m public investment management of higher education in
TRANSCRIPT
Volume 5 Issue 4 2018
Public Investment Management of Higher Education in Vietnam :
Current Issues and Policy RecommendationsDOI:â http://dx.doi.org/10.12775/JCRL.2018.022
Le Ngoc LaN
ForeignâTradeâUniversity,âHanoi,âVietname-mail:â[email protected]
Vu MiNh TraNg
ForeignâTradeâUniversity,âHanoi,âVietnamâe-mail:â[email protected]
AbstractPurpose:âTheâaimâofâtheâpaperâisâtoâprovideâaâcomprehensiveâinsightâonâ publicâ investmentâmanagementâ practicesâ inâ higherâ educationâ andâexperiencesâofâdevelopedâcountries,âtoâanalyseâtheâcurrentâapproachesâtoâpublicâinvestmentâmanagementâinâVietnamâandâtoâproposeâapplicableâpolicyârecommendations.âDesign/methodology/approach: Caseâstudyâbasedâonâliteratureâofâpublicâinvestmentâinâhigherâeducationâandâanalysisâofâlegalâdocuments,âreportsâandâdataâregardingâVietnamâsâcurrentâpracticesâinâtheâfield.Findings:â Publicâ investmentâmanagementâ practicesâ ofâVietnamâ stillâfollowâtheâtraditionalâapproach,âwhichâhasâshownâvariousâweaknessesâandâdrawbacksâinâtermsâofâefficiency,âlackâofâunification,âandâincapabil-ityâofâhigherâeducationâinstitutionsâtoâseekâforâautonomyâandâalternativeâoperationalâresources.Research and practical limitations/implications:âLackâofâquantitativeâdataâandâsurveyâ toolsâ toâenhanceâ theâpracticalâ implementationâofâ theâstudy.
JourNaL of corporaTe respoNsibiLiTy aNd Leadership
iNNoVaTioNs iN corporaTe sociaL respoNsibiLiTy aNd pubLic MaNageMeNT
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Originality/value:âThisâpaperâcanâbecomeâaâreferenceâresourceâforâpolicyâmakersâinâtermsâofâpromotingâreformsâinâtheâpublicâinvestmentâsystemâforâhigherâeducationâinâtheâfuture.Paper type: Caseâstudy.
Keywords:âhigherâeducation,âpublicâinvestment,âpublicâinvestmentâman-agement,âhigherâeducationâfunding.
1. Introduction
Trainingâ andâ researchâ andâ developmentâ (R&D)â areâ theâ areasâ thatâneedâgovernmentâsupport.âTheâgovernmentâisâdirectlyâresponsibleâforâtheâmajorityâofâinvestmentsâinâbasicâeducationâinâmostâcountries.âInâaddition,âpublicâinvestmentâinâhigherâeducationâalsoâcreatesâlearningâopportunitiesâforâindividualsâwhoâareânotâfinanciallyâcapableâasâwellâasâitâfacilitatesâtheâaccessâtoâthisâservice.âImprovingâqualityâofâhigherâeducationâinâVietnamâisâanâurgentâneedâinâtheâprocessâofâcomprehensiveârenovationâofâdomesticâeducationâandâatâtheâsameâtimeâenhancingâcom-petitivenessâwhenâintegratingâintoâtheâregionâandâtheâworld.âOneâofâtheâsolutionsâtoâimproveâtheâqualityâofâhigherâeducationâisâtoâfocusâpublicâinvestmentâresourcesâonâthisâeducationâsector.
Researchâonâpublicâ investmentsâ inâ theâfieldâofâhigherâeducation,âwhichâfocusesâonâanalysingâtheâexperienceâofâcountriesâinâregardâtoâtheâstateâbudgetârevenueâandâexpenditureâpolicy,âlearningâaboutâpublicâinvestmentâ scale,â publicâ investmentâ structureâ andâ allocatingâpublicâinvestmentsâinâhigherâeducationâisâanâessentialâjobâtoâdrawâlessonsâforâtheâeducationâsectorâinâVietnam.âTherefore,âtheâaimâofâtheâpaperâisâtoâprovideâaâcomprehensiveâ insightâonâpublicâ investmentâmanagementâpracticesâinâhigherâeducationâandâexperiencesâofâdevelopedâcountries,âtoâanalyseâtheâcurrentâapproachesâtoâpublicâinvestmentâmanagementâinâVietnamâandâtoâproposeâapplicableâpolicyârecommendations.âTheâstudyâemploysâtheâcaseâstudyâmethodologyâbasedâonâliteratureâofâpublicâinvestmentâinâhigherâeducationâandâanalysisâofâlegalâdocuments,âreportsâandâdataâregardingâVietnamâsâcurrentâpracticesâinâtheâfield.
Firstâofâall,âtheâtheoryâofâpublicâinvestmentâmanagementâinâhigherâeducationâisâdiscussed,âincludingâitsâmechanisms,âandâtheâinput-basedâandâoutputâbasedâtypesâofâpublicâinvestmentâmanagement.âSecondly,âtheâstudyâexploresâtheâinsightsâandâlessonsâregardingâpublicâinvestmentâmechanismsâ inâhigherâ educationâ inâEuropeanâ andâdevelopedâAsianâ
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countries.âThirdly,âtheâprocessâandâcurrentâsituationâofâpublicâinvest-mentâmanagementâinâhigherâeducationâofâVietnamâareâanalysed.âFinally,âpolicyârecommendationsâonâtheâpublicâinvestmentâmanagementâsystemâreformsâforâtheâhigherâeducationâsectorâinâVietnamâareâproposed.
2 Literature review on public investment management in higher education
2.1. Public investment in higher education
Publicâinvestmentâisâunderstoodâasâtheâstateâsectorâsâshareâofâphysicalâcapitalâtoâcreateâpublicâgoodsâandâsocialâservices,âsuchâasâroads,âjet-ties,âschools,âandâhospitals.âPublicâinvestmentâcapitalâisâusuallyâtakenâfromâtheâstateâbudget,âgovernmentâbonds,âorâforeignâdevelopmentâaid.âDependingâonâ theâ conceptâofâ eachâ country,â publicâ investmentâmayâincludeâprojectsâforâbusinessâpurposes,âthroughâtheâstate-ownedâenter-priseâsectorâ(SOE),âorâprojectsâthatâareâpurelyâpublicâ(UnitedâNations,â2009).âInâVietnam,âpublicâinvestmentâisâdefinedâuniformlyâandâspecifi-callyâinâLawâNo.â49/2014/QH13âPublicâInvestmentâLawâissuedâonâJuneâ18,â2014:ââPublicâinvestmentâisâtheâinvestmentâactivitiesâofâtheâStateâinâprogramsâandâprojectsâtoâbuildâsocio-economicâinfrastructureâandâinvestâinâprogramsâandâprojectsâforâtheâdevelopmentâofâtheâeconomyâandâsocietyâ.
Publicâ investmentâ inâ theâfieldâofâhigherâ educationâ isâ commonlyâunderstoodâasâtheâinvestmentâactivityâofâ theâStateâ inâeducationâpro-grams,âprojectsâtoâbuildâinfrastructureâforâeducationâandâprojectsâforâeducationalâdevelopment.âEducationâspendingâinâgeneralâandâhigherâeducationâ spendingâ inâ particularâ haveâ becomeâ oneâ ofâ theâ commonââpoliciesâofâallâcountries,ânotâonlyâdevelopedâcountries,âbutâalsoâdevel-opingâandâunderdevelopedâones.âHowever,âtheâlevelâofâexpenditureâisâcompletelyâdifferentâbetweenâcountriesâandâperiodsâ(MinistryâofâPlan-ningâandâInvestment,â2016).
Studyingâpublicâinvestmentsâforâhigherâeducationâisâalsoâtheâissueâofâtheâeconomicâpoliticsâofâhigherâeducationâfinances.âAccordingâtoâTilakâ(2004,â2006),âthereâareâfourâmodelsâofâaccessâtoâhigherâeduca-tionâfinances,âincluding:â(1)âtraditionalâsubsidiesâââmeaningâthatâtheâstateâpaysâwithâtheâstateâbudget,â(2)âloan,â(3)âborrowâandâpayâaccord-ingâtoâincome,â(4)âandâpayâaccordingâtoâincomeâtaxâdueâtoâuniversityâ
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graduationâ(highâincome).âOneâofâtheâissuesâthatâconcernsâcountriesâisâtheâânon-exclusiveââcharacteristic,âwhichâallowsâcitizensâtoâparticipateâinâtheâeducationâprocess.âItâmeansâcreatingâtheâbestâconditionsâforâallâcitizensâtoâhaveâequalâaccessâtoâeducationâservicesâinâgeneralâandâhigh-erâeducationâservicesâinâparticularâthroughâinvestmentâfromâtheâstateââbudgetâ(publicâinvestment).
