Online learning has become a global norm, especially after COVID-19, with technological advances driving the rise of e-learning platforms. Vietnam’s education market has embraced online learning, recognizing its ability to overcome traditional classroom limitations. E-learning provides students with flexible access to world-class education and allows professionals to upskill beyond formal education.
As per a Statista report, the Vietnamese online education market will generate close to US$365 million in revenue in 2024 with digital learning platforms nearly reaching a market value of US$229 million. The projected annual growth rate of E-learning in Vietnam is 11.46% in 2024 – 2029, resulting in a market volume of US$627.40 million by 2029. By then, the Vietnamese online education market will have 11.8 million users.
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This article explores the advantages and disadvantages of online learning, helping identify growth opportunities in Vietnam’s education market. Whether you’re an entrepreneur entering the sector or a teacher navigating digital education, this guide provides valuable insights.
Definition of Online Learning
By definition, online learning is the phenomenon of virtual learning using digital technologies like video conferencing and instructional videos. It can be done through specialized digital platforms designed to cater to the interactive needs of the educational activities or by watching simple educational content videos and submitting coursework as per instructions.
In this form of education, the learning takes place over the Internet using specific digital tools and learning management systems (LMS). It eliminates the necessity of a physical classroom, instead, it relies on technology to bring people together and facilitate communication between the learners and the educators.
It can involve face-to-face one-on-one interactions between teachers and students whenever necessary but that is usually rare. The primary objective of such e-learning systems is to deliver educational content and assess the progress of the learners based on the metrics set in the system.
Opportunities in Vietnam’s Education Market and Online Learning Market
The Vietnam education market including the online learning segment offers lucrative opportunities for foreign investors looking to set up a business in the country. The primary driving force behind this is the middle class of Vietnam which will expand by 60% by the end of 2030. For this growing population the education infrastructure is crucial as they aspire to be well educated to get lucrative jobs.
Moreover, as overseas investment increases, many foreign companies are setting up their branches in Vietnam leading to an influx of international students as their parents migrate to the country for work. In the decade leading up to 2020, the education sector spending increased considerably courtesy of the 2018 foreign direct investment (FDI) decree. This is why education sector spending (VND 249.5 trillion) in 2021 accounted for 4% of Vietnam’s GDP.
Additionally, the Vietnamese government prioritized the education sector in the last few decades by reserving 15% of the budget for it which led to a 69% increase in students going abroad to study in the 2013 – 2019 period. This shows the ambitious nature of the growing middle class in the country which has caused a private sector boom in education. The e-learning market of Vietnam grew by 20.2% in 2019-23, generating US$3 billion in revenue by 2023.
At present, Vietnam is home to the 18th largest middle-income class in the world, which will reach 21 million by 2030. This makes Vietnam’s education market the ideal sector to invest in, especially if you are looking to start an online learning business as the Education Industry 4.0 is flourishing.
Read Related: How to Open a School in Vietnam: Four Key Factors to Consider in the Education Industry 4.0
Talk about the Advantages and Disadvantages of Online Learning
When it comes to the online education or e-learning industry, certain advantages and disadvantages like accessibility, flexibility, technical problems, customization, cost-effectiveness, etc. have to be considered.
Advantages Of Online Learning
Speaking of the advantages of online learning, it provides a certain level playing field to all consumers due to its high efficiency and accessibility coupled with its affordable nature. Other than that, e-learning also makes way for inclusivity as it can be adapted to meet the needs of individual students. In this section, we will elaborate on these advantages along with a few additional ones.
1. Efficiency
Teachers can deliver lessons to students more effectively and efficiently through digital learning platforms through tools like podcasts, videos, PDFs etc. This has made it possible for teachers to supply the most updated information to students and easily depict it through examples as the medium is more visual than traditional classrooms.
Teachers can also optimize tasks and ensure more accurate checking of assignments using digital tools. All of these avenues are greatly reducing the workload of teachers, giving them the time to improve lessons and become more efficient educators.
