Engaging More Businesses to Foster Education Development

Education is one of the critical areas in socioeconomic development. After transport infrastructure, the education and training sector attracts many PPP projects. This partnership brings tangible benefits to the sector, but still has challenges that need to be addressed.

More resources for the education sector

To date, the PPP-invested education sector has grown well in Vietnam which will be a favorable condition for further upgrading facilities and supplementing resources for the education sector.

The Public-Private Partnership (PPP) in delivering social services such as education is considered by scholars to be an important partnership that solves difficulties and brings benefits to both sides as well as the community. PPP is expected to add resources to the public sector, manage risks effectively; enhance public investment performance and public service quality amid public and private constraints on large investment capital and public service management. PPP can be a good choice for delivering these services quickly and efficiently.

International experience shows that PPP application in countries worldwide has brought positive results. Given limitations in the public and private sectors in providing educational services, only a combination of efforts can ensure its effectiveness.

Challenges

The education sector does not attract much PPP investment due to existing challenges. In addition to similar challenges and risks to other industries, education has its unique characteristics. Economically, education is considered an ideal investment option because behind it is the great support of the government through an enabling institutional environment. However, in fact, scholars around the world have also pointed out challenges in PPP-driven education investment. PPP expansion in education is facilitated globally, mainly by private companies, businesses and NGOs. Critics are concerned that private investment in education will affect governmental roles and lead to the commercialization of education.

In addition, there is inequality in access to education. Private projects need to be guaranteed for profit and education is no exception. Without supervision and proper policies, education will become unequal in society. Access to education may be far away for people with lower average living standards in society, leading to an increase in the rich-poor gap and affecting the right to access social security of a considerable part of people.

Source: Vietnam Business Forum