2.2. Public investment management mechanisms
Theâmanagementâofâpublicâinvestmentsâinâhigherâeducationâofâcountriesâisâdefinedâthroughâpublicâinvestmentâmanagementâmechanisms.ââSalernoâsâ(2004)âstudyâidentifiesâfourâmainâformsâofâpublicâinvestmentâmechanismsâforâhigherâeducationâinstitutions,âtakingâintoâaccountâtheâscaleâofâcentral-izationâofâtheâsystemâandâtheâfoundationâofâbudgetâcalculation.
Theâfirstâmechanismâisâtheâtraditionalâtypeâofâpublicâinvestment,âinâwhichâtheâsystemâprovidesâinvestmentâcapitalâbasedâonâannualârequire-mentsâ(workâplansâandâbudgetâexpenditureâproposals)âsubmittedâtoâtheâregulatoryâagencies.âAlthoughâtheâcentralâlevelâplanâsetsâoutâtheârulesâforâallocation,âinâfactâtheâvariousâdetailedâbudgetsâareâoftenâbasedâonâtheâpreviousâyearâsâbudgetâallocations.âSeparateâbudgetâitemsâareâthenânegotiatedâbetweenâtheârepresentativesâofâeducationalâinstitutionsâandârelevantâ fundingâagenciesâ (suchâasâ theâministryâofâeducationâorâ theânationalâfundingâboard).âAnnualâchangesâ(usuallyâinâanâascendingâtrend)âforâanyâparticularâitemâareâprocessedâonâanâinstitutionalâbasisâandâareâoftenâbasedâonâcostâestimates.âTypicalâareasâofâinvestmentâinclude:âstaffâsalaries,âfacilityârequirements,âmaintenanceâandâinvestmentâcosts,âasâdeterminedâbyâindicatorsâsuchâasâunitâcostâorâcapacityâ(e.g.,âtheânumberâofâsponsoredâstudents)â(Salerno,â2004).â
Theâsecondâmechanismâisâstillâaâcentralizedâsystemâbutânowâtheâcriteriaâforâallocatingâfundsâareâbasedâonâtheâresultsâachieved,ânotâtheârequiredâinputs.âTheâcriteriaâusedâvary,âbutâtheâoutcomesâmayâincludeâtheâgraduationârateâorâtheânumberâofâcreditsâearnedâbyâstudentsâofâdif-ferentâdisciplinesâinâanâinstitution.âTheâexamplesâofâthisâformâareâtheâDanishâtaxâcalculatorâmodelâorâtheâSwedishâfundingâplan,âbothâofâwhichâinvestâfundsâallocatingâthemâtoâorganisationsâbasedâonâaâcombinationâofâenrolmentâandânumberâofâcreditsâpassed.âThisâ isâalsoâ theâcaseâ inâtheâNetherlands,âwhereâfundingâisâbasedâonâtheânumberâofâfirst-yearâstudentsâandâtheânumberâofâmasterâsâdegreesâawardedâ(JongbloedâandâVossensteyn,â2002).
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Theâthirdâmechanismâdescribesâkeyâmarket-drivenâsystems,âinâwhichâhigherâeducationâinstitutionsâcompeteâprimarilyâthroughâtheâsupplyâofâgraduatesâorâresearchâactivitiesâbyâsubmittingâapplicationsâforâbidsâtoânationalâbudgetâagencies.âCompetitionâisâencouragedâandâappliedânotâonlyâtoâeducationalâactivitiesâbutâalsoâtoâscientificâresearchâ(usuallyâthroughânationalâresearchâcouncils).âContractsâareâestablishedâbetweenâfundingâagenciesâandâhigherâeducationâinstitutions,âwithâtheâgoalâofâpro-vidingâgraduatesâforâlabourâmarketâneeds,âorâresearchâresultsâtoâenhanceâtheâcreativeâcapacityâofâtheânation.âItâisâimportantâthatâorganisationsâreceiveâcoreâfinancialâ resourcesâonlyâwhileâmeetingâagreedâcriteria,âwhichâmayâincludeâtheâtypesâandâqualificationsâofâstudentsâadmittedâtoâhigherâeducationâinstitutions.âTheâmaximumâtuitionâfeesâareâcalculatedâbyâtheâinstitutionâandâdueâtoâtheâhigherâeducationâinstitutionâsâcommit-mentâtoâensureâqualityâofâtrainingâforâitsâstudentsâ(Salerno,â2004).
Theâ fourthâmechanismâ isâconsideredâ toâbeâ theâmostâprogressiveâandâisâconsideredâbyâmanyâstudies.âBasically,âtheâorganisationâsâcoreâfinancialâresourcesâareâcloselyâlinkedâtoâtheâneedsâofâeducationalâserviceâusers.âStudentsâreceiveâdocumentsâtoâparticipateâinâoptionalâeducaâtionalâinstitutionsâ withâ flexibleâ parameters.â Higherâ educationâ institutionsâmustâmonitorâqualityâofâtheirâteachingâandâtrainingâprograms,âbecauseâunattractiveâprogramsâwillâreceiveânoâfunding.âTuitionâfeesâmayâbeâsetâbyâtheâgovernment,âbutâpriceâflexibilityâwillâdrawâstudentsâattentionâtoâqualityâofâtheâserviceâtheyâreceiveâfromâhigherâeducationâinstitutionsâ(Salerno,â2004).
2.3. Input-based vs. output based public investment management
Thereâareâvariousâtypesâofâpublicâinvestmentâmanagementâinâhigherâeducation,âwhichâcanâbeâclassifiedâ intoâ twoâcategories:â input-basedâandâoutput-based.âInput-basedâpublicâinvestmentâinâhigherâeducationâincludes:
Allocation and management of investment budgets based on goals and results:âThisâformâguidesâtheâallocationâandâmanagementâbasedâonâgivenâresultsâandâtargetsâalongâwithâspecificâfinancialâlimitsâtoâbeâallocated.âHigherâeducationâinstitutionsâwishingâtoâreceiveâthisâinvestmentâfromâtheâstateâbudgetârequireâaâcommitmentâtoâmeetâtheâquantitativeâandâqualitativeâgoalsâofâtheâallocatedâcapital.âInâgeneral,âtheâconditionsâforâthisâbudgetâallocationâareâfeasibleâinvestmentâproj-ects,âscientificâresearchâprojectsâsubmittedâandâapprovedâaccordingâtoâ
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theâobjectivesâandâoutputs.âThisâapproachâhelpsâinvestmentâfinanceâmanagersâasâwellâasâhigherâeducationâinstitutionsâtakeâtheâinitiâativeâinâ approving,â allocatingâ andâmanagingâ budgetsâ forâ educationalâactivities.â Theâ investmentâ projectsâ emphasizeâ qualityâ ofâ outputâproductsâtoâdetermineâtheâlevelâofâinvestmentâfromâtheâstateâbudgetâforâ educationalâ institutions.âHigh-qualityâ programsâ areâ investedâmoreâthanâmainstreamâprograms.âKeyâprogramsâwillâbeâprioritizedâinâinvestmentâprojectsâfundedâbyâtheâstateâbudgetâ(Jongbloed,â2004).
Allocation and management of investment budgets based on expenditure categories:âWithâthisâapproach,âitemsâinvestedâbyâpub-licâbudgetâmustâcomplyâwithâregulations.âItâisânotâallowedâtoâspendâfromâoneâitemâtoâanother.âTheâapproachâtoâpublicâbudgetâinvestmentâforâhigherâeducationâinstitutionsâinâparticularâandâforâstateâagenciesâinâgeneralâunderâthisâmodelâhasâeliminatedâtheâself-determinationâfactorsâofâthoseâreceivingâinvestmentâandâisâonlyâdeterminedâinâtheâspecificâgaugeâformatâ(Jongbloed,â2004).
Formula funding:âMostâcountriesâinâEuropeâuseâsponsorshipâformulasâtoâcalculateâtheâsizeâofâpublicâsubsidiesâforâteachingâandâ/âorâongoingâactivityâand,âinâsomeâcases,âresearch.âTheâinvestmentâareasâinâtheâformulaâincludeâinputâcriteriaâ(e.g.âenrolment,âstaff)âandâ/âorâperformanceâindicatorsâ(e.g.âcredits,âdiplomas).âTheâsponsorshipâformulaâisâpopularâforâaânumberâofâreasons.âJusticeâandâtransparencyâareâ twoâofâ theâ importantâattributesâofâ theâformula.âReducingâ theâadministrativeâ burdenâ isâ anotherâ compellingâ featureâ ofâ aârecipe,âbecauseâonceâestablished,âtheâapplicationâofâthisâformulaâisâquiteâsimple.âAâsetâofârulesâapplyâtoâallâuniversitiesâandâthereâisânoâneedâtoânegotiateâwithâeachâinstitutionâseparatelyâ(Jongbloed,â2004).
