Ever wondered how Southeast Asia’s hot markets can boost your business or investment portfolio? Compared to other countries in the region, Vietnam’s property ownership laws and investment regulations offer unique advantages and challenges for foreign investors. As a strategic consultant with over 20 years of experience in FDI and manufacturing across dynamic markets like Vietnam, […]
Being one of the most sought-after investment destinations, Vietnam is equally popular for growing opportunities in the education sector. In the last few decades, education has become an issue of priority and the government has reserved about 20% of its budget for it. As Vietnam’s edtech market is growing fast, it holds immense opportunities for investors to jump in and invigorate the landscape.
Vietnam’s Edtech growth prospects in 2023
Over the past two years, Vietnam's educational technology market has experienced significant growth, driven by the surging demand for online learning amidst the COVID-19 pandemic. According to Mr. Pham Giang Linh, the Chief Executive of Galaxy Education and General Director of Hocmai, a prominent player in Vietnam's e-learning industry, online education companies have witnessed remarkable growth, potentially exceeding 150% within this short period.
As mentioned in a comprehensive report by Ken Research, the Vietnamese EdTech market is poised to achieve a revenue of approximately 3 billion USD by 2023. The growth rate of this sector has been truly impressive, averaging about 20.2% per year from 2019 to 2023. Currently, there are around 260 edtech businesses in Vietnam, with a majority being start-ups and business-to-consumer (B2C) enterprises, according to data from Tracxn Technologies.
Several key factors contribute to the positive outlook for the market, including an increase in the number of E-learning service providers, a rise in the overall number of educational institutions, and a shortage of teaching staff. Moreover, the entrance of foreign companies into Vietnam's E-learning sector is expected to bring about technology breakthroughs and enhance the quality of educational content.
This exponential growth and a multitude of factors supporting the edtech market's advancement underscore Vietnam's position as a thriving hub for educational technology. With a burgeoning market and favorable conditions, the country offers an exciting landscape for investors and industry players alike to seize the vast opportunities in the dynamic world of edtech.
Opportunities for foreign investors breaking into Vietnam’s edtech market
Vietnam has significant potential for edtech market development. Accelerated by the pandemic, several edtech companies have been experiencing strong growth, but experts say that Vietnamese edtech firms still lack breakthrough technologies to grow stronger. This presents attractive opportunities for investors to look at.
Blended learning in higher education and vocational training
In response to the challenges posed by the pandemic, blended learning has emerged as a successful and efficient approach to education in Vietnam. By seamlessly integrating traditional face-to-face teaching with e-learning and computer-mediated support, this hybrid method has gained popularity and efficacy in the country's educational landscape.
With Vietnamese educators increasingly adopting blended learning, there are promising opportunities for local businesses to collaborate with foreign investors. Local partners can serve as essential recruiting hubs while gauging the market's needs and demands.
An excellent example of such collaboration is the joint delivery of an undergraduate degree in ICT by Swinburne University of Technology (Australia) and FPT University (Vietnam). This initiative provided a blended learning experience leveraging Swinburne's courseware and ICT system, complemented by FPT University's mentorship and learning support, as well as localized marketing, admissions, and enrollment.
In the realm of vocational education and training (VET), exploring partnerships with esteemed vocational colleges that have a strong commitment to skill development can prove advantageous. Collaborations in online VET delivery, particularly in the form of industry-recognized micro-credentials or mini-qualifications, present an attractive opportunity for foreign businesses and Vietnamese partners alike. Key industries such as tourism and hospitality, IT, design, and communication could benefit significantly from such collaborations.
Early childhood education
The early childhood education sector in Vietnam presents a niche market ripe with potential business opportunities, particularly in the realm of private kindergartens, aligning with the government's strategic sector development plan.
For edtech businesses, this segment offers an array of possibilities, including designing digital content tailored for young learners to acquire foreign language skills and fundamental soft skills. Additionally, teacher training solutions offered on digital platforms can greatly enhance educator effectiveness. Collaborative efforts focused on sharing experience and professional expertise in curriculum development, quality assurance, and managing digital agenda implementation at an institutional level further contribute to the growth of early childhood education.
A noteworthy collaboration in this domain involves Japanese Gakken Holdings and Vietnamese edtech company KiddiHub Education Technology. The partnership aims to leverage KiddiHub's established online presence to promote non-cognitive learning, emphasizing critical thinking skills among young learners.
As the early childhood education sector continues to thrive in Vietnam, edtech ventures have a unique opportunity to play a significant role in shaping the educational landscape. By providing innovative solutions that cater to the specific needs of young learners, edtech businesses can contribute to fostering a strong foundation for lifelong learning and development.
General education
Vietnam's commitment to education system reforms has paved the way for tremendous advancements in general education. With the goal of attaining international standards of quality in human resources, the country has implemented significant changes across various aspects of general education.
A new competency-based curriculum has replaced traditional textbook-centric delivery, ushering in a new era of innovative teaching methods and materials. This includes integrating STEM/STEAM subjects into the curriculum, emphasizing the development of critical skills and problem-solving abilities among students.
Edtech partners have promising business opportunities in this segment, particularly in the field of digital content for STEM/STEAM subjects and e-textbooks. Moreover, teacher training and assessment products tailored for English language training are also in high demand as educators adapt to the evolving educational landscape.
E-learning in corporate training
Vietnam's e-learning market extends its potential to cater to business customers seeking online training solutions. The rising demand for Learning Management Systems (LMS) presents an opportunity to streamline and enhance in-house corporate training processes efficiently, reaching a large number of staff members across various industries.
Leading companies like state-owned Vietnam Electricity (EVN) and Vietcombank have already established their own e-learning centers to facilitate effective human resource development. In sectors such as banking, tourism, and hospitality, the demand for customized e-learning solutions is on the rise.
For edtech companies, this presents a fertile ground to develop and offer tailored e-learning products to meet the specific needs of corporate clients. By catering to the training requirements of businesses in various industries, edtech partners can make a significant impact in enhancing workforce skills and productivity.
Final Thoughts
Vietnam's edtech industry offers a wealth of opportunities for investors looking to capitalize on the country's thriving education technology landscape. However, to fully unlock the potential of this burgeoning market, foreign edtech providers must navigate certain challenges, particularly in terms of understanding and complying with the regulatory framework governing edtech entities in Vietnam.
In our upcoming article, we will delve into essential legal information on how to establish an edtech enterprise in Vietnam, in strict accordance with Vietnamese law. We recognize that setting up and succeeding in the edtech market requires careful planning and expert guidance.
At Viettonkin, we take pride in assembling a team of experienced consulting experts who can provide comprehensive support to guide you through the intricate process of establishing and building a successful edtech business in Vietnam. From regulatory compliance to market entry strategies, we offer the expertise needed to make informed decisions and achieve investment success.
To make your mark in Vietnam's vibrant edtech sector, partner with us and let our consulting services pave the way for your business growth and success. Contact us today to embark on your edtech investment journey with confidence.
