High school students in Hanoi fill out registration forms for the college entrance exams.

A National Assembly (NA) committee Saturday said a proposal to increase tuition fees had to be scaled down to minimize hardships for students, particularly those from disadvantaged backgrounds.

But the chairman of the NA’s Committee for Culture, Education, Youth and Children, Dao Trong Thi, said the monthly tuition for universities should be raised to a maximum of VND230,000 ($12.80), and that for vocational schools to VND155,000 ($8.60).

Under the government’s proposal, university tuition fees will range from VND550,000-800,000 ($27.80-44.40) per month by 2014, depending on the discipline.

Deputy Prime Minister Nhan said the education sector has not had enough capital to increase salary for teachers and to buy equipment to improve the quality of education given.

Between 1999 and 2008, minimum salaries under the state regulation increased 1.86 times, state budget for education went up 5.8 times, and the consumer price index doubled.

But tuition fees over the same period have remained unchanged, and this has affected the quality of education provided and caused irrationalities in the sector, Nhan said.

Chairman Thi said the percentage of state budget spending on education, which has been 20 percent since 2007, should be increased annually, instead of remaining at the same rate, as per the government proposal.

Tuition-income ratio

The government has also proposed new tuition fees for public kindergartens, secondary and high schools under which the fees, together with other studying expenses, must not exceed 6 percent of the average family’s total income.

As the new tuition fees are charged in accordance with families’ capacity to pay, it will not be a financial burden, Nhan said, adding that poor families would pay less than those with higher incomes.

Under the new regime, the average urban school tuition fees would be VND35,000 ($1.94) per month, equaling the current average schooling fee in urban areas.

Average tuition would be VND17,000 ($0.94) monthly in rural areas, lower than the current average of VND25,000 ($1.39), according to the proposal.

Nhan said the government would subsidize part of the tuition fees and expenses for poor families.

In Vietnam, the poverty line has been set at monthly income of VND200,000 ($11.10) per person in rural areas, and VND260,000 ($14.40) in urban areas.

But Thi said the proposed 6-percent level is too high, and unsuitable with the actual income of households in a developing country like Vietnam, as most students come from poor rural households. The ratio stands at 1.9-7.95 percent in newly developed countries, and at 2-10 percent in developed countries.

Therefore, the committee suggested that the tuition fee should not exceed 5 percent of the average income of a household, Thi said.

Thi suggested the fee be increased gradually each year and the proposed fee to not be fully applied until 2014.

Eliminate free tuition policy for would-be teachers

Under the proposal, students trained to become teachers will be required to pay VND280,000 ($15.50) every month beginning in 2010, whereas they do not have to pay anything now. The rate will be raised each year until it reaches VND500,000 ($27.80) in 2014.

Deputy Prime Minister Nhan said the current policy of exemption of school fees for students of pedagogy, but does not require them to work in the education sector after graduation, is irrational.

Under the proposal, students will be facilitated in getting study loans from banks, and the state will pay off the interest and loans for them if they choose to work in the public education sector for a period at least double the time they study at universities or colleges.

Thi said the proposal was a suitable solution, because the fee exemption policy has not been effective as there are many students who do not work in the public education sector after graduation, but they are not required to refund the training expenses, which is a drain on scarce budget resources.

Reported by Ngan Anh