Document of The World Bank · Document of The World Bank. Report No: ... Practice Manager: Luis Benveniste Luis Benveniste ... Institutions (HEI) Value

Document of The World Bank

Report No: ICR00003269

IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-Cr. 46060, Cr. 4834, Cr. 5208)

ON

CREDITS

IN THE AMOUNTS OF

SDR33.6 MILLION (US$52,440,200) – FIRST OPERATION

SDR32.2 MILLION (US$51,523,200) – SECOND OPERATION

SDR32.6 MILLION (US$49,519,400) – THIRD OPERATION

TO THE

SOCIALIST REPUBLIC OF VIETNAM

FOR A

HIGHER EDUCATION DEVELOPMENT POLICY PROGRAM

December 24, 2014

Education Global Practice Vietnam Country Management Unit East Asia and Pacific Region

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CURRENCY EQUIVALENTS

(Exchange Rate Effective December 12, 2014 Currency Unit = Vietnamese Dong (VND)

1 USD = 21,387 VND 1 USD = 0.68322 XDR

GOVERNMENT FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

BOP Balance of Payments CPRGS Comprehensive Poverty Reduction and Growth Strategy CPS Country Partnership Strategy DPC Development Policy Credit HEDPO1 Higher Education Development Policy Program – First Operation HEDPO2 Higher Education Development Policy Program – Second Operation HEDPO3 Higher Education Development Policy Program – Third Operation HEDPP Higher Education Development Policy Program HEI Higher Education Institution HEMPIS Higher Education Management and Policy Information System HEP1 Higher Education Project HEP2 Second Higher Education Project HERA Higher Education Reform Agenda IDA International Development Association IMF International Monetary Fund MDG Millennium Development Goals MOET Ministry of Education and Training MOF Ministry of Finance MOLISA Ministry of Labor, Invalids and Social Affairs MONRE Ministry of Environment and Natural Resources MOST Ministry of Science and Technology MPI Ministry of Planning and Investment NMUP New-Model Universities Project ODA Official Development Assistance PRSC Poverty Reduction Support Credit SAV State Audit of Vietnam SBV State Bank of Vietnam SDR Special Drawing Rights SEDP Socio-Economic Development Plan

Regional Vice President: Axel von Trotsenburg Country Director: Victoria Kwakwa

Senior Global Practice Director: Claudia M. Costin Practice Manager: Luis Benveniste

Project Team Leader: Michael F. Crawford ICR Team Leader Michael F. Crawford

SOCIALIST REPUBLIC OF VIETNAM

Higher Education Development Policy Program

Contents

A. Basic Information ......................................................................................................... B. Key Dates ..................................................................................................................... C. Ratings Summary ......................................................................................................... D. Sector and Theme Codes .............................................................................................. E. Bank Staff ..................................................................................................................... F. Results Framework Analysis ........................................................................................ G. Ratings of Project Performance in ISRs ...................................................................... Higher Education Development Policy Program – Third Operation (P116354) .............. H. Restructuring (if any) ................................................................................................... I. Disbursement Profile .................................................................................................... 1. Program Context, Development Objectives and Design ............................................ 1

1.1 Context at Appraisal ............................................................................................. 1 1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved) .................................................................................................................... 5 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and Reasons/Justification ............................................................................................ 7 1.4 Original Policy Areas Supported by the Program................................................. 7 1.5 Revised Policy Areas ............................................................................................ 8 1.6 Other significant changes ...................................................................................... 9 2.1 Program Performance ........................................................................................... 9 2.2 Major Factors Affecting Implementation ............................................................. 9 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization .... 12 2.4 Expected Next Phase/Follow-up Operation: ....................................................... 13

3. Assessment of Outcomes .......................................................................................... 13 3.4 Justification of Overall Outcome Rating ............................................................ 23 3.5 Overarching Themes, Other Outcomes and Impacts .......................................... 24 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops ... 25

4. Assessment of Risk to Development Outcome ......................................................... 25 5. Assessment of Bank and Borrower Performance ..................................................... 25

5.1 Bank Performance ............................................................................................... 26 5.2 Borrower Performance ........................................................................................ 26

6. Lessons Learned........................................................................................................ 27 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 28 Annex 1: Bank Lending and Implementation Support/Supervision Processes ........... 30

(a) Task Team members ....................................................................................... 30 (b) Staff time and cost .......................................................................................... 32

Annex 2. Beneficiary Survey Results ........................................................................... 34 Not Available ................................................................................................................ 34

Annex 3. Stakeholder Workshop Report and Results ................................................... 35 Annex 4. Summary of Borrowers ICR and/or Comments on Draft ICR ...................... 36 Annex 5. Comments of Cofinanciers and other Partners/Stakeholders ........................ 49 Annex 6. List of Supporting Documents ...................................................................... 50 Annex 7. Policy Matrix and Prior Actions, Triggers and Status: HEDPO1, HEDPO2, and HEDPO3 ............................................................................................................... 51

MAP

A. Basic Information

First Operation

Country: Vietnam Program Name:

Higher Education Development Policy Program – First Operation

Program ID: P104694 L/C/TF Number(s): IDA ICR Date: ICR Type: Core ICR

Lending Instrument: DPC Borrower: Socialist Republic of Vietnam

Original Total Commitment: SDR33.6M Disbursed Amount: SDR33.6M

Revised Amount: Implementing Agency: Ministry of Education and Training (MOET) Co-financiers and Other External Partners: Second Operation


Higher Education Development Policy Program – Second Operation

Program ID: P116353 L/C/TF Number(s): IDA ICR Date: ICR Type: Core ICR


Original Total Commitment: SDR32.2M Disbursed Amount: SDR32.2

Revised Amount: Implementing Agency: Ministry of Education and Training (MOET) Co-financiers and Other External Partners: Third Operation


Higher Education Development Policy Program – Third Operation

Program ID: P116354 L/C/TF Number(s): IDA

ICR Date: ICR Type: Core ICR


Original Total Commitment: SDR32.6M Disbursed Amount: SDR32.6

Revised Amount: Implementing Agency: Ministry of Education and Training (MOET) Co-financiers and Other External Partners: B. Key Dates Higher Education Development Policy Program – First Operation (P104694)

Process Date Process Original Date Revised / Actual Date(s)

Concept Review: 18-Mar-2008 Effectiveness: 26-Nov-2009 26-Nov-2009 Appraisal: 16-Mar-2009 Restructuring(s): None Approval: 23-Jun-2009 Mid-term Review: Closing: 31-Dec-2009 31-Dec-2009

Higher Education Development Policy Program – Second Operation (P116353)


Concept Review: 30-Oct-2009 Effectiveness: 16-Mar-2011 16-Mar-2011 Appraisal: 09-Aug-2010 Restructuring(s): None Approval: 30-Nov-2010 Mid-term Review: Closing: 30-Jun-2011 30-Jun-2011

Higher Education Development Policy Program – Third Operation (P116354)


Concept Review: 06-Apr-2011 Effectiveness: 02-Aug-2013 02-Aug-2013 Appraisal: 22-Nov-2012 Restructuring(s): None Approval: 28-Feb-2013 Mid-term Review: Closing: 30-Jun-2014 30-Jun-2014 C. Ratings Summary C.1 Performance Rating by ICR Overall Program Rating Outcomes: Moderately Satisfactory

Risk to Development Outcome: Negligible to Low Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)

Bank Ratings Borrower Ratings Overall Program Rating Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory

Quality of Supervision: Satisfactory Implementing Agency/Agencies: Moderately Satisfactory

Overall Bank Performance: Moderately Satisfactory Overall Borrower

Performance: Moderately Satisfactory

C.3 Quality at Entry and Implementation Performance Indicators

Implementation Performance Indicators QAG Assessments

(if any) Rating:

Higher Education Development Policy Program – First Operation (P104694) Potential Problem Program at any time (Yes/No):

No Quality at Entry (QEA):n/a

n/a

Problem Program at any time (Yes/No):

No Quality of Supervision (QSA):n/a

n/a

DO rating before Closing/Inactive status:

Satisfactory n/a n/a

Higher Education Development Policy Program – Second Operation (P116353) Potential Problem Program at any time (Yes/No):

No Quality at Entry (QEA): n/a

n/a


No Quality of Supervision (QSA): n/a

n/a


Satisfactory n/a n/a

Higher Education Development Policy Program – Third Operation (P116354) Potential Problem No Quality at Entry n/a

Program at any time (Yes/No):

(QEA): n/a


No Quality of Supervision (QSA): n/a

n/a


Moderately Satisfactory

n/a n/a

D. Sector and Theme Codes Higher Education Development Policy Program – First Operation (P104694)

Original Actual Sector Code (as a % of total Bank financing) Tertiary education 100 100

Theme Code (as a % of total Bank financing) Education for the knowledge economy 70 70 Public expenditure, financial management and procurement

30 30



Theme Code (as a % of total Bank financing) Education for the knowledge economy 100 100 Higher Education Development Policy Program – Third Operation (P116354)


Theme Code (as a % of total Bank financing) Education for the knowledge economy 42 42 Public expenditure, financial management and procurement

25 25

Other public sector governance 17 17 Other accountability/anti-corruption 16 16

E. Bank Staff Higher Education Development Policy Program – First Operation (P104694)

Positions At ICR At Approval Vice President: Axel von Trotsenburg James W. Adams Country Director: Victoria Kwakwa Victoria Kwakwa Practice Manager: Luis Benveniste Eduardo Velez Bustillo Program Team Leader: Michael F. Crawford Jeffrey Waite ICR Team Leader: Michael F. Crawford ICR Primary Author: Suzana Nagele de Campos Abbott Higher Education Development Policy Program –Second Operation (P116353)

Positions At ICR At Approval Vice President: Axel von Trotsenburg James W. Adams Country Director: Victoria Kwakwa Victoria Kwakwa Practice Manager: Luis Benveniste Eduardo Velez Bustillo

Program Team Leader: Michael F. Crawford Binh Thanh Vu/Emanuela Di Gropello

ICR Team Leader: Michael F. Crawford ICR Primary Author: Suzana Nagele de Campos Abbott Higher Education Development Policy Program – Third Operation (P116354)

Positions At ICR At Approval Vice President: Axel von Trotsenburg James W. Adams Country Director: Victoria Kwakwa Victoria Kwakwa Practice Manager: Luis Benveniste Luis Benveniste

Program Team Leader: Michael F. Crawford Binh Thanh Vu/Emanuela Di Gropello

ICR Team Leader: Michael F. Crawford ICR Primary Author: Suzana Nagele de Campos Abbott F. Results Framework Analysis Program Development Objectives (from Program Document) The Program encompasses three lending operations and covers a period of four years. The Program aimed to strengthen governance, rationalize financing, improve the quality of teaching and research, improve accountability for performance, and enhance transparency in financial management within the higher education sector. It contributed to the first Country Partnership Strategy (CPS) Pillar objective of “developing a higher education system that produces graduates better suited to the new economy’s needs”.

Revised Program Development Objectives (as approved by original approving authority) N/A (a) PDO Indicator(s) Higher Education Development Policy Program – First Operation (P104694)

Indicator Baseline Value

Original Target Values (from approval documents)

Formally Revised Target Values

Actual Value Achieved at

Completion or Target Years

Indicator 1: (Governance): Number of HEI students per 10,000 population Value quantitative or Qualitative)

188 200 - 222

Date Achieved 2007/08 2009/10 - 2009/10 Comments (incl. % achievement)

Target was exceeded during the first phase and indicator was continued into the second phase. Source: MOET

Indicator 2: (Governance): Ratio of female to male students in HEIs Value quantitative or Qualitative)

1.19 1.10 - 0.97


Target was missed during the first phase and was dropped when the third phase operation was prepared. Source: MOET

Indicator 3: (Governance): Proportion of HEI students belonging to ethnic minority groups Value quantitative or Qualitative)

0.9% 1.5% - 1.1%


Target was not achieved during the first operation however the trend was positive and was achieved during the second operation. This indicator was dropped for the third phase. Source: MOET

Indicator 4: (Governance): Proportion of HEI students in non-public Higher Education Institutions (HEI)

Value quantitative or Qualitative)

11.8% 14% - 12.7%


Target was not achieved during the first phase which was under implementation for one year. However, it did increase approximately 1 percent in this short period of time showing a positive trend. Source: MOET

Indicator 5: (Financing): Public expenditure on higher education as a proportion of public expenditure for education

Value quantitative or 11.3% 11.9% - 11.2%

Qualitative) Date Achieved 2007/08 2009/10 - 2009/10 Comments (incl. % achievement)

During the 2009 first phase, public expenditure for education increased for other sub-sectors but higher education did not keep pace. The second phase continued this indicator and the target was met. Source: MOET

Indicator 6: (Financing): Public expenditure per HEI student (in public & non-public HEIs) in million VND


5.5 6.6 - 6.0


Target was missed however there was an increase of 0.5 percent during the one year implementation period which was a positive trend for the short period of implementation. Source: MOET

Indicator 7: (Quality Improvement): Proportion of teaching/research staff with at least a master’s degree


36.1% 40.0% - 57.2%


Target was exceeded. This indicator was dropped for the third phase. Source: MOET

Indicator 8: (Quality Improvement): Proportion of teaching/research staff with at least a doctoral degree


10.5% 12.0% - 14.0%


Target was exceeded. This indicator was dropped for the third phase. Source: MOET

Indicator 9: (Quality Assurance): Number of articles published in internationally referred academic journals


1,090 1,450 - 1,393

Date Achieved 2008 2010 - 2010

Comments (incl. % achievement)

Target was missed however, during the first phase there was a 27.8 percent increase in the number of articles published which is a substantial increase. This indicator was continued in the second phase but dropped in the third. Source: Web of Knowledge

Indicator 10: (Financial Reporting/Audit): Number of Higher Education Institutions (HEIs) preparing annual financial reports


0 20 - 20

Date Achieved 2007/08 2009/10 - 2009/10


Target was met. This indicator was continued during all three phases of implementation. Source: MOET

Indicator 11: (Financial Reporting/Audit): Number of MOET-managed Higher Educations Institutions (HEIs) whose previous year’s activities are audited in accordance with Vietnamese law


n/a 12 12

Date Achieved 2007/08 2009/10 2009/10 Comments (incl. % achievement)

Target was met. This indicator was continued in the second phase but was dropped for the third phase. Source: MOET







Indicator 1: (Governance): Number of HEI students per 10,000 population Value quantitative or Qualitative)

199 225 - 246


Target was exceeded during the first and second phase operations and dropped for the third phase. Source: MOET

Indicator 2: (Governance): Ratio of female to male students in HEIs Value quantitative or Qualitative)

1.19 1.05 - 1.0


Target was to have more equal participation among female and male students. Source: MOET

Indicator 3: (Governance): Proportion of HEI students belonging to ethnic minority groups Value quantitative or Qualitative)

1.1% 2.0% - 2.0%


Target was achieved during the second phase. This was a substantial achievement for a two year period of overall implementation. Source: MOET

Indicator 4: (Governance): Proportion of students in non-public Higher Education Institutions (HEIs)


12.7% 17.0% - 15.6%


The second phase target was missed. However, the first phase target of 14 percent was exceeded during phase two. Overall there was a 2.9 percent increase over 2 years which shows a positive on-going trend. Source: MOET

Indicator 5: (Financing): Public expenditure on higher education as proportion of public expenditure for education


11.7% 11.2% - 12.1%


Target was exceeded during the second phase operation. Source: MOET

Indicator 6: (Financing): Public expenditure per HEI student (in public and non-public HEIs) in million VND


6.2 6.7 - 6

Date Achieved 2008/09 2010/11 - 2010/2011


Phase two target was missed however the positive increase achieved during phase one was maintained during phase two as per-student spending remain level as enrollment continues to increase. This indicator was dropped for phase three. Source: MOET

Indicator 7: (Financing): Proportion of total HEI revenue coming from tuition fees Value quantitative or Qualitative)

36.0% 42.0% - 42.0%


Target was met (New indicator introduced under HEDP02). Source: MOET

Indicator 8: (Financing): Proportion of students receiving loans Value quantitative or Qualitative)

27.3% 30.0% - 30.0%


Target was met (New indicator introduced under HEDP02). Source: Web of Science MOET

Indicator 9: (Quality Improvement): Proportion of teaching/research staff with at least a master’s degree


37.3% 42.0% - 59.3%


Target was exceeded. Source: MOET

Indicator 10: (Quality Improvement): Proportion of teaching/research staff with at least a doctoral degree


10.2% 13.0% - 14.4%



Indicator 11: (Quality Improvement): Proportion of students/faculty (full time equivalent) Value quantitative or Qualitative)

29.3 27.0 - 28.99


Target was exceeded (New indicator introduced under HEDP02). Source: MOET

Indicator 12: (Quality Improvement): Proportion of students in credit-based programs Value quantitative or Qualitative)

10.0 16.0 - 16.0


Target was met (New indicator introduced under HEDPO2). Source: MOET

Indicator 13: (Quality Assurance): Number of articles published in internationally referred academic journals


1,090 1,625 - 1,563

Date Achieved 2008 2011 - 2011


Target was missed however, from 2010 to 2011 there was a 12.2 percent increase in the number of articles published. Moreover, during the five years of implementation (2009-2014) there was 96.6 percent increase and a total of 8,299 articles published. A substantial achievement. Source: Web of Science

Indicator 14: (Quality Assurance): Percentage of HEI being accredited Value quantitative or Qualitative)

4.85% 6.0% - 6.0%


Target was met (New indicator introduced under HEDPO2) Source: MOET

Indicator 15: (Financial Reporting/Audit): Number of MOET managed Higher Education Institutions (HEIs) preparing annual financial reports


N/A 40 - 40


Target was met. Source: MOET

Indicator 16: (Financial Reporting/Audit): Number of MOET managed Higher Education Institutions (HEIs) whose previous year’s activities are audited in accordance with Vietnamese law


12 20 27

Date Achieved 2008 2011/2012 2011/2012 Comments (incl. % achievement)








Indicator 1: (Governance): Number of HEIs having established a university Council Value quantitative or Qualitative)

0 20 - 14

Date Achieved 2008/2009 2009 - 2014/2015


Target was missed. However, the implementation of the HE Law and its related by-laws will promote the creation and functioning of many additional UC’s in the short and medium term. (New indicator introduced under HEDP03) Source: MOET

Indicator 2: (Governance): Number of HEIs given autonomy to decide of overall student numbers and content of program.


