RMIT Vietnam International University

completed

RMIT University of Australia is planning to establish a new campus for RMIT International University Vietnam in Ho Chi Minh City, Vietnam. Based in Melbourne, RMIT University is one of leading universities in Australia with a total student enrollment of about 40,000. The campus for RMIT International University Vietnam will be developed in phases over a 12-year period, the first of which to occur during 2001-2004 (the Project).The project will alleviate the acute shortage of colleges and universities in Vietnam. Only one out of six applicants can enter a college in Vietnam at present, which leaves every year one million candidates to either prepare for the next year''s exams or look for jobs. In addition, Vietnam has a huge shortage of people with foreign language, business management, computer and other technical skills.The project, by providing degree programs, and short-term foreign language and professional training adapted to the market needs, will make significant contribution to the development of human capital in Vietnam. It will also make it possible for thousands of Vietnamese students, who do not have the financial means to study abroad, to receive western-style university education in Vietnam. The project will help enhance the quality of higher education in Vietnam by introducing well-developed academic programs, quality assurance systems, and professional management, at the level of those offered in Australia. The project could provide an example to replicate for the Vietnamese regulatory authorities and public universities. The successful implementation of this venture will demonstrate that the environment for foreign investments in Vietnam is improving.IFC will provide the long-term financing tailored to the project. Currently, obtaining long-term financing from international capital markets in Vietnam is almost impossible. IFC has assisted RMIT in the project structuring by recommending to phase the campus development. This will help reduce the up-front financing needs, test the market, and improve the chances of success in the early stage. Early in the project’s development stage, the Corporation identified key regulatory issues and assisted the sponsor in its dialogue with the Vietnamese governmental authorities. IFC has played the lead role to develop and implement two technical assistance projects funded by AusAid including the preparation of a .resettlement action plan and a feasibility study for the development of a student loan program to support students from low-income families to attend the university.