Growing Competition for International Talent
As the global competition to attract international talent intensifies, students from Southeast Asian countries are becoming a key focus in recruitment strategies. European universities, in particular, are striving to catch up with other regions that have already made significant strides in attracting these students.
The Australian government recently announced an increase in the cap on foreign students by 9%, raising it to 295,000 and prioritizing applicants from Southeast Asia. Similarly, Japan aims to boost its foreign student population to 400,000 by 2033, while South Korea targets 300,000 by 2027. In Taiwan, the government has set a goal of attracting 25,000 Southeast Asian students annually to address labor shortages in key industries.
A 2023 report by the international education consultancy Acumen revealed that approximately 132,000 Vietnamese students were studying abroad, making up nearly 40% of all Southeast Asian overseas students. Malaysia and Indonesia each sent over 50,000 students abroad, while Thailand contributed around 32,000. In 2022, Southeast Asia became the third-largest region globally for outbound student mobility, following China and India, with 350,000 students studying overseas.
Europe’s Efforts to Attract Talent
European universities, facing chronic underfunding and demographic challenges, have begun targeting Southeast Asia for talent. In June, the German Embassy in Hanoi funded a "career truck" to tour Vietnam and promote study opportunities in Germany. Just a month earlier, French President Emmanuel Macron delivered a keynote speech at the University of Science and Technology in Hanoi during a state visit.
Indonesian President Prabowo Subianto also called for more Indonesians to pursue higher education in Europe during a speech in Brussels in July. However, despite these efforts, students from Southeast Asia remain underrepresented in European universities. Of the 1.66 million international students currently enrolled across the EU, only a small proportion are from Southeast Asia.
In Germany, there are around 7,060 Vietnamese undergraduate students, according to the German Academic Exchange Service (DAAD). Alfred Gerstl, head of a European–Southeast Asian relations project at the Central European Institute of Asian Studies think tank, noted that "despite the growing significance of Southeast Asia, there is still little focus on the region in European academia."
Financial Pressures on European Universities
Many European universities are grappling with financial pressures. In May, the UK's Office for Students reported that 40% of English universities are expected to operate at a financial deficit this year. In Germany, the DAAD cut 2,500 scholarships in February due to budget constraints. The Freie Universität Berlin and other institutions have also seen sharp reductions in funding.
France's 2025 national budget cut education and research spending by €1 billion ($1.15 billion) compared with the previous year. A March report by the European University Alliance warned that universities across Europe are facing a "new normal" of underfunding. As costs rise and revenues stagnate, many institutions are being pushed to attract more international students.
"There are powerful incentives to enroll a greater number of foreign (non-EU) students in systems that allow universities to set fees for this sector of the student population," the report stated. Respondents noted that foreign student recruitment remains "a key factor in generating much-needed income," suggesting that competition for this demographic will only intensify.
Strategies to Attract More Students
Kristina Kironska, of Palacky University Olomouc in the Czech Republic, has helped secure prestigious fellowships for Burmese students fleeing the military junta since the Myanmar coup in 2021. Many accessed EU funds and grants, but the main challenge remained the visa and residency documentation, Kironska told zaia news.
She suggested that European governments could review their visa and long-term stay requirements for Southeast Asian citizens and simplify the procedure. However, the solution often comes back to money. "In order to attract more students from Southeast Asia, it is essential to provide more funding for mobility exchanges and scholarships, in particular for PhD students," said Gerstl.
Several European countries are beginning to adapt policies to remain competitive. Last month, Norway relaxed its Norwegian language requirements for university admission and simplified employment pathways for international PhD candidates. Importantly, it adjusted tuition fees for foreign students after a hike led to a steep decline in enrollment.
In May, the European Commission launched the "Choose Europe Initiative," a €500-million scheme designed to attract top global researchers. It includes expanded long-term grants via the European Research Council and a doubling of top-up grants for relocating scholars.
Shifts in Study Destinations
However, there are signals that students from Southeast Asia are increasingly looking closer to home for study abroad options. A recent British Council study found declining numbers of students from Malaysia, Singapore, and Thailand enrolling at UK institutions since 2015. Increasingly, Southeast Asian students are turning to nearby destinations.
Japan now hosts more Vietnamese students than any English-speaking country. This shift is partly driven by improvements in the quality of higher education across Asia. In 2024, 23 East Asian universities made it into the QS ranking of the world's top 100 universities, a 35% increase compared to 2015.
Opportunities Amid US Isolation
The current political landscape in the United States may present opportunities for European institutions. Since returning to office in January, the Trump administration has taken a more restrictive approach to academic funding and student mobility. Fulbright grants have reportedly been slashed, affecting over 7,400 foreign scholars. The White House has also cut $400 million in funding from Columbia University and $800 million from Johns Hopkins. Tens of thousands of international student visas have reportedly been revoked, although official numbers remain unconfirmed.
In March, a Nature survey revealed that three-quarters of US-based scientists were considering leaving the country. While many European universities are looking to lure disillusioned American academics, some are also seizing on the instability in US academia to attract students from Asia, particularly China and Southeast Asia.