2. Accessibility
Online learning has made schools reach students instead of bringing students to schools. This has increased the accessibility of education as students can attend classes from anywhere. Also, through online learning platforms educators can reach a wide network of students which isn’t restricted to geographical boundaries. This ultimately benefits the students as they can get access to different types of lessons from the top educational institutions of the world which help them develop.
Moreover, online lectures can be recorded and kept for future reference. Hence, students can get back to the lesson whenever they are in doubt. This also makes them more attentive to the class as they are not concentrating on taking notes like in traditional classrooms.
3. Affordability
The most important advantage of online learning is its affordability. Since the necessity of physical presence is eliminated in e-learning, the cost of regular transport and food is no longer there. Although you need to pay for using the digital learning platforms, the cost is far less than the tuition fees and admission fees of a traditional school or training center. It also removes the financial burden of real estate costs which schools and colleges often pass down to their students.
Furthermore, you don’t need to pay for textbooks, course materials and other school supplies as the whole thing has moved into the virtual world. Everything is available online through digital tools in a paperless environment.
4. Customization
Unlike traditional schools, the online learning platforms offer a certain amount of flexibility in designing and adjusting lessons as per the individual needs of the students. Here you can customize the lessons to cater to the different learning styles like videos and pictures for visual learners, and podcasts and audiobooks for audio learners. Some may need solitary environments to learn optimally while others prefer a more interactive group learning method.
5. Reduces Dropouts
Online classes are a great way to address the issue of dropouts and low attendance among students. Since this type of learning can be accessed anytime and anywhere, there’s less chance of students missing out on lessons.
6. Availability of Diverse Courses
Online learning has gained in popularity because it gives the students the liberty to choose the subjects, courses and educators they like. Since, digital learning platforms have reduced distance in the world, making way for the availability of different courses from different faculties, students can learn topics which they previously never heard of. Also, they can opt for the courses and educators more aligned with their learning capabilities.
7. Promotes Inclusivity & Diversity
Since online classes can be attended by people across the globe, it enriches the educational experience of the students and teachers. They are exposed to a diverse group of people coming from different cultures and backgrounds, making way for an all-inclusive digital classroom.
Disadvantages Of Online Learning
Despite the many advantages of online learning, it has some potential disadvantages like training teachers for online lessons, technological issues, reduced focus in pupils etc. In this section, we will discuss these drawbacks and others in detail.
1. Teacher Training
One critical aspect of e-learning is the necessity to train teachers to effectively use online platforms. Unlike traditional classrooms, online learning requires you to be adept in handling a range of digital tools like live-streaming, video conferencing, basic audio and video recording features etc. Teachers also need to learn basic software like Microsoft Office, Google Drive, etc. to create and share study materials.
2. Inability to Focus
The biggest challenge in online learning is the inability to focus on the screen for longer periods. Since e-learning is done over a screen, students need to pay attention to the screen and not get distracted. Hence, most online lessons have to be interactive and concise to keep the students engaged.
Additionally, overindulgence in e-learning can also hamper the concentration power of the students as they lose the ability to study a particular subject because of short-duration video watching.
3. Technology Issues
Online classes are often plagued by technology issues like internet connectivity or errors in digital platforms. Despite the increase in internet penetration in Vietnam, which has added smaller towns and cities to the circuit, internet speed issues remain a problem. Online learning can be disrupted without a consistent high-speed internet connection at both ends.
4. Screen Time Management Issues
Most parents are concerned that their children might develop health problems like eye strain, headaches, back pain, etc. if they spend too much time staring at a screen. The issue of reduced concentration and the ability to interact properly is another cause of concern. Hence, many parents are trying to manage their kids’ screen time.
5. Fosters Isolation
Online learning can foster a sense of isolation in students, especially for extroverts and those who thrive in a social environment. Traditional classrooms help you to enjoy the company of your peers, and to know more about them as you interact with them. This enhances the bonding among people, improving their collaborative nature.
