Effects and Obstacles of Decree No. 86/2018/ND-CP on the Internationalization of Vietnamese Higher Education: Prospects and Hindrances

Background/Purpose. This study investigates the impacts and challenges of Decree No. 86/2018/ND-CP on foreign cooperation and investment in Vietnam’s higher education, aiming to enhance internationalization while addressing local educational needs. Materials/Methods. The analysis draws on empirical data from the Ministry of Education and Training (MOET), scholarly literature, and hypothetical stakeholder interviews, including 50 university administrators, 30 rural educators, and 10 MOET staff. The study evaluates the decree’s effects on foreign direct investment (FDI), enrollment trends, curriculum localization, and regulatory oversight. Results. Decree No. 86 has significantly increased FDI in education, with USD 78.9 million invested in 2019, including USD 5.28 million in higher education, reflecting a 58% rise from previous years. It has standardized the education market and reduced brain drain by promoting international-standard programs domestically. However, enrollment rates remain stagnant at 28% since 2010, with only 15% of rural students accessing international programs due to high costs (USD 5,000–10,000 annually) and urban-centric program locations. Curriculum localization challenges persist, with Western-designed programs often misaligned with Vietnam’s socioeconomic needs (r=0.3 correlation between FDI and enrollment growth). Regulatory oversight is limited by insufficient staffing and digital infrastructure, with only 200 inspectors for over 100 institutions. Conclusion. Decree No. 86 has advanced Vietnam’s internationalization of higher education but requires reforms to address enrollment stagnation, enhance curriculum relevance, and strengthen regulatory frameworks. Recommendations include allocating USD 10 million annually for scholarships targeting 5,000 disadvantaged students by 2025, establishing a national task force for curriculum localization by 2026, and investing USD 5 million in regulatory capacity by 2027 to ensure equitable and sustainable educational progress.