While the Ministry of Finance has not decided on a date for issuing sovereign bonds worth US$3 billion on the international market to refinance the country's debts, the same amount of foreign currency is allowed to be spent every year to allow Vietnamese to study abroad.

Some 110,000 Vietnamese students study overseas, each paying $30,000-40,000 annually for tuition, meaning $3 billion a year.

According to figures released by the Education and Training Working Group at the 2015 Viet Nam Business Forum (VBF) in Ha Noi last week, some 110,000 students study overseas, each paying $30,000-40,000 annually for tuition, meaning $3 billion a year.

VBF said Viet Nam can save most of this amount if it offers incentives to attract foreign education partners.

Under the Law of Investment and commitments under WTO, foreign investors are allowed to fully own educational institutions in the country.

However, under Article 24 of Decree No 73 promulgated in 2012, Vietnamese can make up no more than 10 per cent of students at foreign-owned primary schools and 20 per cent at high schools.

But demand for going to international schools is increasing.

"The limits on Vietnamese students allowed to attend international schools, at 10-20 per cent, are extremely unreasonable," the group's report said.

With the limits now in place, foreign investment cannot be channeled into primary and high schools in Viet Nam's smaller cities since few foreigners live and work in other cities apart from HCM City and Ha Noi.

If the government does not permit Vietnamese students to attend international schools in Viet Nam they would head overseas, Brian O'Reilly of the group told the forum. In response to fears that a large number of Vietnamese students attending international schools would lead to a loss of Viet Nam's cultural identity, the group said, "This seems to be a conservative opinion."

O'Reilly said Vietnamese students at international schools have to study Vietnamese history, geography and literature, salute the national flag and sing the national anthem, and take part in all traditional festivals such as Tet (the Lunar New Year festival), the Mid-Autumn Festival and National Day.

If students who are not allowed to join international schools go abroad, how can they then maintain Viet Nam's cultural identity, the group asked.

It recommended certain changes to Decree No 73, such as licensing-related issues, transitional provisions, conditions for approving educational activities, facilities and equipment, the extension of the operation term of educational institutions and the minimum qualifications of instructors.

Viet Nam's economy is growing and bringing many benefits to its citizens, it said. With the TPP and the AEC, Viet Nam has a major opportunity to grow its economy and become an even more prosperous nation. To achieve this requires a highly competent workforce with the knowledge and skills to drive economic growth, the group said.

A recent report from the International Labour Organisation reveals that in 2013 Vietnamese's labour productivity was among the lowest in the region. It was a 15th of Singapore's, a 11th of Japan's, and a 10th of South Korea's.