2 16 505

Date Achieved 2009 2014/2015 - 2014/2015 Comments (incl. % achievement)

Target was exceeded. Instead of conceding this autonomy on a case by case basis, the Ministry has conceded it to all 505 HEIs (New indicator introduced under HEDP03) Source: MOET

Indicator 3: (Governance): Number of joint training programs with foreign HEIs Value quantitative or Qualitative)

34 300 339


Target was exceeded. (New indicator introduced under HEDP03) Source: MOET

Indicator 4: (Financing): Percentage of education budget allocation for HE level Value 11.7% 12.5% 11.51%

quantitative or Qualitative) Date Achieved 2009 2014/2015 - 2014/2015 Comments (incl. % achievement)

Target was substantially achieved. HE spending increased 16 percent in absolute terms during implementation however, overall education spending increased to 26 percent leading to slight decline in HE’s overall spending. Source: MOET

Indicator 5: (Financing): Percentage of total HEI revenue coming from tuition fee Value quantitative or Qualitative)

36% 45% 39%

Date Achieved 2009 2014/2015 - 2014/2015


Target was not met. There has only been a marginal percentage increase in the revenue coming tuition fee since 2009 due to the diversification of the sources of income. For example, revenue from non-degree activities and short professional programs increased faster than tuition. Source: MOET

Indicator 6: (Financing): Percentage of student received loans (disaggregated by gender) Value quantitative or Qualitative)

27.3% 70% 70%

Date Achieved 2009 2014/2015 - 2014/2015


Target was met. The growth of student lending has been substantial. Current data does not permit either disaggregation by gender or determination of multiple benefits per student. Efforts to improve the data are ongoing. (New indicator introduced under HEDP03) Source: MOET

Indicator 7: (Financing): Number of HEIs having annual financial report Value quantitative or Qualitative)

20 45 45

Date Achieved 2009 2014/2015 - 2014/2015


Target was met. These are the 45 MOET managed universities. Other HEIs are also required to submit financial reports annually to their line ministries as required by the Accounting Law. (Revised indicator introduced under HEDP03) Source: MOET

Indicator 8: (Quality improvement): Percentage of students in credit-based programs Value quantitative or Qualitative)

10 50 68



Indicator 9: (Quality assurance): Number of accreditation agencies established Value quantitative or Qualitative)

0 2 2

Date Achieved 2009 2014/2015 - 2014/2015 Comments (incl. %

Center for Education Accreditation (Vietnam National University Hanoi – VNUHCEA) and Center for Education Accreditation (Vietnam National

achievement) University HCMC were established in 2013 and 2014 (New indicator introduced under HEDP03) Source: MOET

Indicator 10: (Quality assurance): Number of HEIs having established internal quality assurance systems


111 180 350


Target was exceeded. (New indicator introduced under HEDP03) Source: MOET

G. Ratings of Project Performance in ISRs Higher Education Development Policy Program – First Operation (P104694)

No. Date ISR Archived DO IP

Actual Disbursements (SDR millions)

1 9/21/11 S S 33.6 Higher Education Development Policy Program – Second Operation (P116353)


Actual Disbursements (USD millions)

1 12/29/11 S S 32.2 Higher Education Development Policy Program – Third Operation (P116354)


Actual Disbursements (USD millions)

1 23/6/2014 MS MS 32.6

H. Restructuring (if any) Not Applicable

I. Disbursement Profile

Operation Amount Proposed under

HEDPP (US$M)

Amount Disbursed SDR M

Approval Date Actual Disbursement Date

HEDPO1 50.0 33.6 06/23/2009 Dec 23, 2009 HEDPO2 50.0 32.2 11/30/2010 May 09, 2011 HEDPO3 50.0 32.6 28/02/2013 August 02, 2013

Total 150.0 68.4

1. Program Context, Development Objectives and Design

1.1 Context at Appraisal 1. The Higher Education Development Policy Program (HEDPP) was designed to support the Government of Vietnam (hereafter “the Government”) in the implementation of its Socio-Economic Development Plan 2006-2010 (SEDP) and its Higher Education Reform Agenda 2006-2020 (HERA). The HEDPP comprised a programmatic series of three single-tranche Development Policy Credits (DPCs) to support the sustained implementation of selected elements of the Government’s reform agenda. It aimed to strengthen governance, rationalize financing, improve the quality of teaching and research, improve accountability for performance, and enhance transparency in financial management within the higher education sector. 2. Vietnam had experienced rapid and consistent growth and poverty reduction since launching its transition towards market mechanisms in 1986. GDP growth had averaged over 7.5 percent per annum over the period of 2006 – 2010, the poverty rate had declined from 58.1 percent in 1993 to 14.5 percent in 2008 (and continued to fall), and Vietnam was on track to achieve most of the Millennium Development Goals (MDGs). Key challenges the country faced were to maintain growth in the context of global integration and to address concerns of increasing inequality. The country’s trade-led growth strategy had resulted in a steady increase in both exports and imports as a share of GDP, and accession to the World Trade Organization (WTO) in 2007 was driving further liberalization of the economy and reassuring investors about the Government’s commitment to economic reform. 3. Macroeconomic Context. Vietnam had weathered a domestic crisis in early 2008, precipitated mostly by the massive capital inflows following WTO accession that led to an overheating of the economy. The Government’s determined reaction to stabilize the economy at the time succeeded in curtailing the boom in banking credit, acceleration in inflation, a ballooning trade deficit and asset price bubbles. The stabilization package took a toll on economic activity, however: second quarter 2008 recorded one of the lowest growth rates in years (5.8 percent). At the same time, however, the stabilization efforts in early 2008 placed the country’s economy in a better position to weather a second shock: the global financial and economic crisis in the second half of 2008. Nevertheless, the global crisis affected foreign demand, and international prices for Vietnam’s export commodities declined, export orders for garments and other industrial products collapsed, and a slowdown in manufacturing ensued. 4. At the time of Appraisal of the HEDPP, Vietnam had witnessed very weak first quarter 2009 growth, and expectations were that while a crisis was unlikely, growth would be slower than in 2008. Sustaining economic growth during the remainder of 2009 was seen to require reliance on domestic demand, especially if the international recovery were to be delayed and international trade did not resume at previous levels. The Government had announced a sizeable stimulus component in the 2009 budget plan that

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included labor-intensive projects focused mostly on scaling up critically important public investments, especially in energy and transport that were seen as an important obstacle to long-term development. 5. While Vietnam had some fiscal space to finance a part of the announced stimulus package, its main constraint stemmed from financing rather than from debt sustainability. The 2009 budget plan had contemplated the issuance of a second sovereign bond that had become unlikely given the global context after the international economic crisis. Based on then existing numbers, the financing gap was estimated at approximately US$1.7 billion equivalent, and given the unattractiveness of other options (i.e., an inadequately funded stimulus, excessive reliance on domestic finance or attempts to monetize a part of the cost of financing the stimulus), made the case for quick-disbursing Official Development Assistance all the stronger. 6. Poverty Reduction. Broad-based growth had been accompanied by a continuation of Vietnam’s remarkable record in poverty reduction. A series of household surveys had confirmed the continued reduction of poverty, with the proportion of households living below the poverty line falling to 16.0 percent by 2006, compared with 58.1 percent in 1993. The rapid progress was accompanied by only a modest increase in inequality. The country’s broadly inclusive pattern of growth explained the rapid rate of poverty reduction. Aggregate figures however masked widening disparities in the extent and depth of poverty between regions as well as between ethnic minorities and the Kinh majority populations. Poverty rates were substantially higher in rural areas, particularly in regions with high numbers of ethnic minorities. Despite crises in 2008 and the uncertainties the country faced in 2009, Vietnam was expected to sustain its progress on poverty reduction in the future, and even under a pessimistic growth scenario, the rate of poverty was expected to fall to around 12.5 percent of the population in 2009. 7. Sector Context at Appraisal. The role of education and training was critical for addressing the potential adverse impacts of the global crisis on human development.. On the supply side, possible reductions in funding for investments, operations and human resources could lead to deteriorating quality. On the demand side, households could choose to delay, or forego, educational investments. While education could protect individuals during times of economic hardship, heterogeneous impacts of the crisis across the labor market could lead to heterogeneous changes in the return to education, with potential knock-on effects to demand for education as well as welfare. 8. Vietnam’s education sector had expanded rapidly, with the fastest growth at the upper levels of education. Primary enrollment was near universal: the Vietnam Household Living Standards Survey (VHLSS) data showed that, between 1992 and 2006, the percentage of the population aged 25-55 that had not completed even the lowest level of education dropped from 23 to less than one percent of the population. Primary educational attainment had increased from 28 to 34 percent of the population, lower secondary from 30 to 34 percent only, and upper secondary education from 7 to 12 percent. Rural and lower income populations benefited the most from the increase in primary and lower secondary attainment. Access to higher education had increased, with

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about 5 percent of the 25-55 aged population obtaining at least some tertiary education in 2006. Enrollment in colleges and universities had nearly doubled from about 900,000 students in 2001 to more than 1.6 million students in 2008. This was explained by: (i) an initially low enrollment rate; (ii) high demand for higher education as a result of higher returns to skills; (iii) expansion of private higher education; and (iv) the Government’s actions in expanding the sub-sector. 9. Private higher education emerged in the mid-1990s, and since then had become an increasingly important share of total provision. On average, annual State budget allocations to public HEIs accounted for 50-60 percent of these institutions’ total budgets, while tuition fees accounted for 30 to 35 percent. While the Government’s State budget for education overall had increased steadily, spending was skewed towards lower levels, and the share allocated to higher education was considered low by international standards. The introduction of cost-recovery in higher education had resulted in a rapid increase in the share of tuition fees in the total revenue of HEIs. It allowed the country to expand the sector rapidly without creating a heavy burden on the State budget, but there was concern that it may have strained the capacity of some students and their families to pay, although this risk had been mitigated to a considerable extent by the expansion of the means-tested student loans scheme and a systematic approach of tuition exemption1. 10. Lack of physical, financial and human resources combined with institutional constraints were identified as major impediments to quality improvement, especially in view of the rapid expansion in enrollments. Access had been expanded at the expense of quality of provision, with the proportion of faculty having a doctoral degree falling over the previous decade and with a large number of students per faculty. The spending for research, at less than one percent of total government spending, was also small. Finally, information about HEI performance available to the Government, employers, students and graduates was weak, creating a further impediment to assessing and improving quality. 11. Management of the financing of higher education was fragmented, with responsibility for implementation of the education sector budget shared between the Ministry of Education and Training (MOET), other line ministries and local authorities. About 60 public HEIs were under direct MOET control, while other ministries or provincial people’s committees controlled others. Budgeting was a bottom-up process whereby MOET-controlled HEIs submitted their annual plan and budget estimates to MOET for approval and consolidation, and other public HEIs submitted theirs to their controlling ministries or provincial people’s committees, leading to incoherence and opaqueness in setting enrollment quotas, budget allocations and determining the levels of scholarships and fees. Fiscal transparency in the allocations to higher education and

1 Decree No. 49/2010/ND-CP (May 14, 2010), the Decree expands the coverage of fee deductions and exemptions by adopting a broader concept of disadvantage (including disability, several types of economic difficulties, remote areas and ethnic minorities).

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improved equity through ensuring equal opportunity to all students, especially those from poor households, were considered important constraints to improved results. 12. The Government recognized the importance of higher education for increasing productivity and competitiveness, critical elements to sustain its future growth prospects that were firmly grounded on market mechanisms and further integration in the international economy. To address this, the Government set clear goals for higher education in its Socio-Economic Development Plan 2006-2010 (SEDP) which were detailed in its Higher Education Reform Agenda (HERA) that set forth its strategy for higher education and research through the year 2020. The main objectives of the strategy were: (i) a dramatic increase in capacity to allow an increase of the participation rate in higher education (or tertiary) institutions, that implied huge investments in infrastructure and in training of new lecturers and faculty; (ii) simultaneous increase in quality and/or efficiency of the system; 2 (iii) the introduction or reinforcement of research in universities in order better to train the future new teachers, to enrich and upgrade present teachers’ teaching and to upgrade the quality level and international visibility of Vietnamese universities; and (iv) improved governance of the higher education and research system at both national and regional levels, as well as of universities. 13. These goals implied greater autonomy for individual institutions and measures that created a climate of competition between and within institutions. The Government set the following targets for the education sector: (i) revenue from science and technology activities increased to 15 percent of total university revenue by 2010, and to 25 percent by 2020; (ii) the proportion of university teaching staff with master level degrees increased to 40 percent by 2010, and to 60 percent by 2020; (iii) the proportion of university teaching staff with doctoral level degrees increased to 25 percent by 2010, and to 35 percent by 2020; and (iv) the ratio of university students to teaching staff reduced to 20:1 by 2020. 14. The HERA was backed by an ambitious MOET plan to cover the additional costs—estimated at US$20 billion over 15 years, mostly for HEI infrastructure and smaller shares for training program development, staff development and student financial assistance—financed from a combination of public and private funds, and ODA. Private funds were expected to fund half of the additional costs. At the same time, the State budget for higher education was expected to increase from 8.9% at the time of drafting HERA in 2005/2006 to 12.5 percent by the end of the third operation, as a proportion of the State budget for education, while the proportion allocated to basic education would

2 Including: lower teacher-student ratios, a reformed entrance examination, better trained teachers, better pedagogy, the development within universities of research activities indispensable for deepening and broadening the teachers’ scholarship, the transformation of selected institutions into teaching and research institutions, improved curriculum frameworks and better assessment of learning outcomes, greater flexibility of study programs and student mobility with the introduction of a credit accumulation system, and the development of a quality culture within the institutions, including the implementation of an accreditation system of all institutions (public and non-public) at the national level.

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decline responding to the decrease in the school-aged population. The MOET proposed granting HEIs greater flexibility to set student fees, which was expected to result in an increase in HEIs’ revenue from tuition from 34 percent of the combined State budget and fee revenue in 2006 to 45 percent in 2012. The Government also planned to raise major ODA financing for higher education from the Asian Development Bank (ADB) and IDA. The HEDPP and other IDA-financed operations (see below) supported this goal. 15. Bank Country Assistance Strategy. The HEDPP was an integral component of assistance for higher education in Vietnam, that together with other projects were incorporated in IDA’s five-year Country Partnership Strategy 2006-20103, in support of the Government’s SEDP 2006-2010 and its HERA. Pillar I of the CPS aimed to assist the Government in its transition to a market economy, by helping to “develop a higher education system that produces graduates better suited to the new economy’s needs”. The HEDPP was to contribute directly to this objective by improving the quality of higher education in ways that enabled central government and universities to: (i) produce graduates with the knowledge and skills that met labor market demands, and (ii) support the national innovation system through relevant basic and applied research. The HEDPP was part of an integral program of support for higher education proposed in the CPS that included the then ongoing Second Higher Education Project4 (HEP2) and a proposed New-Model Universities Project5 (NMUP) that was in the initial phases of preparation at the time of HEDPP’s appraisal. HEDPP supported the promulgation and execution of a series of key policy measures, each set financed by a separate operation, linked to the Government’s higher education reform strategy. From HEDPO2 onwards, HEP2 was to take the policy development from the definition of the problem, through the collection and analysis of information, to the development and discussion of policy options, and the NMUP would then provide for the demonstration of the policy measures in a specific institutional setting. 1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved) 16. The Program Development Objective (PDO) of HEDPO1 and HEDPO2 was to strengthen governance, rationalize financing, improve the quality of teaching and research, improve accountability for performance, and enhance transparency in financial management within the higher education sector. HEDPO 3 aimed to strengthen governance, financing and quality of higher education by: (i) improving the

3 Report No. 38236-VN, dated January 3, 2007. 4 HEP2, a SIL financed by a US$59.4 million equivalent IDA Credit and a US$4.8 million PHRD Co-financing Grant, was approved on June 20, 2007 and closed on June 30, 2012. It had three components: (i) capacity building in higher education policy development; (ii) capacity building for university teaching and research primarily through a competitive grants scheme; and (iii) project management and monitoring and evaluation. 5 NMUP, financed by an SDR 119.4 million IDA Credit, was approved on June 24, 2010 and is under implementation. The project support the establishment and development of a new model university through four components: (i) policy and regulatory framework; (ii) academic and research development; (iii) campus and facilities development; and (iv) project management and monitoring and evaluation.