Theâcurrentâtrendâofâpublicâinvestmentâmanagementâinâhigherâeducationâsectorsâinâdevelopedânationsâhasâbeenâshiftingâfocusâtoâtheâoutput-basedâbudgetâprovision,âinâwhichâhigherâeducationâinsti-tutionsâareâprovidedâwithâfundingâcalculatedâbyâtheirârespectiveâper-formance-basedâindicators,âincludingâcriteriaârelatedâtoâquantityâandâqualityâofâeducationâandâtraining,âandâacademicâresearchâactivities.âTheâpracticesâappliedâinâoutput-basedâpublicâinvestmentâinâhigherâeducationâinclude:
Performance-based funding:âItâisâclearâthatâtheârelevantâinputsâareâstillâimportantâinâallâcountries,âalthoughâthereâisâaâgradualâtrendâofâattentionâtoâperformance-basedâsubsidies.âAlthoughâaânumberâofâcountriesâhaveâreducedâtheirâ investmentâinputsâtoâfocusâmoreâonâ
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performance-relatedâfactors,ânoneâhasâaâ100%âperformance-basedâsystem.âOneâofâtheâreasonsâforâtheâmoderateâattentionâtoâefficiencyâfactorsâisâtheâdifficultyâinâunifyingâindicatorsâthatâcanâfullyâandâcom-prehensivelyâassessâbothâquantityâandâquality.âTheâtypicalâinvestmentâregimeâincludesâextremeâpoliticizedâinvestmentâdecisions,âbutâtodayâtheâfinancingâformulaâhasâbeenâusedâinsteadâofânegotiating-basedâmethods.âTheâbudgetâforâeducationâisâbasedâonâtheânumberâofâstu-dents,âupdatedâannuallyâforâchangesâinâstudentânumbers.âResearchâandâteachingâfundingâisâcombined,âandâtheâallocationâmechanismâforâgrantsâisâgrowing.âInâmostâcountries,âfundingâincludesâteachingâandâcomponentâresearch,âwhichâisâcalculatedâbasedâonâdifferentâcri-teriaâ(althoughâuniversitiesâareâautonomousâaboutâhowâtheyâspendâthisâmoney).âResearchâfundingâallocationâalsoâexperiencesâchangesâfromâaâbasicâfundingâformulaâtoâoneâwithâoutputâfactorâ(qualityâofâresearchâactivities)â(Jongbloed,â2004).
Project funding:âManyâcountriesâhaveâaâresearchâcommitteeâthatâawardsâprojectâgrantsâforâscientificâresearchâprojectsâatâuniver-sitiesâââtheââdualâmodeââmodel.âThisâmeansâthat,âinâadditionâtoâtheâmainâ fundingâofâacademicâ researchâ (institutionalâorâdirectâ fundsâthatâareâaâpartâofâaâone-timeâincome),âthereâisâaâsecondâsourceâofâcompetitiveâ fundingâ originatingâ fromâ aâresearchâ councilâ orâ anâintermediaryâorganisation.âCompetitiveâresearchâfundsâareâawardedâbasedâonâresearchâproposalsâpreparedâbyâresearchâgroups.âInâsomeâcountries,âanâimportantâpartâofâtheâcurrentâfundingâisâchannelledâintoâcompetitiveâresearchâcontractsâandâotherâcontractâstudies.âRegardingâresearchâfunding,âtheâtendencyâtoâattachânewâ(additional)âresearchâfundsâtoâspecificâprioritiesâisâchosenâbyâfundingâagencies.âInâotherâwords,âwhileâcompetitiveâresearchâfundsâmayâstillâbeâinitialâprojects,âmanyâgovernmentsâareâforcingâspecificâconditionsâandâgoalsâintoânewâcompetitionâ funds.âAnâexampleâofâ thisâ isâ theâemergenceâofânewâresearchâprogramsâandâprogramsâtoâcarryâoutâstrategicâstudiesâsuchâasâeliteâcentres.âTheâproportionâofâfundsâdistributedâthroughâcompetingâfundingâprogramsâ(e.g.,âresearchâcouncils)âisâincreasingâinâproportionâtoâtheâfundingâallocatedâwithâdirectâdonorâformulasâandâprograms.âAlthoughâtheâdonorâfundingâsystemâstillâappearsâtoâdominateânationalâsystems,âinâallâcountriesâtheâpercentageâofâprojectâfundsâforâresearchâhasâincreasedâ(Jongbloed,â2004).
Contract funding:â Switchingâ toâ theâ thirdâ typeâ ofâ fundingâ(besidesâformula-basedâgrantsâandâprojectâfunds),âanotherâpopularâ
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formâofâ fundingâ isâ throughâ contracts.âFundingâ contracts,â signedâbetweenâdonorâagenciesâandâindividualâuniversities,âareâtheâexampleâofâtheâthirdâtypeâ(decentralized,âoutputâoriented)âofâpublicâinvestmentâmechanismsâidentifiedâbyâSalernoâ(2004).âThisâfundingâapproachâcanâbeâseenâasâaâwayâforâtheâgovernmentâtoââbuyââaâproductâmadeâofâhigherâeducationâoperationsâ(Jongbloed,â2004).
3. International experiences on public investment management in higher education
Mostâcountriesâapplyâaârangeâofâpublicâ investmentâpracticesâ intoââmanagementâpolicies,âwithâaâfurtherâfocusâonâanâoutput-based,âdecent-ralisedâapproach.âTheâroleâofâtheâgovernmentânowâisâtoâsupervise.âAsâanâinvestor,âtheâgovernmentâmayâalsoâchooseâtoâbeâmoreâflexible.âForâexample,âwhenâbasicâexpenditureâitemsâcanâbeâmetârelativelyâadequatelyâwithâtheâbudgetsâofâprovinces,âcitiesâorâtheâschoolâitself,âtheâgovernmentâcanâfocusâitsâinvestmentâonâtrainingâprojectsâandâstra-tegicâorâground-breakingâresearchâ(Le,âNguyen,âNguyen,âHoangâandâVu,â2017).âItâisâimportantâtoâstudyâtheâcommonâcharacteristicsâandâexperiencesâofâtheâpublicâinvestmentâmechanismsâinâvariousânationsâinâorderâtoâdefineâtheâcurrentâissuesâlastingâinâVietnamâsâcurrentâpub-licâinvestmentâmanagementâinâhigherâeducationâprocess.â
3.1. Practices of performance-based funding mechanism in Europe
Comparedâ toâ theâ1990s,âwhenâonlyâaâfewâcountriesâwithâperfor-mance-relatedâ criteriaâ playedâ anâ importantâ roleâ (Denmark,â theâNetherlands,âPoland,âSwedenâandâtheâUnitedâKingdom),ânowadaysâthereâareânearlyâ20âcountriesâwithâperformanceâfactorsâbeingâusedâtoâbalanceâtheâbudgetâinvestmentâinâhigherâeducationâinstitutions,âincluding:âAustria,âBelgiumâ(Flanders),âDenmark,âGermany,âEsto-nia,âFinland,âFrance,âGreece,âIceland,âItaly,âNetherlands,âNorway,âPoland,âRomania,âSlovakia,âSlovenia,âSpain,âSwedenâandâtheâUK.âEvenâtheâfundingâmechanismâforâhigherâeducationâsystemsâinâmanyâcountriesâ inâ Centralâ andâ Easternâ Europe,â previouslyâ guidedâ byâcentralâplanning,âhasâbeenâreshaped.âTheâtypicalâinvestmentâregimeâincludesâextremeâpoliticizedâ investmentâdecisions,âbutâ todayâ theâ
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financingâformulaâhasâbeenâusedâinsteadâofânegotiating-basedâmeth-odsâ(Jongbloed,â2004).
