According to a new report from global consulting firm LEK Consulting, the bilingual segment in HCMC and Hanoi alone grew by around 17% per year between January 16 and 20.
from Vietnam The private K-12 market has grown at a CAGR of around 11% from 2016 to 2020 and is poised to witness a further rise
Despite COVID-19, from Vietnam the economy grew 2-3% in 2020 – one of the highest growth rates in the world
According to a new report from global consulting firm LEK Consulting, the bilingual segment in HCMC and Hanoi on its own, grew about 17% per year from AY16-20.
The size of HCMC’s private market is estimated at ~ 560 million euros in AY20, with premium bilingual schools representing around 25% of the market
Hanoi, Vietnam, August 5, 2021 / PRNewswire / – Global strategy consulting firm, LEK Council, today announced a new report on the impact of COVID-19 on the education sector.
The report reveals that economic growth has led to strong growth in private education, with the market growing at a CAGR of around 11% from 2016 to 2020.
Despite COVID-19, from Vietnam the economy grew 2-3% in 2020 – one of the highest growth rates in the world – thanks to strong economic fundamentals, decisive containment measures and well-targeted government support.
from Vietnam Kindergarten to Grade 12 private education market expected to experience significant growth in the coming period, given the rapid economic development.
LEK Consulting report segments from Vietnam K-12 ecosystem into separate categories – international, bilingual, domestic private, and public (see Figure 1).
According to the report, the bilingual segment in HCMC and Hanoi on its own, grew about 17% per year from AY16-20. As disposable income levels rise and demand for English-language study programs increases, a higher proportion of the ~ 3 million K-12 students in both cities gravitate towards the bilingual school segment.
Anip Sharma, Managing Director of LEK Consulting explains: “The desire for quality English-based education is driven by the aspiration of Vietnamese students to pursue higher education in English speaking countries. private national schools. In addition, K-12 schools that offer international programs have grown faster than all private enrollments. From AY15-18, international programs increased by 5-6% CAGR, while overall private increased by around 11% CAGR. ”
These schools are better equipped to prepare students for higher education in key English speaking countries, where Vietnam now represents the 4th largest Asian source country. Plus, they charge less than some newer international schools.
The international schools segment, offering mainly UK, US or IB programs, is largely expatriate-led, with English being the only language of instruction. Parents of various walks of life residing in the country can afford the highest prices. The allure of world-class education that will pave the way for higher education abroad is particularly relevant to this market.
HCMC and Hanoi remain strong centers for premium education
The report delves into city-level data, elaborating on key trends in HCMC and Hanoi. The relevant age population in Hanoi for higher quality education is around 1.3 million children, which has increased by around 1.6% from AY16-20 and is expected to continue growing at around 2% CAGR. Meanwhile, the size of HCMC’s private market has been estimated to be ~ 560 million euros in AY20, high-end bilingual schools accounting for around 25% of the market and recording the strongest growth in all segments.
Economic prosperity and government initiatives have enabled the two cities to increase the affordability of the Vietnamese population while increasing the expatriate population, thereby creating sustainable demand and strong growth prospects for the kindergarten to kindergarten private market. the 12th grade.
Investors and operators quickly seized the opportunity – leading funds invested in key assets and prestigious international brands from Kindergarten to Grade 12 moved to offshore campuses.
Anip Sharma adds: “Stakeholders who are looking for expansion opportunities in the market should be encouraged by from Vietnam response to the pandemic and the overall positive market sentiment for private education. K-12 is inherently a reliable business model, and Vietnam In particular, there are significant opportunities for institutes and institutional investors. “
About LEK Consulting
LEK Consulting is a global strategy consulting firm focused on helping clients achieve high impact results through deep industry expertise and rigorous analysis.
SOURCE LEK Consulting