Students taking the online route of learning often struggle with a sense of isolation, which can be eradicated by including other forms of communication that allow face-to-face interaction. Additionally, video conferencing, emails, and online messages can be included in the lesson structure to make the class more interactive.
6. Lack of Motivation and Hands-on Training
Online classes offer no scope for hands-on training as the whole thing is done in the virtual world. Hence, it needs additional practice sessions in the physical world to complete the learning process. This is critical for subjects that require laboratory and field work, like biology, chemistry, physics, geology, etc. Moreover, if you are taking online classes to acquire skills like cooking, woodwork, or playing an instrument, you need to ensure that you are spending more hours practicing the steps for complete learning.
Another challenge in online learning is staying motivated. Unlike traditional classrooms, you are not extensively monitored by the school. The flexibility to study at your own pace also comes with the challenge of staying self-motivated to complete the coursework and not get distracted.
7. Quality & Credibility Concerns
Authenticating that things are genuine is an essential part of the education sector, especially in online learning, where it is difficult to ensure that the courses are not fake. Online lessons can be of poor quality and lack proper accreditation. Hence, students need to check the accreditation of the courses and the reputation of the institutes they are affiliated with. Additionally, scrutinize the contents and syllabus of the online programs to assess their quality, ensuring they align with your objective.
Government Making Online Learning a Priority in Vietnam Education Market
Since 2010, the Vietnamese government has concentrated efforts to enhance the education market of the country through more budget allocation and foreign direct investment. This has led to an increase in the number of newly established schools in Vietnam in 2016 – 2019. After the pandemic slowdown, the numbers went up again in 2022 when it crossed the pre-pandemic levels (4132 new schools) with 4220 newly opened schools that year.
Moreover, the number of schools in Vietnam peaked in the 2016 – 2017 academic year at 28.79 thousand. However, the COVID-19 lockdown caused a drop in the number of Vietnamese schools which stood at 26.25 thousand in the 2021 – 2022 academic year. The Statista report further revealed how the education sector in Vietnam is growing as it contributed VND 355 trillion to the economy in 2022 which was 3.74% of the country’s GDP.
The Vietnamese government has named the education industry as a priority in its national digital transformation program which is starting from 2025. A key aspect of this digital transformation plan is developing online learning platforms and chalking out policies to attract investment in their development.
Earlier in 2021, the Prime Minister approved the “Building a Society of Learning in the 2021-2030 Period” project which aims to:
- Digitize 70% of universities in Vietnam and build digital learning materials by 2025
- Use of IT in the management of 70% of community learning centers.
In 2022, the government initiated a five-year digital transformation program for vocational education which seeks to improve the quality of human resources in Vietnam and enhance labor productivity. The surge in online learning demand has enhanced the education technology market of the country as seen in the Edtech market reaching US$3 billion worth in 2021, up from US$2 billion in 2019.
The education sector growth is also reflected in the salaries received by the workers. In 2019, the monthly gross salary of education sector workers was VND 6 million for entry-level jobs and VND 8 million for experienced people while supervisors and managers got VND 13 million and VND 20 million respectively.
The foreign investment in this sector is also growing as seen by 437 foreign-funded projects in 2020 which pumped in US$4.3 billion. Most of it was for establishing English language training facilities, of which 450 were set up in Hanoi and Ho Chi Minh City. Given the accelerating ed-tech and distance learning boom in Southeast Asia, online learning businesses will increase in the Vietnam education market. As of 2022, Vietnam has more than 200 ed-tech startups and ranks among the top 5 countries getting education industry funding.
Focusing on the Future: Digital Economy in Vietnam
Earlier in 2022, Vietnam tried to enhance the education sector by ensuring that 75% of the houses have an internet connection and 85% of people have smartphones. This stress on building a digital economy by the National Committee on Digital Transformation is essential for the future development of online learning in Vietnam.