Moreâspecifically,âinâeachâofâtheâcountriesââeducationâsystems,âthereâareâdifferentâapproaches.âInâtheâDanishâsystem,âtheâallocationâofâteachingâfundingâ(onâaverageâone-thirdâofâuniversityârevenues)âisâdirectlyâlinkedâtoâtheânumberâofâstudentsâwhoâpassâtheirâexams.âInâtheâDutchâfundingâsystem,âtheâdistributionâofâuniversityâteachingâfundingâisâinâ50%âbasedâonâtheânumberâofâdegreesâandâinâuniversi-tiesâofâappliedâsciencesâtheâgraduationârateâaffectsâfunding.âWhileâfundingâ forâ teachingâ activitiesâ inâ theâCzechâRepublicâ isâmainlyâbasedâonâinputsâ(numberâofâstudents),âoutputâcriteriaâsuchâasâtheânumberâofârecentâgraduatesâhaveâbeenâintroduced.âTodayâsâItalianâfundingâ isâalsoâbasedâ inâpartâonâ theâoutcomeâofâ research-relatedâactivitiesâ(throughâtheâintroductionâofâaâpracticalâresearchâreview).âTheâNorwegianâ fundingâsystemâallocatesâ fundsâaccordingâ toâ theâformulaâbasedâonâaâcombinationâofâaâfixedâcomponentâ(60%)âandâcomponentsâresultingâfromâeducationâ(25%âbasedâonâstudentâcreditsâandâgraduateâstudents)âandâresearchâ(15%âbasedâonâaâcombinationâofâtheâfollowingâperformanceâindicators:âdoctoralâdegree,âEUâfunding,âresearchâcouncilâfundingâandânumberâofâpublications).âInâSweden,âfundingâcriteriaâforâteachingâareâaâcombinationâofâtheâinputsâ(full-timeâstudentâequivalent)âandâoutputsâ(studentâachievementâonâcredit).âUniversitiesâinâtheâUnitedâKingdomâreceiveâresearchâbudgetsâbasedâonâperiodicâqualityâassessmentsâ thatâ includeâ researchâevaluationâ(RAE)âtasks.âTheâbudgetâforâeducationâisâbasedâonâtheânumberâofâstudents,âupdatedâannuallyâ(Jongbloed,â2004).
3.2. Experiences in current public investment in higher education practices in Asian developed countries
AccordingâtoâtheâreportâbyâLeâetâal.â(2017),âtheâpracticesâinâKorea,âSingaporeâandâChinaâshowâthatâinvestmentâinâresearchâisâalwaysâoneâofâtheâtopâpriorities.âGovernmentsâinâallâcountriesâhaveâincreasedâinvestmentâinâresearchâatâuniversities,âbuildingâresearchâcentresâtoâenhanceâresearchâcapacityâandâcompetitivenessâofâuniversities.
Inâtheâcontextâofâglobalizationâandârapidâchangeâofâtechnology,âtheâmasteryâofâknowledgeâandâskillsâandâtheâabilityâtoâcreateânewâtechnologiesâ isâanâ importantâ stepâ forâcountriesâ toâmaintainâ theirâcompetitiveâ advantages.âHowever,â itâ shouldâ beâ emphasizedâ thatâ
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selectivityâisâoneâofâtheâbasicâconditionsâtoâensureâoptimisationâofâinvestmentâresources.âCountriesâhaveâcarefullyâselectedâandâfocusedâresourcesâonâaânumberâofâkeyâresearchâareasâwithâpotentialâforâfutureâdevelopment.âSo,âwhichâindustryâshouldâbeâconsideredâasâaâspear-head?âInâfact,âthereâisânoâcommonâanswerâforâallâcountries.âKeepingâupâwithâ theâgeneralâ trendâ isâessential.âStill,â aâsectorâ thatâhasâ theâpotentialâtoâgrowâinâtheâworldâcanâbeâanâeffectiveâinvestmentâforâoneâcountry,âbutâlessâeffectiveâforâanother.âTheâcreationâofâfoundationsâforâkeyâindustriesâdependsâheavilyâonâtheâavailableâadvantagesâasâwellâasâtheâadaptabilityâandâtransformationâofâeachâeconomy.âOnâtheâotherâhand,âtheâagilityâandâlong-termâvisionâofâtheâgovernmentâareâalsoâimportantâfactorsâtoâensureâtheâinvestmentâbudgetâwillâbeâeffective.âThisâcanâbeâclearlyâseenâinâtheâcaseâofâSingaporeâandâSouthâKoreaâ(Leâetâal.,â2017).
Onâtheâotherâhand,â theâprocessâofâanalysingâ largeâ investmentâprojectsâinâKoreaâandâChinaâshowsâthatâinvestmentâpackagesâtoâpro-moteâgovernmentâresearchâalwaysâaccompanyâorâincludeâinvestmentâitemsâforâinfrastructure.âTheâqualityâofâeducationâandâresearchâinfra-structure,âespeciallyâlaboratories,âandâtheâaccompanyingâequipment,âareâessentialâforâqualityâofâtheâhigh-techâresearchâthatâtheseâcountriesâseek.âOnâtheâotherâhand,âmodernâfacilitiesâandâhighâremunerationâareâtheâfoundationâforâKorea,âChinaâandâSingaporeâtoâattractâhighâqualityâhumanâresourcesâfromâabroadâ(Leâetâal.,â2017).
However,âgovernmentsâofâallâcountriesânowâtendâtoâencourageâtheâdiversificationâofâinvestmentâcapitalâforâeducation,âespeciallyâinâhigherâeducation.âIncreasingâsourcesâofâoff-budgetâinvestmentânotâonlyâreducesâfinancialâpressureâonâgovernmentsâbutâalsoâbringsâotherâpositiveâeffects.âForâexample,âinâtheâcaseâofâChina,âwhenâfinancialâresponsibilityâisâdecentralisedâtoâtheâlocalâlevel,âtheâgovernmentsâofâtheâprovincesâandâcitiesâwillâhaveâtoâbeâmoreâactiveâinâseekingârev-enuesâtoâensureâeducationâexpenditures.âSimilarly,âwhenâuniversitiesâinâSingaporeâareâfinanciallyâautonomous,âonâtheâbasisâofâcost-benefitâconsiderations,âschoolsâwillâproactivelyâsetâappropriateâtuitionârates.âAâhigherâlevelâofâresponsibilityâmakesâschoolsâmoreâflexibleâifâtheyâwantâtoâmaintainâfinancialâstabilityâandâimproveâtheirâcompetitive-nessâ(Leâetâal.,â2017).
Regardingâtheâformâofâbudgetâallocationâforâhigherâeducation,âitâdependsâlargelyâonâtheâinstitutionalâsystemâofâeachâcountry.âNev-ertheless,âitâisâpossibleâtoâidentifyâtheâmostâcommonâprinciplesâthatâ
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governmentsâapplyâtoâimproveâpublicâinvestment.âFirstly,âeveryâformâofâbudgetâallocationâmustâensureâtheâselectivityâofâinvestmentâitems.âAsâmentionedâabove,âgovernmentsâofâallâcountriesâhaveâdirectedâinvestmentâbudgetsâforâaânumberâofâkeyâuniversities,âaânumberâofâkeyâresearchâfieldsâandâpotentialâtoâcompeteâinâtheâworld.âHowever,âtheâinvestmentâefficiencyâcanâonlyâbeâachievedâonâtheâbasisâofâcare-fullyâselectingâsubjectsâtoâreceiveâinvestmentâthroughâtransparentâmechanisms.âTheâtrueâcapacityâofânewâschoolsâisâaâfactorâthatâhelpsâtheâgovernmentâquicklyâachieveâinitialâinvestmentâgoals,âincludingâclosingâtheâgapâwithâadvancedâeducationâaroundâtheâworld.âOnâtheâotherâhand,âtheâmoreâtransparentâtheârecruitmentâmechanismâis,âtheâmoreâcompetitiveâitâisâ(Leâetâal.,â2017).
Secondly,âtheâbudgetâallocationâtoâuniversitiesâshouldâbeâdeter-minedâ basedâ onâ performance.â Differentâ fromâ theâ targetâ systemâappliedâdecadesâago,âformulaâfundingâandâperformanceâbasedâfund-ingâareânotâonlyâflexible,âbringingâinvestmentâefficiencyâbutâtheyâalsoâcontributeâtoâstrengtheningâtransparencyâinâtheâbudgetâallocationâprocess.âThisâcanâbeâclearlyâseenâinâtheâcaseâofâKoreaâandâSingapore.âOnâtheâotherâhand,âinâtheâtrendâofâuniversityâautonomy,âthisâwillâbeâappropriateâbecauseâtheâgovernmentânoâlongerâmanagesâthroughâadministrativeâ ordersâ anymoreâ butâ actsâ asâ aâbuyerâ ofâ servicesâââ(Leâetâal.,â2017).
