8-10% of international students globally come to Vietnam and vice versa – Opportunity for education payments

According to the latest statistics from the Hanoi Moi online newspaper, the number of international students coming to Vietnam has been steadily increasing by 8-10% annually from 2018 to 2023.

This figure signifies the significant development of Vietnam as a rapidly growing nation with an increasingly modernized and upgraded education system. It also highlights Vietnam as a peaceful country where foreign students can confidently come to study and live.

Conversely, the number of students opting for advanced and developed countries for their studies remains significant, with an average growth rate of 5-10% per year.

Could this be an opportunity for the cross-border education payments industry? Let's explore together with FinFan in the following article.

Inbound cross-border education payments

Inbound cross-border education payments refer to payments made by international students to educational institutions in Vietnam.

With Vietnam becoming an increasingly popular destination for international students, these payments contribute to the country's education sector and economy. They include:

• Tuition Fees

This is one of the mandatory expenses for international students studying in Vietnam. Depending on the institution and the difficulty level of the field of study, tuition fees will vary for each individual foreign student.

Furthermore, these fees help fund academic programs, faculty salaries, infrastructure development, and other educational resources.

• Accommodation Expenses

Many international students opt to stay in university dormitories or rent accommodation in Vietnam. Their rental payments contribute to the local housing market and provide income for landlords and property owners.

• Living Expenses

International students spend money on daily necessities such as food, transportation, utilities, and entertainment. This expenditure stimulates local businesses and contributes to the overall economy.

• Cultural Exchange Programs

Some international students participate in cultural exchange programs or language courses while studying in Vietnam. These programs often involve additional fees, which contribute to the revenue of educational institutions and support cultural exchange initiatives.

• Tourism Revenue

International students may explore various tourist destinations within Vietnam during their study breaks or weekends. Their spending on tourism activities, accommodation, and souvenirs boosts the tourism sector and generates revenue for local businesses.

• Employment Opportunities

Some international students seek part-time employment opportunities to support themselves financially during their studies. Their contribution to the labor market benefits local businesses and industries, particularly in sectors such as hospitality, retail, and education-related services.

• Long-term Economic Impact

As international students complete their studies and potentially pursue career opportunities in Vietnam or maintain professional ties with the country, they contribute to the development of skilled human capital and knowledge transfer. This can have long-term economic benefits for Vietnam's workforce and innovation ecosystem.

Some difficulties of cross-border education payments for foreign students in Vietnam

• Currency exchange

Unlike some countries that accept payments in multiple currencies, Vietnam's only currency accepted for payment and circulation is the Vietnamese Dong.

Therefore, it is essential and of utmost importance for international students residing in Vietnam to find a reputable place to exchange their currency for Vietnamese Dong.

Nevertheless, for many students who are just stepping foot in Vietnam, it can be difficult to find places where they can exchange foreign currency for Vietnamese Dong at the most reasonable and cost-effective exchange rates.

FinFan’s solution for Currency Exchange problem when foreign students in Vietnam make cross-border education payments

Understanding this issue, the services that FinFan collaborates with the following international partners will support international students in currency conversion with 3 steps:

Step 1: We provide a Currency Exchange Platform that offers students convenient access to currency conversion services online or through our website or app.

Step 2: By partnering with international money transfer partners and domestic banks, FinFan can provide students with virtual cards linked to multi-currency accounts, allowing for easy conversion into various currencies tailored to different international student needs worldwide.

Step 3: Finally, FinFan partners with remittance services that offer competitive rates and low fees for transferring funds from students' home countries to Vietnam, providing a seamless solution for currency conversion.

Tips:

. Students can keep their payment accounts at their home country's banks and then utilize the services of FinFan's partnered entities to remit money from these accounts directly into the virtual multi-currency accounts provided by FinFan in Vietnam or into bank accounts they have established in Vietnam.

. Students can also utilize FinFan's top-up feature for SIM cards and mobile phone credit to create a phone number in Vietnam and use it on a monthly basis. Subsequently, they can proceed to register electronic wallet accounts such as MoMo, ZaloPay, etc., in Vietnam and utilize FinFan's e-wallet aggregator product to transfer money from their home country's national bank directly to the newly created e-wallet and conduct all payment transactions in Vietnam.

Read more:

. Remitly cooperates with FinFan: Money Real Time On The Go

. How to send money from the United States to Vietnam by using some FinFan’s partners – SendWave

. Ria - FinFan: For Faster, Cheaper and Easier Money Transfer

• Security Concerns

Foreign students may have concerns about the security of their financial transactions and personal information when making cross-border payments in Vietnam.

Ensuring the security and confidentiality of banking information is essential to prevent unauthorized access or fraudulent activities.

FinFan’s solution for Security Concerns problem when foreign students in Vietnam make cross-border education payments

In particular, with cross-border payment support platforms like FinFan, we meticulously select partners that meet stringent criteria and adhere to strict standards regarding payment information security, such as PCI DSS compliance.

• Regulatory Compliance

Foreign students and educational institutions must comply with regulatory requirements set forth by Vietnamese authorities regarding cross-border financial transactions.

