This research estimates the return on investment in tertiary education in Vietnam by quantifying and comparing total economic benefit with total incurred cost of tertiary education. | JED April 2013 | 41 Return on Investment in Tertiary Education and Tuition Policy in Vietnam PHÙNG XUÂN NHẠ Associate Professor, Doctor of Philosophy, Hà Nội National University Email: nhapx@ PHẠM XUÂN HOAN Doctor of Philosophy, Insurance Research and Training Center - Ministry of Finance Email: hoanphamxuan@ ABSTRACT This research estimates the return on investment in tertiary education in Vietnam by quantifying and comparing total economic benefit with total incurred cost of tertiary education. Conclusion is that an individual can gain from an investment of VND100 in tertiary education that helps improve his/her productivity. The return on investment in tertiary education equals a positive real rate of interest of for an individual learner and for society. Increases in tuition as directed by Decree 49/2010/CP-CP for the years 2011-2015 and as suggested by Phùng & Phạm (2012) for 2016-2020 do not make investment in tertiary education less attractive in comparison with that in capital market. The research suggests reform in tertiary education in which time for study is reduced and financial investment in terms of tuition is increased. Keywords: cost of education, benefit from education, return on investment, tuition reform 42 | Phùng Xuân Nhạ | 41 - 53 Return on Investment in Tertiary Education 1. INTRODUCTION Education is a special field. It can be seen as a basic right for citizens who can free themselves from illiteracy and gain a full knowledge to enjoy their lives. Moreover, education is also a form of investment in human resources to improve labor productivity. When education is considered as a human basic right, the state often supports learners, especially the unprivileged, which reflects a humanistic aspect of the society. When education is treated as an investment, it is reasonable to charge some tuition fees in order to ensure quality of education service and reduce governmental subsidies. Determining