Thirdly,âforâresearchâandâdevelopment,âitâisâadvisableâtoâmaintainâtheâcompetitiveâallocationâmechanism.âUnlikeâ teachingâexpendi-tures,âresearchâexpendituresâareâlessâconstrainedâbyâsocialâequityâgoalsâ(suchâasâequalityâofâaccessâtoâeducationâatâtheâuniversityâlevel).âTherefore,âtheâefficiencyâfactorâisâmuchâhigher.âTheâgovernmentsâofâSouthâKoreaâandâSingaporeâmaintainâfundingâforâresearchâprojectsâforâallâuniversities.âInâtheâcontextâofâreasonableâcompetitionâcriteriaâandâtheâtransparentâselectionâprocess,âthisâallocationâmechanismâwillâhelpâtheâgovernmentâselectâtheârecipientsâofâcapitalâthatâhaveâtheâbestâcapacity,âensuringâinvestmentâefficiency.âInâaddition,âtheseâfundsâareâusuallyâdirectlyâcontrolledâbyâtheâMinistryâofâEducationâtoâensureâfairâcompetitionâforâallâuniversitiesâ(Leâetâal.,â2017).
Fourthly,âallâformsâofâbudgetâallocationâmustâensureâaccountabil-ityâofâtheâparties. Ifâaccountabilityâisânotâenforced,âbudgetâallocationsâwillâ becomeâ lessâ transparentâ andâ createâ enormousâ socialâ losses.âSchoolsâorâprojects,âwhoâreceiveâinvestment,âneedâtoâbeâseriouslyâandâpubliclyâassessedâtoâensureâtheâefficiencyâandâtransparencyâofâ
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theâuseâofâinvestmentâcapital.âExternalâorâthird-partyâassessmentsâareâtheâformâusedâbyâSouthâKoreaâandâSingapore.âAsâaâresult,âtheâgovernmentâcanâtakeâappropriateâmeasuresâtoâadjustâbehavioursâofârecipientsâtoâavoidâlossesâandâencourageâcompetition.âMeanwhile,âtheâlackâofâmechanismsâtoâassessâandâmonitorâinvestmentâfundsâinâtheâcaseâofâChinaâhasâraisedâconcernsâaboutâequityâinâbudgetâalloca-tionsâbetweenâuniversitiesâ(Leâetâal.,â2017).
Theâgovernment,âasâanâinvestor,âalsoâneedsâtoâexerciseâcertainâaccountability.âPublicâinvestmentâinâhigherâeducationâisâessentiallyâaâresourceâthatâresidentsâcontributeâ(mainlyâthroughâtaxes)âthatâtheâgovernmentâisâtheârepresentativeâforâmanagementâandâuse.âThere-fore,âtheâgovernmentâalsoâneedsâaâpublicâaccountâofâtheâitemsâofâtheâbudgetâspentâandâtheâeffectivenessâofâtheseâexpenditures.âAuditingâisâthereforeânotâonlyâmandatoryâforâuniversitiesâbutâalsoâforâgovern-mentâagenciesâthatâareâdirectlyâresponsibleâforâtheârelevantâbudgetâitemsâ(Leâetâal.,â2017).
4. Current situation of public investment management in higher education of Vietnam
4.1. The process of public investment management for higher education in Vietnam
Accordingâtoâcurrentâregulations,âtheâprocessâofâpublicâinvestmentâinâhigherâeducationâisâcarriedâoutâaccordingâtoâtheâfollowingâthreeâsteps:â (1)â investmentâ strategicâplanning,â appraisalâ andâapproval,â(2)â publicâ investmentâ projectsâ planning,â appraisalâ andâ distri-bution,âandâ(3)âfundingâdistributionâandâpublicâinvestmentâprojectâimplementation.
Step 1: Investment strategic planning, appraisal and ap - proval: Theâformulationâofâaâproposalâreportâforâinvestmentâprojectsâofâhigherâeducationâinstitutionsâshouldâbeâbasedâonâtheâorientationâofâdevelopmentâwithinâtheâinstitution,âinâaccordanceâwithâtheâtar-getsâsetâoutâonâtheâdevelopmentâplanningâofâtheâinstitution,âindustry,âregionâorânationâinâmediumâtermâandâlongâtermâandâapplicableâforâtheâavailableâcapabilityâofâtheâinstitution. Basedâonâtheâproposedâinvestmentâpolicyâreport,âasâwellâasâtheâabilityâtoâbalanceâtheâbudgetârevenueâandâcomplianceâwithâtheâlegalâprovisionsâonâinvestmentâandâ
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financialâmanagement,âcompetentâauthoritiesâaccordingâtoâdecent-ralisationâ(usuallyâinâchargeâofâtheâdecisionâmakingâprogress)âshallâmakeâevaluationâandâappraisalsâ(basedâonâtheâopinionsâofâplanningâandâinvestmentâagenciesâandâfinanceâagenciesâofâtheâsameâlevelâorâhigherâdependingâonâtheâprogramsâorâprojects)âandâsubmitâtoâcompe-tentâauthoritiesâforâdecisionâonâtheâinvestmentâpolicy.âTheâdecisionâonâpublicâinvestmentâpolicyâservesâasâtheâbasisâforâtheâprocessâofâsummingâupâtheâlistâofâprojects,âapprovingâtheâtotalâinvestmentâandâtheâallocationâinâtheâmedium-termâpublicâinvestmentâplan.âUnderâtheâ Publicâ InvestmentâLawâofâ 2014,â beforeâ theâ 20thâ ofâOctoberâofâtheâfifthâyearâofâtheâpreviousâplan,âtheâGovernmentâsubmitsâtoâtheâNationalâAssemblyâtheâplanâforâtheânextâperiod.âBeforeâ10thâofâNovemberâtheâNationalâAssemblyâshallâdecideâtheâplanâforâtheânextâperiod.âBeforeâ20thâofâDecember,â theâPrimeâMinisterâassignsâtheâmedium-termâinvestmentâplanâforâministries,âsectorsâandâregionalâagencies.âBeforeâ31stâofâDecember,â theâMinistryâofâFinanceâandâPlanningâshallâgiveâoutâdetailedâplansâforâpublicâinvestmentâtoâmin-istriesâandâlocalâgovernmentsâ(MinistryâofâPlanningâandâInvestment,â2016).
Step 2: Public investment projects planning, appraisal and distribution:âBasedâonâtheâinvestmentâstrategiesâalreadyâapprovedâbyâcompetentâauthorities,âhigherâeducationâinstitutionsâshallâmakeâevaluationâreportsâandâfinaliseâtheâpublicâinvestmentâprojectsâandâprogramsâforâsubmissionâtoâcompetentâauthoritiesâforâappraisal.âOnâtheâbasisâofâtheâevaluationâresults,âcompetentâauthoritiesâshallâissueâdecisionsâonâinvestmentâinâpublicâinvestmentâprogramsâorâprojects.âAccordingly,âactivitiesâandâcostâestimatesâforâtheâimplementationâofâtheâprogramsâandâprojectsâwillâbeâclarifiedâannuallyâandâthroughoutâtheâdurationâofâ theâprogramâorâprojectâbasedâonâtheâ totalâ invest-mentâandâtheâpreviouslyâplannedâdistributionâinâtheâmediumâtermâpublicâinvestmentâstrategicâplan.âEstimatedâprojectâfundingâwillâbeâaggregatedâandâallocatedâbasedâonâ theâannualâpublicâ investmentâplanâsubmittedâtoâcompetentâauthoritiesâforâapprovalâ(MinistryâofâPlanningâandâInvestment,â2016).
Step 3: Funding distribution and public investment project implementation:âTheâallocationâofâinvestmentâcapitalâtoâhigherâedu-cationâinstitutionsâisâinâaccordanceâwithâtheâallocationâproceduresâstatedâinâtheânationalâpublicâinvestmentâstrategiesâforâministries,âasâwellâasâadditionalâfundingâplansâforâlocalâagencies.âAccordingly,â
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basedâonâtheâannualâpublicâinvestmentâplanâapproved,âtheâcomâpetentâauthorityâwillâallocateâinvestmentâcapitalâtoâtheâcorrespondingâunit,âwhichâcanâbeâaâministry,âsectorâorâregion.âBasedâonâthat,âtheâcor-respondingâunitâwillâallocateâtheâfunding,âeitherâdirectlyâtoâhigherâeducationâinstitutionsâorâindirectlyâbyâdecentralisation.âInâaddition,âtheâStateâBudgetâLaw,âtheâPublicâInvestmentâLaw,âDecreeâ77âreg-ulatesâtheâallocationâandâuseâofâstateâbudgetâreserves,âwherebyâtheâGovernmentâ stipulatesâ reserveâ fundsâ inâ theâmedium-termâpublicâinvestmentâ planâ toâ dealâwithâ emergingâ issues.âTheâ contingencyâreserveâisâ10%âofâtheâcentralâbudgetâforâmedium-termâplansâofâtheâcentralâministries,âagenciesâandâregionsâforâunexpectedâprojectsâtoâmeetâurgentâdemandsâ(MinistryâofâPlanningâandâInvestment,â2016).
