Vietnam: What are the principles of determining tuition for private education institutions?

What are the principles of determining tuition for private education institutions?

According to Clause 4, Article 8 of Decree 81/2021/ND-CP of Vietnam's Government, the principles of determining tuition for private education institutions are as follows:

- Private education institutions are allowed to develop tuition and fees for other services in education and training sectors (except for services whose fees are regulated by the Government) in a manner that can cover costs and accumulate reasonably while publicizing and presenting tuition and fees for services that they have decided to the learners and the general public;

- Private education institutions are responsible for providing explanation for average education and training costs for a student, annual tuition, tuition for the entire education level in case of preschools, formal education, and tuition for the entire course in case of higher education institutions; providing explanation for roadmap and rate of increasing tuition in subsequent years (annual rate of increasing tuition must not exceed 15% for higher education; 10% for preschool education and formal education), publicizing as per the law, and presenting to the learners and the general public;

- Students eligible for tuition exemption, reduction, or financing in private education institutions shall be covered by the government in terms of tuition with maximum covered amount equal to tuition applicable to students in local public education institutions that have not guaranteed recurrent expenditure entirely;

- People's Committees of provinces shall rely on socio-economic development conditions of local administrative divisions, requirements of primary education program, number of students in primary education level, and number of students/class in primary education level as per the law to develop criteria for identifying local administrative divisions without sufficient number of public education institutions, present to People's Councils of provinces for approval and decision on financing for tuition of primary students in private schools in areas without sufficient number of public schools in each school year; expenditure on tuition financing shall be granted by state budget according to Law on State Budget 2015 of Vietnam and guiding documents.

What are the principles of determining tuition for private education institutions? (Image from the Internet)

What principles do private, non-public educational institutions use for tuition management?

According to Clause 2, Article 13 of Decree 81/2021/ND-CP, the regulations are as follows:

Tuition management and use

1. Public education institutions shall use tuition according to regulations of the Government on financial autonomy of public service providers and include in annual financial statements of education institutions as per the law.

2. Private education institutions shall utilize tuition to guarantee expenditure, revenue, and assume responsibilities for financial management for their activities. Organize accounting works, submit tax, and perform other financial obligations as per the law.

3. Education institutions shall manage tuition expenditure and revenues within accounting, audit, tax, and financial disclosure policies as per the law; comply with inspection requirements of finance authority and education authority, and assume legal responsibilities for accuracy and truthfulness of provided information and data.

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Therefore, the principle for managing and using tuition fees at private, non-public educational institutions is self-revenue and expenditure assurance. Private, non-public educational institutions must organize accounting, pay taxes, and fulfill other financial obligations per legal regulations.

Are private, non-public educational institutions required to explain training costs and tuition fees?

According to Clause 5, Article 13 of Decree 81/2021/ND-CP, the regulations are as follows:

Tuition management and use

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4. Prior to enrolment or admission by consideration, education institutions must publicize tuition and training cost for each school year and education level in case of preschools, formal education, roadmap for increasing tuition (if any) for each school year, and estimation for the entire course in case of higher education.

5. Education institutions are responsible for publicizing and presenting training costs, tuition, and roadmap for increasing tuition for each school year and education level; publicizing qualifying criteria as per the law; publicize tuition reduction, exemption policies and amount thereof in case of natural disasters, epidemic, and other force majeure events.

Thus, private, non-public educational institutions are responsible for explaining training costs and tuition fees for each academic year, educational level, course.