Purpose: The purpose of this paper is to review the strategic management of Vietnamese higher education institutions. Design/methodology/approach: The paper examined the external environment of the country's education system based on the five forces framework by Michael Porter and inspected the strategies of universities and colleges. Findings: It was concluded that lack of environmental analysis from both the government and higher education institutions themselves diminishes the intended effectiveness of the reforms; problems of skill shortage in the labor market, staff insufficiency and poor quality are prevalent; and that strategies developed by the institutions are purely responsive to the State's direction without considering sustainability. Research limitations/implications: Lack of literature on Vietnamese higher education limits timely analysis. Practical implications: Strategic planning based on a thorough investigation of the environment is imperative to enhance the performance of the education system generally as well as of academic institutions individually. The government plays a key role in developing initiatives to enhance staff capabilities and improve quality of educational outputs. Originality/value: There has not been any paper that approached Vietnam's higher education management under such an analytical framework.