Abstract:
With the rapid advancement of information technology, educational technology (EdTech) has emerged as an inevitable trend in many countries, including Vietnam. The Vietnamese EdTech market benefits from favorable conditions such as a strong cultural emphasis on education, widespread proficiency in smart devices, a dynamic technological environment, and supportive government policies. However, it also faces significant challenges, including post-Covid economic difficulties, content copyright issues, intense industry competition, and limited collaboration between schools and EdTech companies. By analyzing these opportunities and challenges, this study offers recommendations to foster the development of Vietnam’s EdTech market, contributing to the growth of a knowledge-based economy and a learning society.
Keywords: educational technology, markets.
1. INTRODUCTION
Developments in technology and the impacts of the COVID-19 pandemic have become driving forces for the educational technology market (EdTech), greatly enhancing this field worldwide, and Vietnam is no exception. Nowadays, EdTech is becoming an area that attracts strong investment capital flows from global technology corporations.
According to Global Market Insights, in 2022, The global EdTech market value reached more than 300 billion USD and is forecasted to achieve a compound annual growth rate (CAGR) of about 14 percent from 2023 to 2032. Additionally, P&S Intelligence suggests that the global scale of the educational technology market could reach 998.4 billion USD in 2030 thanks to the development of AI (artificial intelligence) and IoT (internet of things). In today's world, America, China, and India are major countries in the startup ecosystem in this field and attract a large number of investment deals. North America is still the largest market with a total value of about 150 billion USD. However, according to Grand View Research, Asia Pacific has the highest growth rate, with an estimated CAGR of 16 percent, with India and China are two EdTech giants of said region.
According to Vietnam EdTech Report 2024, Vietnam EdTech market is undergoing a period of strong development with an estimated compound annual growth rate (CAGR) of 25 percent. Moreover, with the help of technology and an increasing demand for online education, the trend and scale of Vietnam's EdTech market is changing drastically. This is a good sign indicating the strong development and potential of the EdTech industry in meeting modern learning and training needs. This article provides market-size assessments and identifies opportunities and challenges of the educational technology market in Vietnam.
2. Educational technology
2.1. The concept of educational technology
There are many perspectives on Educational Technology (EdTech). As reported by Edtech Magazine, “Educational technology, or EdTech, encompasses a wide variety of applications, software, hardware and infrastructure components - from online quizzes and learning management systems to individual laptops for students and the access points that enable Wi-Fi connectivity”. From the University of Putra Malaysia, “educational technology or EdTech is the use of software solutions, digital tools, and media that help in transferring knowledge and exchanging learning materials”. According to Huang, Spector, and Yang (2019), Long Li (2024), educational technology definition refers to tools, technologies, and resources that can be used to improve learning experiences. It includes hardware, like computers, tablets, and webcams, and software, like simulations, LMS, and even new educational technology like AR and VR environments. It is founded on various educational theories on behavior, cognition, and knowledge construction, which are then applied throughout the process of developing technologies.
As stated by Tanner Mirrlees and Shahid Alvi (2019), EdTech are all private companies currently engaged in the financing, manufacturing, and distribution of commercial hardware, software, goods, services and platforms for the education market with the goal of generating profit.
All in all, EdTech is a rapidly growing field involving the use of technology to support, improve and change the way education is delivered. This is not just a simple concept of applying information technology to education, but also includes the use of new tools, media and methods to optimize the learning experience. In EdTech, a key aspect is the combination of technology and traditional classrooms, such as using smart boards and projectors, along with interactive classroom applications. This extends to the field of online learning and e-learning, where online courses and e-learning platforms allow students and teachers to connect from anywhere in the world. Learning tools and applications, from language learning software to math-solving apps, are also parts of EdTech. When referred to by the acronym "EdTech", it usually refers to the industry of companies that create educational technology.
2.2. History of EdTech market in Vietnam
The development of the EdTech market in Vietnam is associated with the development of the online education market. According to Edtech Agency’s White Paper & Ranking in 2023, The Edtech industry is divided into 5 stages.
From 2000 to 2005, The market began to carry out EdTech research and applications in schools. Researching issues were initially raised at the "Research and Apply E-learning" Conference co-hosted by the Information Technology Institution (Hanoi National University) and the School of Information and Communications Technology (Hanoi University of Science and Technology).
