Online education service is a new type of business in Vietnam. The investment in this area is beginning to heat up, said the VietNamNet Bridge.

The market value of online education in Vietnam is estimated at 50 million USD, adding that it is attracting many investors, added the VietNamNet Bridge.

According to a 2013 survey, Vietnam is among countries with a high level of growth in the online education market. Investment in this area began in 2011, mainly in the two areas of English language training and practice for the university entrance exams.

In 2011, firms with strong in information technology started to penetrate the market. IDJ Education Technology Investment Joint Stock Company launched a website supplying the university entrance exam practice services to 12th graders.

VNG began testing the online training model in May 2012. After a year of testing, this product was no longer advertised by VNG, which made many think that it had withdrawn from the market.

In March 2014, VNG unexpectedly launched the free services for the 12th graders who were preparing for the university entrance exams.

After a year of research and development, Intel Vietnam and T&H Company just launched the online school project (ISS) with a total investment of 20 billion VND (1 million USD).

Le Thanh Hung, T&H’s Chair, said that the project targets high-school students, particularly those in the rural and remote areas.

According to DeltaViet, a provider of e-learning services, the estimated value of the online education market in Vietnam is about 1 trillion VND (50 million USD).

E-learning in Vietnam is currently under three prominent trends: e-learning for 12th graders who are preparing for the university entrance exams, bachelor's degree training provided by private universities or private companies, and foreign language teaching.

Several education experts said that online education requires a high level of investment in infrastructure and teachers, more than traditional education. This is a hindrance for the development of this sector, although e-learning is considered a market with high potential.

According to T&H Company, the developer of ISS, the fee is 50,000 VND (2.5 USD)/subject in a semester, for one year. This tuition applies to all eight subjects of high-school students.

An e-learning investor estimated that with a population of over 90 million, with 30 percent of them using the Internet, if in a year, there are 20,000 users and the fee for each lecture is 10,000 VND (0.5 USD), then the revenue per each lecture a year is 200 million VND (10,000 USD). Profits will continue to rise in the coming years as well.

The value of the online education market worldwide is estimated at more than 30 billion USD. In some countries in the region such as the Republic of Korea and China some e-learning firms are listed on the American Stock Exchange.-VNA