Experts said that regulations on the establishment of private universities should be stricter.

According the newly-issued government’s Decree 46/2017, the minimum capital for setting up a new private university must be VND1 trillion (USD45 million), four times higher than before.   

According to Dr. Le Truong Tung, Chairman of FPT University, the VND1-trillion investment would be quite risky for education investors.

"With this capital, investors need to make an annual profit of VND100 billion (USD4.45m)," Tung explained. "However, to have that profit, universities must enroll 15,000 students who are required to pay the yearly tuition fees of USD2,000."

Some experts argued that it is not easy at all for a private university to recruit 15,000 students and in reality; the figure can be often reached for universities which have become operational for over five years.

Associate. Prof. Do Van Dung, Rector of Ho Chi Minh City University of Technology and Education, supported the increase of the minimum capital for private university establishment to VND1 trillion from VND250 billion before. He, however, noted that the investment demand is different between universities and that sum is not enough for technology and medicine universities.

Sharing the same idea, Tran Van Hau, Chairman of Hung Hau Development JS Company said that the investment would be less risky for private universities in Hanoi and HCM City than it is for those in other localities. 

Under the decree, three years after being established, if universities still fail to build their infrastructure as registered, they will be suspended or even closed. In reality, many universities have failed to fulfill their commitments.

Dr. Kieu Xuan Hung, Vice Headmaster of HCM City Technology University, said that the Ministry of Education and Training needs to check whether universities have completed their committed work.

The Ministry of Education and Training said that among 60 private universities which have been established or upgraded since 2005, 12 have not yet fully ensured the quality of their lecturers, opened registered faculties or built infrastructure.

Hung also noted that the government should also ensure that private universities also invest in training quality.

dtinews