Return on investment in tertiary education and tuition policy in Vietnam

Abstract

This research estimates the return on investment in tertiary education in Vietnam by quantifying and comparing total economic benefit with total incurred cost of tertiary education. Conclusion is that an individual can gain VND324.46 from an investment of VND100 in tertiary education that helps improve his/her productivity. The return on investment in tertiary education equals a positive real rate of interest of 3.15% for an individual learner and 2.9% for society. Increases in tuition as directed by Decree 49/2010/CP-CP for the years 2011-2015 and as suggested by Ph?ng & Ph?m (2012) for 2016-2020 do not make investment in tertiary education less attractive in comparison with that in capital market. The research suggests reform in tertiary education in which time for study is reduced and financial investment in terms of tuition is increased.