Public universities are eligible for legal loans at home and abroad

Legal Consulting Office of Lao Dong Newspaper answers:

Article 39 of the 2025 Law on Higher Education (effective from January 1, 2026) stipulates the finances of public higher education institutions as follows:

1. The financial resources of public higher education institutions include:

a) State budget;

b) Funding for sponsorship, aid, donation, legal donation of organizations and individuals at home and abroad;

c) Revenue from training, scientific research, technology transfer, educational support services, production, and business;

d) Legal loan sources at home and abroad;

d) Other revenue sources according to the provisions of law.

2. Public higher education institutions implement investment and development of facilities according to the provisions of law on public investment and other relevant legal regulations; spend on performing ordering and assigning tasks according to the Government's regulations.

3. Public higher education institutions are entitled to financial autonomy, using legal revenue sources for training, scientific research, team development, infrastructure investment and other higher education activities, specifically as follows:

a) Decide on the content and level of expenditure from tuition fees and career revenues in accordance with financial capacity and internal spending regulations, ensuring efficiency, publicity, and transparency;

b) Implement the distribution of year-end financial results according to regulations on financial autonomy mechanisms for public non-business units and public higher education institutions.

Thus, from January 1, 2026, public universities are allowed to legally borrow capital at home and abroad.

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