Includes bibliographical references .

This study examines the system of education and training in Vietnam and poses the question: what changes in educational policies will ensure that students who pass through the system today will acquire the knowledge, skills, and attitudes needed for Vietnam to successfully complete the transition from a planned to a market economy? The report analyzes the present structure of educational costs and estimates the increase in public expenditure implied by enrollment targets set by the government and the party. The report reviews the experiences of eight "East Asian miracle" countries since 1950 (Japan, Hong Kong, the Republic of Korea, Singapore, Taipei-China, Indonesia, Malaysia, and Thailand) and draws lessons for Vietnam's education and training system. The report discusses a number of policy options; some of which address issues of quality while others intend to reduce unit costs and shift some costs from the state budget to private beneficiaries. The report considers the tradeoffs among conflicting objectives for Vietnam's education and training system, namely higher enrollments, improved quality, and increased equity. The six chapters include: (1) "Introduction"; (2) "The Education and Training Sector"; (3) "Education Expenditure and Finance"; (4) "Unit Costs and Internal Efficiency"; (5) "External Efficiency and Equity"; and (6) "Future Directions for Education Finance." Four appendices with references, 7 boxes, 44 figures, and 46 tables accompany the report. (EH).