Local Autonomy in Education Finance in a Mixed Economy: The Case of Vietnam

Abstract

Allocation mechanisms are crucial to shaping the effectiveness of a country's school finance system. In Vietnam, local authorities make their own decisions about allocating operating resources for pretertiary education. Despite this high level of control, there is a lack of comprehensive studies on how Vietnamese provinces allocate resources for their schools. This study aims to fill this gap by examining official legal documents from Vietnamese provinces, focusing on the allocation of operating funds to P-12 schools. The findings reveal significant variations in resource allocation across operating purposes (salary vs. nonsalary), grade levels, methods of accounting for scale economies, and different student subgroups, including those who are socio-economically disadvantaged students, gifted students, and with disabilities.