The Vietnam Education Publishing House Bribery Scandal: Unraveling Allegations and Financial Mysteries
Vietnam’s Ministry of Public Security’s Investigation Police Department has issued an investigation conclusion, proposing the prosecution of eight defendants in a case of Bribery, Receiving Bribes, and Violations of bidding regulations with serious consequences occurring at the Vietnam Education Publishing House One-Member Limited Company and related units.
Mr. Nguyen Duc Thai, former Chairman of the Vietnam Education Publishing House, was accused of receiving bribes multiple times, totaling VND 24.9 billion, to facilitate the participation of two companies in supplying printing paper.
Former Chairman of the Board of Directors of Phung Vinh Hung Company – To My Ngoc and Director of Minh Cuong Phat Company – Nguyen Tri Minh were charged with bribery during the 2017-2021 period.
In addition, several officials of the Vietnam Education Publishing House were also prosecuted for violations of bidding regulations, causing serious consequences.
Vietnam Education Publishing House’s Profitable Ventures
According to the initial conclusion of the Investigation Police Agency, the purchase of printing paper is carried out annually, and the price of paper accounts for 30-40% of the structure of textbook prices. Therefore, buying paper at a high price will increase the price of books.
Despite the increase in input material prices (printing paper), the Vietnam Education Publishing House has recorded impressive revenue and profits in recent years.
 Vietnam Education Publishing House remains profitable despite high costs. |
In 2023, the audit report recorded a 10.3% increase in the company’s net revenue compared to the previous year, rising from VND 3,106 billion to VND 3,425 billion. In 2021, the Vietnam Education Publishing House achieved a revenue of VND 2,451 billion, with a remarkably high profit after tax of nearly VND 382 billion in 2023, compared to VND 409 billion in 2022 and VND 358 billion in 2021.
The Vietnam Education Publishing House’s equity capital stood at VND 1,472 billion at the end of 2023, VND 1,406 billion at the end of 2022, and VND 1,325 billion at the end of 2021.
Consequently, the profit margin of the Vietnam Education Publishing House was relatively high, at 27% in 2021, 29% in 2022, and 26% in 2023.
Dispelling the ‘Textbook Publishing is Very Profitable’ Narrative
The Vietnam Education Publishing House offers two textbook series: ‘Connecting Knowledge with Life’ and ‘Creative Horizons.’ Meanwhile, the Joint Stock Company for Investment and Education Publishing House (VEPIC) publishes the ‘Kite’ series. These three textbook series were approved by the Ministry of Education and Training after a rigorous evaluation process, serving as the foundation for schools to select and teach from the 2023-2024 academic year.
Textbook prices surge. |
In response to numerous claims that textbook publishing yields high profits, a representative from the Vietnam Education Publishing House clarified in August 2024 that their textbook development process involves eight meticulous steps: author team formation, model construction encompassing general and detailed outlines, editorial design, two rounds of national evaluation, book introduction, teacher training in using the books, and textbook distribution.
The representative emphasized, “Consequently, the cost structure of textbooks is intricate and involves numerous expenses. The Vietnam Education Publishing House, alongside other textbook publishers, must declare prices based on these cost components, subject to the approval of the Price Management Department under the Ministry of Finance. In reality, profits from textbooks are minimal or negligible. The Vietnam Education Publishing House’s profitability stems primarily from supplementary and reference books.”
However, the public, including industry insiders, often overlooks this aspect, assuming that the Vietnam Education Publishing House’s revenue of VND 3,000 billion and profit of VND 300 billion originate solely from textbooks. If textbook publishing were as straightforward and lucrative as presumed, we would likely witness a more extensive involvement of publishing houses and private entities in textbook compilation and publication,” the representative added.
According to the Vietnam Education Publishing House, the cost structure of textbooks comprises five main elements: manuscript organization costs, royalties, production costs (including paper and printing), distribution costs (also known as distribution costs), and financial expenses (interest expenses).
Manuscript organization costs for a textbook series can reach hundreds of billions of VND. Currently, royalties are calculated per lesson (regardless of the number of books printed). The total royalties for the ‘Connecting Knowledge with Life’ and ‘Creative Horizons’ series by the Vietnam Education Publishing House amount to nearly VND 70 billion annually.
Additionally, production costs soar into the thousands of billions of VND (including paper and printing expenses), while the publishing house relies entirely on bank loans to finance these costs. The costs of distribution and promotion are also significant,” the representative explained.
In reality, the Vietnam Education Publishing House does not hold a monopoly on textbook publishing. Seven publishing houses have been granted permission by the Ministry of Information and Communications to publish textbooks, with six actively participating in the market. However, undertaking textbook publishing is not without its challenges.
Mạnh HÃ
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