Failure to adhere to these regulations may result in delays or complications in processing payments, leading to disruptions in the student's academic journey.

FinFan’s solution for Regulatory Compliance problem when foreign students in Vietnam make cross-border education payments

However, with support from FinFan, international students will find it easier to transfer money directly from their bank accounts in their home countries to the virtual multi-currency accounts provided by FinFan in Vietnam or to electronic wallet accounts in Vietnam through FinFan's e-wallet aggregator product.

All products offered by FinFan ensure compliance with the policies of the State Bank of Vietnam regarding KYC (Know Your Customer) and AML (Anti-Money Laundering) as we are one of the first fintech companies to be granted License No. 973 for Foreign Exchange Receipt and Payment by the regulatory authority in Vietnam.

Thus, we have now explored the inbound cross-border education payment market in Vietnam and gained insight into the challenges faced by international students in this S-shaped country. Consequently, we have also learned about some support solutions that FinFan can provide to assist international students in Vietnam with currency conversion and payment of domestic expenses.

Certainly, let's delve into the outbound cross-border education payment market in Vietnam with FinFan.

Outbound cross-border education payments

Vietnam has seen a significant increase in the number of students pursuing education overseas in recent years. This trend is driven by various factors, including the desire for high-quality education, exposure to diverse cultures, and better career opportunities.

Outbound cross-border education payments refer to the funds transferred from Vietnam to foreign countries to cover expenses related to education, such as:

• Tuition Fees

Payments made to foreign educational institutions for enrollment in academic programs, courses, or degrees.

The amount varies depending on each country and the specific study program of each Vietnamese student abroad.

Some typical examples include in South Korea, tuition fees are approximately $2,500 per semester, equivalent to $10,000 per academic year (excluding any additional fees for retaking courses or exams).

The tuition fees at universities and colleges in the United States are typically higher, ranging from approximately $20,000 to $50,000 per year depending on the type of institution, location, and program of study.

In Australia, tuition fees are generally at a high level, usually ranging from around AUD 20,000 to AUD 40,000 per year depending on the institution and field of study.

Tuition fees in Canada can range from approximately CAD 15,000 to CAD 35,000 per year but may be higher for postgraduate programs or specialized fields of study.

• Accommodation

Expenses related to housing, such as rent for apartments, dormitories, or homestays, while studying abroad.

Similar to tuition fees, the cost of accommodation for international students studying abroad also varies depending on the country they choose to study in.

Furthermore, this cost also depends on the type of accommodation model that students opt for abroad, such as living in a dormitory versus renting an apartment or a room in a shared house.

For example, in the United States, accommodation costs vary widely depending on the location and type of housing. On-campus dormitories typically range from $5,000 to $15,000 per academic year, while off-campus housing such as apartments or shared houses can cost anywhere from $8,000 to $20,000 per year, depending on the city and amenities.

In the UK, accommodation costs also vary by location and type of housing. On-campus accommodation in university halls of residence can range from £4,000 to £10,000 per academic year. Private accommodation options, such as renting a flat or sharing a house, can cost between £6,000 to £15,000 per year, depending on the city and facilities.

Accommodation costs in Australia are generally high. On-campus accommodation at Australian universities typically ranges from AUD 8,000 to AUD 20,000 per academic year. Private rental options, such as apartments or shared houses, can cost between AUD 10,000 to AUD 25,000 per year, depending on the location and quality of the accommodation.

In Canada, accommodation costs vary depending on the city and type of housing. On-campus residence halls can range from CAD 6,000 to CAD 15,000 per academic year. Off-campus rental options, such as apartments or shared houses, may cost between CAD 8,000 to 20,000 per year, depending on the location and amenities.

On-campus dormitories in South Korea typically range from KRW 3,000,000 to KRW 6,000,000 per semester, depending on the university and room type.

Renting an apartment or a room in South Korea can vary widely depending on the city and neighborhood. In Seoul, for example, monthly rent for a one-bedroom apartment can range from KRW 500,000 to over KRW 1,500,000, while shared accommodation options may range from KRW 300,000 to KRW 800,000 per month.

Accommodation costs for university dormitories in Japan vary depending on the university and location. On average, monthly rent for university dormitories in Japan ranges from ¥30,000 to ¥80,000.

Renting an apartment in Japan can be expensive, especially in major cities like Tokyo and Osaka. Monthly rent for a one-bedroom apartment in Tokyo can range from ¥80,000 to over ¥150,000, while shared accommodation options may range from ¥40,000 to ¥100,000 per month, depending on the location and facilities.

• Living expenses

Funds are allocated for daily necessities such as food, transportation, utilities, and personal expenses while living and studying abroad.

• Books and Study Materials

Costs associated with purchasing textbooks, study materials, and other academic resources required for coursework.

• Health Insurance

Payments for health insurance coverage may be mandatory or recommended depending on the destination country's regulations.

