Public universities are eligible for legal loans at home and abroad

Legal Consulting Office of Lao Dong Newspaper answers:

Article 39 of the Law on Higher Education 2025 (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, legal donations of organizations and individuals at home and abroad;

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

d) Legal loan sources at home and abroad;

e) Other sources of income according to the provisions of law.

2. Public higher education institutions shall spend on investing in the development of facilities in accordance with the law on public investment and other relevant legal regulations; spend on performing ordering and assigning tasks in accordance with the Government's regulations.

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

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

b) Implement the distribution of year-end financial results in accordance with 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 borrow legal capital at home and abroad.