From 2005 to 2010, The first digital documents and products began to appear in the form of CD-ROM and exercise DVDs, games, English learning apps... The website hocmai.vn in 2007 and Topica in 2008, etc.
From 2010 to 2015, the online education market has become vibrant with the participation of large corporations in the public and private sectors, such as VTC Online (2010), VnEdu (2011), Viettel Study (2013), Zuni.vn (2014), FUNiX (2014)...
From 2015 to 2020, Edtech startups appear significantly more frequently. This is the time when mobile devices and 4G networks become popular, along with the impact of the COVID-19 pandemic changing learning habits. In 2019, there were more than a hundred startups operating in the field of educational technology.
From 2020 until now, online education market is getting increasingly more popular and attracts a lot of investment with a capital amount of more than 1 million USD. In 2022, Vietnam's Edtech startups received 8 investments with a total amount of 46.8 million USD, a typical example is Edupia's 14 million USD investment deal. In 2023, the number of huge deals in this field is on the rise. For example, Vietnam Education Group EQuest successfully mobilized 120 million USD in May 2023, MindX received 15 million USD in April 2023, Teky successfully raised capital of 5 million USD, Vuihoc with 6 million USD of investment...
According to recent market research reports from ResearchAndMarkets and Statista, Vietnam edTech market has reached about 1 billion USD by 2023 and is expected to continue expanding with an annual growth rate of about 20% in the coming years. It is expected that in 2025, the market could reach roughly from 1.5 to 2 billion USD, thanks to the increase in demand for online learning solutions, strong investments, and the continuous development of the technology in education field. These forecasts could reflect great development potential of the edTech market in Vietnam, at the same time, it shows that this industry is becoming an attractive field for domestic and international investors and businesses.
2.3. Opportunities of the EdTech market in Vietnam
The EdTech industry in Vietnam is currently entering a promising period with many strong opportunities.
Firstly, it is the interest of Vietnamese people in the field of education. As reported by Bain & Company (2023), an average Vietnamese household spends about 20 percent of its income on education, meanwhile, in ASEAN, this number is only around 6 to 15 percent. The average spending for learners in Vietnam has also increased over the years.
Figure 1: Average spending for each learner in Vietnam over the years
Unit: Thousand VND
Source: General Statistics Office of Vietnam
The middle class in Vietnam is growing strongly, taking up 13 percent of the population, and is expected to be 26 percent by 2026 (Ministry of Labour, Invalids and Social Affairs, 2022). The increasing of the middle class will promote consumption, which is the driving force for economic development. Also, the middle class places more emphasis on education and is willing to spend more on products and activities related to the education of family members.
Secondly, the proportion of Internet users and proficient users of smart devices in Vietnam is increasing. By the end of 2022, with nearly 100 million people and the rate of Internet users in Vietnam is increasing. At the beginning of 2023, Vietnam has 77.93 million Internet users, accounting for 79.1% of the total population. Besides, Insider Intelligence has announced that the number of smartphone users in Vietnam is estimated to be 63.8 million, which is 81.8 percent of internet users in the country. 98.1 percent of people in the age group from 16 to 64 have a smartphone, and 58.5 percent owns a computer/laptop. In 2023, in ASEAN, the number of Vietnamese smartphone users is only second to Indonesia’s, the country with the largest population in the entire region. With the characteristics of today's technological environment, Vietnam has all the conditions to develop a large-scale EdTech industry in Southeast Asia.
Figure 2: Structure of Internet and technology usage in Vietnam
Source: Datareportal, January 2023
Thirdly, the technology market is increasingly rising in Vietnam with the application of artificial intelligence, machine learning, and data analysis... which opens up new possibilities for personalized learning experiences. These advancements create learning programs tailored to the needs and abilities of each learner, thereby improving efficiency and satisfaction in the learning process, which contributes to promoting the development of the EdTech market in particular and Vietnam's digital economy in general. According to a report from e-Conomy SEA 2022, Vietnam's digital economy has the fastest growth rate in Southeast Asia and is forecast to reach $49 billion by 2025.
Figure 3: The estimated scale of digital economy in Vietnam from 2025 to 2030
Source: e-Conomy SEA, 2022
Fourth, the Vietnamese government is implementing policies to foster the growth and development of the EdTech industry. Notably, in 2021, the Prime Minister issued Decision No. 1373 approving the project “Building a Learning Society for the Period 2021–2030.” This project aims to ensure that by 2030, everyone has equal opportunities to access an open, diverse, flexible, interconnected, and modern education system with various models, methods, and training levels. A key direction of the project is to enhance the development, integration, and sharing of open educational resources and learning materials with domestic and international educational institutions, organizations, and individuals; as well as proactively participate in the Vietnamese Knowledge System to digitize and localize international open educational resources.