For example,** in the United States, health insurance for international students is typically mandatory.** The cost of health insurance can vary depending on the insurance provider, coverage level, and the duration of coverage. On average, health insurance premiums for international students in the US range from $500 to $2,000 per year. This cost may be included in the university's tuition fees or billed separately.

In the UK, international students are also required to have health insurance. The cost of health insurance varies depending on the insurance provider and coverage options. On average, health insurance premiums for international students in the UK range from £300 to £1,000 per year. Again, this cost may be included in the university's fees or charged separately.

Health insurance is mandatory for international students studying in Australia under the Overseas Student Health Cover (OSHC) scheme. The cost of OSHC depends on the duration of the study and the insurance provider. On average, OSHC premiums for international students in Australia range from AUD 500 to AUD 2,000 per year.

In Canada, health insurance coverage for international students varies by province. Most provinces require international students to have health insurance coverage. The cost of health insurance can range from CAD 600 to CAD 1,500 per year, depending on the province and coverage options.

South Korea requires all international students to have health insurance coverage during their stay. Typically, international students in South Korea are enrolled in the National Health Insurance (NHI) program or private health insurance plans. The cost of health insurance under the NHI program for international students varies depending on factors such as age and coverage level.

On average, the monthly premiums for NHI coverage range from KRW 50,000 to KRW 100,000. Private health insurance plans may offer additional coverage options but can be more expensive, with premiums ranging from KRW 100,000 to KRW 200,000 per month.

In Japan, health insurance is mandatory for all residents, including international students. International students studying in Japan are typically enrolled in the National Health Insurance (NHI) program or the Student Health Insurance (SHI) program.

The cost of health insurance under the NHI or SHI program for international students varies depending on factors such as age, location, and coverage level. On average, the monthly premiums for NHI or SHI coverage range from ¥3,000 to ¥10,000. Additionally, some universities in Japan may offer their health insurance plans for international students, with premiums ranging from ¥5,000 to ¥15,000 per month.

• Travel Expenses

Costs related to transportation, including airfare, train tickets, or other modes of travel to and from the home country and the host country for study purposes.

• Visa and Immigration Fees

Fees associated with obtaining student visas, residence permits, or other required immigration documents to study abroad legally.

This is indeed the most concerning expense for Vietnamese students studying abroad, as failing to pass the interview process and complete this cost could turn studying abroad into nothing but a dream for each student.

Here are examples of visa and immigration fees for Vietnamese students studying abroad.

The application fee for a US student visa (Form DS-160) is $160. Additionally, there may be a visa issuance fee (MRV fee) depending on the country of application, ranging from $0 to $350. Students may also need to pay the SEVIS (Student and Exchange Visitor Information System) fee, which is $350 for F-1 visa applicants and $220 for M-1 visa applicants.

The application fee for a UK Tier 4 student visa (outside the UK) is £348. Students applying from within the UK may also need to pay the Immigration Health Surcharge (IHS), which is £470 per year of study. Additionally, students may need to pay for other services such as priority or super-priority visa processing, which incurs additional fees.

The application fee for an Australian student visa (Subclass 500) is AUD 620. Additionally, students may need to pay for health assessments, police checks, and biometrics depending on individual circumstances.

The application fee for a Canadian study permit is CAD 150. Additionally, students may need to pay for biometrics, which is CAD 85. There may also be other fees associated with medical exams, police certificates, and translations of documents.

The application fee for a South Korean student visa (D-2 visa) varies depending on the applicant's nationality and the Korean embassy or consulate where the application is submitted. On average, the visa application fee ranges from $30 to $80. Additionally, students may need to pay for other services such as visa issuance fees, which vary depending on the embassy or consulate.

The application fee for a Japanese student visa varies depending on the applicant's nationality and the Japanese embassy or consulate where the application is submitted. On average, the visa application fee ranges from ¥3,000 to ¥6,000. Additionally, students may need to pay for other services such as visa issuance fees and Certificate of Eligibility (COE) processing fees, which vary depending on individual circumstances.

• Language Courses

Costs related to language proficiency tests, language courses, or preparatory programs to enhance language skills before or during the study abroad experience.

• Miscellaneous Expenses

Expenses for participation in extracurricular activities, cultural events, clubs, or sports programs offered by the educational institution or within the local community.

Finally are miscellaneous costs or fees incurred during the study abroad journey, such as academic program deposits, technology fees, or administrative charges.

Conclusion about the cross-border education payment market in Vietnam

According to some survey results collected by the market research team at FinFan, we have gathered some notable figures for the outbound cross-border education payment market in the highest number of Vietnamese students countries.

The data shows that the market currently comprises 190,000 Vietnamese students studying abroad and this figure continues to increase annually at a rate of 4-5% per year. It represents a sizable potential market for businesses involved in cross-border payment solutions.

In the opposite direction, from 2018 to the present, the number of international students coming to Vietnam has been steadily increasing at a rate of 8-10% per year, reaching over 40,000 individuals.

The numbers above demonstrate the continuous growth of the cross-border education payments industry in Vietnam.

The article was curated and authored by FinFan's market research and development team, alongside our marketing department.

About FinFan

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