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Autonomous mechanism – the “key” to innovation of vocational education management
12:15' 12/23/2015
(Tạp chí Tài Chính) Autonomous mechanism, self-responsibility is the key to the innovation of vocational education, helping to address current as well as future problems in the system of vocational education. Therefore, implementing the innovation of operational mechanism is a breakthrough step for vocational education institutions (vocational training)


Mechanism of autonomy – the “key” to innovation of vocational education management

Article 25 in Law on Vocational Education stipulates the rights of autonomy toward vocational education institutions. It specifies, vocational educational institutions self-govern the activities in areas of organization, human resource, finance and asset, training and technology, international cooperation, ensuring training quality in accordance with law…; Public vocational education institutions take charge of ensuring all operating expenses, regular expenditure and investment expenditure are self-governed according to regulation of the Government.
Resolution No.29 -NQ/TW dated 4/11/2013 of 11th Central Committee on fundamental, complete reform of education and training, meeting the demand for industrialization, modernization in the context of socialist-oriented market economy and international integration, clearly states: The increase in autonomy and self-social responsibility of education, training institutions is one of nine groups of solutions for complete reform of education and training.
Building on this orientation, the innovation of autonomous mechanism toward public institutions is essential in the context of global education with fair competition, clear direction from the government and quality is strictly ensured.
Statistics show that there are 973 public vocational institutions, of which 148 institutions are vocational colleges, 178 are vocational secondary schools and 653 vocational centers. From 2006 to now, vocational education institutions have implemented the mechanism of autonomy in accordance with Resolution 43/2006/ NĐ-CP dated 25/4/2006 stipulating the rights of autonomy, self-responsibility in appointment, structural organization, recruitment and finance of public institutions.
After nearly 10 years implementing the mechanism of autonomy in accordance with Resolution No. 43/2006/NĐ-CP dated 25/4/2006, the institutions have become more pro-active in implementation of missions, structural organization, management and use of fund; resources have been utilized more effectively; collection of fee to increase collection fund and lessening of expenditure have contributed to the increase in operational efficiency in vocational training sector….
Apart from those achievements, vocational education institutions that implemented the mechanism of autonomy according to Resolution No. 43/2006/NĐ-CP still face a number of difficulties and limitations such as:
In terms of responsibility implementation: No specific criteria are identified for evaluating the level of responsibility completion, evaluating operational activities by output
In term of structural organization, recruitment: all schools are under management of a specific agency who is responsible for establishment, split, merger, dissolution of the schools; appointment of head of school council and school master. The management agency also takes charge of recruitment, determination of salary level and salary payment.
In terms of finance:
- Application of common tuition framework toward all public vocational institutions creates inequality between fully-autonomous schools and partially-autonomous schools. Therefore, the disparity between expenditure – spending of a student’s account tends to be a negative balance if calculated according to Resolution 49/2010/NĐ-CP; considering that the scale of student recruitment remains constant, number of personnel, staff remains unchanged; not to mention other factors such as inflation and policy change. Consequently, the investments tend to be limited, scattered in small amount which does not efficiently improve training quality as desired.
- The costs are not fully taken into training products (direct cost, management cost and depreciation). Tuition free offered is lower than the cost of providing service which results in government’s price subsidy for people who use public service without discrimination against financial background, income. Meanwhile, due to lower earning the institutions have no appropriate conditions to fully record costs and have no capital accumulation for re-investment to improve the quality of public service provision.
- Delegation of power to investment management and asset management has many problems which cause difficulty in implementing projects related to investing into facilities and efficient use of school assets…
Enhance the mechanism of autonomy at schools and vocational institutions
On 14/02/2015, the Government issued Resolution No. 16/2015/NĐ-CP stipulating mechanism of autonomy toward public institutions that replaces Resolution No. 43/2006/NĐ-CP dated 25/4/2006. Whereby each sector shall submit to the Government for issuance of Resolution for specific guidance.
In terms of vocational education (vocational training), public institutions encounter many difficulties in registering for autonomy and implementing autonomous mechanism. The reason derives from student’s, parent’s psychology of not wanting to pursue vocational training; tuition fee is low, if tuition increases not many people would like to enter the field of vocational training; even though the vocational staff, students have vocational skills but there is no sufficient incentive to increase the earning.
In order to encourage the institutions to implement the autonomous mechanism efficiently, this article proposes to amend, supplement the policy of autonomous mechanism toward public institutions in the field of vocational education (vocational training) in upcoming period.
First, in terms of structural organization
- The organization is authorized to make co-investment, establish partnership, linkage with domestic and foreign organizations, individuals according to law for provision of public service in vocational education sector; connect production, business and service activities with vocational training to meet social needs but must abide by the law ensuring better supply of public service.
- In case an institution with separate accounting system is established, the institution needs to submit report to senior body of management for approval; institutions with separate accounting system shall ensure funding for regular activities and funding for investment activities.
Second, financial support
- In terms of investment:
+ For projects that have been approved by the body of authority but have yet to be implemented, the institution is allowed to mobilize capitals in form of interest payment wherein maximum interest agreed upon shall not exceed 150% of basic interest according to the rules specified in Civil Law, at the point of the loan.
+ For projects that have been approved by the body of authority and budget is being allocated by the government, the institution will receive investment from the government according to plan.
+ For projects that have utilized funding as specified in regulation but fell behind the schedule of the projects, constructions: The institution is allowed to obtain loan from bank to provide additional funding for completion of projects, constructions as scheduled.
- Funding for regular expenditures:
 + For institutions that are self-responsible for ensuring the fund for regular expenditure and the fund for investment activities: The fund will be considered for provision in the first year when transition takes place wherein maximum fund is equal to the fund given in the year before the year of transition.
+ For occupations in which the technical-economic threshold (norm) has not been completed then the Government provides support in the part that has not been completed into the price according price calculation process stipulated at Article 10 Resolution 16/2015/NĐ-CP dated 14/2/2015 on autonomous mechanism toward public institutions.
+ Will be put in Government’s priority list for placement of order, assignment of tasks based on outputs for vocational training services using government budget.
Third, support of tax incentive
- Provide tax exemption to retained earning that is used for development investment into the public institution. Provide tax exemption to profit earned by  products, services resulting from training activities.
- Provide exemption to stamp duty for assets that are under management of and being used by the public institutions when the institutions are in partnership; provide exemption to personal income tax…

 

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