Autonomy Acquisition and Performance within Higher Education in Vietnam—A Road to a Sustainable Future?

The Vietnamese Government prioritizes education as a developmental investment within its socioeconomic development programs. Subsequently, Vietnam’s higher education system (HE) is experiencing substantial transformation, emphasizing autonomy, because institutions endowed with self-governance capabilities may allocate societal resources more efficiently for developmental purposes. In this paper, we measured Vietnamese universities’ total factor productivity change (TFPCH) in the autonomy context, using it as a proxy for the sustainable performance of HE institutions. We decomposed TFPCH into Technical Efficiency Change (EFFCH) and Technology Change (TECHCH) and regressed these indices with independent variables to derive their determining factors. Notably, we employed the derived intercept as a proxy for the autonomy context of Vietnam. The DEA found significant advancements in productivity and technology, indicating a positive paradigm shift within Vietnam’s higher education system. The intercepts obtained from these regressions are positive and significant, implying that the autonomous environment supports the sustainable advancement of Vietnam’s higher education system in both components of TFPCH: the catch-up ability (EFFCH) and technological improvement (TECHCH). In addition, we found that investment in vital resources (number of laboratories, research funding, or quality accreditation) improves productivity (TFPCH) via technological improvement. We also observed that private universities experienced higher performance progress than public ones. However, we did not find any significant relationships between the university scale or the location of the main campus and their performance. To further the growth of Vietnam’s higher education system, we propose that the autonomy of institutions continues to be granted.