Recommendation for an Effective Financial Model – Program’s Cost Norms Study


 Mekong Development Research Institute research team and Nexia STT


December 2015


Research objective

This is the synthesis report of the VTE financing programs/cost norm studies. The four particular objectives are:

  • Evaluate the effectiveness of input-based and output-based budget fundingmodel, based on the development of vocational education and training schools oriented by demand.
  • Allocate reasonably input resources to fund for VTE institutions
  • Determine vocational education and training cost norms
  • Propose an output-based budget allocation model

From the findings of the study, we are going to propose recommendations of resource allocation framework and input cost based on the outputs aim toimprove the efficiency of financial allocation resulted in enhancing the quality of vocational training.

Scope of research

The scope of work for the vocational education and training cost norm study covers 10 vocational institutions, of which 7 are public – a treatment group of the Skill Enhancement Project and 3 remaining institutions are private schools, forming a control group. Vocational institutions under this study are defined as vocational colleges s and secondary vocational schools. This study therefore does not consider vocational education centers such as vocational training centers or continuing education centers.

In addition, the report investigates 5 major vocational occupations which are currently supported by the Skill Enhancement Project. The jobs felt into two main categories: technical and service – oriented. In the technical group, the three selected occupations are industrial electrics, industrial electronics and automotive technology. In the service sector, the chosen fields of training include hospitality management and cooking technique. Table 1 below provides information of the studied vocational schools and the relevant fields of training.


The report consists of 6 parts. This section provides an overview of the research. The second part introduces the methodology employed in this report. Section 3 will analyze financial resources funding for VTE and the situation of using caiptal at the VTS. By these bases vocational and education training cost norm is identified, and section 4 explains some methods identified resonable cost norm. Currrent situation of budget allocation for VTE and international experiences in the public financial model will be disscussed in section 5 which would be use as a recommendations aiming to increase the effectiveness of financial model. The conclusions and recommendations of research team will be given in section 6 of the report.

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