Additionally, the government launched Project 131 on strengthening the application of information technology and digital transformation in education and training for the period 2022-2025, with orientation to 2030. This project focuses on developing a digital ecosystem for teaching, learning, assessment, and scientific research; creating digital and open learning resources to be shared throughout the education sector; and building digital platforms to support teaching, learning, and the implementation of new digital university models. These policies demonstrate the government’s active support for the EdTech industry through initiatives that promote digital transformation and expand access to information technology.
2.4. Challenges for the EdTech market in Vietnam
Although the EdTech market in Vietnam has multiple opportunities, it is also facing several challenges.
First is the post-Covid consequences, which negatively affected economy. 2023 is considered as the most difficult and challenging year for businesses. EdTech businesses are no exception. The number of online student has decreased as after the pandemic, most people return to the traditional class, which slows down the development progress of EdTech.
The second problem is content copyright. The industry also faces legal and regulatory barriers. The issue of copyright in online educational content is an example. To produce a quality online learning program, businesses' academic and program development teams must invest in research and testing in an extended period of time. Lectures are always required to be innovated and updated. Unfortunately, very soon after its launch, the product was copied or illegally shared widely online. In addition, there is a lack of curriculum standards as well as output standards as a basis for assessing quality in online training, as well as ensuring the quality of knowledge for learners.
The third challenge is the competitiveness of startups in the field. Companies are trying to build strategies to attract many users. Analysts say that it is not easy for edtech investors in Vietnam because starting a business in education is often a long-term story, and the concept of hyper growth does not seem to exist in this industry. startups must prepare for at least 5 years to build a product suitable for the market. This is equivalent to high risk investing, and it is often not sustainable.
The forth issue is the fact that Vietnam still does not have a solution to recognize degrees through online learning, making Edtech models not a top priority choice. Besides, there is a lack of solutions to strengthen the connection between schools and EdTech businesses to create quality digital content, effective online courses, especially managing appropriate content that is not misleading about the Vietnamese thinking and culture. For example, recently, AI became a worldwide craze, but without appropriate management measures, the content provided by AI may be inaccurate, or even abused and distorted. What is harmful is that learners will access incorrect and unofficial information, which can lead to deviant behavior.
2.5. Some recommendations for developing the EdTech market in Vietnam
Not only contributing to the digital transformation of education and economic growth, the EdTech industry also contributes to building a learning society. Therefore, this business needs to be facilitated to develop in the trend of the 4.0 industrial revolution. Based on the stated opportunities and challenges, the article proposes solutions to develop the EdTech market in Vietnam.
For Vietnam government, it is necessary to create a favorable environment for the business activities of EdTech companies to develop and have strict management of this business activity. Specifically, the Ministry of Education and Training needs to develop a standard program with criteria to help EdTech companies develop the content of lectures and courses to ensure scientificity and reasonableness for each subject and each age group in Vietnam. In addition, it is necessary to build mechanisms to evaluate and appraise the content of lectures and courses to avoid misleading, inappropriate, and inhumane content. The Ministry of Science and Technology needs to strengthen policies to develop information security technology and ensure intellectual property rights for EdTech products to prevent illegal copying of lecture content, which ensures a healthy competitive environment for EdTech companies. The Ministry of Industry and Trade needs to develop policies to attract investment for Vietnamese businesses to develop educational technology infrastructure and improve competitiveness in the market.
For Edtech businesses, they need to build an effective long-term strategy when investing and doing business because this is an educational trend in the context of digital transformation. Because investing in EdTech is a long-term investment and it cannot be profitable quickly, though, when the brand and product quality are accepted by the market, this model will bring high profits, because it only costs you once to produce content, the product can be used many times, by an unlimited number of learners. Instead of racing for quantity, Vietnamese businesses need to invest in the quality of online teaching staff lecture systems, and technological infrastructure to attract learners. Some suggested solutions for EdTech businesses are to cooperate with universities in building and editing training programs; create internship opportunities and recruit graduates; provide opportunities to experience EdTech products for students during their studies; and Sponsor and participate in guiding students' scientific research projects....
