VietNamNet Bridge – In the United States, 96% of large universities have e-learning (online education), while in Vietnam this investment segment is only beginning to heat up.
Market value of online education in Vietnam is estimated at $50 million. It is attracting many investors.
According to a 2013 survey, Vietnam is one of a number of countries with a high level of growth in the online education market, with 44.3%. Investment in this area began in 2011, mainly in the two areas of English language training and practice for the university entrance exam.
In 2011, when Internet began to thrive, the firms that were strong in information technology started to penetrate the market. IDJ Education Technology Investment JSC spent VND8 billion (nearly $500,000) after three years of research to launch a website supplying the university entrance exam practice services to 12th graders.
VNG began testing the online training model in May 2012. After a year of testing, this product was no longer advertised by VNG, which made many think that it had withdrawn from the market.
In March 2014, VNG unexpectedly launched the free service for the 12th graders who were preparing for the university entrance exams.
After a year of research and development, Intel Vietnam and TH Company just launched the online school project (ISS) with a total investment of VND20 billion ($1 million).
Mr. Le Thanh Hung, TH’s Chair, said that the project targets high-school students, particularly those in the rural and remote areas.
According to DeltaViet, a provider of e-learning services, the estimated value of the online education market in Vietnam is about VND1 trillion ($50 million).
E-learning in Vietnam is currently under three prominent trends: e-learning for 12th graders who are preparing for the university entrance exams, bachelor’s degree training provided by private universities or private companies, and foreign language teaching.
Several education experts said that online education requires a high level of investment in infrastructure and teachers, more than traditional education. This is a hindrance for the development of this sector, although e-learning is considered a market with high potential.
According to TH Company, the developer of ISS, the fee is VND50,000 ($2.5)/subject in a semester, for one year. This tuition applies to all eight subjects of high-school students.
An e-learning investor estimated that with a population of over 90 million, with 30% of them using the Internet, if in a year, there are 20,000 users and the fee for each lecture is VND10,000 ($0.5), then the revenue per each lecture a year is VND200 million ($10,000). Profits will continue to rise in the coming years as well.
The value of the online education market worldwide is estimated at more than $30 billion. In some countries in the region such as South Korea and China some e-learning firms are listed on the American Stock Exchange.
My Nhu