4.2. Current issues on public investment management process in higher education of Vietnam
InâVietnam,âinâtheâpastâyears,âtheâPartyâandâStateâhaveâalwaysâpaidâattentionâ toâ theâ developmentâ ofâ education.âTheâ 2005âEducationâLawâ(revisedâ2009),âtheâLawâonâHigherâEducationâofâ2012âandâtheâProfessionalâEducationâActâofâ2014ârecognizeâpublicâinvestmentâinâeducationâasâdevelopmentâinvestment.âTheâstateâprioritizesâeduca-tionâandâtheâstateâbudgetâmustâremainâaâmajorâplayerâinâtheâtotalâinvestmentâinâeducation.âAccordingâtoâstatistics,âinâtheâendâofâtheâ2016â2017âacademicâyear,âtheâhigherâeducationâsystemâofâVietnamâincludedâ235âuniversitiesâandâinstitutionsâ(170âpublic,â60âprivateâones,â5âforeignâowned),â37âscientificâresearchâinstitutesâassignedâtoâtrainâdoctoralâstudents,â33âcollegesâofâpedagogyâandâ2âintermediateâschoolsâofâpedagogy.âTheâstateâbudgetâisâstillâlimited,âbutâtheâStateâhasâalwaysâreservedâaâconsiderableâproportionâofâtheâbudgetâtoâbeâinvestedâinâhigherâeducationâ(MinistryâofâPlanningâandâInvestment,â2016).
Whileâthereâhasâbeenâaâremarkableâchangeâinâtheâstrategicâfocusâofâpublicâinvestmentâinâhigherâeducation,âasâwellâasâtheâquantityâandâpoliciesâdedicatedâtoâimproveâtheâsystem,âtheâpublicâinvestmentâman-agementâmechanismâinâVietnamâstillâfollowsâtheâtraditionalâpracticesâ(budgetâprovision,âandâinput-basedâreliance).âThisâhasâledâtoâvariousâissuesâ regardingâ investmentâ inefficiency,â theâ lackâ ofâ investmentâstrategies,âespeciallyâinâtermsâofâpromotingâeducationalâqualityâandâresearchâactivities,âandâincapabilityâofâhigherâeducationâinstitutionsâ
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inâ implementingâ autonomyâorâ privateâ partnership.âAccordingâ toâtheâCentralâ Instituteâ forâEconomicâManagementâ(CIEM)â(2016),âalthoughâtheâLawâonâProcurementâandâDecreeâNo.â15/2015/âND-CPâonâinvestmentâ inâtheâformâofâPPPâhasâcreatedâaâlegalâframeworkâtoâapplyâmarketâprinciplesâinâallocatingâpublicâinvestment,âbutâsoâfarâmanyâregulationsâhaveânotâcomeâtoâpracticeâdueâtoâtheâlackâofâprovisionalâguidance.âMinistries,âsectorsâandâlocalitiesâhaveânotâyetâdevelopedâanâuniformâsystemâofâcriteriaâforâallocating,âmonitoringâandâevaluatingâpublicâ investment.âResearchâresultsâofâ theâCIEMâalsoâpointedâoutâthatâdisciplinesâofâpublicâinvestmentâmanagementâhaveâtooâmanyâloopholes,âleadingâtoâineffectiveâandâunmanageableâimplementationâpractices.âPublicâinvestmentâmanagementâprocessesâhaveânotâyetâbeenâestablished.
Inâparticular,âtheâcurrentâprocessâofâmanagingâpublicâinvestmentâinâhigherâeducationâposesâtheâissuesâasâbelow.âFirstly,âtheâprocessâofâmanagingâpublicâinvestmentâisânotâuniformâforâtheâwholeâhigherâeducationâsystem.âTheâuniversityâsystemâisâcurrentlyâmanagedâbyâthreeâdifferentâagencies,âtwoânationalâuniversitiesâareâdirectlyâman-agedâbyâtheâGovernment,âtheâMinistryâofâEducationâandâTraining,âtheâremainingâuniversitiesâareâmanagedâbyâprovinces.âThus,âitâcanâbeâsaidâthatâtheâprocessâofâmanagingâpublicâinvestmentâinâhigherâeducationâinâVietnamâisâdiversifiedâandâthisâdifferenceâhasâanâimpactâonâtheâefficiencyâofâpublicâinvestmentâforâuniversitiesâ(MinistryâofâPlanningâandâInvestment,â2016).
Secondly,â theâappraisalâprocessâofâ theâ investmentâprojectâhasâshownâinconsistency,âtheâlackâofâappropriatenessâofâtheâproposedâstrategies,â andâ failureâ toâ followâ theâ developmentâ targetsâ ofâ theânation,â sectorâ andâ theâ institutionsâ themselves.âAccordingâ toâ theâreportâbyâtheâMinistryâofâPlanningâandâInvestment,âaâsurveyâofâ68âuniversitiesârevealedâthatâ81%âofâschoolsâconfirmedâthatâtheyâhadâaâschoolâdevelopmentâstrategyâandâ73%âhadâaâschoolâdevelopmentâplan.âHowever,âasâmanyâasâone-fourthâofâtheâschoolsâsaidâthatâtheâplanâdidânotâincludeâtheâlistâofâprojectsâexpectedâtoâinvest.âOneâofâtheâreasonsâgivenâforâtheâappropriatenessâofâinvestmentâisâtheâurgencyâofâtheâproposedâprojects.âTheâreportâalsoâshowsâthatâupâtoâ35âpro-jectsâ(orâ61.4%)âareâfundedâbasedâonâtheâtemporaryâdemandsâforâtheâinstitutionâsâoperationâ(MinistryâofâPlanningâandâInvestment,â2016).
Thirdly,âtheâprocessâofâevaluatingâtheâeffectivenessâofâtheâpro-jectâhasânotâbeenâimplementedâappropriately.âAccordingâtoâLavadoâ
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andâDomingoâ(2015),âtheâcalculationâofâtheâefficiencyâofâaâpublicâinvestmentâprojectâisâfocusedâonâtheâsourceâofâinvestmentâcapital.âEfficiencyâisâreflectedâthroughâaâcomparisonâbetweenâtheâexpectedâbenefitsâofâtheâinvestmentâandâtheâcostâspent.âAâcommonâtoolâusedâtoâperformâthisâcomparisonâisâtheâcost-benefitâanalysis.âHowever,âtheâregulationsâonâinvestmentâmonitoringâandâsupervisionâdoânotârequireâprojectsâtoâdemonstrateâtheâeffectivenessâofâinvestment.âForâexample,âDecreeâ113/2009â/âND-CPâonâmonitoringâandâevaluationâofâ investmentâ stipulatesâ fiveâ formsâ ofâ projectâ evaluation:â initialâevaluation,âmid-termâevaluation,â end-of-termâevaluation,â impactâassessmentâandâunexpectedâevaluation,âbutânoâformâofâassessmentâhasâspecificârequirementsâ toâevaluateâtheâeffectivenessâofâ invest-ment,ânotâtoâmentionâtheâmethodâofâcost-benefitâanalysis.âTheâPublicâInvestmentâLawâ(2014)âalsoâcontainsâprovisionsâonâtheâformsâofâevaluationâofâprogramsâandâprojects,âbutânotâspecificâenoughâtoâbeâappliedâandâreflectedâinâtheâreportâproposingâinvestmentâpolicy.âAsâsuch,âinvestmentâefficiencyâhasânotâbeenâpaidâattentionâasâoneâofâtheâmostâimportantâconditionsâforâapprovalâofâtheâproject.
Fourthly,âtheâpost-investmentâevaluationâsystemâhasânotâyetâbeenâestablishedâtoâassessâandâevaluateâtheâprojectâsâperformance.âForâpublicâinvestmentâprojects,â itâ isânecessaryâtoâassessâtheâextentâtoâwhichâtheyâhaveâachievedâorâbeenâableâtoâachieveâtheâdesiredâobject-ivesâandâoutcomesâasâdescribedâinâtheâdetailedâprojectâdocumenta-tion.âAâreportâbyâtheâMinistryâofâPlanningâandâInvestmentâshowsâthatâatâpresent,âtheâlackâofâaâsystemâforâmonitoringâoutputâresultsâinâhigherâeducationâinstitutionsâmeansâthatâtheâefficiencyâofâinvestmentâhasânotâbeenâusedâasâaânecessaryâcriterionâforâevaluationâandâselec-tionâofâprojectsâ(MinistryâofâPlanningâandâInvestment,â2016).
