Photo credit: Global Admissions
Japan is set to implement a policy that will lead to a hike in tuition fees for foreign students, making them pay higher than Japanese students for the first time in the country's 86 national universities. The new pricing comes when the country is struggling to double its foreign students to 400,000 by 2033 amidst a broader effort to boost the nation's global appeal as an education destination.
This new policy could negatively affect Vietnam and Nepal, two fast-growing markets for Japanese universities. In 2022, Vietnamese students in Japan increased 25% along with a 29% growth in Nepalese student enrollments. According to experts, this might discourage prospective applicants in economically sensitive countries.
Currently, students at the nation's universities pay a maximum of ¥642,960 (around 5,830,000 KRW) per year, with domestic and international students charged the same. While no exact figure has been announced for the new rates, the cost to be paid by international students will surely increase substantially.
The same is likely to be emulated by private universities, which are facing financial pressures due to Japan's declining birth rate. The fewer students from the domestic population in Japanese universities have now forced these institutions to look overseas for revenue. The added income accruing from these supplementary tuition fees paid by international students may reduce some financial pressures but also heightens questions over how Japan can stay competitive compared to other global destinations such as the U.K. or the U.S., where tuition fees charged to foreigners are already infamously higher.
Japanese Universities with the Most International Students (2019)
Credit: Study in Japan 2019
While the tuition increase might discourage some from pursuing an education in the country, Japan is also loosening up its policies to make the transition from student to employee easier. The government has relaxed the rules on post-graduation work visas to allow international students, including vocational school students, to seek jobs outside their fields of study. This is in line with the more general drive to include foreign talent in different parts of Japan's workforce due to labor shortages in many key sectors.
The Japanese government has equally improved the language support services and job-hunting initiatives that are targeted for the international students. If the more money acquired from the more fees is considered and utilized in improving these services, then the value of studying in Japan might be worth it to foreign students who have been desperate for the advantages of education. However, finding their way through the labyrinthine Japanese recruitment process and with the guarantee of lower wages compared to their home country has remained a big obstacle to many students.
This decision also comes at an interesting time, as countries around the world review their international education strategies. China, for example, is rapidly forging ties with Southeast Asia and with Africa, offering cheaper alternatives and new forms of collaboration. This will present Japan with increasing competition from countries like Vietnam and Nepal, also now a significant market for Chinese universities.
International Student Population in Japan (2020)
Credit: Japan Ministry of Justice (2020)
Whether Japan would be able to remain a desirable destination in the coming years, or if students would increasingly seek other destinations offering an affordable and more flexible alternative, this would depend upon how long the country keeps striking a balance between financial sustainability and the goal of increasing international enrollment.
While the Japanese government is raising tuition on international students to help keep the system of higher education afloat, it is likely to present challenges to retention in enrollment from key markets. However, renewed efforts on the part of Japan to develop more work opportunities after graduation and the development of more appropriate student support services might balance out some negative effects, which will make Japan still competitive in the global education market.
This is in line with the greater trend worldwide, as other countries, such as China, are also upping their efforts to attract students from emerging regions like Southeast Asia and Africa. In such a way, international student mobility in the future could get more and more competitive in Asia.
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