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responsiveness of higher education and research and increase the quantitative capacity of the system; (ii) enhancing fiscal transparency, sustainability and effectiveness of the higher education sector; and (iii) improving the quality of Higher Education Institutions (HEI). 17. Progress under the programmatic series of three single-tranche DPCs, designed to support the sustained implementation of selected elements of the Government’s reform agenda, was to be assessed by the key indicators presented in Table 1 below. Table 1: Key Outcome Indicators (from HEDPO1, HEDPO2 and HEDPO3 program documents) Governance HEDPO1 HEDPO2 HEDPO3 Number of HEI students per 10,000 population x x Ratio of female to male students in HEIs x x Proportion of HEI students that belong to ethnic minority groups x x Proportion of HEI students in non-public HEIs x x Number of HEIs having established a university council x Number of HEIs given autonomy to decide overall student numbers and content of programs x Number of joint-training programs with foreign HEIs x Financing Public expenditure for higher education as proportion of public expenditure for education x x x Public expenditure for HEI student (in public & non-public HEIs) in VND x x Percentage of total HEI revenue coming from tuition fees (%) x x Percentage of students receiving loans (%)* x x Number of HEIs having annual financial report x x x Number of HEIs under MOET management is audited x x Quality Improvement Proportion of HEI teaching/research staff with at least master’s degree x x Proportion of HEI teaching/research staff with at least doctoral degree x x Proportion of students/faculty (full equivalent)-time x Proportion of students in credit based programs- x x

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Quality Assurance Number of articles published by author with Vietnam institutional affiliation in calendar year in internationally referred academic journals[1]** x x Percentage of HEI being accredited x Number of accreditation agencies established x Number of HEIs having established internal quality assurance systems x * Indicator revised under HEDPO3 to include disaggregation by gender **As recorded in Thomson Scientific ISA Web of Knowledge: Science, Social Sciences and Arts/Humanities Citation Indexes

1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and Reasons/Justification 18. The PDO was not revised. However, six new Key Outcome Indicators were introduced to measure progress towards the achievement of Program Development Objectives in the Results Framework under HEDPO2 and five additional indicators under HEDPO3, as indicated in Table 1. HEDPO3 was processed within the same policy framework that was defined for HEDPP with an updated set of indicators. The HEDPO3 triggers were for complex major reforms that included the passage of a higher education law. As a result, additional indicators were designed to measure a shift of decision making authority from the central government to HEIs. At the same time some indicators in HEDPO1 and HEDPO2 were dropped as indicated above.

1.4 Original Policy Areas Supported by the Program 19. The policy measures, summarized in the Program Policy Matrix (Annex 7) were grouped under five themes: (i) governance; (ii) financing; (iii) quality improvement; (iv) quality assurance, and (v) financial reporting/audit. Measures for the first four of these themes were drawn from the Government’s HERA; the measures for the last theme were designed in response to recommendations of the Country Fiduciary Accountability Assessment (CFAA) carried out in 2007 that were relevant to the higher education sub-sector. The objectives of the policy measures, by each of the five themes, are summarized below. 20. Governance. This policy area had two objectives: (i) to improve the efficiency, quality and responsiveness of higher education and research, and (ii) to increase the quantitative capacity of the higher education sector. The first objective would require the development of new governance arrangements, both for the higher education system as a whole, as well as for individual HEIs, and was expected, by HEDPO3, to have culminated in the development of a “master plan” for the higher education and research sector. The “master plan” and consequently the HE Law would build a HE system that

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was multi-tiered and included HEIs operating under different ownership models (public, private and mixed). The new governance arrangements would alter the respective roles of MOET and the HEIs, in particular giving more autonomy to HEIs. Quantitative capacity would be increased by clarifying the regulatory environment for private higher education providers (both domestic and foreign) and by creating a common set of rules for the operation of both public and private HEIs. The increased capacity would be managed through a centralized process, to ensure adequate and appropriate coverage by disciplines and by regions. 21. Financing. This policy area aimed to enhance fiscal transparency, sustainability, efficiency and equity of higher education and to promote greater autonomy and improve the quality of research universities through changes to the financing regime. This would be achieved through moving to an enrollment quota mechanism that was based on the number of enrolled students (as opposed to historical budget allocations), increasing funds made directly available to poor households through the Government’s student loan scheme, and diversifying public funding for research. 22. Quality Improvement. This policy area aimed to improve the efficiency and transparency of student admissions, improve the quality of teaching inputs and improve the efficiency and transparency of higher education qualifications. For this, the Government was moving to a single examination for the transition from secondary to higher education, devolving oversight for curriculum framework development to a HEI-level entity, encouraging students into advanced undergraduate and graduate programs with a view to their becoming qualified HEI teaching/research staff, moving to a more flexible credit-based qualification framework and complementing traditional teaching methods supported by information technologies. 23. Quality Assurance. This policy area aimed to improve information about HEI performance that was available to Government, as well as to employers, graduates, students and their families, and to improve the quality of teaching and research outputs. This would involve reinforcing the quality assurance system at the central level. 24. Financial Reporting/Audit. This policy area concerned transparency and accountability in public financial management in the higher education sub-sector. This was considered particularly important given the high level of perceived risk in public investment programs operating in increasingly decentralized HEIs with moderate institutional capacity. These issues would best be addressed at the policy level with corruption vulnerabilities and collusive practices best being reduced through wider use of “social audit” approaches. The measures supported focused therefore on financial reporting and auditing, with a strong emphasis on disclosure. 1.5 Revised Policy Areas 25. The policy Areas were not revised.

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1.6 Other significant changes 26. In late 2011, it became clear that the Government would require additional time to pass the higher education law which was the critical Prior Actions for approval of the HEDPO3. This was due to the fact that passage of the law required the highest levels of political support, extensive consultation and the involvement of multiple ministries and agencies due to the fragmented structure of the higher education system. The delay was longer than 18 months thereby creating an automatic disconnect between operations as indicated in Bank policies related to DPOs. As a result, HEDPO3 was prepared as a stand-alone DPC within the same policy framework that was defined for the HEDPP and with an updated set of indicators. Although the delay created a disconnect, the Bank team received a waiver from Operations Policy and Country Services (OPCS) to submit the ICR for HEDOP1-2 in conjunction with HEDPO3. 2. Key Factors Affecting Implementation and Outcomes 2.1 Program Performance 27. The HEDPP was a series of three one-tranche operations with the first Program Document describing the entire program with policy actions for the three operations, including “prior actions”, considered critical steps on the path of reform and hence, triggers for approving a subsequent phase, and “benchmarks” that were included to give a fuller picture of the Government’s progress in implementing its reform agenda. HEDPO3 triggers were slightly revised in the Program Document to reflect the changing context of the sub-sector including, inter alia, the issuance of the Higher Education Law. A summary of the each of the operations is provided in Table 2 below. Table 2: DPC Amounts and Dates

Operation Amount Proposed under

HEDPP (US$M)

Amount Disbursed SDR M

Approval Date Actual Disbursement Date

HEDPO1 50.0 33.6 06/23/2009 Dec 23, 2009 HEDPO2 50.0 32.2 11/30/2010 May 09, 2011 HEDPO3 50.0 32.6 28/02/2013 August 02, 2013

Total 150.0 68.4 28. Prior actions had to be met prior to negotiations for each DPC to be released. The status of these is presented in Annex 7.

2.2 Major Factors Affecting Implementation 29. Several factors had a positive impact on implementation including strong government commitment, extensive consultation with stakeholders, and financial support for higher education and an integrated IDA strategy for the higher education sub-sector. An implementation review was undertaken by the Ministry during the preparation mission of HEDPO2 during which 90 universities and 100 colleges were assessed. A consultation workshop was also held towards the end of the review in March 2010.

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Overall challenges affecting implementation were: (i) completion of the master plan envisioned for the program was slowed down due to the government consultation process; (ii) there was some degree of inconsistency in the legislation related to autonomy of higher education institutions; and (iii) there was limited capacity within the institutions to exercise the given autonomy. 30. Strong Government Commitment. The Government remained committed to the HEDPP and to its HERA that the Program supported throughout implementation. The reform process, however, was slower than expected which is indicative of an “incremental/gradualist approach” as they moved toward a “paradigm shift” in the higher education sector. The Government has a clear sense of its development goals for higher education and a solid knowledge of the steps required to achieve those goals however, it has taken longer for the Government to put in place each of these steps.

31. Consultation with Stakeholders. The development of the HERA involved an extensive consultation process with numerous stakeholder groups that were used to identify the policies best suited to reach expected development outcomes. There was a serious effort to collect inputs from different groups of Vietnamese society through consultation workshops with local officials, universities, and groups of academics, the domestic business sector, and international and local experts. Similar consultation processes were carried out for critical policy actions and legislation supported under the HEDPP. This extensive consultation reflects a trend towards new modes of political participation for citizens to provide feedback to government policies and regulations, and has been welcomed by the public as a popular means of public consultation and participation. Extensive consultation has led to a process that builds popular support for policy decisions that otherwise might have been difficult to obtain. However, this process also played a role in slowing down the decision making process on reforms and legislation such as finalizing the Mater Plan. Although the Master Plan became obsolete once the Higher Education Law became effective, aspects of the draft plan were included in the Law. In the future, the key for the government will be to balance the need for consultation against its commitment to a firm timetable for the reform agenda. 32. Integrated IDA Strategy. The HEDPP was part of an integrated IDA strategy supporting the reform of Vietnam’s higher education system that included the HEP2 and the ongoing NMUP that was in the initial phases of preparation at the time of HEDPP’s appraisal. As indicated above, HEP2 supported the analysis and development of policies, the HEDPP supported the enactment of policies, and the NMUP is providing for the application of policy measures in a specific institutional setting. 33. At the same time, an extensive program of analytical and advisory services, together with assessments and studies carried out by the Government and financed under the technical assistance component of HEP2 supported implementation of the HEDPP. Analytical and advisory services carried out by the Bank included “Higher Education and Skills for Growth” (World Bank, 2008), that provided an analysis of demand for

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skills, and the policy options for reforming higher education. A case study on “Equity and Access to Tertiary Education in Vietnam” 6 documented the significance and consequences of disparities in tertiary education opportunities, and investigated the results and lessons of efforts to expand access to tertiary education and improve the chances of success for disadvantaged youth (with particular emphasis on the effects of the fee structure as well as student loans and scholarship schemes). These were complemented by a regional study on Higher Education, Skills and Innovation that found that in Vietnam, there had been a significant transfer of decision making authority to HEIs. However, further work was needed to reduce ambiguity of content, low implementation feasibility, and inconsistency between different regulations, due to lack of a systematic vision and coordination between agencies responsible for higher education which was what the DPLs were design to help. Assessments and studies supporting the HEDPP that were financed under HEP2 include: development of the Master Plan, higher education situation analysis, policy development and capacity building for financing, reform of the entrance examination, and analysis of current quality culture and accreditation of Vietnam’s higher education. 34. Financial Support for Higher Education. The Government’s strategy for financing HERA relies heavily on overseas development assistance (about 20 percent). The Government’s market friendly policies in education that provide incentives for foreign investment in education and training, succeeded in mobilizing increasing amounts of ODA financing for the higher education sub-sector from US$31 million in 1998 to US$86 million in 2005 and to US$146 million in 2009 and US$592.7 million during the socio-economic period 2011/2015. Higher Education spending increased 16 percent in absolute terms during implementation this, coupled with an increasing share of HEI funding from tuition and fees, bodes well for continued financing of higher education in the future (Section 3.2). 35. Sequencing and Pace of Reforms. Since the adoption of HERA, the Government has adopted numerous policies that touch on reforms to different aspects of the higher education system. The transition from a highly centralized system characterized by strong bureaucratic control required a major redefinition of the policy framework for higher education. Due to the need to move quickly, reforms were being implemented even before a perfectly sequenced regulatory framework was in place, including those supported by the Program. This resulted in challenges for the achievement of some Program objectives. The Higher Education Law granted greater autonomy to HEIs to decide fees, however, the tuition fees for mainstream undergraduate students is regulated by a 2011-2015 decree thereby limiting the ability of HEIs to fully determine fee levels. In addition, though the policy goal for establishment of University Council was achieved, their role within the regional political processes will need to be more clearly defined as the reform process moves forward.

6 Vu Hoang Linh, Le Viet Thuy and Giang Thang Long (2010), Equity and Access to Tertiary Education: The Case of Vietnam

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36. Program Design and Results Framework. The Program was appropriately designed to advance the establishment of the legal framework which is the prerequisite for HEIs’ to be able to realized increased autonomy and accountability. The result framework was also appropriately designed to measure implementation of the Program at the institutional level. Progress was achieved across the framework, however, there remain challenges related to achievement of some policy indicators due to the ongoing need to harmonize legislation related to HEIs autonomy. This ongoing effort will provide HEIs with a clearer framework for moving forward with autonomy. 37. Implementation by HEIs. The greater level of autonomy has enabled HEIs to diversify provision and sources of income which in return, helped raise the quality of provision which has been a substantial improvement for HEIs. While HEIs recognize the benefits of greater autonomy, the significant transfer of decision-making authority to HEIs has created some concern due to the recognition that some HEIs have limited capacity to fully exercise the given autonomy. The Program also envisioned a relative short period between adoption of policy actions and expected results. In some cases, the timing was ambitious and HEIs were not able to witness actual results for some policy actions during the implementation period. Going forward there will be an introduction of related by-laws which will guide HEIs, in the short- and medium-term, on how to implement different aspects of the reform program. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 38. The MOET’s Program Unit monitored and reported on progress against the HEDPP development objectives throughout implementation, in accordance with the Policy Matrix (Annex 2) and the Outcome Indicators in the Program’s Results Framework (Annex 4). The Program Unit could draw on HEP2 funds for the preparation, implementation, monitoring and evaluation of the operations in the HEDPP series. However, the Program Unit was dismantled due to the closing of the HEP2 thereafter M&E was then managed by the Higher Education Department. 39. The MOET’s Higher Education Management and Policy Information System (HEMPIS) was to continue to strengthen monitoring and evaluation beyond HEDPP. Support for strengthening the HEMPIS was to be provided under HEP2, and the MOET aimed to develop new and more sophisticated indicators (e.g., graduate employment and research based patents) and collect survey data on these and other indicators that individual HEIs are now required to disclose in their effort to assure quality. However, this activity was dropped under HEP2 as the development of HEMPIS proved to be more difficult than anticipated and was eventually cancelled. Additionally, by the time of drafting the ICR, an indicator introduced under HEDPO3 on the “Percentage of students receiving loans (disaggregated by gender)” was not fully reported due to the lack of coordination between MOET and the Bank of Social Policies which processes this data. 40. As noted in Section 3.2 under the Quality Assurance policy area, an important objective of the HEDPP was to support policies aimed at improving the information available to the Government, and to employers, graduates and students and their families.

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HEIs are now required to disclose timely information regarding quality of education, facilities, teaching and management staff, income and expenditures on a regular basis. This, together with a strengthened quality assurance system and minimum standards for accreditation, are expected to gradually improve the quality of higher education outcomes. HEIs reported varying results in these areas, as described in Section 3.2. 2.4 Expected Next Phase/Follow-up Operation: 41. The recent adoption and enactment of the Higher Education Law deals with critical aspects of HEI autonomy, establishment of University Councils, the move towards a multi-tiered higher education system, private higher education, and further progress on accreditation and quality assurance. There has been good progress on the autonomy given to HEIs related to academic matters. Going forward the Bank will continue to support, through lending and technical assistance, the work of the Government on harmonizing the policies related to management of HEIs so that HEIs will have a clearer framework for increased autonomy related to resource management. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation 42. Relevance of Objectives. The HEDPP’s objectives were and continue to be very relevant and closely aligned with the Government’s SEDP, its HERA and IDA’s CPS. This is because they are critical to Vietnam’s future development. Since Vietnam joined the World Trade Organization, the country has become increasingly integrated with the world economy requiring a well-trained work force with the ability to adjust to changing needs and opportunities in the labor market. In line with the experience of other middle-income countries in the region and around the world, the demand for skills in Vietnam is beginning to evolve rapidly and will likely continue over the coming decade. Beyond the issue of shortages of skilled labor, it is clear that the poor quality and relevance of skills acquired in higher education continues to be a big issue. Vietnam’s national competitiveness increasingly depends on skilled human capital that its higher education system needs to deliver. Hence, the importance and continued extreme relevance of the reforms supported by the HEDPP in responding to this challenge. The design of the HEDPP continues to be relevant, especially since the programmatic instrument allows for needed adjustments during program implementation that respond to government and local realities while maintaining constant the pursuit of the program’s development objectives. 43. Relevance of Design and Implementation. The Program supported an ambitious reform effort, in effect aiming to redefine and redesign Vietnam’s system of higher education. The policy matrix and result framework were relevant to measure the impact of policies which were put in pace under HEDPP. However, the timing provided between adoption of different policies and between enactment and expected results, was, in retrospect ambitious. As mentioned previously, the Government will introduce related by-laws that will guide HEIs, in the short- and medium-term, on how to implement different aspects of the reform program which should be instrumental in assisting HEIs as they continue with the reforms.

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3.2 Achievement of Program Development Objectives 44. The Program supported a bold and comprehensive higher education reform effort, as grounded in the HERA that succeeded in putting in place important policies strengthening governance, rationalizing financing, improving the quality of teaching and research, improving accountability for performance and enhancing transparency in financial management in HE sector, in order to create a new framework for the subsector. Critical pieces of legislation and policies to cement accomplishments have advanced, including the Higher Education Law or is expected to be approved in the near future, i.e., definition of quality assurance mechanisms. The HEDPP’s Policy Matrix is presented in Annex 7. 45. The program had an impact on the development of reforms and systemic change related to the sub-sector. However, as is normally the case with extensive programs, it will take time to fully realize the impact of the reforms as well as for all major actors to embrace them. Interviews with different universities presented a mixed picture, with private HEIs reporting important advances in terms of enrollments, development of new curricula, enrollment of students and greater transparency and accessibility in terms of financing education for the lower income population by receiving public subsidies for those students in advance. Public HEIs were more cautious, sometimes constrained by conflicting legislation with which they must comply that led to uncertainties and difficulties in implementing new policies by MOET. 46. Nevertheless, all three phases of the HEDPO made notable progress towards the achievement of the Program’s Development Objectives, as measured by Key Performance Indicators, within the context of a stable macroeconomic framework. The MOET conducted an implementation assessment of the HEDPP in 2010. The findings revealed that the policy measures adopted have had overall positive impacts on the development of the HE sector, providing legal basis for HEIs to be more proactive and more accountable in carrying out their academic, financial and human resource duties. The adopted policy measures have resulted in a significant transfer of decision-making authority to HEIs from the central ministry. The MOET now, for example, focuses on implementation of the development strategy, development of quality assurance and accreditation system, monitoring and inspection and conducts it supervision role. The assessment also found, as could be expected in the implementation of a reform program of this magnitude, that there remained some issues related to the ambiguity of the content, feasibility for implementation, comprehensiveness and consistency between different regulations for higher education.

