public Higher Education Institutions (HEIs) are also managed by their parent ministries — for instance, the University of Health Sciences is under the authority of the Ministry of Health, and the Banking Institute is managed by the Bank of Lao PDR, the country’s central bank.
1. Education resources to subnational governments
The education sector is assigned an annual budget from the Ministry of Finance, the Ministry of Planning and Investment, and through official development assistance (ODA). The MOES directly finances HEIs. In the past decade, the national education system represented approximately 2.2% of the gross domestic product (GDP). Tertiary education represents about 17 of the annual expenditure on education. Recurrent expenditure accounts for almost 90% of the total higher education budget, while the remaining 10% goes towards capital investments.
2. Education resources to institutions
There are 117 Higher Education Institutions (HEIs), of these, 57 are public and 60 are private institutions. Private providers account for 9.4% of all enrolments. Lao’s Higher Education Decree (No 177/2015) categorizes HEI into four types: colleges, institutes, academies, and universities. There are also national level, regional level, and provincial level institutions. The active public institutions in Lao PDR include five universities (four under the MOES), 40 colleges/institutes, and 12 teacher education institutions (TEIs). Most of the public universities are funded by the MOES. Those under a different ministry or department receive funding from the same ministry or department. HEIs also derive additional income from tuition fees, research, and various services.
Funding for private universities in the absence of public institutions
Private institutions do not have access to government funding. However, Lao’s Higher Education Decree (No 177/2015) mentions the potential for joint investments between the public and private sectors in the development of higher education.
Allocation and equity
Public universities are primarily funded by the MOES at the central level. Because they have the same status as institutions within the government, public HEIs take part in the government budgeting and planning process. According to the 2021-2025 Education and Sports Sector Development Plan (ESSDP), The MOES plans to develop a performance-based funding formula for provincial universities which is also disparity-based and gives a flat rate per student and additional funds for natural sciences students. Lao’s Higher Education Decree (No 177/2015) states that the state has the duty to invest directly in the construction of infrastructure, teaching and learning media, maintenance, and development of teachers and personnel. The decree also stipulates that HEIs can receive additional funds from the state budget for the purpose of carrying out scientific and technological research according to priority plans.
State HEIs have the following main sources of income:
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State budget: according to the budget plan for each year, grants, domestic or foreign loan capital
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Tuition fees and registration fees
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Technical service fees: for scientific research, consulting, training, etc.
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Donations
Only the National University of Laos (NUOL) has financial autonomy separate from the MOES. NUOL submits its budget proposal directly to the Ministry of Finance. NUOL is now the country’s pilot university in financial management. The government funds the university’s staff wages, allowances, and investment. The university’s operational budget is its own responsibility; however, it must do so transparently. Fees paid to the university are transferred to the institutional account first, after which they can be used for expenses.
The other three MOE public universities channel their funding requests through the provincial government and the MOE. Public institutes and colleges under other ministries have all of their funding approvals and expenditure managed by their respective line ministries and enjoy the status of ‘departments’ within their ministries
3. Education resources to students
Admission for vulnerable groups
Lao’s Higher Education Decree (No 177/2015) states that the government must ensure that the target groups of the poor, women, ethnic groups, and the disadvantaged have fair access to school. However, there are no specific admission criteria for these groups.
Scholarships, grants and loans for vulnerable groups
The Ministry of Education and Sports (MOES) published an agreement which called for the government to provide scholarships for high-achieving secondary school graduates, selected Ministry of Education and Sports personnel, and students with physical disabilities. Other ministries, organizations, provincial authorities, and education institutions should also endeavor to make scholarships available.
Additionally, the 2021-2025 Education and Sports Sector Development Plan (ESSDP) calls for the establishment of an education fund to support disadvantaged, poor, remote, and female students. As of 2021, the ESSDP targets 80% of students paying fees and quota students designated as the “poorest” receive LAK 200,000 per month. Scholarships are also available for high-performing students from poor ethnic minority families. The standards for performance are lower for female students to qualify.
Every year, the Lao government, through the Ministry of Education and Sports, determines the number of scholarship quotas (scholarships go to 20% of pupils who have newly finished grade 7 at the upper secondary school level). Authorities are to prioritise students with the best academic scores, poor families, ethnic groups, and pupils with disabilities. Pupils who receive the scholarship do not pay for education fees and also get a monthly allowance.
4. Support for students’ living costs
Transportation
No information was found.
Accommodation
Under the Strengthening Higher Education Project, five universities and public higher education institutes provided dormitories to accommodate students, particularly those from rural districts and ethnic villages.
Textbooks
No information was found.
