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EdTech, short for educational technology, refers to using technology to enhance and facilitate learning and teaching processes. It encompasses various tools, platforms, and resources designed to improve education and training in various settings, from classrooms to online learning environments. EdTech aims to make learning more engaging, accessible, personalized, and effective. The benefits of EdTech include increased accessibility to education, flexibility in learning schedules, opportunities for personalized learning paths, improved engagement through interactive content, and the ability to reach a wider audience beyond traditional classrooms (Rodriguez-Segura, 2022).
The English-language market in Vietnam has great potential. This is not only because of the country's population size of nearly 100 million people, the third largest in the Association of Southeast Asian Nations (ASEAN) region, and its young population structure, with more than 40% of the population under the age of 24, but also because of the priority policy and commitment of the Vietnamese government to Education. The Vietnamese government’s annual investment in education is relatively large, about 20% of the budget. The rich class is also growing rapidly, leading to the need for their children to study in high-segment education systems with educational quality according to international standards. That is also why the field of English training and international schools is an education segment that has grown rapidly in Vietnam in the past few years, with an average increase rate of 15% per year (Vietdata Research, 2022).
Vietnam currently attracts many investors in the EdTech field. The segments that attract the most investment are foreign languages, especially English and K–12, which focus on content and review. In May 2023, the Vietnamese education group Equest mobilized $120 million USD. The English learning application Elsa has raised $20 million USD from a fund belonging to UOB Bank. It can be seen that investment capital in EdTech in 2023 focuses on emerging startups. The English-language segment is still promising and has mobilized the largest investment capital. Other segments related to technology are also of particular interest. Characteristics of EdTech that attract capital often focus on technology, especially exploiting artificial intelligence (AI) technology to provide a personalized learning experience that meets the specific needs of each individual (Vietnam.vn, 2023). Some ventures are interested in the Vietnamese EdTech market, such as Gradient Ventures, SOSV, Monk’s Hill Ventures, Endeavour Catalyst và Globant Ventures, and UOB Venture Management.
Due to the large number of people who use mobile devices to access the Internet, there is a high need for educational applications and platforms compatible with mobile devices. Technological advancements in developing EdTech applications have made learning more interactive, engaging, and accessible (Papadakis et al., 2018). A successful EdTech application must involve educators, developers, designers, and content creators collaborating to ensure the application meets educational objectives while offering an engaging and effective learning experience (Pitafi & Ali, 2023; Papadakis et al., 2020; Papadakis & Kalogiannakis, 2017; Hsu & Lin, 2015). In Vietnam, English language learning applications and platforms have gained popularity, given the importance of English proficiency in global markets. Test preparation tools for exams like Test of English as a Foreign Language (TOEFL), International English Language Testing System (IELTS), and standardized tests are also in demand (Vietnam.vn, 2023).