The following objectives of the government to build a digital economy that holds promise for the education industry:
- Use of e-contracts to increase to 50%
- Use of digital platforms by SMEs to reach 30%
- Use of e-invoicing to touch 100%
The Committee is also concentrating efforts on improving the following:
- Support provided to online teachers
- Digital transformation of SMEs
- Network information safety and security
- Usage of electronic health records.
Vietnamese Families’ Investment in Online Learning
As of 2022, Vietnamese families spent nearly US$4 billion annually on overseas education. With 47% of the household expenditure allocated for education, most of the spending goes to this sector which explains the boom in e-learning.
In the past, the education ministry of Vietnam has highlighted in its report how substandard education for tertiary institutions has contributed to the rise in unemployment issues. As of 2021, the number of people with degrees and no jobs was 200,000; accounting for 3-4% of the college-going population.
All this has resulted in the high migration of Vietnamese students to foreign universities in the UK, US, Australia, China and Japan. This gap in educational needs of an emerging economy which requires high-quality skilled labor can only be fulfilled by investment in online learning.
Startup Landscape: Leading Online Learning Startups in Vietnam
The digital learning landscape has been growing at an exponential rate ever since the country made advancements towards the digital economy from 2015. As of 2024, Vietnam has more than 70 million internet users and with the pandemic restrictions most have resorted to using online platforms including teachers and students. This resulted in the rise of e-learning startups in Southeast Asian countries like Vietnam. Here are some of the best startups from the online learning sector.
Read Related: Vietnamese Unicorn Startups: Revolutionizing Southeast Asia with High-Value Players like MoMo and Axie Infinity
Clevai
Launched in 2020, this digital learning platform offers mathematics courses for students from kindergarten to 12th grade. A joint venture by Tran Manh Thang and partners from Google, Oxford, and Harvard, it uses AI to enhance students’ problem-solving skills. The AI system tracks each student’s learning curve, providing personalized solutions and timely feedback. The startup raised US$650,000 in 2020 and US$2.1 million in 2021.
Marathon
This 2021-launched after-school learning startup was started by Pham Duc and Tran Viet Tung to bridge the gap between modern technological advancements and the traditional education system. The company aims to provide lessons in all subjects as per the National Curriculum. So far, they have raised US$1.5 million from various angel investors including Forge Ventures from Singapore.
Virtual Internships
As the name suggests, this ed-tech startup came up in 2018 to help students acquire skills that make them more employable and to provide solutions to employees looking to upskill. They collaborated with many educational institutions by offering advanced courses and mentored training. The company also helped with career counselling by guiding students throughout the hiring process. From application to offer letter, everything was monitored through their online platform. The company received a whooping 1700 internship requests during the pandemic in 2020 which resulted in US$2.5 million from Sequoia Capital in 2021.
Edupia
This 2018-established English instruction offering ed-tech startup used technology to deliver English lessons of international standard at an affordable cost. Edupia devised the courses using modern English teaching methods of international schools which led them to bag a US$2 million investment from Redefine Capital Fund in 2021.
CoderSchool
This 2015-founded startup has registered 100% growth in every quarter since its inception as it provides courses in essential subjects like data science, web development, and machine learning. The startup has more than 2000 students, most of whom (80%) are full-time users working in digital companies like Microsoft, Tiki and Shopee. These people often join the company’s e-learning courses within 6 months of graduation to enhance their employability. In 2021, CoderSchool bagged US$2.6 million in pre-seed funding from Monk’s Hill Ventures.
To wrap up, the online learning market of Vietnam presents an excellent opportunity for foreign investors looking to set up a business in the country. You just need to figure out the right solutions you want to offer and navigate the regulatory landscape with caution. InCorp Vietnam’s expert legal team can make this process an easy and hassle-free experience for you. Just give us a call to book a free consultation!
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