VietNamNet Bridge – There are numerous universities in Vietnam, but the operation models of the schools are nearly similar because many of them belong to the same owners.

Le Lam, president of the Dai Viet Sai Gon Junior College (3-year training), is the owner of another three schools as well – the Dai Viet HCM City Intermediate School (2-year training), Viet Tien Technology and Business Junior College in Da Nang City and Dai Viet Can Tho Intermediate School.

In 2013, Lam bought the Sai Gon Economics & Polytechnique Junior College, which was fined VND30 billion and told to suspend enrolment for two consecutive years for its enrolment violations, and then was renamed the Dat Viet Sai Gon Junior College.

In 2014, Lam became the owner of Viet Tien Junior College after buying the school, also at VND30 billion.

Meanwhile, Lam is now moving ahead with his plan to set up the Dai Viet Can Tho University. The plan for the school establishment has got the support from Can Tho City People’s Committee. However, to establish a new school, investors must have at least VND300 billion.

Analysts noted that buying existing schools proves to be the best way to own education establishments.

Dr. Vu Khac Thuong from Tay Do University noted that it was nearly impossible to set up new universities at this moment, because the Ministry of Education and Training (MOET) had decided to stop licensing more schools for now. Therefore, it is more economical to take over operational schools.

The prices of the schools are “reasonable” , especially the ones incurring big losses because of the lack of students.

Thuong is one of the investors who took over Phan Thiet University after a transfer deal worth VND60 billion.

The University of Phan Thiet was very “famous” some years ago when its name was  repeatedly mentioned in mass media as the school of three no's: no facilities, no curriculum and no lecturers.

Some educators have rung the alarm bell over the circular ownership in schools and the extensive investments.

The chair of a non-state university said that once the same investors inject money into many schools, their investment resources would be scattered in many projects. Therefore, he thinks it would be better to gather strength in one work than divide resources among many projects.

“When you do business, you try to set up more affiliates to expand your network. However, things are different in education. The more you expand, the bigger difficulties you will meet,” he said.

He went on to say that the cross-ownership will lead to conflict of interests among the investors. “In many cases, the fates of these schools may bear influences from other schools, once the schools have the same owners,” he said .

However, Nguyen Van Ang, deputy director of the Planning and Finance Department under MOET, said that it is not illegal to take over schools and that the current laws do not prohibit investors to contribute capital to many different schools.