PUBLIC HIGHER EDUCATION IN VIETNAM: THE PATH TO FINANCIAL SELF-SUFFICIENCY

Abstract

The modernization of financial management mechanisms within public educational institutions aligns with the global shift towards enhanced autonomy and self-accountability. This endeavor reflects a pivotal policy direction embraced by our nation's Party and State in recent years. Presently, a comprehensive framework governing the financial management of public colleges undergoing the transition to vocational education mechanisms is well-established. Key components of this framework include the Law on Education, Decree No. 75/2006/ND-CP of August 2, 2006, which stipulates and guides the implementation of the Law on Education, Decree No. 43/2006/ND-CP dated April 25, 2006, regulating the determination of autonomy and self-responsibility in the areas of tasks, organizational structure, payroll, and finance for public non-business units, and Decree No. 16/2015/ND-CP of February 14, 2015, which outlines the autonomy mechanisms for public non-business units. Additionally, Decree No. 48/2015/ND-CP of May 15, 2015, provides detailed guidelines for several provisions of the Law on Vocational Education.

The primary objective of the financial management mechanism for public colleges is to bolster autonomy and self-accountability across various domains, including organizational structure, personnel management, and financial resource allocation. This transformation aims to enhance the quality of education, boost revenue generation, and progressively reduce reliance on state budget subsidies. Public colleges authorized to manage their finances fall into three distinct categories: those with non-business revenue streams sufficient to cover all regular operational expenses, those with revenue sources that partially offset regular operational costs, and units that depend entirely on state support to meet their expenses. Moreover, the financial management mechanism encompasses several essential elements