Finally,âthereâisâaâlackâofâmechanismsâtoâensureâsustainabilityâofâtheâproject.âAccordingâtoâtheâMinistryâofâPlanningâandâInvestmentâ(2016),â45.6%âofâtheâprojectsâdoânotâincludeâmaintenanceâcostsâandâthereâareâaboutâ12%âofâotherâprojectsâareâunclearâaboutâwhetherâthisâisâincluded.
Attractingâ investmentâ capitalâ andâ allocatingâ stateâ budgetâ forâhigherâeducationâalsoâposeâvariousâpracticalâissues,âindicatingâtheâfailureâofâmeetingâinternationalâstandards.âAsâtheâallocationâofâtheâstateâbudgetâstillâfollowsâtheâtraditionalâapproachâââwithâconditionalâadjustmentsâaccordingâtoâproportion,âtheânewâfundingâmechanismâhasâbroughtâaboutâmisunderstandingâinâtermsâofââautonomyâ,âwhichâisâ
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beingâunderstoodâasââfinanciallyâindependentâ.âHigherâeducationâinstitu-tionsâhaveânotâprovenâthatâtheyâareâorientedâtowardsâaâsustainableâvision,âcurrentlyârequestingâandâreceivingâfundingâforââurgentââneedsâratherâthanâstrategicâlong-termâdevelopmentâproposals.âInâtermsâofâsuitability,âthereâisâ aâlackâofâfinancialâmechanismsâ toâ linkâuniversitiesâwithâdomesticâindustriesâandâactivities.âThereâisâalsoâinsufficientâencouragementâforâhigherâeducationâinstitutionsâtoâpracticeâadministrativeâautonomyâandâpartingâfromâtheârelianceâonâstateâbudgetâtoâactivelyâseekâforâprivateâsourcesâofâfunding.âTheâqualityâofâtheâpublicâinvestmentâproposalsâhasâalsoâbeenâoverlooked,âsinceâthereâisânoâapparentâlinkâbetweenâtheâaimsâofâinvestmentâwithâtheâinstitutionâsâperformance,âasâwellâasâtheâdevel-opmentâofâcrucialâlong-termâaspectsâinâeducationâandâtraining,âscientificâresearchâandâreformsâonâmanagementâandâadministration.
5. Policy recommendations on the public investment management system reforms for the higher education sector in Vietnam
Fromâtheâtheoryâofâpublicâinvestmentâmechanismsâandâpracticesâappliedâbyâdevelopedâcountries,âitâisâadvisedâthatâtheâpublicâinvestmentâmanage-mentâsystemâinâhigherâeducationâofâVietnamâshallâexperienceâcomprehen-siveârenovationâfromâtheâcapitalâallocationâprocessâandâaâclearâinvestmentâevaluationâprocedure,âconsistingâofâbothâinput-basedâandâoutput-basedâfactorsâ thatâhigherâeducationâ institutionsâcanâ followâ toâenhanceâ theirâstrategicâvisions,âtrainingâandâresearchâperformanceâasâwellâasâautonomyâandâopennessâforânon-stateâresources.âInâorderâtoâfullyâreformâtheâpublicâinvestmentâmanagementâsystem,âtheâauthorsâagreeâwithâtheâpolicyârecom-mendationsâfromâtheâreportâofâMinistryâofâFinanceâandâPlanningâ(2016)âwithâmodificationsâwithâtheârecommendationsâasâbelow:â
5.1. Renovating the overall mechanism of capital allocation for higher education institution: merging separate authorities into a uniform system
Inâ theâ longâ term,â theâ mechanismâ forâ allocatingâ capitalâ toâ higherâeducationâinstitutionsâisâtoâsimultaneouslyâimplementâbothârecurrentâexpenditâuresâandâbudgetâinvestmentâexpenditures,âwhichâareâmanagedâbyâ aâcentralâ agencyâ toâ improveâ efficiencyâ andâ theâ performanceâ ofâinvestmentâcapital.âInternationalâexperienceâshowsâthatâitâisâimportantâ
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thatâeachâunit,âwhenâplanning,âhasâtoâconsolidateâitsârecurrentâexpendi-tureâplanâandâinvestâinâaâsingleâjointâdevelopmentâplan.âInâtheâcaseâofâVietnam,âtheâreportâprovidesâanâexampleâmodelâofâtheâNationalâCouncilâforâHigherâEducation,âtheâunitâunderâtheâmanagementâofâtheâPrimeâMin-isterâtoâbecomeâresponsibleâforâtheâallocationâofâfundingâbudgetsâforâtheâhigherâeducationâsector.â
Accordingâtoâtheâaboveâmodel,âtheâNationalâCouncilâforâHigherâEdu-cationâwillâmanageâbothârecurrentâandâcapitalâexpendituresâallocatedâbyâtheâgovernmentâtoâtheâsector.âThisâbudgetâwillâbeâdividedâintoâpackagesâ(orâdifferentâbudgetâfunds)âtoâmeetâdifferentâobjectivesâofâhigherâedu-cationâinstitutions,âspecificallyâasâfollows.âTheâallocationâfundingâisâfundedâtoâestablishmentsâtoâensureânormalâoperationâatâtheâstandardâlevelâforâpublicâfacilities.âWithâthisâbudget,âtheâallocationâwillâapplyâpriorityâcriteriaâtoâencourageâestablishmentsâtoâbeâableâtoâstabiliseâtheirâoperationsâandâcommitâthemselvesâtoâaâgradualâincreaseâinâautonomy.
Theâcompetitiveâprojectsâfundingâwillâcarryâoutâtheâcapitalâalloca-tionâbasedâonâtheâqualityâassessmentâofâtheâprojectsâforâtheâproposedâfacilitiesâbasedâonâaâdetailedâscale,âandâtheâfundingâisâmadeâforâprojectsâwithâaâhighâtoâlowâscoreâbasedâonâtheâtotalâactualâcapitalâofâtheâpackageâallocatedâannually.âThus,âestablishmentsâwillâhaveâtoâcompeteâwithâeachâotherâbasedâonâtheâdesignâandâprojectâmanagementâcapabilities.
Theâperformanceâfundingâwillâforceâhigherâeducationâinstitutionsâtoâcommitâtoâimprovingâtheâqualityâofâactivitiesâafterâbeingâfunded.âAnâobjectiveâperformanceâmonitoringâandâevaluationâsystemâwillâbeâsetâupâtoâassessâtheâimplementationâofâthoseâcommitmentsâbyâinstitutions.âFundingâwillâbeâcarriedâoutâbasedâonâtheâcommitmentâtoâimproveâtheâqualityâandâoperationalâproposalâofâfacilities.
5.2. The roadmap for renovation of public investment mechanism for higher education: encouraging autonomy, strategic planning, competitiveness and social responsibility capabilities of higher education institutions
Fromâtheâcurrentâmodelâtoâtheâidealâmodelâinâtheâfutureâisâaâlongâroad,âthereâshouldâbeâgradualâandâcarefulâshiftingâsteps.âTheâministries,âlocalâbranchesâandâtheâMinistryâofâPlanningâandâInvestmentâconsiderâtoâapplyâaâpartâofâtheâpriorityâcriteriaâtoâreviewâtheseâprojects.âTheâfourâcriteriaâgroupsâthatâcanâbeâconsideredâforâcurrentâpriorityâinclude:â(1)âencour-agingâ autonomy,â (2)â prioritizingâ trainingâ industries,â (3)â improvingâ
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institutionâperformance,âandâ(4)âtheâqualityâofâprojectâproposals,âwhichâcanâbeâappliedâimmediatelyâtoââencourageâautonomyââcriteriaâandâgradu-allyâwithâcriteriaâbasedâonâtheâinstitutionâsâperformanceâresults.
