Tuition Fees and Price Ceiling in Vietnamese Higher Education, High school final essays of Microeconomics

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Group 3 TEACHER: DAU THI MAI LIEN

TUITION FEE OF UNIVERSITIES IN

VIET NAM

MICROECONOMICS_GROUP

Contents

• 1 OVERVIEW ABOUT MARKET OF UNDERGRADUATE EDUCATION
• 2. DEMAND AND SUPPLY OF UNDERGRADUATE EDUCATION
     • 2.1. Analyse tuition fee and its purposes
  • 2 .2. Compare private and public school
• 3. PRICE CEILING
  • 3.1. General theory of price ceiling
  • 3.2. Why does the government impose price ceiling on tuition fee?
• 4. LAWS OF PRICE CEILING
  • 4.1. Some examples of laws
  • 4.2. What happened when the following decree was enacted
  • 4.3. Effects of imposes price ceiling on tuition fee
  • 4.4. Solution

Universities will be the main source of human resources for domestic and international companies, which need young human resources to bring development value to the company.

2 .2. Compare private and public school Private schools are more expensive because they have a strong point that students get more practical experience through field trips. The children will be learned and trained in a more "international" environment. For example, there are classes and schools that teach and learn entirely in a foreign language. And Private schools often, in addition to ensuring the curriculum, will also prioritize the task of developing individual capacity, organizing collective activities for life skills, and clubs.

This is the reason why Private schools are usually 5-10% more expensive than public schools.

Public schools’ fees are lower because the facilities are still not as good and modern as private schools, however at the current time government is more concern and supportive for the education of the country. However, they are going to to create high quality programs cooperated with foreign universities ranked by reliable education organizations.

3. PRICE CEILING 3.1. General theory of price ceiling The maximum prices the producers can charge (Pc) – a suppressed price. Typically, it is set on goods that are necessities, but the equilibrium price is so high that many people are unable to purchase the item. Effective price ceiling must be below equilibrium price in order to create advantages for consumer (households), However, price ceiling under equilibrium price will create shortage in the long run.

3.2. Why does the government impose price ceiling on tuition fee?

• Avoid abuse of excessive tuition fee increases at universities.

• Provide opportunities and equality in education for all learners, including those from disadvantaged backgrounds, to have access to their favorite subjects.
• Maintaining the quality of higher education for regional and world integration.

4. LAWS OF PRICE CEILING

4.1. Some examples of laws In the 81 decree in 2021, government launched regulation for tuition fees in all education levels which include university tuition fees. By this decree, for Public university, the university tuition fee cannot exceed the price ceiling.

*Detail :

• Tuition price ceiling in 2021-2022 according to majors: 980.000vnd- 1.430.000vnd/student/month.
• Tuition price ceiling from 2022-2023 to 2025-2026 according to majors: 1.200.000vnd-3.500.000vnd/student/month.

4.2. What happened when the following decree was enacted According to surveys by the Easy Uni education network, up to 59% of young people tend to study abroad, only 41% choose education in their country, but if they have enough finance, up to 80% of young people will choose to study abroad. It can be said that student at lower income can get advantages from the price ceiling.

However, Lecturers will move to private universities due to the lower income that price ceiling brought to public universities. To address this problem, government spent more fund on lecturer salaries in order to keep attracting them to devote at public universities.

4.3. Effects of imposes price ceiling on tuition fee What will happen if we raise the price ceiling of the college? Tuition ceiling will bring pros and cons:

 Advantages: