Vietnam's higher education sector, which has expanded dramatically over the past 20 years, has now reached a point where it is ready to become more research-oriented and better networked internationally. There are, however, aspects of the sector that remain desperately in need of further reform. This paper provides a contemporary review of the state of the higher education sector in Vietnam. It is written from the perspective of the sector's need to become more research-focused and more internationally engaged. The paper identifies specific challenges for the sector. It also presents a glimpse of what the future of the sector might entail.