Vietnam’s EdTech market flourishes following Covid-19 learning setbacks.
Vietnam’s market for education technology (EdTech) has blown up following the ramifications of Covid-19, leading to a high demand for online learning solutions – a call to action for both large corporations and startups. The value of EdTech in Vietnam is estimated to be worth around US$3 billion, up one billion since 2019. EdTech’s rise is a hopeful sign that the country’s workforce will be better equipped for a digitised and globalised market.
FPT Group is a popular IT provider in Vietnam, and increasingly becoming a major player in the EdTech realm. Their app employs artificial intelligence (AI) technology to tailor learning experiences to each student’s individual needs. According to FPT, students learn 30% to 50% faster on the app than in in-person classes. The app has an extensive range of content, such as over 2,000 maths videos. It also allows teachers to spend less time on grading, as it assigns and grades tests automatically. According to FPT, approximately 40,000 schools maintain 3 million accounts.
Not only are Vietnamese companies taking leaps forward in the EdTech industry, but also in Japan. Japanese Gakken Holdings partnered with Vietnamese company KiddiHub Education Technology, an information provider for kindergartens. Gakken is hoping to use KiddiHub’s established online presence to advertise non-cognitive learning that focuses on critical thinking skills.
Through the new partnership, instructors will be sent to private kindergartens in Vietnam twice a month to grow brand recognition, and eventually bring their services to 2,000 kindergartens and child care centres by 2025, with the goal of JPN¥1 billion revenue.
Due to an influx of manufacturers seeking inexpensive labour in Vietnam, the country is potentially falling into the “middle-income” trap, where a country has difficulty moving beyond a certain income level. Education is key in this realm, particularly with digital skills, and therefore, the Vietnamese government has set a goal to make online education available at 90% of universities and 80% at secondary schools and vocational training by 2030.
With a growing interest in education among the general public, annual spending on this area has increased 2.3 times in the last decade. Extracurricular learning activities, like cram schools, are gaining momentum among parents, particularly in urban areas.
Startups are also riding the EdTech boom. EQuest Education Group, which focuses on teaching English and affordable digital education for a globally competitive workforce, received US$100 million in investment from a US private equity firm KKR earlier this year.
However, internet connectivity is not what it should be in rural parts of Vietnam, hampering the online learning trend, as well as potential political restrictions on private-sector education companies.
Despite this, the EdTech industry is expanding and soon it will be apparent who is leading the charge towards more accessible education.