Vietnam's educational record is impressive: 91 percent of children between the ages of 5 and 10 are enrolled in school, and 88 percent of the countrys working-age population is literate. However, emerging market forces within Vietnam, as well as examples and competition from its economically vibrant neighbors, raise important new challenges for the countrys education and training (E & T) system. The government of Vietnam has set ambitious targets for increasing enrollments in E & T institutions, but one question remains unanswered: What policies are required to ensure that an expanded E & T system will give its graduates the knowledge, skills, and attitudes demanded by private sector employers and critical to the smooth functioning of a leaner public sector in the futureNULL This study attempts to answer the question and thereby assist education policymakers in Vietnam in making equitable and efficient choices. The report is divided into six chapters. The first two chapters set the general context for a consideration of E & T costs and financing in Vietnam and explain how the system is presently organized and managed. The third and fourth chapters assess the current financing system, including the state budget and other sources of public funding, and calculate the cost per student-year and the cost per graduate at each level. Chapter 5 examines the social rates of return and the cost burdens for different groups within the country. The final chapter looks ahead to the next decade and draws lessons from other countries.
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