Non-degree Sector of VET Expecting Continuous Growth
The “non-degree” component of the VET sector (i.e. the exam preparation services) is expecting strong growth despite the pandemic. In 2020, there were 10m people registered to study for the teachers’ qualification exam at tertiary level alone, a 13.6% increase on the previous year. The central government has opened up 24,100 new positions, and there were 30% more registrations for the provincial level of civil service exams in 2020.
According to Frost and Sullivan data, the VET industry in China has achieved a compound growth of 6.3% in the last 5 years, reaching USD63b (RMB400b). Gelonghui, a financial service provider focusing on Chinese entities listing outside mainland China, pointed out that there is still great scope for China to increase its headcount for the public service based on its 1.4 billion population. Currently 3.6% of the population are employed by the government, while in the US, this figure is more than 6%. The largest public service exam training provider Zhonggong (Offcn Education Technology) is now valued at USD29bn.