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47. A summary of achievements and issues is presented below, by Policy Area supported under the HEDPP.

Governance: (i) improve efficiency, quality and responsiveness of higher education and research, and (ii) increase quantitative capacity of higher education sub-sector;

48. Addressing the objectives of the governance of the higher education sub-sector required tackling and amending laws and regulations inherited from an earlier period characterized by a highly centralized political and higher education environment, and drafting new laws and regulations that would be needed. A series of regulations has been introduced under the HEDPP altering the respective roles of MOET and HEIs, in particular giving more autonomy to HEIs and increasing their accountability. HEIs have claimed that they owned complete autonomy in academic matters including curriculum, content of programs and student enrolment targets. Since 2012, 100 percent of HEIs have been able to decide on the enrolment targets following MOET regulations stipulated in the Circular No 57/2011/TT-BGDDT of December 2, 2011. Similarly, 100 percent HEIs now can decide on the content of their training programs and open new training programs as they wish. 49. Significant progress was made on improving the regulatory environment for private higher education providers (both domestic and foreign), creating a common set of rules for the operation of both public and private HEIs, and for putting in place the new governance arrangements, both for the education system as a whole, as well as for individual HEIs.

50. Supported by HEDPO1, the Prime Ministerial Decision No. 380/QD-TTG dated March 24, 2009 issued the regulation on a charter for the first “new model” university, conferring academic, managerial and financial autonomy to the Vietnamese-German University (one of the four new model universities that are being supported under the NMUP). This decision has allowed this HEI to enjoy high autonomy and special operational mechanisms beyond previous practices in financial management, including setting its own tuition fees and salary for staff based on competencies and professional performance. There were some inconsistencies, however, in implementation, for example, with the HEI still requested to submit its financing proposal for approval annually, thereby weakening incentives to innovate and be accountable. 51. Also under HEDPO1, Ministerial Decision No. 64/2008/QD-BGDDR dated November 28, 2008 issued regulations on working conditions of general HEIs teaching and research staff that is aimed at enhancing HEIs leadership’s autonomy in the management of human resources. The initial implementation of these regulations led to some challenges because the decision put emphasis on the number of working/teaching hours (input based), rather than expected results or outputs/outcomes of teaching or research activities. Also aimed at increasing HEIs autonomy in the management of human resources, Prime Ministerial Decision No. 174/2008/QD-TTg dated December 31,

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2008 issued regulations and procedures and criteria for appointment and dismissal of professors and associate professors. Regulations were promulgated on ownership arrangements (Prime Ministerial Decision No. 61/2009/QD-TTg, dated April 17, 2009), and on the establishment, merger, division, suspension and dissolution of HEIs, providing common rules for public and private domestic investors (Prime Ministerial Decision No. 07/2009/QD-TTG, dated January 15, 2009). 52. Significant progress was made towards putting in place the regulatory environment and common rules of operation under HEDPO2. Prime Ministerial Decision No. 58/QD-TTg dated September 22, 2010 put in place regulations on the generic HEI Charters setting out functions of key bodies within HEIs. The generic HEI Charter is crucial for the success of the government’s policy towards increasing the autonomy, capacity of the higher education sector and for increasing its responsiveness and efficiency. The generic HEI Charter, applicable to both public and private universities, academies and colleges in charge of higher education, sets forth the duties and rights of HEIs regarding their three fundamental missions: education and training, fundamental and applied research and interaction with society (outreach). It also defines the rights and duties of academic, technical and administrative staff, the duties and rights of students, to fix the governance of the institutions, the composition and roles of the different bodies involved in managerial, financial and academic decisions. Finally, the Charter stipulates the control mechanisms of institutions, as well as procedures for the settlement of violations. Experience in the adoption of University Charters has been mixed, with mostly public HEIs reporting difficulties with conflicting legislation, and uncertainties and need for guidance on implementation. Several HEIs have commented that HEI Charters should distinguish and be modified for different types of HEI, i.e., public and private. 53. Under HEDPO3, Prime Ministerial Decree No. 73/2012/ND-CP dated September 26, 2012 on the foreign cooperation and investment in education, was also put in place, paving the way for increased quantitative capacity of HEIs. The Decree sets forth the parameters for the establishment and operation of foreign-capitalized educational institutions. The Decree has made it easier for foreign investors and partners in developing and running joint programs with their national counterparts. As a result, the number of joint programs developed far exceeded the target. The regulations, however, have often been found lacking details straining uniform implementation at HEIs. 54. In line with the objective of increasing the autonomy of HEIs, the charter entrusted most of the decision power to two bodies, the University Council and the Rector, approved under the same Prime Ministerial Decision that regulated the Charter7. The University Council is considered the management authority of HEIs, responsible for passing resolutions on major policies to implement the autonomy and social duties of the

7 The regulations for the HEI Charter and for the University Councils were separate Prior Actions for HEDPO2. The Government integrated both sets of regulations in one Prime Ministerial Decision.

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universities as assigned by the State. It is also responsible for nominating candidates for Rectors and Vice-Rectors for appointment (for public universities) or approval (for private universities) by the competent government body. This policy was a considerable step forward in increasing autonomy of HEIs and it is expected that complete autonomy will be granted to HEIs once their institutional governance and capacity is further strengthened. The Rector is directly responsible for managing and leading all the institutions’ activities as stipulated in the State’s laws and in the Charter. Participation of the private sector in University Councils is expected, thereby supporting stronger linkages between universities and the private sector, and therefore ultimately higher responsiveness to labor market needs. A general Directive No. 296/CT-TTg on higher education management for the 2010-2012 period was issued on February 27, 2010, setting the basis for an acceleration of governance (towards university “self-management” and independent quality assurance) and financing reforms (tuition fee policies coupled with fee exemption and student loan policies). Universities are not all on the same page with regard to the willingness and ability to exercise autonomy. The Government has decided to conduct a pilot/demonstration with substantive autonomy to universities who have higher potential for autonomy. Consequently, on 24 October 2014, governmental Resolution No. 77/NQ-CP was promulgated on a pilot autonomy and accountability mechanism at HEIs which includes four universities specialized in Economics and Social Science8. According to the resolution, these universities are granted extended level of autonomy and accountability in the areas including teaching and research, governance and personnel, and finance. The pilot will be evaluated and the plan is to eventually roll out substantive autonomy to all HEIs. 55. A draft Master Plan, a Prior Action for HEDPO3 at the time HEDPO2 was prepared, with technical assistance financed under HEP2, provided a vision of a tiered higher education system and pathways and policy options to implement the vision has been produced. The draft proposed: (a) a system with three levels of institutions (with corresponding qualification frameworks): (i) research universities (subject to a strict limit in number); (ii) teaching and applied science institutions; and (iii) post-secondary professional schools; (b) a plan not only for the higher education sector (universities and colleges), but also for the whole tertiary sector, including the post lower secondary school system; (c) reduction of mono-disciplinary institutions and autonomy of faculties and schools ; (d) integration of teaching-learning and research and competitive founding of research; (e) development of the private sector, in particular not-for-profit; (f) governance of the system, with HEIs reporting to only one ministry; (g) increased autonomy of HIEs (depending on type) implying strong leadership and counter-power (councils or boards); and (h) raising the issue of the qualification of the teaching staff. The progress on issuing the Master Plan, however, was slower than expected. As such, the government’s legal framework put the Higher Education Law as the highest legislation governing the sector and was identified as a prior action in the HEDPO3 program document. Key elements of

8 Hanoi National Economics University, HCMC Economics University, Foreign Trade University and Hanoi University

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the Master Plan have been integrated into the new Higher Education Law enacted by the National Assembly on 18 June 2012. The law defines: (i) the qualification and training modalities of HEIs, (ii) the classification of HEIs; (iii) the structure of networks of HEIs and their differentiation/segmentation in the system by institutional missions; (iv) the regulation of HEIs’ institutional autonomy and accountability in academic, organizational and financial affairs; and (v) the regulation of HEIs’ institutional accreditation and quality assurance process. The draft of the Master Plan has also contributed towards the drafting of a government decree on HEI stratification and ranking which was put forward for consultation with concerned ministries on 20 December 2013.

Financing: (i) enhance fiscal transparency, sustainability, efficiency and equity of the higher education sub-sector, and (ii) promote autonomy and improve the quality of research and teaching at research universities;

56. These objectives were to be supported through policies aimed at moving to an enrollment quota mechanism that is based on clear and transparent criteria (rather than historical student numbers), diversifying funding sources while supporting increasing public budget for higher education with clear allocation criteria, increasing funds made directly available to poor households and/or differentiating treatment of poor households, and supporting competitive funding for research. 57. Following the dissemination of the Proposal to Restructure Education and Training Financing for the Period 2008-2012, a Prior Action under HEDPO1, the National Assembly approved Decision No. 35/2009 dated June 19, 2009 with the multiple purpose of developing new mechanisms to attract and use different sources of funding (public and non-public) to improve the quantity and quality of education. In relation to higher education, the Decision provides the basis for increasing public budget for higher education, attracting family contributions based on capacity and on a cost-sharing principle, increasing the financial autonomy of HEIs by giving them flexibility to set up fee levels based on the fee framework approved by the government, supporting student loan schemes and clarifying criteria and responsibilities in budgeting and allocation. The share of the state budget allocated to higher education increased from 8.9 percent in 2006, to 11.3 percent in 2008, declined slightly to 11.2 percent in 2010 and increased to 11.51 percent in 2014, not meeting the target of 12.5 percent. However, higher education spending increased 16 percent in absolute terms during implementation. Student tuition fees as a proportion of HEIs’ income from state budget and fees increased from 20.9 percent in 2008 to 42 percent in 2011, and declined to 39 percent in 2014. Though the collection of tuition fees regulated for the period 2011-2015 under Decree No. 49/2010/ND-CP, dated May 14, 2010 diversified sources of income have brought down the percentage of income generation from tuition fees. For example, revenue from non-degree activities and short professional programs increased faster than tuition. 58. Building on the Decision, HEDPO2 supported the regulation on introducing a criteria-based formula for setting HEIs’ maximum enrollment quotas under Ministerial Decision No. 795/QD-BGDDT dated February 27, 2010. This Regulation contributes to increasing transparency in enrollment and, to the extent that they are linked, budgetary

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decisions, while supporting higher quality. The main criteria include student-faculty ratios, availability of equipment for teaching and research, training and teaching space for students and program accreditation and the extent to which HEIs comply with rules on public disclosure of information on teaching conditions, expected learning outcomes and finance. HEIs also remain free to add additional specific criteria that they deem relevant. 59. The demand side is also considered by supporting human resource production/development centers that provide signals from the labor market to the HEIs on the number and skill profile required of new graduates. While the use of an input-based formula is not considered ideal, it represents a significant advance towards higher transparency in enrollment and budgetary decisions in relation to the previous practice that was based on negotiations, historical costs and political connections. It can also provide a basis for eventual quality enhancing budgeting, especially since this formula encourages the practice of HEIs publishing information on quality related staff and facilities that in turn supports accountability and competition. HEDPO2 introduced a new Prior Action (that had not been contemplated in HEDPO1) that involved issuance of a Decree to regulate tuition fees for the 2011-2015 period (Decree No. 49/2010/ND-CP, dated May 14, 2010). This Decree was considered critical to allow for further financial diversification in already budget-constrained institutions through a planned increase in tuition fees. At the same time, it addressed potential inequities in access to higher education that the use of tuition fees would entail. In establishing a unified and systematic approach to tuition exemption, the Decree is a considerable improvement to the previous structure, and several HEIs have reported positive results in that the prepayment of the subsidy directly to universities has provided more predictability in tuition receipts, thereby providing flexibility with respect to the self-managed capital. 60. The Decree’s poverty and social impact analysis shows that this approach supports an adequate balance between fee increases and mechanisms to protect the poor. The tuition fee framework, however, has not been developed based on unit cost. As such the fees, after four years of implementation, proved to be insufficient which constrained HEIs from improving the quality of their offers. MOET current work on state budget allocation mechanism and technical and economic norms will result in new regulations on financing higher education sector which will facilitate further quality improvement of its provision. 61. With regards to the research, a new regulation on the financing of higher education research was prepared and approved. Decision No. 1041/QD-BGDDT dated March 13, 2008 of Ministry of Education and Training, introduces criteria-based formula for allocating task and budget for science and technology activities at HEIs and research institutes. This Decision also contributes to increasing transparency in allocating funds. The main criteria include core teachers and researchers and funds are allocated based on a reporting system of researches done and planned research by the time research fund proposals are submitted. Under HEPDO2, circular No.12/2010/TT-BGDĐT dated 29 March 2010 regulates the management of scientific and technological research at Ministry level, setting criteria for competitive selection of research proposals though this is very input and supply driven.

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62. The Prior Action for HEDPO3 for issuing the regulation on financing mechanism of national education system, covering public subsidies, student tuition fees and student financial assistance for higher education was modified when HEDPO2 was processed. A draft Prime Ministerial Decree on allocating public financing to public HEIs for recurrent budget, dated May 12, 2014 has been put forward for consultation at different ministries. The draft regulation aims to improve the effectiveness, efficiency of equity of state budget in higher education. Tuition fees and student loans had been regulated in separate legislation, while the allocation of public financing needed reform. Changes to the allocation of public financing to HEIs was also seen as consistent with the move towards a criteria-based formula for setting HEIs’ maximum enrollment quotas supported under HEDPO2.9

Quality Improvement: (i) improve the efficiency and transparency of student admissions, and (ii) improve the quality of teaching inputs, and (iii) improve the efficiency and transparency of qualifications;

63. The continuing growth of higher education enrollment put tremendous pressures on the quality of teaching, research and public service. Lack of physical, financial and human resources combined with institutional constraints were identified as major impediments to quality improvement. Some of the policy actions under the governance and financing areas supported higher responsiveness, efficiency and quality. These were complemented by other specific actions to improve quality. Under HEDPO1, the Government issued: (i) regulations on admission to HEI part-time programs, with a view to providing alternative but equivalent pathways to national HEI qualifications (Ministerial Decision No. 62/2008/QD-BGDDT, dated November 25, 2008); (ii) a plan on provision of advanced undergraduate programs in selected HEIs for the period 2008-2015 (Prime Ministerial Decision No. 1505/QD-TTg, dated October 25, 2008), and (iii) a regulation on doctoral programs with a view to enhancing HEI autonomy in admission to, teaching, assessment and award of doctoral degrees (Ministerial Circular No. 10/2009/TT-BGDDT, dated May 7, 2009). 64. HEDPO2 supported a broad agenda to improve quality through enhancing flexibility, mobility and competition in the higher education system, while targeting additional resources to some advanced programs. The move towards a credit-based training system is well under way, and has exceeded the number of pilots (30) established as a Prior Action under HEDPO2. By the 2014/2015 academic year, 179 HEIs have moved to credit-based training. This reform is expected to increase the efficiency, accountability and quality of study programs and faculties by allowing student to move among institutions more fluidly. 65. As a prior action to HEDPO3, MOET issued Circular No. 57/2012/TT-BGDĐT of December 27, 2012 amending Decision No. 43/2007/QD-BGDDT, of August 15, 2007

9 Decision No. 795/QD-BGDDT (February 27, 2010)

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on higher education credit-based training system, providing for: (i) HEIs guidance on the application of credit-based training curricula; (ii) minimum training standards for HEIs; (iii) consistency in HEI’s grading systems; (iv) an early warning system for students to maintain acceptable level of credit accumulation; and (v) the implementation steps for the revised credit-based system in HEIs. Together with higher entry of private and foreign institutions and the publication of information on quality related inputs, the move towards a credit-based system is supporting competition among HEIs. 66. A joint circular between the MOET and the Ministry of Labor (MOLISA) was approved after broad consultation with stakeholders on recognition of prior learning and building pathways between professional technical and higher education. This was considered an urgent priority given the high importance of technical vocational education and training, its relative isolation in the overall education system, and the need to develop multiple skill development pathways. 67. A circular on the disclosure of output-standards by HEIs (Regulation No. 2196/BGDDT-GHDH, dated April 22, 2010) was adopted to further advance on quality improvement through competition and accountability. This regulation provides the administrative framework for the public disclosure of outputs (knowledge, skills, competencies and attitudes) that graduates should achieve at graduation, as determined by each HEI, providing students with additional elements to make informed enrollment decisions. 68. Finally, a joint-circular on financial norms for advance study programs (Joint-circular No. 220/2009/TTLT-BTC-BGDDT, dated November 20, 2009) was approved to provide for increasing funds for improving the flexibility of these study programs, with the objective that this would improve their quality and encourage their uptake, thereby helping create more qualified HEI teaching/research staff. 69. Two actions included under HEDPP as benchmarks for HEDPO2 were excluded from the Program when the operation was processed: (i) establish examination serving both for secondary leaving certification and HEI entrance evaluation; and (ii) issue regulations on alternative delivery methodologies (e.g., distance education, open universities, e-learning and e-textbooks). Given the rapid expansion of enrollments in higher education, a high emphasis has been placed on quality at entry to HEIs. To ensure the fairness and quality of the admissions process while at the same time reduce the costs and administrative burden at all levels, the government plans to combine the high school graduation examination and the HEI admission examination. After a long time of consultation, a draft proposal for this modified examination was prepared and approved by the Prime Minister on September 6, 2014. Remaining key challenges include the limited capacity to design high quality, objective and fair tests, and the sharing of responsibilities in examination and admission between the MOET and HEIs. 70. The recent development of alternative delivery channels will allow Vietnam to move from elite to mass higher education, but will pose a challenge with respect to ensuring quality of delivery. For this, an adequate regulatory and quality assurance

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framework for alternative delivery channels will be important. However, because of the still limited expansion of alternative channels, the government preferred to address recognition of prior learning and building pathways between professional technical and higher education (see above) before addressing alternative delivery. It is expected that the progress in linkages between professional technical and higher education will provide important inputs for the establishment of a National Qualification Framework that MOET and MOLISA are jointly developing for Prime Ministerial approval in 2015.

