When the Internet Meets Education: Lessons from Vietnam’s 3G Rollout The promise and paradox of mobile internet

When mobile broadband began spreading globally, many hoped it would be a great equaliser — unlocking access to knowledge, expanding learning opportunities, and narrowing educational divides. In theory, faster internet meant students could study online anytime, anywhere, access digital libraries, and connect with teachers and peers in new ways.

But what really happens when mobile internet arrives in a developing country? Does it help young people stay in school — or does it draw them away from classrooms and into the labour market?

Our recent study takes on this question in the context of Vietnam, a lower-middle-income country that has experienced both rapid digital expansion and industrial growth. By tracing the rollout of3G networks across provinces from 2010 to 2016, we find a surprising paradox: mobile internet helps some students progress in education, while pulling others out of school earlier.  

What we found

Looking at young people aged 15 to 25, we observed that:

• 3G expansion increased the completion of lower-secondary school. With more access to mobile internet, students were more likely to finish this level of education.
• But it reduced continuation into upper-secondary school. Once lower secondary was completed, many chose not to continue, opting to enter the workforce.

Why this split? The answer lies in the education–employment trade-off. Vietnam’s labour market, especially during its industrial boom, created a wave of jobs that required only a lower-secondary degree. For many young people, the opportunity cost of staying in school beyond age 15 was too high.

In simple terms, the incentive to complete high school diminished when good-enough jobs became available.

Why Vietnam’s context matters

Two key features shape Vietnam’s experience:

• Legal working age. In Vietnam, young people are legally allowed to work from age 15, the same age they typically complete lower-secondary school. This timing creates a natural decision point: continue studying or start working.
• Labour-abundant economy. Vietnam’s industrialisation has been powered by labour-intensive manufacturing and services, offering a steady supply of entry-level jobs. Wages from these jobs can be attractive, especially in families with lower incomes who face the high costs of upper-secondary education, such as private tutoring and exam preparation classes.

In this environment, the rollout of 3G internet acted like a double-edged sword. It supported students in reaching a basic level of education, but it also connected them more quickly to job opportunities that reduced incentives for higher schooling.

The bigger picture: declining returns to education

Our findings highlight a broader issue: declining returns to education beyond a certain point. In Vietnam, completing lower-secondary school yields higher relative benefits than pushing through upper-secondary school. As long as the labour market continues to reward this level of education with steady employment, many families will rationally choose work over extended schooling.

This pattern echoes earlier stages of industrialisation in richer countries. Historical evidence from the U.S. and Europe shows that child labour often rose initially, as new industries created demand for less-educated workers. Only later, as economies moved into more skill-intensive sectors, did returns to higher education increase.

Risks in the digital era

While current job opportunities may appear sufficient, the future is less certain. Emerging technologies like artificial intelligence and automation threaten to replace routine jobs — the very types of positions that many Vietnamese youth are leaving school to take. Without stronger investment in higher education and skill development, today’s short-term gains could become tomorrow’s vulnerabilities, leaving many workers unprepared for more advanced industries.

What can be done?

The message is clear for policymakers, educators, and development practitioners: Internet access alone is insufficient. Without complementary policies, it risks deepening education–employment trade-offs rather than resolving them.

Some key steps include:

• Making higher education more affordable and accessible. Tuition exemptions in Vietnam are a positive step, but hidden costs such as tutoring and school contributions remain barriers. Innovative financing models, scholarships, and public–private partnerships could ease the burden further.
• Improving the quality and relevance of education. Many dropouts cite lack of interest, not just financial constraints. Updating curricula, integrating digital tools, and teaching practical digital skills (such as coding or applied STEM) can make education more engaging and better aligned with labour market needs.
• Expanding vocational and technical pathways. Not all students will pursue university degrees. Strengthening vocational training, apprenticeships, and work-study programs can provide attractive alternatives that still prepare youth for skill-intensive sectors.
• Stimulating demand for skilled labour. Governments can promote industries that require higher skills — such as ICT, business services, and advanced manufacturing — to ensure that investing in education pays off.

Looking ahead

Vietnam is not alone in facing these challenges. Other Asian countries, like Bangladesh and Indonesia, share similar labour-abundant structures and rapid digital growth. The trade-off between education and employment, shaped by industrialisation and internet access timing, may play out in comparable ways.

As digital technologies continue to spread, we must ask: Are we creating opportunities that pull young people into sustainable, future-ready jobs — or are we locking them into short-term gains that may soon disappear?

The answer will depend not only on how fast internet connections reach every corner of the globe, but also on whether education systems and labour markets evolve in step.

Key takeaway

Mobile internet can be both a booster and a barrier for education. In Vietnam, 3G diffusion helped more students complete lower secondary schooling but reduced incentives to continue into higher levels. The lesson is that technology’s impact on education is deeply tied to labour market structures and institutional settings.

If countries want digital technologies to drive inclusive development, they must go beyond access and invest in the skills, institutions, and opportunities that make higher education worth pursuing.

ORIGINAL WORK

Pham, T. T., & Caldarola, B. (2025). 3G Internet Diffusion and Secondary Education Attainment: Evidence of Opportunity Cost in Vietnam. Review of Development Economics, vol. 70031. https://doi.org/10.1111/rode.70031