Vietnam’s international education landscape is undergoing a period of both turbulence and transformation. Recent closures, operational challenges, and shifting market dynamics have cast a shadow over established institutions. Yet, against this backdrop, broader industry trends indicate significant growth and evolving opportunities.
Declining Enrollments and Operational Hurdles
Several longstanding institutions are confronting steep challenges. For instance, the closure of International School Saigon Pearl (ISSP) in Ho Chi Minh City after 15 years of service signals a deep concern among education experts. A marked decline in student enrollment, spurred by the exodus of foreign workers during the COVID-19 pandemic, has left many schools struggling to maintain sustainable numbers. Reduced benefits for expatriate families and difficulties in attracting competitive teaching talent have further compounded these issues. Other institutions, such as the American International Primary-Middle-High School (AISVN) and Saigon Star International School, have faced similar operational setbacks, ranging from regulatory pressures to financial constraints. (Source)
Transitional Strategies and Competitive Alternatives
In response to these challenges, affected schools are implementing transitional measures to minimise disruption for students and staff. ISSP, for example, has arranged a transfer pathway for its students to the International School of Ho Chi Minh City (ISHCMC) within the Cognita network, ensuring continuity through curriculum alignment and stable tuition fees. This approach highlights a broader industry trend where schools are reconfiguring their operational models to better align with evolving parental expectations and market realities.
At the same time, alternative education models are gaining ground. Bilingual schools which combine local cultural education with international curricular are emerging as a cost-effective option, charging around 60 percent of the fees of traditional international schools. Similarly, online international schools offer remote learning at a fraction of the cost, appealing to families seeking both flexibility and recognised diplomas. For many parents, these alternatives present a more economically viable path without sacrificing educational quality.
Market Growth Amid Challenges
Contrasting with the struggles of some established schools, broader market research points to a robust growth trajectory for international education in Vietnam. According to a 2024 report by ISC Research, Vietnam is among the top five countries globally in terms of international school growth, with a 5% increase in new school openings over two years. This expansion is part of a global trend that sees over 14,000 international schools enrolling 6.9 million students worldwide, with substantial annual tuition revenues and an increasing number of educators.
The report also reveals that since 2019, the number of international schools in Vietnam has surged by 42%, while student enrollment and total revenue have grown by 30% and 58%, respectively. Most of these schools are concentrated in Hanoi and Ho Chi Minh City, and many charge annual tuition fees ranging from VND500 to 900 million. This growth not only reflects rising demand among well-off parents but also signals a broader shift in the perception and importance of international education in the country. (Source) Vietnam International Education remains a growing market.
Balancing Challenges with Opportunities
The dichotomy in Vietnam’s international education sector is stark. On one hand, established schools are grappling with declining enrollments, regulatory issues, and competitive pressures from both online platforms and bilingual institutions. On the other, the overall market is expanding, with new entrants and innovative models reshaping the landscape.
For policymakers and Vietnam international education providers, the task is to balance quality and sustainability. Strengthening regulatory frameworks, supporting teacher retention, and ensuring robust transitional support for students are crucial steps. At the same time, leveraging growth trends by investing in modern curricula, technology-enhanced learning, and partnerships with global education networks can help unlock new opportunities and drive long-term sector resilience.
Looking Forward: Strategic Recommendations for Stakeholders
Vietnam’s international education industry stands at a critical juncture. While short-term challenges may force some traditional institutions to reinvent themselves or exit the market, the sustained growth in demand underscores a promising future for international education. As the sector adapts to rapid changes, a balanced approach that combines tradition with innovation will be essential to meeting the evolving needs of learners. Stakeholders, including investors, school groups, and school leaders, are well-advised to consider the following strategic recommendations:
For Investors
- Conduct Comprehensive Market Analysis:
Investors should closely examine market trends, demographic shifts, and regulatory changes impacting international education in Vietnam. A data-driven understanding will help pinpoint opportunities within emerging education models and regions of high growth. (GSE has completed several on behalf of investment and education groups) - Leverage Expert Insights:
It is critical to utilise the expertise of international education and investment experts, including resources from GSE. These specialists provide in-depth analysis and strategic guidance that can inform risk assessment and help investors align their portfolios with long-term market trends. - Diversify Investment Portfolios:
Consider spreading investments across various facets of the sector, from traditional international schools to digital learning platforms and hybrid models. Diversification will mitigate risks while capturing opportunities across different market segments.
For School Groups
- Innovate Curricular and Learning Models:
Embrace modernisation by updating curricula and integrating blended learning approaches. Schools that combine robust face-to-face interactions with flexible digital platforms can better meet the needs of today’s students. Focus on building highly effective bilingual programs that support diverse learners. - Strengthen Collaborative Networks:
Form strategic partnerships with other educational institutions, technology providers, and industry experts like GSE. Such collaborations foster the sharing of best practices, enhance operational efficiencies, and support the development of innovative educational models. - Enhance Student and Teacher Support Systems:
Prioritise robust support frameworks for both students and educators. This could include targeted professional development programs, improved transition pathways for students, and enhanced communication with parents to build trust and stability.
For School Leaders
Utilise Strategic Guidance from Experts:
School leaders should seek strategic advice from international education and investment experts, notably from organisations like GSE. Their insights can help chart a course through industry challenges, guiding decisions that enhance both educational quality and operational sustainability.
Adopt Adaptive Leadership Practices:
School leaders must be proactive and agile. Embracing change, whether through rethinking traditional models or rapidly implementing innovative practices, will be crucial for navigating the evolving education landscape.
Invest in Talent and Infrastructure:
Retaining and attracting quality teaching staff is essential. Offering competitive salaries, continuous professional development, and upgrading technological and physical infrastructure can help maintain high educational standards. Create pathways that develop local leaders as well as foreign experts to make schools sustainable.
Engage Proactively with Stakeholders:
Transparent and consistent communication with parents, teachers, and the community is vital. Establish clear channels for feedback and dialogue to ensure smooth transitions and bolster stakeholder confidence during periods of change.
*Global Services in Education remains committed and focussed on Vietnam as a fast growing region with quality partners. We are currently in discussion about new projects there. Vietnam international education market remains a hot region right now.
If you want to learn more about the steps required to set up a school, check out some of our other articles:
– Steps to Setting Up a New School
– 10 Steps and Articles on How to Set Up a New School
– GSE International School Franchise Models
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Global Services in Education plans and opens international schools for investors, developers and governments, and manages them once they are running. 39 school projects delivered across 16 countries. Management agreements run a minimum of ten years.
The company was founded in 2011 by Greg Parry and Shanna Parry.