Quality Assurance: (i) improve information available to Government, as well as to employers, graduates, students and their families, and (ii) improve the quality of teaching and research outputs;

71. The Government’s HERA has as an important objective not only raising quality but cultivating and sustaining and culture of quality in the higher education system. The HEDPP supported government policies aimed at developing this quality culture from within individual HEIs, supported by an external environment that demands high quality standards. This is seen as all the more important for improving accountability of more autonomous HEIs. 72. Under HEDPO1, the Government issued a regulation (Ministerial Circular No. 09.2009/TT-BGDDT, dated May 7, 2009) requiring HEIs to disclose information relating to the quality of education, facilities, teaching and management staff, income and expenditures on a regular basis. This regulation aims to improve timeliness and quality of information about HEI performance that is available to the Government, employers, graduates, students and their families. The Government also established the National Accreditation Body (Ministerial Decision No. 7113/QD-BGDDT, dated October 23, 2008) that is charged with reinforcing the quality assurance system at the central level by specifying and ensuring minimum quality standards. 73. The approval of the Education Law 2009 led to a slight adjustment in the Prior Action for HEDPO2 that required issuing regulations for the establishment of independent review agencies responsible for regularly reviewing public and private HEIs against minimum standards and advising government on their accreditation. The MOET needed to put out a comprehensive framework for education quality assurance and accreditation before a new structure for accreditation was set up (this became the revised Prior Action). A Regulation on the framework for education quality assurance and accreditation was approved by the MOET (Ministerial Decision No. 4138/QD-BGDDT, dated September 20, 2010). The framework outlines two main objectives of the system: (i) ensuring minimum standards and accountability of HEIs, and (ii) promoting the development of quality assurance culture at the institutional level. The first objective is to be achieved through the accreditation process. MOET will be responsible for setting accreditation standards and procedures and licensing accreditation agencies, which may include from among government, non-governmental and private agencies. For the second objective, the framework outlines the process of developing quality systems at the institutional level, including: (i) establishment of quality centers; (ii) development of quality assurance mechanisms including internal and external reviews, and (iii) other

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feedback mechanisms. The accreditation model grants stronger independence to accreditation agencies that the previous model (in which these agencies only conduct external evaluation and the accreditation/certification rested with the MOET-led accreditation body). 74. When the HEDPO3 began, there were no accreditation agencies in Vietnam. In September and November 2013, the MOET issued Decisions (3568/QD-BGDDT, 5570/QD-BGDDT) on the establishment of two state education quality assurance centers (VNUHN CEA and VNUHCM CEA). Substantial progress has been made ever since to operationalize these national accreditation centers which have successfully trained 240 independent accreditors – 60 became certificated in July 2014. This has enabled the external accreditation for HEIs to commence in 2014 as stipulated in the HE Law. MOET is calling for establishment of further accreditation bodies from the private sector to enhance the quantitative and qualitative capacity of independent assessment which will likely improve the quality of training provision. 75. Another important prior action for HEDPO3 was the development on internal quality systems. To date, 301 HEIs (71 percent) have set up quality assurance centers but their capacity to provide quality assurance services to the university and to faculties remains limited. Several workshops were held to provide capacity building for staff of quality assurance centers and to develop feedback instruments from students, employers, and graduates. Nevertheless, some HEIs informally reported different progress in establishing quality systems, and reported lack of guidance and need for technical assistance to make progress.

Financial Reporting and Audit: (i) achieve financial transparency and efficiency in public resource use, and (ii) ensure adequate oversight of public funds through independent audits;

76. Improving transparency and accountability in public financial management is seen as particularly important given the high level of perceived risk in public investment programs operating in increasingly decentralized HEIs with moderate institutional capacity. Under the HEDPP the government streamlined the budgeting, financial reporting and audit process between MOET and the HEIs. The Government completed satisfactorily Prior Actions for all three series. Financial reports for fiscal year 2011 (HEDPO2) were received by 45 MOET managed HEIs, and the State Audit of Vietnam audited 25 HEIs; for fiscal year 2013 (HEDPO3), all 44 MOET managed HEIs submitted the reports to MOET with Hanoi University of Agriculture started reporting to its line Ministry of Agriculture and Rural Development. The financial statements complied with government regulations, and the audits were reviewed and endorsed by IDA. 3.4 Justification of Overall Outcome Rating Rating: Moderately Satisfactory 77. The overall outcome rating is moderately satisfactory. This is based on the Program’s continued relevance, and the sustained progress towards putting in place the fundamentals of a modern, quality, equitable higher education system that is responsive

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to Vietnam’s growth and poverty reduction objectives. The sheer magnitude of the reform supported by the HEDPP was impressive. The systemic reform is a long haul exercise that is organic in nature. Therefore, despite extensive and significant progress, challenges remain in achieving some Program goals within the short period of time for implementation. Based on the existing progress and initial results, together with the Government’s continued commitment to its HERA, there is no doubt that the Program has made a substantial contribution to the reform of Vietnam’s higher education system.

3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 78. The HEDPP was expected to produce generally positive poverty and social impacts. Through a comprehensive financing strategy to address needs for both fund diversification and equitable access, the policy reforms supported by the HEDPP were expected to have generally positive effects. In fact, the proportion of HEI students that belonged to ethnic minority groups increased from a baseline of 0.9 percent in 2007/2008 to 2.0 percent in 2010/11, as targeted. The move toward a credit-based training system and the establishment of equivalencies between higher and technical and vocational education and training (TVET), together with recognition of prior learning are all expected to have significant positive impacts on disadvantaged students that typically attend TVET in higher numbers and that work while studying, mostly by permitting them to obtain recognition for their courses and degrees across education levels and HEIs. 79. The higher education reform supported by the HEDPP is being financed through the State Budget, development assistance and fees. Supported by the Program, Prime Ministerial Decree No. 49/2010/ND-CP dated May 14, 2010 established a new tuition fee schedule for the 2011-2015 period for public sector HEIs (private institutions have no cap on their fees). To protect the impact of the increase in fees on disadvantaged students, this Decree also expanded fee exemptions and reductions and student aid that have been in place since the late 1990s. The Government has had an active policy of providing fee deductions and exemptions benefitting, among other students, those from poor and ethnic minorities. In 2006, about 22 percent of mostly disadvantaged higher education students were benefiting from significant fee deductions (up to 50 percent). The Government has also adopted student aid schemes. Since 2006, students from ethnic minorities have been receiving lump-sum assistance representing about one-third of their overall monthly higher education costs. From 2007, scholarships for poor students were increased to cover full tuition costs. The Government in a separate directive further increased the amount of student loans under a student loan program that was introduced in 1998, but since that time had covered very few students and hence, had had little impact. This loan program was modified substantially in 2007 to provide for a significant increase in loan amounts and longer repayment periods. As of March 2014, there are 1,970,960 active student loans for Vietnam’s 2,177,299 higher education students. Both students from public and private HEIs are potential beneficiaries of student loans. (b) Institutional Change/Strengthening

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80. The HEDPP was a program whose every objectives were defined to radically change the institutional setting and governance arrangements for higher education in Vietnam, and these achievements are described in detail in Section 3.2. The program’s impact on the roles of the MOET and the HEIs, the relationship between them, the increased autonomy and decentralization on academic and personnel matters including overall enrollment, program content, tuition fees for non-mainstream undergraduate students and staff recruitment and retention has been impressive. While there will be challenges to be tackled in the future, including strengthening of HEIs, internalizing their new accountability and autonomy, ensuring that MOET has the capacity to operate in its new steward role, the major impact that the HEDPP has had on the institutional structure for higher education in Vietnam cannot be underestimated. (c) Other Unintended Outcomes and Impacts N/A 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 81. A workshop on the Program was held in Danang on February 16 and 17, 2012, chaired by the Director of the Higher Education Unit in MOET, and attended by representatives of 79 HEIs. The Bank also participated. The feedback provided by the HEIs during the workshop, especially the need to differentiate among different types of HEIs and provide a comprehensive policy framework under which they operate, have been incorporated in throughout this report. 4. Assessment of Risk to Development Outcome Rating: Negligible to Low 82. The Risk to Development Outcome is Negligible to Low, based on: Government ownership of higher education reform as embedded in its SEDP and

HERA—this is the Government’s program, it is a high priority for the country that addresses a very important constraint to its continued future growth;

The extensive consultation, consensus-building and general outreach that the government pursued before adopting important policies and reforms bodes well for “buy-in” from all involved parties;

The Government’s emphasis on protecting disadvantaged groups, ensuring that their access to higher education is not only guaranteed but expanded through different mechanisms (Section 3.5 (a));

Policy reforms did not occur in a vacuum—they were put into practice through government programs, partially financed by IDA under HEP2 and NMUP, that provided the technical capacity building, investments, etc. that actually supported implementation of new policies;

Approval of the Higher Education Law by the National Assembly; and despite delays in implementation of some measures, e.g., Master Plan, the Government advanced the drafting and passing of the Higher Education Law which represents the highest legislative document to direct its reform in the sector.

5. Assessment of Bank and Borrower Performance

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5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Moderately Satisfactory 83. Bank Performance in Ensuring Quality at Entry is rated moderately satisfactory. The Bank grounded the Program’s preparation within a comprehensive strategy of support to higher education reform, incorporated lessons learned from earlier projects and programs, incorporated best practices with respect to Prior Actions and Benchmarks, and most importantly, the Bank’s assistance was timely, in response to the Government’s then recently adopted HERA. The Program was ambitious, especially given the difficult political realities of higher education reform, but not beyond the Government’s capacity given its commitment, but perhaps overly optimistic in terms of the speed with which different policies were expected to be put in place and legislation adopted. In addition, the reforms required actions to be taken in sequence which was not always possible given the comprehensiveness of the broad reform leading to some inconsistences in the implementation of the reforms. The Program’s Results Framework was also slightly optimistic, especially since it is not clear that some results and targets expected could be achieved in their entirety within such a short period after policy actions had been taken. (b) Quality of Supervision Rating: Satisfactory 84. The quality of supervision is rated satisfactory. Supervision, mostly continuous in terms of preparation of each subsequent phase in the programmatic series, was timely and flexible. The Bank’s supervision was pragmatic, reviewing and monitoring the progress of policy implementation, and providing hands-on technical support. As a continuous process, it also adjusted Prior Actions and benchmarks to adapt to Government and implementation realities identified throughout implementations support. Supervision was coordinated within the context of overall IDA assistance, with financing of needed technical assistance often provided within the context of other operations, and implementation of policy measures in others. (c) Justification of Rating for Overall Bank Performance Rating: Moderately Satisfactory 85. Overall Bank performance is rated moderately satisfactory, based on ratings for ensuring quality at entry and quality of supervision, and on the Program’s outcome rating. 5.2 Borrower Performance (a) Government Performance Rating: Moderately Satisfactory 86. Government for purposes of this Section is taken to be the broader Government and MOET. The Government’s Performance is rated moderately satisfactory. The Government demonstrated consistent commitment to very ambitious reform program, as

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reflected in sustained support and enormous number of individual pieces of legislation. Risk aversion and continuous consultative processes aimed at consensus-building seeking to incorporate views of multiple stakeholders before adopting policies, produced some delays in the reform process. Decisions often took longer than originally expected, but because of this extensive consensus-building, they are likely to be more grounded and sustainable. (b) Implementing Agency or Agencies Performance Rating: Moderately Satisfactory 87. Implementing Agencies for the purposes of this Section are taken to be the Higher Education Program Unit in MOET and the Higher Education Department that took over responsibility for the Program’s implementation when the Program Unit was dismantled at the end of HEDPO2 and the HEIs. The Higher Education Program Unit/HE Department moved the Program forward consistently, but progress in improving monitoring and evaluation, in establishing an HEMPIS as had been originally envisaged and in improving the availability of timely, reliable data was less than expected. Implementing Agencies’ Performance is rated moderately satisfactory. Under the Program, significant decision - making authority was transferred to HEIs from the MOET to HEIs. The new legal framework requires the HEIs to be more proactive and accountable in carrying out their academic, financial and human resource management functions. Implementation differs among public and private HEIs, especially among those public HEIs that report to a ministry other than MOET. A number of HEIs still await specific guidance for implementation from the center. However, the policy environment in which both MOET and the HEIs have been operating is constantly evolving, in a positive direction, towards the vision put forth in the HERA and both the Higher Education Program Unit/HE Department in MOET and the HEIs have demonstrated commitment to the reforms and cooperated to work out issues as they have arisen. (c) Justification of Rating for Overall Borrower Performance Rating: Moderately Satisfactory 88. Overall borrower performance is rated moderately satisfactory based on ratings for Government performance and implementing agencies’ performance. 6. Lessons Learned 89. The HEDPPs’ implementation reinforces lessons learned that had been identified during preparation, both with respect to the Bank’s previous support, and with respect to good practice in policy lending. The Program highlights the importance of a comprehensive approach to reform.

Although the reform was not sequential, e.g., the Higher Education Law was only recently approved and progress has been slower than originally expected. However, an important effort was set in motion and, in part, due to the extensive consultation process carried out, progress has been steady.

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There is a need for higher level of coordination for policy reforms in higher education reform than that provided by MOET. This is because several important public HEIs have reporting relationships beyond those to MOET (e.g. some university reports to the Ministry of Health, some to the Ministry of Justice, etc.), and without reforms to adjust their relationship with the other ministry or office to which they report they are not able to benefit fully from the autonomy provided by MOET. Perhaps an inter-ministerial coordinating committee could be put in place to prove the link to other relevant ministries (e.g., MOLISA, Ministry of Home Affairs, Ministry of Justice, etc.)

An integrated strategy with a mix of different instruments works effectively in support a comprehensive reform program, but delays in the approval of implementation of activities under one instrument can lead to delays in the approval or implementation of another, e.g., delays in the selection of an international expert to help draft the Higher Education Law, led to delays in its preparation, consultation and enactment;

Vietnam’s consensus building process takes time. It would be important to build in additional time into the implementation schedule of future operations to incorporate adequate time for consensus building, but to do so on the basis of a realistic timetable that would ensure consistent and continued progress towards critical policy measures;

Flexibility in adjusting Prior Actions and Benchmarks is important towards the eventual achievement of a program’s development objectives

There is a need to carefully identify realistic outcomes that can be expected to result from the adoption of policy actions over an implementation period from policy actions selected as prior actions or triggers. This is especially relevant in a program that embraces policies enacted or put in place by the Government but that are to be implemented by autonomous institutions, in this case the HEIs. There is a natural lag between enactment of policies, their dissemination and eventual putting in place by institutions of varying institutional capacity.

