Trends in the Education Sector from 1993-98

Vietnam has achieved remarkably high rates of school enrolment and has maintained good social indicators (infant and under five mortality rates, life expectancy, fertility rate, child nutrition, access to basic services) compared to other countries with a similarly low income per capita. This paper documents and analyses changes in enrolment and education finance in Vietnam over the five-year period from 1993 to 1998. Enrolment rates increased substantially, but the increases were not equally spread across different income groups, regions, gender, and ethnic groups. The higher the level of education, the larger the gap in school enrolment among different socio-economic groups. Although school fees were no longer compulsory at the primary level, households paid for many other school-related items, such as books, uniforms, private tutoring fees, transportation, and lunch. These costs are a significant financial burden on the poor. On the other hand, there is considerable variation in public spending per student across regions which, when coupled with variation in enrolment rates across regions, resulted in a not pro-poor public spending pattern although public spending on primary education was neutral in 1998. Finally, the paper investigates whether rates of return to education in the private wage sector changed in the 1990s. It concludes that returns to schooling increased substantially between 1992-93 and 1997-98, especially at the upper secondary education and university levels.