“Degree inflation” reaches alarming level in Vietnam Vietnamese education consumers have suddenly realized that university degrees can no longer be a guarantee for labor force quality and cannot ensure good jobs for degree holders.   A paradox exists in the university education sector: while the knowledge-based economy needs more and more highly educated workers with high skills and qualifications, the number of people with bachelor’s degrees who do not have good jobs has been increasing steadily. In all societies, higher education is believed to bring bigger opportunities. In Vietnam, the thought “learning to become mandarins” has existed for hundreds of years. Nowadays, Vietnamese “learn to get good jobs which bring high incomes”. People wish to follow higher education because it gives them advantages in the labor market. However, this principle only works when bachelor’s degrees are seen as precious. The promotion of university education produces many bachelor’s degrees, and the degrees are no longer “rare”. As many people graduate from universities, bachelor’s degrees are no longer an advantage. Vietnamese analysts have warned about degree inflation. There is a contradiction which cannot be settled: while the State tries to give more opportunities to people to approach higher education, it cannot maintain the privileges of the workers with university education. As such, there are two reasons that have make university degrees depreciate. First, the number of workers with bachelor’s degree is on the rise. Second, the training quality is not as good as thought. In many cases, the workers with high qualifications do not have better working skills and knowledge than those without university degrees. The number of Vietnamese students registering to follow higher education, in official reports, began decreasing in 2011. And the two factors were believed to be behind the decrease. Students are hesitant to enter universities also because of the higher tuition required, while job prospects are not bright. Consumers have realized that while they have to spend big money on education, they are not sure the costly investments can help them find good jobs. Higher education has also been influenced by the technology development. With the strong development of the information technology and communication, schools are no more the only places which can provide knowledge and information. Online education allows learners to get the knowledge that the labor market demands. As such, universities have to upgrade their training quality to survive the stiff competition. Employers are only willing to spend money to buy goods if the goods are usable and can create added value. NLD