In an instrument structured as the HEDPP, a policy-based operation with funding provided to the Government for policies is adopted, but the timing between adoption of policies and results expected through autonomous institutions, the HEIs, was too ambitious. In addition, HEIs were offered only minimal technical support, to put in place the new mechanisms, institutional arrangements, and overall improvements that was required of them. In any future development policy operation in Vietnam in support of higher education autonomy it would be important to provide parallel technical assistance and possibly financial incentives to ensure they are able to effectively implement new policies.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/Implementing agencies 90. The Development policy instrument was appropriate in recognizing the Government policy actions. However, MOET has not been able to mobilize any of the funds to support the issuance of by-laws, neither to support HEIs in implementing the

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Higher Education Law since the first series was fully disbursed in 2009. Ministry of Planning and Finance has only recently reviewed the MOET’s proposal on mobilizing the fund. At the time of the draft of this ICR, no fund has been made available. Decision on financing instrument for future operations should take this implication into consideration. 91. Having recognized the significance the DPL put in place to enhance legal framework for the higher education sub sector, MOET is now seeking further support in developing the national qualification framework with a view to establish industry-linked knowledge and skills standards for learners. (b) Co-financiers Not Applicable (c) Other partners and stakeholders Not Applicable

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Annex 1: Bank Lending and Implementation Support/Supervision Processes

(a) Task Team members

Higher Education Development Policy Program – First Operation (P104694)

Names Title Unit Responsibility/Specialty

Lending Jeffrey Waite Senior Education Specialist GEDDR Team Leader Vu, Binh Thanh Senior Education Specialist GEDDR Team Member Hisham A. Abdo Kahin Lead Counsel LEGES Counsel

Quynh Xuan Thi Phan Financial Officer GEFOB Financial Management

Robert J. Gilfoyle Sr Financial Management Specialist GGODR Team Member

Thanh Thi Mai Senior Education Specialist GEDDR Team Member Ball, Carol Chen Senior Education Specialist EASHD Team Member Graham, Douglas J. Nguyen, Anh Thuy Operation Analyst GEDDR Team Member Patrinos, Harry Anthony

Tran, An Thi My Education Specialist GEDDR Team Member

Hung Viet Le Sr Financial Management Specialist EAPDE Financial Management

Supervision Binh Thanh Vu Senior Education Specialist GEDDR Team Leader Emanuela Di Gropello Program Leader AFCW3 Team Member

Hisham A. Abdo Kahin Lead Counsel LEGES Counsel

Quynh Xuan Thi Phan Financial Officer GEFOB Financial Management

Robert J. Gilfoyle Sr Financial Management Specialist GGODR Team Member

Thanh Thi Mai Senior Education Specialist GEDDR Team Member

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Lending Thanh Thi Mai Senior Education Specialist GEDDR Task Team Leader Emanuela di Gropello

Senior Human Development Economist GEDDR Co-Task Team Leader

Jeffrey Waite Lead Education Specialist GEDDR Team Member Christian Bodewig Senior Economist GEDDR Team Member Binh Thanh Vu Senior Education Specialist GEDDR Team Member

Robert Gilfoyle Senior Financial Management Specialist GGODR Team Member

Quynh Xuan Thi Phan

Financial Management Specialist GGODR Financial Management

Kofi Awanyo Senior Procurement Specialist GGODR Team Member

Hoai Van Nguyen Procurement Specialist GGODR Team Member Hisham A. Abdo Kahin Senior Counsel LEGES Team Member

Douglas Graham Team Member Prateek Tandon Economist GEDDR Team Member Franco Russo Operations Officer GEDDR Team Member Yuling Zhou Lead Procurement Specialist GGODR Team Member

Anjali Acharya Senior Environmental Specialist EASVS Team Member

Martin Serrano Senior Counsel LEGES Team Member Nông Thị Mai Hương Junior Counsel EACVF Team Member

Supervision Binh Thanh Vu Senior Education Specialist GEDDR Team Leader

Cung Van Pham Sr Financial Management Specialist GGODR Financial Management

Specialist

Thanh Thi Mai Senior Education Specialist GEDDR Task Team Leader Yuling Zhou Lead Procurement Specialist GGODR Procurement Specialist

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Lending Thanh Thi Mai Senior Education Specialist GEDDR Team Leader


Specialist Yuling Zhou Lead Procurement Specialist GGODR Procurement Specialist Supervision Michael F. Crawford Lead Education Specialist GEDDR Team Leader


Specialist Dung Kieu Vo Senior Education Specialist GEDDR Team Member Yuling Zhou Lead Procurement Specialist GGODR Procurement Specialist

(b) Staff time and cost Higher Education Development Policy Program – First Operation (P104694)

Stage

Staff Time and Cost (Bank Budget Only)

No. of staff weeks USD Thousands (including travel and consultant costs)

Lending FY07 2.5 11.74 FY08 19.87 81.32 FY09 22.14 132.6

Total: 44.51 225.66 Supervision/ICR

FY10 0 0 Total: 0 0

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(c) Staff time and cost (cont.) Higher Education Development Policy Program – Second Operation (P116353)

Stage Staff Time and Cost (Bank Budget Only)


Lending FY10 22.36 121 FY11 13.82 71.65 FY12 0.82 1.16

Total: 37 193.81 Supervision/ICR

FY12 5.47 9.69 Total: 5.47 9.69


Stage Staff Time and Cost (Bank Budget Only)


Lending FY11 4.74 63.17 FY12 13.65 142.19 FY13 14.76 136.62

Total: 33.15 341.98 Supervision/ICR

FY14 8.63 65.65 Total: 8.63 65.65

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Annex 2. Beneficiary Survey Results Not Available

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Annex 3. Stakeholder Workshop Report and Results Not Available

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Annex 4. Summary of Borrowers ICR and/or Comments on Draft ICR

MINISTRY OF EDUCATION AND TRAINING EVALUATION REPORT ON

HIGHER EDUCATION DEVELOPMENT POLICY PROGRAM

I. Summary on Higher Education Development Policy Program 92. Higher Education Development Policy Program (HEDPP) is designed together with Higher Education Project 2 (HEP2) and New Model University Project (NMUP) in order to support the implementation of "2006-2010 Socio-Economic Development Plan" (SEDP) 10 and "Higher Education Renovation Agenda" (HERA) 11 of Vietnam. The purpose of the program is to enhance competencies of system administration, university autonomy and accountability; renovate university finance, strengthen transparency of financial management in higher education; improve education quality and scientific research and quality assurance. 93. HEDPP was designed into three phases, each of which is entitled to a loan of US$50 million. Phase 1 (HEDPO1) was developed, implemented with policy commitment and prepared for documents from 2008 and the World Bank (WB) approved the loan on June 23, 2009. Phase 2 (HEDPO2) was developed, prepared for documents from 2009 and the World Bank approved the loan on December 16, 2010. Phase 3 (HEDPO3) was developed from March, 2011. However, at the end of 2012, HEP2 Project was completed, and HEDPO3 was designed as a stand-alone program and was approved by the World Bank on May 14, 2013. 94. This evaluation report focuses on the achieved results; policy impacts of the documents; shortcomings and limitations of three phases according to the following areas: University governance; Finance and financial management; Quality and quality assurance.

II. Results and Monitoring indicators

2.1. Phase 1 2.1.1. Achieved results

95. 11 policy documents had been issued to govern the following areas: 96. Five documents had been issued to address administration aspects: Decision No. 380/2009/QD-TTg dated March 24, 2009 of the Prime Minister promulgating the

10 2006-2010 Social-Economic Development Plan, Government Resolution No. 25/2006/NQ-CP, dated October 09, 2006. 11 Resolution on Fundamental and Comprehensive Renovation of Higher Education in Vietnam during 2006-2020 (Government Resolution No. 14/2005/NQ-CP, dated November 02, 2005, on fundamental and comprehensive renovation of higher education in Vietnam during 2006-2020).

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Regulation on organization and operation of Vietnamese - German University; Decision No. 64/2008/QD-BGDDT dated November 28, 2008 of the Minister of Education and Training promulgating Regulation on working mode for lecturers; Decision No. 174/2008/QD-TTg dated December 31, 2008 of the Prime Minister promulgating the Regulation on standards and procedures for appointment and dismissal of the titles Professor, Associate Professor; Decision No. 61/2009/QD-TTg dated April 17, 2009 of the Prime Minister promulgating the Regulation on organization and operation of private universities; Decision No. 07/2009/QD-TTg dated January 15, 2009 of the Prime Minister stipulating conditions and procedures for the establishment, operation suspension, merge, split, dissolution of the universities. 97. One document had been issued to address financial aspect: Resolution No. 35/2009/NQ-QH12 dated June 19, 2009 of the XII National Assembly, 5th Session on the policy and orientation for renovation of some financial mechanisms in education and training since the 2010 - 2011 school year to the 2014-2015 school year. 98. Five (05) documents were issued to address quality improvement and assurance: Decision No. 62/2008/QD-BGDDT dated November 25, 2008 of the Minister of Education and Training promulgating Regulation on admission into in-service college and university; Decision No. 1505/QD-TTg dated October 15, 2008 of the Prime Minister approving the project "Advanced program training at some universities in Vietnam in 2008-2015"; Circular No. 10/2009/TT-BGDDT dated May 07, 2009 by the Minister of Education and Training promulgating Regulation on doctoral level training; Circular No. 09/2009/TT-BGDDT dated May 07, 2009 by the Minister of Education and Training promulgating Regulations on publicity for the institution of the national education system; Decision No. 7113/QD/BGDDT, dated October 23, 2008 of the Minister of Education and Training on the establishment of the National Quality Assurance Council which is responsible for accreditation of higher education institutions.

2.1.2. Evaluation of indicators in Phase 1: • Number of students per 10,000 citizens: 222/200, higher than the set targets; • Proportion of female/male students in higher education institutions: 0.97/1, lower

than the set targets; • Proportion of ethnic minority students: 1.1/1.5, increased compared to 2007/2008 but

missed the set targets; • Proportion of non-public students: 12.7/14, increased compared to 2007/2008 but

missed the set targets; • Public expenditure on education: 11.2/11.9; decreased compared to 2007/2008; • Public expenditure per student: 6.0 million VND/6.6 million VND, increased

compared to 2007/2008 but missed the set targets; • Proportion of lecturers with master's degree: 57.2/40, increased compared to

2007/2008 and higher than the set targets; • Proportion of lecturers with Ph.D. 14/12, increased compared to 2007/2008 and

higher than the set targets; • Number of articles published on international scientific journals: increased but did not

met the target.

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http://legal.khaitri.vn/Index.asp?n=69593


• Proportion of schools with annual financial statements (percentage): 100/13. Department of Planning - Finance, the Ministry of Education and Training confirmed: 100% of higher education institutions must submit annual financial statements to comply with the Accounting Law.

• Number of higher education institutions managed by the Ministry of Education and Training which have been audited: 12/12, target was met.


99. 11 legal documents were issued in Phase 2 to address several aspects of higher education development: 100. Two (2) documents were issued to address governance: Directive No. 296/CT-TTg dated February 27, 2010 of the Prime Minister on renovation of higher education management in 2010-2012; Decision No. 58/2010/QD-TTg dated September 22, 2010 of the Prime Minister promulgating the University Charter. 101. Two (2) other documents were issued to address financial management: Decision No. 795/QD-BGDDT dated February 27, 2010 stipulating the determination of enrollment quotas, registration procedures, notification of enrollment quotas, inspection and handle of quota performance; Decree No. 49/2010/ND-CP dated May 14, 2010 stipulating on reduction and exemption of tuition fee, support for learning cost, collection and use of tuition applicable to educational institutions belonging to national education system from the 2010 - 2011 school year to the 2014-2015 school year. 102. Five (5) documents were issued to address quality improvement and assurance: Decision No. 4138/QD-BGDDT dated September 20, 2010 approving the Project of building and developing education quality accreditation system for higher education and professional high school during 2011-2020; Official Letter No. 2196/BGDDT-GDDH dated April 22, 2010 guiding the development and publication of outcome standard of majors; Joint Circular No. 27/2010/TTLT-BGDDT-BLDTBXH dated October 28, 2010 guiding the articulation education from the vocational school, vocational college level to colleges and universities; Joint Circular No. 220/2009/TTLT-BTC-BGDDT dated November 20, 2009 guiding the financial management of funds for implementation of the Advanced program; Circular No. 12/2010/TT-BGDDT dated March 29, 2010 promulgating Regulations on management of ministerial-level scientific and technological researches of the Ministry of Education and Training.

Evaluation of indicators in Phase 2:

• Number of students per 10,000 citizens: 246/225, higher than the set targets; • Proportion of female/male students in higher education institutions: 1/1.0, lower than

the set targets; • Proportion of ethnic minority students: 2/2, achieved the set targets; • Proportion of non-public students: 15.6/17, increased compared to 2008/2009 but

missed the set targets;

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• Public expenditure on education (percentage): 11.2/12.1, higher than the set targets; • Public expenditure per student: 6.6 million VND/6.7 million VND, target was missed; • Proportion of income of higher education institutions from tuition fees (percentage):

42/42, target was met; • Proportion of students have accessed to credit-based training (percentage): 30/30,

target was met • Proportion of lecturers with master's degree: 59/42, higher than the set targets; • Proportion of lecturers with Ph.D. 14/13, higher than the set targets; • Number of articles published on international scientific journals: slightly increased

but target was not met; • Proportion of higher education institutions which have been accredited: 6/6, target

was met. • Proportion of schools with annual financial statements (percentage): 100/15.

Department of Planning - Finance, the Ministry of Education and Training confirmed: 100% of higher education institutions must submit annual financial statements to comply with the Accounting Law.

• Proportion of higher education institutions which have been audited: 27/20, target was met.


103. A number of legal documents were issued in Phase 3. 104. Four (4) documents were issued to address governance: Higher Education Law adopted by the National Assembly through Law No. 08/2012/QH13 dated June 18, 2012; Circular No. 57/2011/TT-BGDDT and Circular No. 20/2012/TT-BGDDT on December 02, 2011 and December 06, 2012, respectively, strengthening the autonomy of higher education institutions in determining enrollment quotas, based on minimum requirements of competencies of staff and facilities for training; Decree No. 73/2012/ND-CP dated September 26, 2012 on foreign cooperation and investment in education stipulating conditions, scope of establishment and operation of foreign-capitalized higher education institutions. 105. One (1) documents were issued to address to quality improvement and assurance: Circular No. 57/2012/TT-BGDDT dated December 27, 2012 amending and supplementing a number of articles of the Regulation on full-time undergraduate and college education under the credit system accompanying Decision No. 43/2007/QD-BGDDT dated August 15, 2007 of the Minister of Education and Training.

2.3.2. Evaluation of indicators in Phase 3: • The number of higher education institution having School council: 14/20, target not

met; • The number of higher education institutions having the autonomy to set targets and

define the contents of curriculum: 505/16, target overachieved. • Number of foreign-cooperated curricula: 339/300, target overachieved.

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• Public expenditure on higher education: 11.51/12.5, target not met. • Proportion of income of higher education institutions from tuition fees (percentage):

39/45, target was not met. • Proportion of students entitled to credit loan (percentage): 70/70, target was met; • Proportion of schools with annual financial statements: 100/45, Department of

Planning - Finance, the Ministry of Education and Training confirmed: 100 percent of higher education institutions must submit annual financial statements to comply with the Accounting Law.

• Proportion of students participating in credit based curriculum: 68/50, higher than the set targets;

• Number of independent accrediting organizations: 2/2, target was met. • Number of training institutions having internal evaluation units: 301/180, target was

exceeded. III. Assessment of impacts by curriculum objectives

3.1. Positive impacts 3.1.1. Governance

106. The policy documents of higher education development in the program have involved in the implementation process of fundamental and comprehensive renovation in higher education in Vietnam during the period of 2006 - 2020 under the Government's Resolution No. 14 and Resolution No. 44/NQ-CP dated June 09, 2014 of the Government on fundamental and comprehensive renovation in education and training, satisfying requirement of industrialization, modernization in market oriented socialist economy and international integration. 107. Law on Higher Education is an important policy document which was issued in Phase 3. This is the most important legal basis for the fundamental and comprehensive renovation in higher education. Law on Higher Education covers the Program's areas, including university governance; finance and financial management; quality and higher education quality enhancement. The Law on Higher Education focuses on the autonomy of higher education institutions, on testing and quality assurance. Under the provisions of the Law on Higher Education, the training institutions have autonomy in the formulation and approval of curriculum. Implementing the Law on Higher Education, the Ministry of Education and Training takes main responsibility in formulation and submission to the Government for adoption of Decree No. 141/2013/ND-CP dated October 24, 2013 detailing and guiding implementation of some articles of Law on Higher Education, which has positive impacts on improving the legal document system; on socialization and foreign investment, especially on lecturers and entire system of higher education. 108. Decree No. 73/2012/ND-CP dated September 26, 2012 on foreign cooperation and investment in education stipulating conditions, establishment and operation of foreign-capitalized educational institutions, including higher education institutions. This Decree was built from Phase 1 through Phase 2 and was adopted by the Government after the Document of Phase 3 was signed. This Decree provides for the establishment of educational institutions, cooperated curricula including higher education and foreign-

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cooperated training. Decree 73 has positive impacts on the State management for the establishment of foreign training institutions and joint training activities in accordance with the law of Vietnam and of the country having projects of establishment of schools or joint training programs in Vietnam. 109. University Charter, policy documents issued in Phase 2 under Decision No. 58/2010/QD-TTg dated September 22, 2010 of the Prime Minister. University Charter issued has created a legal framework for higher education, especially in the following contents: University Council; lecturer standards; conditions and procedures for opening training majors and specialties; autonomy and social responsibilities of universities; university accreditation; reporting regime. University Charter has a strong impact on university management and governance renovation at the macro and micro level; implementing higher education decentralization; enhancing university autonomy and social responsibility; developing teaching staff in both quantity and quality; renovating training contents and methods towards improving education quality, associating training with scientific research and practical production and business; improving efficiency of scientific and technological activities, international cooperation; developing facilities, equipment, textbooks and materials for training, scientific research towards standardization and modernization; establishing quality assurance systems of higher education and ensuring effective operation of accreditation system; developing higher education in association with social needs and international integration. The organization and implementation of University Charter in accordance with Decision 58 has strengthened the autonomy of universities in the organization of school activities; improved the competencies and quality of teaching staff and is a prerequisite for the development of Law on Higher Education later. 110. Decision No. 380/2009/QD-TTg dated March 24, 2009 of the Prime Minister promulgating the Regulation on organization and operation of Vietnamese - German University. This policy document was developed and promulgated in Phase 1. Regulation on organization and operation of Vietnamese - German University defined an advanced organization model of higher education in Vietnam, which established a University Council which had real power. Vietnamese - German University has empowered with high autonomy in organization of human resources, finance, enrollment, training organization and management, science and technology activities; the successes in applying models and mechanisms at Vietnamese - German University will be summarized, evaluated and applied gradually to the entire system of higher education; create important premise and motivation for fundamental and comprehensive renovation of education in Vietnam. 111. Decision No. 61/2009/QD-TTg dated April 17, 2009 of the Prime Minister promulgating the Regulation on organization and operation of private universities. The document was issued in Phase 1. This decision is a legal basis for the operation of private universities, especially human resource organization, functions, duties, training and scientific research, quality assurance, campus construction, experimental equipment, library, facilities. This Regulation is the basis for investors to build strategic development of the university by phase and road-map committed in the university establishment

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agenda. Regulation on organization and operation of private universities has a positive effect in encouraging education investment and socialization. 112. Decision No. 07/2009/QD-TTg dated January 15, 2009 of the Prime Minister specifying conditions and procedures for the establishment, operation suspension, merge, split, dissolution of the universities. This document issued in Phase 1 is minimum standards for the founders, investors to prepare necessary documents and conditions for the establishment of universities. This decision also stipulates minimum standards for the construction and evaluation of documents for universities establishment towards quality assurance conditions in preparation of training organization. 113. The policy documents for higher education development which were developed and issued in all 3 phases of the Program focus on strengthening autonomy and accountability of universities; changing State management approaches, especially that of the Ministry of Education and Training applicable to higher education institutions.

