The financial potential of many higher education institutions remains weak and unsustainable. According to the Ministry of Education and Training, after five years of implementing the 2018 Law on Higher Education, 77 percent of university revenues come from tuition fees, while only 5 percent comes from research and technology transfer. With such financial “health,” achieving breakthroughs in science, technology, and innovation is incredibly difficult.
A review of the 10-year implementation of Resolution No. 29-NQ/TW (dated November 4, 2013) by the 11th Party Central Committee on fundamental and comprehensive innovation in education reveals that revenues of autonomous universities are largely contributed by learners (approximately 80 percent or more). However, in reality, the expenditure structure dedicated to serving student training is very low.
With 73 percent of funds consumed by personnel and only 7 percent allocated to facility upgrades, improving educational quality proves difficult. Rising lecturer hiring costs up 32 percent further pressure revenue generation. This financial strain, exacerbated by budget cuts for autonomous institutions, forces universities to prioritize salaries over critical infrastructure. Consequently, the lack of investment in teaching conditions remains a persistent bottleneck for strategic development.
Another paradox is that state budget allocation contradicts guidelines prioritizing education, consistently growing slower and suffering sharper cuts than other sectors. Total national budget expenditure decreased by 3.4 percent, but the education budget dropped by 4.7 percent.
Crucially, the mandated 20 percent budget target has never been reached since 2013. This chronic underfunding creates significant hurdles for autonomous universities, severely hindering their ability to invest in essential equipment and facility upgrades. Consequently, financial reality falls short of the state’s strategic goals.
Looking at university revenues, the burden of tuition fees on learners is clear. In 2025, reports indicate dozens of universities with revenues of VND1 trillion or more (US$38.4 million) compared to only a few in 2020. However, this revenue comes primarily from tuition fees, while income from scientific research and technology transfer remains negligible:
- Hanoi University of Science and Technology collected over VND1.5 trillion ($57.5 million), with 85 percent coming from tuition fees.
- HCMC University of Technology (Vietnam National University – HCMC) earned VND1.18 trillion ($45.3 million), sourcing 74 percent from tuition and VND126.5 billion ($4.9 million) from R&D.
- FPT University reached a massive VND4.4 trillion ($168.8 million) (over 90 percent from tuition).
- Nguyen Tat Thanh University hit VND1.7 trillion ($65 million) (99.1 percent from tuition).
- HCMC University of Technology (HUTECH) recorded VND1.4 trillion ($53.7 million) (95 percent from tuition).
This highlights the sector’s unsustainable lack of revenue diversity.
Assoc Prof Nguyen Duc Minh, Dean of the Faculty of Electronics at the School of Electrical and Electronic Engineering (Hanoi University of Science and Technology), pointed out current training difficulties:
- A lack of specialized facilities for semiconductor chips (software, testing machinery, pilot manufacturing);
- Unsynchronized learning materials and experiments;
- Low lecturer-to-student ratios;
- A low number of students studying the correct major.
Similarly, Tran Manh Ha, Deputy Head of the Training Department (VNU-HCM) stated that VNU-HCM is building an advanced engineer training program in microchip technology, focusing on quality rather than quantity. The goal is to train about 1,000 microchip technology engineers by 2027.
However, current difficulties include the lack of a microchip design major code; a lack of support policies for lecturers, experts, and attracting talented students; a shortage of shared laboratories for training and in-depth research; and a lack of microchip design research centers connecting businesses with universities and experts for practical manufacturing, testing, and verification.
The Ministry of Science and Technology reports that the absence of a 2030 workforce forecast hinders training planning. The sector struggles with a disjointed ecosystem, limited capacity, and critical infrastructure gaps, as current laboratories fail to meet practical needs.
Consequently, the Ministry recommends perfecting legal frameworks and prioritizing investments in chip manufacturing. They specifically urge establishing R&D centers that link the State, schools, and enterprises. This collaborative approach is essential to strengthen human resource training and build a sustainable foundation for Vietnam’s semiconductor industry.
The Vietnam Academy of Science and Technology has proactively launched semiconductor training and international partnerships. However, progress is hindered by unsynchronized laboratories, a lack of practical experts, and limited industry linkages.
Addressing these challenges, the Academy recommends prioritizing infrastructure investment and perfecting mechanisms to attract high-quality talent. Furthermore, they urge expanding learner support and strengthening coordination with the Ministry of Education and Training. These measures are essential to implement deep, sustainable programs that effectively bridge the gap between academic training and the practical demands of the semiconductor industry.
According to the Ministry of Finance, Vietnam’s state budget expenditure for higher education from 2020 to date accounts for less than 0.3 percent of GDP, but actual expenditure only reaches 0.18 percent of GDP. Meanwhile, the actual expenditure figure in Indonesia is 0.57 percent, Thailand 0.64 percent, China 0.87 percent, Singapore 1 percent, and Malaysia 1.13 percent.