For EdTech users, which would mostly be schools and organizations, there needs to be a strategy for an application roadmap and investment resources worthy of the scale and value of the EdTech system. In addition, it is necessary to apply teaching and learning technology synchronously in all subjects instead of the spontaneous, fragmented system as is the current situation in most schools. Moreover, it is necessary to encourage learners to actively participate and periodically evaluate the effectiveness of implementing the EdTech system to make timely adjustments.
For Edtech individual customers, It is necessary to thoroughly research the products and courses of EdTech businesses by the need to improve knowledge and skills. In the Vietnamese market today, many EdTech businesses are providing online courses, especially for English and graduation exams. However, not many courses bring practical results to learners due to the nature of online learning, making it difficult for teachers to interact and motivate learners to achieve their output goals. Therefore, learners need to proactively select reputable EdTech products by finding information about the experiences of previous learners and the evaluation of reputable units. The learners themselves contribute to online learning content and platforms, which helps build a self-study and knowledge-sharing community.
3. CONCLUSION
The EdTech industry in Vietnam is facing a strong development opportunity thanks to the combination of high learning demand, technological advancement and supports from government policies. EdTech businesses can take advantage of these factors to develop innovative educational environments, satisfies the needs of learners and create sustainable values for the education market in Vietnam. However, the EdTech market also faces many challenges such as difficulties of the post-Covid economy, copyright issues, fierce competition, coordination between schools and Edtech businesses... it is important that there needs to be effective communication between the Government, businesses, user units, and Edtech users. In the coming period, EdTech is not only a trend but also participates in building a learning society and knowledge economy, making Vietnam a developed country in the 21st century.
References
Alexandra Shimalla (2024). What Is Educational Technology (EdTech), and Why Should Schools Invest in It? Available at https://edtechmagazine.com/k12/article/2024/03/what-educational-technology-ed-tech-and-why-should-schools-invest-it-perfcon
Dung Thi Phuong Nguyen (2024). Online education business in Vietnam: opportunities and challenges. Asia-Pacific Economy Review, June Special Issue, 91-93.
Dung Thi Phuong Nguyen (2024). Factors affecting the decision of individual customers to use online education services in Hanoi. Vietnam Trade and Industry review, June 2024, 14, 96-99.
EdTech Agency (2023). White Paper EdTech Vietnam 2023. Available at https://edtechagency.net/edtech-white-paper-and-ranking-2023/vi/
Huang, R., Spector, M.J., & Yang, J. (2019). Educational technology: A primer for the 21st century. Springer Singapore. DOI: 10.1007/978-981-13-6643-7
Long Li (2024). The Origin of Educational Technology in China. DOI: 10.18785/jetde.1701.02
Tanner Mirrlees, Shahid Alvi (2019). EdTech Inc. Selling, Automating and Globalizing Higher Education in the Digital Age. New York. DOI: 10.4324/9780429343940
University of Putra Malaysia (2023). What is Educational Technology? Available at https://sgs.upm.edu.my/article/what_is_educational_technology-72591
Thị trường công nghệ giáo dục tại Việt Nam: Cơ hội và thách thức
Ngô Quế Lân
Đại học Bách khoa Hà Nội
Tóm tắt:
Với sự phát triển nhanh chóng của công nghệ thông tin, công nghệ giáo dục (EdTech) đã trở thành xu hướng tất yếu tại nhiều quốc gia, trong đó có Việt Nam. Thị trường công nghệ giáo dục tại Việt Nam được nhận định đang hưởng lợi từ những điều kiện thuận lợi như truyền thống coi trọng giáo dục, khả năng sử dụng thành thạo các thiết bị thông minh, môi trường công nghệ năng động và chính sách hỗ trợ từ Chính phủ. Tuy nhiên, thị trường cũng phải đối mặt với nhiều thách thức lớn như khó khăn kinh tế sau đại dịch Covid-19, vấn đề bản quyền nội dung, cạnh tranh khốc liệt trong ngành và sự hợp tác còn hạn chế giữa các trường học với doanh nghiệp công nghệ giáo dục. Thông qua việc phân tích những cơ hội và thách thức trên, nghiên cứu này đề xuất các khuyến nghị nhằm thúc đẩy sự phát triển của thị trường công nghệ giáo dục tại Việt Nam, góp phần xây dựng nền kinh tế tri thức và xã hội học tập.
Từ khoá: công nghệ giáo dục, thị trường.