3.1.2. Finance 114. Circular No. 57/2011/TT-BGDDT dated December 2, 2011 of the Minister of Education and Training, which was amended and supplemented by Circular No. 20/2012/TT-BGDDT dated June 12, 2012, was developed and promulgated in Phase 3. The Circular provides for identification of enrollment quotas of doctoral, master, university, college and professional high school levels, including: criteria and principles for determining enrollment quotas; registration procedures, violation handling. This Circular has positive impact on the autonomy and self-accountability of training institutions in determining and implementing the annual enrollment quotas; ensuring openness and transparency in the determination and announcement of annual enrollment quotas; creating conditions for society and learners to monitor the quality assurance capability of training institutions while promoting the investment in and development of conditions for training quality assurance by institutions. Criteria for determining targets will be based on minimum requirements of competencies of training staff and facilities. 115. Decree No. 49/2010/ND-CP dated May 14, 2010 stipulating on reduction and exemption of tuition fee, support for learning costs, collection and use of tuition applicable to educational institutions belonging to national education system from the 2010 - 2011 school year to the 2014-2015 school year. This policy document was developed and promulgated in Phase 2. Decree 49 created a legal framework and road-map for tuition fee adjustment in the national education system from the 2010-2011 school year to 2014-2015 school year, including: Stipulating subjects who do not have to pay tuition fees, Subjects exempted from tuition fees; Subjects entitled to tuition fee reduction; Subjects entitled to support for learning costs; Mechanism of reduction and exemption of tuition fees and support for learning costs; Terminable training will be free from tuition fees; Stipulating principles for determining tuition fees; tuition fee framework for early childhood education and general education; tuition fee maximum level for vocational education and formal higher education in public educational institutions and tuition fee increase road-map until the 2014 - 2015 school year;

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stipulating tuition fees for regular training and training under the credit system; organizing the collection and use of tuition fees. The tuition fees that are higher than the tuition fees paid before the promulgation of the Decree have a positive effect in quality improvement and assurance under the condition of limited State budget. 116. Decision No. 795/QĐ-BGDDT dated on 27 February 2010 regulates the specification of enrollment quota, enrollment procedures, announcement of enrollment quota, monitoring and handling violations in implementing enrollment quota. This document was elaborated and enforced in Phase 2. It regulates the student - faculty ratio; space area per a student; specifies enrollment quota for regular education, in-service training, articulation education, and second degree education; identification of enrollment quota in 2010 was still based on enrollment results in 2009 and public reports of education institutions. This Circular helps to make the specification and allocation of training quota to higher education institutions and lay foundation for developing criteria for quota specification. The Circular was then replaced with Circular No. 57/2011/TT-BGDDT dated 2 December 2011 which was modified and supplemented in line with Circular No. 20/2012/TT-BGDDT dated on 12 June 2012. 117. Joint Circular No. 220/2009/TTLT-BTC-BGDDT by the Ministry of Finance and the Ministry of Education and Training dated on 20 November 2009 guiding financial management of the budget for the implementation of the Advanced Training Program. This Circular was promulgated in Phase 2. The Circular regulates budget source for the implementation of the Advanced Training Program; expenditure items, and cost norms; guidance on designing budget projection and finalization, and cost norms with financial source from State Budget, meeting requirements of universities in carrying out the Advanced Training Program. It is the motive drive for universities to expand the operations of Advanced Training Program to other faculties and universities, which creates development momentum comprehensively in the Higher Education system, aiming at improving Higher Education training quality. 118. Resolution No. 35/2009/NQ-QH12 dated on 19 June 2009 in the fifth session of the 12th National Assembly provides guiding principles and directions for reforms of some financial mechanisms in education and training from school year 2010-2011 to school year 2014-2015. This document was promulgated in Phase 1. This Resolution offers legal frameworks for reforms in financial mechanism in education in general and higher education in particular; provides legal basis for autonomy enhancement, social responsibility of universities in financial aspects; facilitates universities to actively adjust tuition fees for training costs aiming at guaranteeing and improving training quality.

3.1.3. Quality and quality improvement 119. Circular No. 57/2012/TT-BGDDT dated on 27 December 2012. This document was elaborated in Phase 3. It provides guidelines for higher education institutions in applying credit based training system; minimum training standards for higher education institutions; consistency of scoring system; gives early warnings for students in order to maintain credit accumulation at an acceptable level and changes in administration for

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higher education institutions. This Circular overcomes some limitations and gaps during the implementation of credit based training, which was promulgated together with Decision No. 43/2007/QĐ-BGDDT dated on 15 August 2007 by the Ministry of Education and Training. 120. Official Letter No. 2196/BGDDT-GDDH dated on 22 April 2010 provides guidance on setting and announcement of program outcome standards. This document was elaborated and promulgated in Phase 2 guiding universities and colleges to publicize their training capabilities and quality assurance conditions so that students will know which kinds of professional knowledge, work skills, problem awareness and solving ability, and jobs they can gain after graduation. This document promotes higher education institutions to develop and issue criteria about knowledge, skills, behaviors and their capabilities in guiding students to achieve targeted missions after graduation; affirm the training quality of fields of study in their universities; take on commitments on training quality towards students, financial sponsors and society and make effort to implement quality assurance conditions; guide students to choose fields of study and vocational training, assist governmental agencies in policy making, provide orientation support to enterprises in recruitment and invest in higher education development. 121. Circular No. 09/2009/TT-BGDD dated on 7 May 2009 by the Minister of Education and Training regulates the public implementation towards educational institutions within national education system. This policy document, elaborated and promulgated in Phase 1, had positive impacts on publicizing quality assurance conditions; enabled transparency in activities, activity outcomes and quality assurance conditions of universities; laid a good foundation for the public to take part in monitoring quality of universities and colleges; and helped prestigious and high quality universities to ensure education quality. This is one of activities which help university to implement their autonomy and social responsibilities. 122. Circular No. 10/2009/TT-BGDDT dated on 7 May 2009 by Minister of MOET provides for the Regulations on Doctorate programs. This Circular was elaborated and issued in Phase 1. It is the legal basis for training institutions to gain autonomy in providing higher quality doctorate programs. Training institutions are active in recruitment, program design, training organization and evaluation and awarding doctorate degrees. 123. Decision No. 1505/QD-TTg dated on 15 October 2008 by Prime Minister approves the scheme on "the implementation of advanced training program at a number of Vietnamese universities in the 2008-2015 period". The Advanced Training Program has been applied in 23 big universities with 35 training programs built under the cooperation with high ranking universities in the world. This is an important milestone which makes a positive impact on teaching and learning activities in universities. It is one of the practical program for the quality improvement of higher education: teacher exchange program, English skill enhancement for teachers and students; attracting international students; upgrading facilities, supplementing modern teaching equipment, building capacity for teachers, management officers, and inviting foreign professors to

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join the faculty in teaching; aiming at improving quality of scientific and technological activities and international cooperation. Its achievement has widely influenced other programs in the university.

3.2. Limitations and shortcomings 3.2.1. Governance

124. There are many hindrances in the implementation of higher education Law because its relevant guideline systems have not been completed synchronously, namely, Decree regulating layer standards, ranking framework, and ranking standards for higher education institutions; University Charter; College Charter; Circular stipulating minimum knowledge load and required capabilities of students for higher education; Circular regulating national standards for higher education institutions. 125. The University Regulations as regulated in the Decision No. 58 of the Prime Minister have not been fully implemented. Due to lack of guidelines on structure and members in a University Committee, there is no university committee set up in the private universities. The Regulation does not regulate the type of not-for-profit private universities. These limitations will be amended and supplemented in the new University Regulation, which has been submitted to Prime Minister for approval. As planned, the Regulation will be promulgated in November 2014. 126. The separation of Regulation on organization and operation of private universities as regulated at Decision No. 61/2009/QD-TTg dated on 17 April 2009 by the Prime Minister: has many overlapped articles with the University Charter promulgated by the Prime Minister; no representatives from stakeholders as members of Board of Management and Chairman of the Board of Management; no regulations on not-for-profit operation of private universities. These shortcomings will be eliminated by integrating the Regulation on organization and operation of private universities with University Charter; clearly specifying members of the Board of Management and adding the model of not-for-profit private universities. 127. During the implementation, there has existed some limitations in the Regulation on organization and operation of Vietnam - German University related to: right of the representative as a member of the university committee when he/ she is absence from the committee meeting; rights of the Rector; solving tasks during university construction. The Regulation was amended and supplemented in an appropriate way as directed by the Prime Minister at Document No. 270/VPCP – KGVX dated on 13 January 2011 about amending and supplementing the Regulation on organization and operation of Vietnam - German University.

3.2.2. Finance 128. Regulations of Circular No. 57/2011/TT-BGDDT dated on 2 December 2011 were amended and supplemented in accordance with Circular No. 20/2012/TT-BGDDT dated on 12 June 2012 with 2 criteria on staff capability and facility typical for capability of the training institutions. There is no social needs based criteria. On the other hand,

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registering quota is not necessarily based on field of study. This regulation has led to the overcrowding situation in some fields of study; not met employee needs, resulting in the selective lack and abundance of workforce. 129. Circular No. 49/2010/ND-CP dated on 14 may 2010 by the Government exists the shortcoming. It regulates fixed tuition fees and road map to increase the tuition fee, with no conversion to the approval time. Therefore, the adjustment level of tuition fees is lower than the fluctuation level of consumption price index. 130. The implementation of Resolution No. 35/2009/NQ-QH12 dated on 19 June 2009 promulgated in the fifth session of the 12th National Assembly has still been slow. The Pilot Scheme on financial autonomy for four universities has been submitted to the Prime Minister and still waiting for the approval.

3.2.3. Quality and quality assurance 131. The implementation of Circular No. 57/2012/TT-BGDDT dated on 27 December 2012 which was amended and supplemented in accordance with Decision No. 43/2007/QĐ-BGDDT dated on 15 August 2007 by the Ministry of Education and Training on credit based training system faces with some obstacles because the higher education law regulates that Training organization and management is implemented based on school year or credit systems. Therefore, the number of training institutions applying credit based system and the number of students following credit based training has increased slightly. 132. There is no link between Official Letter No. 2196/BGDDT-GDDH dated on 22 April 2010 guiding the development and announcement of program outcome standard and the screening and developing training program; program outcome standard and training program; inappropriate training organization and management methods; announcement of unreasonable program outcome standards 133. Implementation of the Advanced Training Program as regulated at Decision No. 1505/QD-TTg dated on 15 October 2008 by the Prime Minister approving the scheme on "the implementation of advanced training program at a number of Vietnamese universities in the 2008-2015 period" has been on track. However, because there is no state budget left from training program in Phase 1 and Phase 2, maintaining and developing the Advanced Training Program has been in difficulty, especially among those less attractive majors like Agriculture, Material Science, etc. In some universities, the management of Advanced Programs is not aligned between the units in charge and the Academic Affairs Department. 134. There is some limitations in the implementation of Circular No. 10/2009/TT-BGDDT dated on 7 May 2009 by the Minister of Education and Training. It regulates the required foreign language ability, enrollment duration, punishment mechanism if not met requirements; no monitoring and checking mechanism, the doctorates required to follow continuous training duration; no unified regulation on the format of a dissertation to

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apply for all universities. Some limitations have been amended and supplemented in accordance with Circular No. 05/2012/TT-BGDDT dated on 15 February 2012 and continue to be amended and supplemented in accordance with regulation of higher education law.

IV. Disbursement, allocation and use of loan fund 4.1. Disbursement

135. After program documents of all phases have been approved the World Bank and the Government of Vietnam signed loan agreements: • Phase 1: on 21 August 2009 and the World Bank transferred 52.44 million VND to

the Government of Vietnam on 23 December 2009. • Phase 2: The Loan Agreement was signed on 16 March 2011, and the World Bank

transferred 51.42 million US$ to the Government of Vietnam on 9 May 2011. • Phase 3: Loan agreement was signed on 14 May 2013, and the World Bank

transferred 50 million US$ to the Government of Vietnam in September 2013. 136. As a result, the World Bank has disbursed the whole program budget for the Government of Vietnam. This is a loan form with fast disbursement.

4.2. Allocation and use of loans

137. Although loan funds have been transferred to the Government of Vietnam early, the budget has not yet been allocated for beneficiaries because the relevant Ministries including the Ministry of Education and Training, the Ministry of Planning and Investment, the Ministry of Finance have not reached an agreement on beneficiary portfolio and specific allocation amounts to be reported to the Prime Minister for consideration and decision making. 138. Slow loan fund allocation and use has limited loan effectiveness. This is also the weakness of development policy program based lending.

V. Conclusion and recommendations

139. The Higher Education Development Policy Program has made positive impact on planning process for system development policy through establishing and promulgating the system of normative legal documents relating to higher education system and Government's commitment in implementing articles within the Program.

140. In addition to positive impacts, during the implementation, there have been limitations and shortcomings in the system of normative legal documents institutionalizing policies regarding higher education system development. A number of legal documents need to be amended and supplemented such as the Decree on tuition fees; Universities Charter, Regulations on fund allocation to public higher education institutions; Regulations on enrollment quota registration and determination.

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141. The Higher Education Development Policy Program has been under good track in loan agreement negotiation and approval, however, the use of loans have met with many difficulties because the lending fund was channeled into the state budget, and therefore its use required the agreement of various related ministries and agencies which in turn resulted in limited effectiveness of loan use.

142. The World Bank is proposed to continue its support extended to the higher education system development in an appropriate manner to bring about higher investment effectiveness in the coming time. The Ministry of Education and Training proposes the World Bank to support the following activities:

a. Build training capacity for selected key higher education institutions to support them build and develop some specific majors and fields of study at the regional quality level to meet the demand of the nation's industrialization and modernization.

b. Develop Vietnam National Qualification Framework in higher education to standardize minimum knowledge, skills and capabilities of students after graduation from specific major or each field of study at higher education level.

c. Review and restructure higher education system. d. Develop a quality assurance system for higher education.

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Annex 5. Comments of Cofinanciers and other Partners/Stakeholders Not Available

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Annex 6. List of Supporting Documents World Bank, Country Partnership Strategy for the Social Republic of Vietnam for the period 2006-2010, Report No 38236-VN, dated January 3, 2007 World Bank (2012), Putting Higher Education to Work: Skills and Research for Growth in East Asia, East Asia and Pacific Regional Report, Washington DC World Bank (2012), Vietnam’s Second Higher Education Project, Implementation Completion and Result Report, Report No: ICR 2316, 31 December 2012, Washington DC World Bank (2008-2014), Document in Project’s Electronic File including Credit Agreement, Aide Memoirs, Implementation Status Reports, Washington DC World Bank (2008), Vietnam: Higher Education and Skills for Growth, Human Development Department, East Asia and Pacific Region, Washington DC World Bank (2008), Vietnam’s First Higher Education Project, Implementation Complementation and Results Report, Report No: ICR 561, 21 February 2008, Washington DC

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Annex 7. Policy Matrix and Prior Actions, Triggers and Status: HEDPO1, HEDPO2, and HEDPO3 Table 3: Program Policy Matrix

Objectives HEDPO1 Prior Actions and Benchmarks (from HEDPO1 Program Document)

HEDPO2 Prior Actions and Benchmarks (from HEDPO2 Program Document)

HEDPO3 Prior Actions and Benchmarks (from HEDPO2 and HEDPO3 Program Document)

Indicators

Governance Improve efficiency, quality and responsiveness of higher education and research

Issue regulation on charter for first “new model” university, conferring academic, managerial and financial autonomy Status: Completed, Prime Ministerial Decision No. 380/DQD-TTg, dated March 24, 2009 issued

Issue regulations on generic HEI “charters”, setting out functions of key bodies within HEIs Status: Completed, the Decision on generic HEI “charters”, setting out functions of key bodies within HEIs approved, Prime Ministerial Decision No. 58/QD-TTg dated September 22, 2010

Issue “master plan”, setting out multi-tiered structure of higher education sub-sector, and functions of key bodies within HEIs differentiated by tier (to complement region-level plan [Prime Ministerial Decision No. 121/2007/QD-TTg, dated July 27, 2007]) (introduced as a Prior Action under HEDPO2) Status: Completed, Prime Ministerial Decision No.37/2013/QD-TTg adjusting the master plan on the university and college network during 2006-2020, dated June 26, 2013 The Master Plan was fully developed but the Government put the HE Law as the highest legislative document (HE Law was

Output: New HEI organization, governance and leadership policy in place Outcome: Higher education system responds to diverse demand in more rational manner Indicators: • Number of

students per 10,000 population

• Ratio of female to male students

• Proportion of students belonging to ethnic minority groups

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introduced as a new prior action in HEDPO3 program document – see below)

Issue regulation on working conditions of general HEIs teaching and research staff, enhancing HEIs’ autonomy in HR management Status: Completed, Ministerial Decision No. 64/2008/QD-BGDDT, dated November 28, 2008 issued

Issue regulation on functions and responsibilities of university councils, enhancing HEIs autonomy in governance (with criteria for “key universities” and other research universities) Status: Completed see Prior Action above. The Government decided to issue one single regulation to cover both the Charter and the University Council.

