Vietnam’s EdTech sector is experiencing rapid growth, with a market value of $3.5 billion, positioning the country among the top three most promising EdTech markets in Southeast Asia, alongside Singapore and Indonesia.

However, regulatory hurdles and rigid education policies are slowing innovation and preventing Vietnam from fully capitalizing on its potential.

The challenges of EdTech expansion in Vietnam

According to the Vietnam EdTech White Paper 2024 by EdTech Agency, Vietnam is home to around 750 EdTech companies, offering a variety of hardware, software, and digital learning solutions.

Despite this progress, Vietnam still lags behind countries like the U.S., UK, Australia, Canada, India, and China in adopting computer-based testing.

While PTE exams have been officially recognized by the Ministry of Education and Training as an IELTS-equivalent, most standardized tests in Vietnam remain paper-based, limiting the adoption of modern digital learning methods.

Peter Pham, Co-Founder and CEO of PTE Magic, believes that Vietnam’s public education system remains too rigid, with bureaucratic constraints slowing down decision-making processes. This results in missed opportunities to integrate advanced educational technologies into mainstream curricula.

Vietnam’s outdated curriculum and the need for change

Students have voiced concerns that foreign language and IT education programs—both essential skills in the digital economy—are still outdated in Vietnam.

Peter Pham warns that if Vietnam fails to modernize its education system and embrace technological advancements, it risks falling behind regional competitors.

“If we don’t remove policy barriers and give schools more autonomy to update curricula and apply EdTech solutions, we will fail to create a globally competitive workforce. We need young, innovative, and globally minded individuals who are ready to excel on the world stage,” he said.

Resolution 57: A turning point for Vietnam’s EdTech industry?

The recently announced Resolution 57 focuses on science, technology, innovation, and digital transformation. Many industry leaders view it as a potential game changer for Vietnam’s economy and education sector.

Peter Pham, a 9X-generation CEO, is particularly encouraged by the resolution’s emphasis on "raising awareness and shifting mindsets" about digital transformation. He believes that if implemented effectively, this could eliminate key barriers faced by EdTech businesses like PTE Magic.

“As attitudes shift, we will see greater acceptance of computer-based learning and testing. This will allow EdTech companies to introduce advanced educational solutions to schools, parents, and students, expanding access to digital learning,” he said.

Global expansion and policy support for EdTech businesses

With more flexible legal frameworks, Vietnam’s international EdTech companies - such as PTE Magic, which has operations in Australia and the Philippines - could scale up their cross-border activities more efficiently.

This would not only generate additional tax revenue for the Vietnamese government but also create more high-quality jobs in the technology and education sectors.

In addition, EdTech firms could gain better access to global talent, cutting-edge technologies, and successful international training models. This would enhance product offerings and facilitate strategic partnerships with leading education institutions worldwide.

EdTech-friendly reforms: A step toward innovation

A crucial aspect of Resolution 57 is its focus on streamlining administrative processes and creating a more innovation-friendly business environment.

"This will help EdTech companies shorten project deployment timelines, gain faster access to government incentives, and focus more on improving training quality. In the long run, this will contribute to a more sustainable and forward-thinking education system in Vietnam," Peter Pham explained.

While he sees Resolution 57 as a major step forward, he stresses that successful implementation is key.

“Policies can be a guiding force, but real success depends on execution. Vietnam has the potential and resources - but what we need now is bold action to not just catch up, but lead in the global EdTech space. The opportunity is here, but the real question is: do we have the courage to seize it?” he concluded.

Binh Minh