Duringâtheânearâfuture,âitâisâpossibleâtoâapplyâtheâfundingâmechanismâaccordingâtoâpriorityâcriteriaâforânewâarisingâprojectsâwhenâusingâtheâreserveâcapitalâinâtheâtotalâcapitalâallocatedâorâconsideredâtoâapplyâwhenâconductingâtheâadjustingâmedium-termâpublicâinvestmentâplans.âOnâtheâotherâhand,âdueâtoâinsufficientâtimeâforâotherâreformsâtoâbeâconductedâsynchronouslyâtoâcreateâaârelativelyâadequateâlegalâframeworkâforâallâotherâpriorityâcriteria,âitâisâpossibleâtoâselectâsomeâofâtheâmostâsimpleâandâeasy-to-measureâcriteriaâtoâpilot.âAtâtheâsameâtime,âaâseriesâofâotherâinnovationâactivitiesâneedâtoâbeâimplementedâinâparallelâtoâprepareâforâaâmoreâradicalârenovationâphaseâafterâ2020.â
Inâphaseâ2,âpossiblyâhappeningâaroundâ2021â2025,âitâisâpossibleâtoâ expandâ theâ capitalâ allocationâ accordingâ toâpriorityâ criteriaâ toâ allâministries,âbranchesâandâlocalitiesâandâapplyâtheâfullâsetâofâpriorityâcri-teria,âwhileâretainingâaâlargerâproportionâofâtheâstateâbudgetâinvestedâinâhigherâeducationâinstitutionsâtoâpilotâtheâreviewâandâfundingâofâprojectsâonâaâcompetitiveâbasis.âForâ theâcapitalâallocatedâ throughâministries,âbranchesâandâlocalitiesâ(forâoperationalâbudgetâpackage),âtheâministries,âbranchesâandâlocalitiesâwillâimplementâtheâconsiderationâandâapprovalâtoâexportâprojectsâofâhigherâeducationâinstitutionsâwithinâmicro-man-agementâofâministries,âbranchesâandâlocalitiesâinâaâmannerâsimilarâtoâtheâmethodâofâimplementationâwithâreserveâcapitalâinâtheâpreviousâperiod,âbutâtheâsetâofâpriorityâscoringâcriteriaâwillâbeâcompleteâaccordingâtoâtheâaboveâthreeâgroupsâofâcriteria.
Finally,âinâphaseâ3âââtheâphaseâofâcomprehensiveâinnovation,âtheâsystemâwillâshiftâtoâtheâidealâmodel.âAllâinvestmentâandâregularâfundsâforâhigherâeducationâareâconsolidatedâintoâaâsingleâbudget,âwhichâisâdividedâintoâthreeâcomponentâbudgets.âTheâbasicâbudgetâisâtoâensureâtheâmaintenanceâofâtheâoperationâofâhigherâeducationâinstitutionsâinâtheâbasicânetworkâofâhigherâeducationâinstitutions.âTheâbudgetâforâreview-ingâprojectsâunderâtheâcompetitionâmechanismâisâtoâencourageâhigherâeducationâinstitutionsâtoâdevelopâqualityâprojectsâthatâreallyâcontributeâtoâimprovingâtheâcapacityâofâhigherâeducation.âFinally,âitâisâpossibleâtoâstudyâtheâformationâandâstep-by-stepâreplicationâofâtheâbudgetâaccordingâtoâtheâperformanceâresultsâinâorderâtoâlinkâaccountabilityâandâcommit-mentâofâhigherâeducationâinstitutionsâtoâdeliverâcontributionsâtoâsociety.
64 LeâNgocâLan,âVuâMinhâTrangâ
5.3. Reforms on the funding mobilisation mechanism: encouraging pro-activity and alternative funding for higher education institutions
Toâensureâthatâhigherâeducationâinstitutionsâinâgeneralâandâpublicâhigherâeducationâinstitutionsâinâparticularâdevelopâsustainably,âpromoteâtheâparticipationâofâsociety,âthereâisâaâstrongâdemandâforâtheârenewalâofâcapitalâmobilisationâmechanism.âHowever,âtoâaimâatâtheâaboveâmodel,âitâisânecessaryâforâtheâinstitutionsâtoâmeetâallâconditionsâonâinstitutions,âpoliciesâandâsocio-economicâdevelopmentâlevels,âbasedâonâtheâover-allâevaluationâofâtheâfinancialâmechanismâforâeducation.âInâtheânearâfuture,âtheâfoundationâshouldâbeâdevelopedâbyâstrengtheningâautonomyâpolicies,âasâwellâasâovercomingâlegalâdifficultiesâandâobstaclesâinâimple-mentingâjointâventures,âpartnershipsâandâcooperationâofâpublicâhigherâeducationâinstitutions.âInâtheâupcomingâstage,âpilotingâtheâapplicationâofâfinancialâmodelsâbasedâonâtheâformâofâunifiedâcommonâownershipâforâpublicâhigherâeducationâinstitutionsâwithâtheâparticipationâofâindividualsâandânon-stateâorganisationsâ(privateâcapital)âcanâbeâimplementedâbyâamendingâandâsupplementingârelevantâlegalâregulations,âincludingâEdu-cationâLaw,âHigherâEducationâLaw,âLawâonâEducationâandâTrainingâandârelevantâlegalâdocumentsâtoâregulateâandâapplyâgovernanceâmodelâinâtheâdirectionâofâmanagementâbusinessâtreatmentâinâpublicâhigherâeducationâinstitutions.â
Inâtheâfinalâstage,âtheâfinancialâandâcapitalâraisingâmechanismâforâhigherâeducationâinstitutionsâwillâbeâcomprehensivelyârenewed.âStateâcapitalâtransferâforâindividualsâandâorganisationsâoutsideâtheâpublicâsectorâ orâ communityâ ofâ otherâ higherâ educationâ institutionsâ canâ beâimplementedâwithâaâfullâlegalâbasisâforâtheâprocessâimplementation,âincludingâtheâvaluationâofâstateâassets,âcontrolâofâtheâprocessâofâdivest-ment,âtransferâandârecoveryâofâstateâcapitalâinâhigherâeducationâinsti-tutionsâonâtheâstateâbudget,âformulatingâandâimplementingâaâschemeâforâjobâplacementâandâsupportâtoâfindânewâjobsâforâpublicâlecturersâandâemployeesâofâpublicâhigherâeducationâestablishmentsâthatâdivestâandâtransferâcapital.
65PublicâInvestmentâManagementâofâHigherâEducationâinâVietnamâ
Conclusions
Improvingâ qualityâ ofâ higherâ education,â furtherâ enhancingâ compet-itivenessâwhenâintegratingâintoâtheâregionâandâtheâworldâthroughâtheâconcentrationâofâpublicâinvestmentâsourcesâisâanâurgentârequirementâforâtheâhigherâeducationâsystemâinâVietnam.âTheâpaperâhasâstudiedâtheâdefinitionâofâpublicâinvestmentâinâVietnam,âasâwellâasâtheâformsâandâprocessâofâpublicâinvestmentâmanagementâinâhigherâeducationâappliedâinâcountriesâwithâdevelopedâhigherâeducationâsystems.âThroughâ theâstudyâofâtheârecentâreportâonâpublicâinvestmentâmanagementâcontextâforâtheâhigherâeducationâsystemâinâVietnam,âtheâpaperâhasâanalysedâtheâkeyâissuesâregardingâtheâlackâofâanâuniformâmechanismâinâinvestmentâallocation,âlackâofâintegrationâandâevaluationâthroughoutâtheâprojectâimplementation,âtheâissueâofâsustainabilityâofâinvestmentâprojectsâandâpolicyâlimitationsâonâgivingâhigherâeducationâinstitutionsâtheâabilityâtoâpracticeâadministrativeâautonomy,ânon-relianceâonâstateâbudgetâandâenhancingâcompetitiveness.âFromâwhich,â theâresearchâhasâproposedâsolutionsâaccordinglyâtoâtheseâissues,ânamelyâtheâdevelopmentâofâaâuni-formâfundingâsystemâforâtheâhigherâeducationâsystem,âfurtherâemphasisâonâ investmentâ criteriaâ toâ enhanceâ long-termâ developmentâ goalsâ ofâhigherâeducationâinstitutions,âandâencouragingâuniversityâautonomyâandâprivateâfundingâcontributionâtoâdiversifyâtheâcapitalâbudget.â
Thereâareâvariousâlimitationsâremainingâinâtheâpaper,âincludingâtheâcollectionâofâquantitativeâdataâ throughâdevelopingâandâdistributionâofâsurveysâdueâtoâlackâofâtimeâandâresources,âasâwellâasâaâpracticalâquestionnaireâtoâevaluateâtheâpublicâinvestmentâmanagementâefficiencyâinâtheâhigherâeducationâsector.âThisâwillâbeâconductedâinâtheâfurtherâstudiesâofâtheâauthorsâwithâtheâdesireâtoâbringâvaluableâscientificâcon-tributionsâtoâimproveâtheâpublicâinvestmentâpolicyâforâhigherâeducationâinâVietnam.
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