No. (30%) of HEIs adopted the new Charter (introduced as a Prior Action under HEDPO2) Status: New University charter is being updated for Prime Minister’s approval in December 2014. 100% HEIs have adopted the new charter

Issue regulation on procedures and criteria for appointment and dismissal of professors and associate professors, enhancing HEIs’ autonomy in HR management Status: Completed, Prime Ministerial Decision No. 174/2008/QD-TTg dated December 31, 2008 issued

Establish national committees in 27 disciplines responsible for granting the titles of “professor” and “associate professor” Status: Completed Decision No. 12/QD-HDCDGSNN Dated 23 July, 2014 to establish 28 committees in different disciplines for the period 2014-2019

Development of HE Law toward further strengthening autonomy, improve efficiency, quality, responsiveness and accountability of higher education and research (introduced as a Prior Action under HEDPO3) Status:

Completed

Law No 08/2012/QH13, dated June 18, 2012, effective

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January 1, 2013

Decree No 141/2013 ND- CP to guide some articles of Laws on Higher Education

Ministerial Circular No. 15/2014 Dated 15 May 2014 on Master training regulations. Ministerial Circular no. 23/2014 dated 18/7/2014 on regulation of High quality programs bachelor level

Increase quantitative capacity of higher education sub-sector

Issue regulation on ownership arrangements for private HEIs Status: Completed, Prime Ministerial Decision No. 61/2009/QD-TTg dated April 17, 2009 issued

Output: Regulatory framework in place favoring efficient capacity expansion Outcome: Capacity of higher education sub-sector is increased • Indicator:

Proportion of students in non-public HEIs

Issue regulation on establishment, merger, division, suspension and dissolution of HEIs, providing common rules for public and private domestic investors Status: Completed, Prime Ministerial Decision No. 07/2009/QD-TTg, dated January 15, 2009 issued

Issue regulation on foreign cooperation and investment in higher education, establishing common rules with domestic entities in line with WTO obligations Status: Completed, Prime Ministerial Decree No.73/2012/NĐ-CP, dated September 26, 2012 on the foreign cooperation and investment in education Ministerial Circular

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No. 34/2014 Dated 15/10/2014 to guide the Decree No. 73

Financing Enhance fiscal transparency, sustainability, efficiency and equity of the higher education sub-sector

Disseminate “Proposal to Restructure Education & Training Financing for the Period 2008-2012” for comment by Government agencies Status: Completed, Document, “Proposal to Restructure Education & Training Financing for the Period 2008-2012” disseminated in October 2008

Issue regulation and guidelines on criteria-based formula for setting HEIs’ maximum enrollment quota Status: Completed, the regulation and guidelines on criteria-based formula for setting HEIs maximum enrollment quota approved by Ministerial Decision No. 795/QD-BGDDT dated February 27, 2010

Issue regulation on financing mechanism of national education system, covering public subsidies, student tuition fees and student financial assistance for higher education (Prior Action reworded under HEDPO2 to read: New regulation on allocating public financing to public Higher Education Institutions, including recurrent budget allocations Status: Not completed, Draft Prime Ministerial Decree on allocating public financing to public Higher Education Institutions for recurrent budget, dated May 12, 2014

Output: New recurrent and investment financing policy in place Outcome: Higher education system delivers more value for money Indicators: • Public

expenditure on higher education

• Public expenditure per student

• Proportion of income from tuition fees (included under HEDPO2)

• Proportion of students receiving loans (included under HEDPO2)

New Trigger introduced under HEDPO2): Issue decree on tuition fees for the 2011-2015 time period Status: Completed, Decree on tuition fees for the 2011-2015 time period was approved by the

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Prime Ministerial Decree No. 49/2010/ND-CP dated May 14, 2010

Promote autonomy and improve the quality of research and teaching at research universities

Issue regulation on financing HEI research Benchmark eliminated under HEDPO2

Establish a competitive grants scheme to fund HEI research Benchmark eliminated under HEDPO2

Quality Improvement Improve the efficiency and transparency of student admissions

Establish examination serving both for secondary leaving certification and HEI entrance evaluation Benchmark eliminated under HEDPO2 Status: Completed Decision No 3538/QĐ-BGDĐT/2014 by Minister of Education, dated September 9, 2014 deciding on a national upper secondary school examination serving for both secondary leaving certification and HEI entrance evaluation

Establish, in at least fifty (50) HEIs, HEI-specific admission policies, based on the secondary education leaving examination plus supplementary HEI-specific criteria Benchmark eliminated under HEDPO2 Status: Completed According to Decision No 3538/QĐ-BGDĐT/2014, by January 1, annually, all HEIs publicize how they will enroll students based on the national upper secondary school examination

Output: New systems (admissions mechanism, competency-based curriculum framework, and credit-based qualifications) in place Outcome: Students receive higher quality education Indicators: • Proportion of

teaching/research staff with master’s degree

• Proportion of teaching/research staff with doctoral degree

• Student-teacher ratio (included under HEDPO2)

• Proportion of students in credit-based programs (included under HEDPO2)

Improve the quality of teaching inputs

Issue regulation on admission to HEI part-time programs, with a view to providing alternative but equivalent

Issue regulation for establishment of national discipline-based rectors’ committees, with primary responsibility for

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pathways to national HEI qualifications Status: Completed, Ministerial Decision No. 62/2008/QD-BGDDT, dated November 25, 2008 issued

advising MOET on curriculum framework development Benchmark eliminated under HEDPO2 Status: Completed, Prime Ministerial Circular No 25/2011/TT-BGDĐT, dated June 16, 2011, stipulating the establishment and operation of HEI discipline-based or geography-based rectors’ committees, with primary responsibility for advising Minister of Education on challenges of higher education in general or discipline/geography related challenges in particular.

Issue plan on provision of advanced undergraduate programs in selected HEIs for the period 2008-2015 Status: Completed, Prime Ministerial Decision No. 1505/QD-TTg, dated October 25, 2008 issued

Issue regulation allocating resources to provision of advanced undergraduate programs in selected HEIs for the period 2008-2015 Benchmark eliminated under HEDPO2 Status: Completed Decision No.1505/QĐ-TTg dated October 15th, 2008 of Prime Minister to approve the Proposal of “Advanced training curriculum at some universities in Vietnam in the

Issue regulation on program for doctoral training (overseas and domestic), to enhance qualifications of teaching staff Status: Completed Ministerial Circular No 35 dated 12 October 2012 on regulations for overseas Doctoral Training

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period 2008-2015”; Inter-ministerial circular No.220/2009/TTLT-BTC-BGDDT dated November 20th, 2009 approved by Minister of Education and Training and Minister of Finance to instruct financial management on expenditure for implementing advanced training curriculum

Improve the efficiency and transparency of qualifications

Issue regulation on doctoral programs, enhancing HEI autonomy in admission, teaching, assessment and award of doctorates Status: Completed, Ministerial Circular No. 10/2009/ TT-BGDDT, dated May 7, 2009 issued

Establish, on a pilot basis, credit-based qualifications systems in at least thirty (30) HEIs Status: Completed, and exceeded Credit-based qualifications system already applied in forty-three (43) HEIs. Evaluation seminar held in April 2010. Report including recommendations is completed Issue regulations on alternative delivery methodologies (e.g., distance education, open universities, e-learning and e-textbooks) Benchmark eliminated under HEDPO2 Status: Draft submitted to the Minister of Education to promulgate in December 2014

Issue regulation on credit-based training framework Prior Action revised under HEDPO2 to include the following two Prior Actions: Increased number of HEIs applying the credit-based training system Status: 179 out of 255 HEIs deliver credit-based programs and 1,005,626 students out of 1,487,598 total students are in credit –based programs representing 68.2% of the student body, 18% higher than the intended target. and A revision of regulations on credit-based

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delivery model taking lessons learned for improvement Status: Completed MOET Decision No. 17/VBHN-BGDĐT Dated 15 May 2014 on credit based system

Quality Assurance Improve information available to Government, as well as to employers, graduates, students and their families

Issue regulation requiring HEIs to publicly disclose information relating to quality of education, facilities, teaching and management staff, income and expenditure Status: Completed, Ministerial Circular No. 09/2009/ TT-BGDDT, dated May 7, 2009 issued

Establish Higher Education Management and Policy Information System (HEMPIS), including data collection, validation, retrieval, analysis and publication Prior Action eliminated under HEDPO2 Status: Dropped

Output: National quality assurance system in place Outcome: Society and economy benefit from results of higher quality education Indicator: • Number of

articles published in internationally referred academic journals

Improve the quality of teaching and research outputs

Establish National Quality Assurance Committee responsible for HEI accreditation Status: Completed, Ministerial Decision No. 7113/ QD-BGDDT, dated October 23, 2008 issued

Issue regulation for establishment of independent review agencies, responsible for regularly reviewing public and private HEIs against minimum standards and advising government on their accreditation Trigger modified under HEDPO2 to read (due to revision of Education Law that required to put

Issue regulation for establishment of Higher Education Quality Assurance Agency (replacing national committee), responsible for accreditation of public and private HEIs, with oversight of review agencies Trigger modified under HEDPO3 to

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out a framework before a new structure): A comprehensive framework on higher education quality assurance and accreditation Status: Completed, Ministerial Decision No. 4138/QD-BGDDT, dated September 20, 2010 established the comprehensive framework on higher education quality assurance and accreditation

read: Establishment of HE independent accreditation agencies Status: Decision 3568/QĐ-BGDĐT dated 5 September 2013 and Decision No 5570/QĐ-BGDĐT dated 22 November 2013 by Minister of Education on the establishment of two state education quality assurance centers (VNUCEA and VNUHCM CEA). Additional Trigger introduced under HEDPO3: Number of HEIs having established internal quality assurance systems Status: 350

Issue plan/roadmap for developing “quality culture and accreditation”; and conduct accreditation reviews of at least sixty (60) HEIs in previous 12-month period Benchmark eliminated under HEDPO2

Issue regulations on standards for, and on procedures for evaluation of, teaching/research staff’ performance by HEI managers, teaching/research peers and students Benchmark eliminated under HEDPO2

Financial Reporting and Audit

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Table 4: Prior Actions, Triggers and Status: HEDPO1, HEDPO2 and HEDPO3

HEDPO1 List of prior actions from Financing Agreement Section I of Schedule I

Status

1 Approve the charter of the first model university conferring upon said university academic, managerial and financial autonomy

Completed, Prime Ministerial Decision No. 380/DGD-TTg, dated March 24, 2009 issued

2 (a) Define the working conditions for the teaching and research staff at institutions of higher education; and (b) clarify the procedures and criteria for the appointment and dismissal of their professors and associate professors, with a view to enhancing the autonomy of said institutions in human resources management

(a) Completed, Ministerial Decision No. 64/2008/QD-BGDDT, dated November 28, 2008 issued (b) Completed, Prime Ministerial Decision No. 174/2008/QD-TTg, dated December 31, 2008 issued

Achieve financial transparency and efficiency in public resource use

Prepare annual financial reports for at least twenty (2) HEIs for the fiscal year 2007 (incorporating all revenues, expenditures and funding sources) Status: Completed, 20 HEIs’ annual reports prepared for 2007 (and reviewed and verified by IDA)

Prepare full annual financial reports for at least forty (40) HEIs for the fiscal year 2008 (incorporating all revenues, expenditures and funding sources) Status: Completed, 40 HEIs annual reports prepared for the fiscal year 2008

Prepare full annual financial reports for at least sixty (60) HEIs for the fiscal year 2009 (incorporating all revenues, expenditures and funding sources) Status: Completed, 100 HEIs annual reports prepared for the fiscal year 2008

Output: Reports and audits produced in line with generally agreed standards Outcome: Financial accountability in higher education sub-sector is enhanced Indicators: • Number of

HEIs preparing annual financial reports

• Number of HEIs whose previous year’s activities are audited in accordance with Vietnamese law

Ensure adequate oversight of public funds through independent audits

At least twelve (12) MOET-controlled HEIs have their previous year’s activities audited in accordance with Vietnamese law Status: Completed, 12 MOET-controlled HEIs had their 2006 financial statements audited by SAV and their 2007 financial statements inspected by MOF (and reviewed and verified by IDA)

At least twenty (20) MOET-controlled HEIs have their previous year’s activities audited in accordance with Vietnamese law Status: Completed, and exceeded 27 MOET-controlled HEIs had their audit completed for the financial year 2008 by the Statue Audit of Vietnam

At least twenty-five (25) MOET-controlled HEIs have their previous year’s activities audited in accordance with Vietnamese law Benchmark eliminated under HEDPO3

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3 Establish the principles and procedures for the establishment, merger, division and dissolution of institutions of higher education with a view to providing a common framework for public and private domestic investments in education

Completed, Primate Ministerial Decision No. 07/2009/QD-TTg, dated January 15, 2009 issued

4 Disseminate the “Proposal to Restructure Education and Training Financing for the Period 2008-2012” for comment by government agencies

Completed, Document, “Proposal to Restructure Education & Training Financing for the Period 2008-2012 disseminated in October 2008

5 Establish a regulation in regard to requirements of doctoral programs with a view to enhancing the autonomy of institutions of higher education in admission to, and teaching and assessment of such programs, and in award of doctorate degrees

Completed, Ministerial Circular No. 10/2009/TT-BGDDT, dated May 7, 2009 issued

6 Require institutions of higher education to publicly disclose information on quality of education, facilities, teaching and management staff, income and expenditure

Completed, Ministerial Circular No. 09/2009/TT-BGDDT, dated May 7, 2009 issued

7 Prepare annual financial reports for at least twenty (20) HEIs for the fiscal year 2007 (incorporating all revenues, expenditures and funding sources).

Completed, 20 HEIs’ annual reports prepared for 2007 (and reviewed and verified by IDA)

8 Complete the audit of at least twelve (12) institutions of higher education under the control of the Ministry of Education and Training.

Completed, 12 MOET-controlled HEIs had their 2006 financial statements audited by State Audit of Vietnam and their 2007 financial statements inspected by MOF (and reviewed and verified by IDA)

HEDPO2 List of prior actions from Financing Agreement Section I of Schedule I

Status

1 Issued regulation on Generic HEI charters setting out functions of key bodies within HEIs

Completed, Prime Minister Decision No. 58/2010/QD-TTg, dated September 22, 2010 issued

2 Issued regulation Functions and responsibilities of university councils, enhancing HEIs autonomy in governance

Completed, Prime Minister Decision No. 58/2010/QD-TTg, dated September 22, 2010 issued. The Government issued one single regulation to cover both the Charter and the University Council

3 Issued regulation and guidelines on criteria-based formula for setting HEIs’ maximum enrollment quota.

Completed, Ministerial Decision No. 795/QD-BGDDT, dated February 27, 2010 issued

4 Issued a regulation on tuition fees for the 2011-2015 time period

Completed, Prime Ministerial Decree No. 49/2010/ND-CP, dated May 14, 2010 issued

5 Established, on a pilot basis, credit-based qualifications systems in at least thirty (30) HEIs.

Completed, and exceeded, credit-based qualifications system already applied in forty-three (43) HEIs. Evaluation seminar held in April 2010. Report including recommendations is completed.

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6 Issued a comprehensive framework on higher education quality assurance and accreditation.12

Completed, Ministerial Decision No. 4138/QDBGDDT, dated September 20, 2010 issued

7 Prepared annual financial reports for at least forty (40) HEIs for the fiscal year 2008 (incorporating all revenues, expenditures and funding sources).

Completed, 40 HEIs annual reports prepared for the fiscal year 2008

8 Completed the audit of the 2008 financial year of at least twenty (20) institutions of HEIs under the control of the MOET

Completed, and exceeded, 27 MOET-controlled HEIs had their audit completed for the financial year 2008 by the State Audit of Vietnam

HEDPO3 List of prior actions from Financing Agreement Section I of

Schedule I Status

1 The National Assembly has enacted Law No 08/2012/QH13, of June 18, 2012 on Higher Education, defining: i) the qualification and training modalities of HEIs, ii) the classification of HEIs; iii) the structure of networks of HEIs and their differentiation/segmentation in the system by institutional missions; iv) the regulation of HEIs’ institutional autonomy and accountability in academic, organizational and financial affairs and v) the regulation of HEIs’ institutional accreditation and quality assurance process.

Completed

2 MOET has issued Circulars No.57/2011/TT-BGDDT and 20/2012/TT-BGDDT, of December 2, 2011 and June 12, 2012, respectively, increasing the autonomy of HEIs in setting their student enrolment targets, based on minimum conditions of staff qualifications and training facilities

Completed

3 The government has issued Decree No.73/2012/ND-CP of September 26, 2012 on foreign cooperation and investment in education, setting forth the parameters for the establishment and operation of foreign capitalized educational institutions

Completed

4 The Recipient has: (i) prepared for forty five (45) HEIs under the management of MOET, annual financial reports for fiscal year 2011 (incorporating all revenues, expenditures and funding resources); and (ii) completed the audits of the financial statements of fiscal year 2010 of at least twenty five (25) HEIs under the management of MOET

Completed, 44 HEIs produce financial reports annually. In 2013 Hanoi University of Agriculture moved the management line to the Ministry of Agriculture and Rural Development.

12 This trigger was modified under HEDPO2. It replaced the trigger under HEDPO1 that read: “Issue regulation for establishment of independent review agencies, responsible for regularly reviewing public and private HEIs against minimum standards and advising government on their accreditation”, The new Education Law, required a new framework before a new structure.

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5 MOET has issued Circular No.57/TT-BGDDT of December 27, 2012, amending Decision No.43/2007/QD-BGDDT, of August 15, 2007 on higher education credit-based training system, providing for: (i) HEIs guidance on the application of credit-based training curricular; (ii) minimum training standards for HEIs; (iii) consistency in HEIs’ grading systems; (iv) an early warning system for students to maintain acceptable level of credit accumulation; and (v) the implementation steps for the revised credit-based system in HEIs.

Completed

6 At least one hundred and fifty (150) HEIs have established internal quality assurance units in order to ensure appropriate and adequate standards of service provision

Completed, and exceeded, 350 HEIs have established internal quality assurance units

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