Vietnam’s Higher Education Law to be Revised: Strategic Opportunities for Foreign Investors and International Education Providers

Background

On 25 June 2025, the Ministry of Education and Training of Vietnam (“MOET“) released a draft amendment (“Draft Amendment“) to the Law on Higher Education (“Law“) for public consultation. This is the most comprehensive revision since its enactment in 2018 and marks a strategic move by the Vietnamese Government to reshape the country’s higher education framework toward autonomy, innovation, and global integration. The public consultation runs until 16 July 2025.

For foreign investors, international universities, and education technology groups, this is a critical moment to reassess their entry strategies, partnership models, and regulatory pathways for long-term education initiatives in Vietnam. 

Key Proposed Reforms 

1. Institutional Autonomy Redefined: Now Independent of Financial Capability

Under the current Law, university autonomy is conditional upon financial self-sufficiency. The Draft Amendment shifts this paradigm by legally defining university autonomy across four pillars: academic, organisational, financial, and human resource autonomy – with a clear framework for accountability.

Implication: Joint-venture universities, private institutions with foreign investment, or internationally funded initiatives (including Public-Private Partnerships (PPPs)) may now enjoy broader autonomy regardless of their financial tier.

2. Legal Recognition of Transnational Education and Digital Universities

For the first time in Vietnam, the Draft Amendment codifies cross-border education models, including joint programmes, dual degrees, international branch campuses, distance and hybrid learning. A separate provision is dedicated to “digital higher education” institutions. Other provisions of the Draft Amendment also endorse digital technology adoption in quality assurance, assessments, and administrative monitoring processes. The Draft Amendment also introduces lifelong learning pathways and legal recognition for accumulated learning results, supporting flexible and modular training programmes.

Implication: International universities, EdTech firms, and global education groups offering remote or blended programmes can rely on a unified legal basis for entry, operation, and quality assurance.

3. Universities as Innovation and Research Hubs, not Just Teaching Institutions

The Draft Amendment no longer classifies universities as “research”- or “application”-oriented. Instead, it defines them as integrated institutions for training, research, innovation, and community service. Universities are encouraged to establish research and development (“R&D“) centres, incubators, and in-house science and tech enterprises.

Implication: This creates new avenues for multinational corporations to invest in university-based innovation hubs or launch in-house academies and applied research centres in Vietnam.

4. Transparency in Quality Assurance and Recognition of International Accreditation

Institution-level accreditation will become mandatory. However, programme-level accreditation is only required for certain disciplines (e.g. health sciences, education). The Draft Amendment recognises foreign accreditation agencies and permits the adoption of international quality standards. In line with administrative reform goals, it also streamlines licensing, accreditation, and programme registration procedures, potentially reducing compliance steps by over 45% and allowing for transition from pre-approval to post-check mechanisms.

Implication: International universities operating in Vietnam can use global accreditation to support dual-degree programmes, academic credit recognition, and student mobility.

Aligning with Global Standards: What Else is Missing?

While the Draft Amendment demonstrates positive efforts to reflect international best practices, some gaps remain when these efforts are compared to global conventions and sectoral norms.

1. University autonomy: The concept embodied in the Draft Amendment now aligns more closely with the Magna Charta Universitatum (1988, updated 2020), which recognises institutional independence in academic content and governance. However, greater clarity is needed in the Draft Amendment on how this will apply to foreign-affiliated institutions, particularly in areas such as curriculum control and the appointment of international faculty.

2. Cross-border education: While the Draft Amendment allows for cross-border education, it does not explicitly reference the United Nations Educational, Scientific and Cultural Organisation (“UNESCO“)/Organisation for Economic Co-operation and Development (OECD) Guidelines for Quality Provision in Cross-border Higher Education (2005), which encourage transparency, equivalence of learning outcomes, and shared responsibility among sending and receiving institutions.

3. Academic freedom: While acknowledged as a principle in the Draft Amendment, the scope of academic freedom is not clearly defined therein. International frameworks, including the General Agreement on Trade in Services of the World Trade Organization (WTO) (or GATS) (WTO, 1995) and modern trade agreements (e.g. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and UK-Vietnam Free Trade Agreement (UKVFTA)), often require protection of academic expression, including publication and international collaboration rights.

4. Mutual recognition of qualifications: Vietnam’s engagement with frameworks like the Tokyo Convention on the Recognition of Qualifications in Higher Education in the Asia-Pacific Region (UNESCO, 2011, entered into force 2018) and the Association of Southeast Asian Nations (ASEAN) Qualifications Reference Framework (AQRF, 2015) should be more explicitly reflected in the Draft Amendment, especially regarding degree equivalency, credit transfers, and cross-border student mobility.

Outlook: Addressing Gaps to Enhance Legal Certainty and Attractiveness of Vietnam’s Higher Education Sector 

Addressing the above-mentioned areas could significantly enhance the legal certainty and attractiveness of Vietnam’s higher education sector for global academic institutions and investors. Education investors and cross- border partners are encouraged to, among others, assess their current models in preparation for the enactment of the new law, and participate in the public consultation exercise to provide their feedback on the proposed changes. 

Strategic Actions for Foreign Investors and Partners

We recommend that education investors and cross-border partners:

1. assess alignment between their current or planned models and the proposed legal framework;
2. prepare accreditation portfolios and compliance readiness for cross-border and digital programmes;
3. explore new formats such as university-linked R&D centres, innovation hubs, or in-house academies embedded within Vietnamese universities; and
4. engage early in the public consultation process by submitting feedback to MOET by the set deadline to shape the final legal framework of Vietnam’s law on higher education.

Public Consultation and Submission Details

MOET is gathering public feedback on the Draft Amendment until 16 July 2025.

The Draft Amendment comprises nine chapters and 54 articles, codifying the following six major policy themes:

1. enhancing state management efficiency and advanced university governance;
2. modernising programmes and learning formats, promoting lifelong learning;
3. positioning universities as centres of research and innovation;
4. increasing resource mobilisation and investment effectiveness;
5. developing excellent faculty and a culture of academic integrity; and
6. reforming quality assurance with substantive and outcome-based mechanisms.

Stakeholders are encouraged to review the full draft and supporting documents, as well as the comparison table with current law, and explanatory note that were released by MOET on its official portal. Submissions and feedback can be sent to:

Department of Higher Education 

Ministry of Education and Training 

35 Dai Co Viet Street, Hai Ba Trung District, Hanoi, Vietnam

Email: luatgiaoducdaihoc@moet.edu.vn

Concluding Words 

Vietnam’s draft revision of the Law on Higher Education is more than just a technical adjustment. It is a strategic signal of institutional reform and international openness. For foreign education providers, this is a timely opportunity to proactively position themselves in one of Southeast Asia’s most dynamic and reform-driven higher education markets. This reform is both a legal evolution and a strategic opportunity for proactive stakeholders to shape the future of higher education in Vietnam.

If you have any queries on the above, please feel free to contact any of our team members.

This Update was authored by Dr. Le Hong Phuc.