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A team co-managed by the Government of Vietnam and the World Bank prepared this report. The team was comprised of staff and consultants provided by the following funding agencies - Swiss Development Cooperation, the East Asia Multidisciplinary Advisory Team of the International Labour Office, the Australian Department of Employment, Education, Training and Youth Affairs, the Australian Bureau of Statistics, L'Institut Francais de Recherche Scientifique pour le Developement en Cooperation and the World Bank. This study poses the following 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 complete the transition successfully from a planned to a market economy? The present structure of educational costs is analysed, and using the enrolment targets set by the Government, the increase in public expenditure is estimated. The report reviews the experience of Japan, Hong Kong, the Republic of Korea, Singapore, Taipei-China, Indonesia, Malaysia and Thailand since 1950 and draws some lessons for Vietnam's education and training system. Policy options are discussed. Some of these address issues of quality, others are intended to reduce unit cost and still others shift some of the costs from the State Budget to private beneficiaries. Future directions for educational finance are outlined in the final chapter.