69–010 

Calendar No. 957 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–458 

VIETNAM EDUCATION FOUNDATION 

AMENDMENTS ACT OF 2008 

SEPTEMBER 12, 2008.—Ordered to be printed 

Mr. BIDEN, from the Committee on Foreign Relations, 

submitted the following 

R E P O R T 

[To accompany S. 3097] 

The Committee on Foreign Relations, having had under consideration the bill (S. 3097) to amend the Vietnam Education Foundation Act of 2000, reports favorably thereon and recommends that 

the bill do pass. 

CONTENTS 

Page 

I. Purpose ........................................................................................................... 1 

II. Committee Action .......................................................................................... 1 

III. Discussion ....................................................................................................... 1 

IV. Cost Estimate ................................................................................................. 4 

V. Evaluation of Regulatory Impact .................................................................. 5 

VI. Changes in Existing Law .............................................................................. 5 

I. PURPOSE

The purpose of this legislation is to improve the operation of the 

Vietnam Education Foundation, which was established pursuant to 

the Vietnam Education Foundation Act of 2000. 

II. COMMITTEE ACTION

S. 3097 was introduced on June 6, 2008 by Senator Kerry, Hagel, 

Biden and Lugar. At a meeting on June 24, 2008, the committee 

ordered the bill favorably reported, without amendment. 

III. DISCUSSION

S. 3097, the Vietnam Education Foundation Amendments Act of 

2008, amends the Vietnam Education Foundation (VEF) Act of 

2000. The VEF Act of 2000 established an independent federal 

agency, the Vietnam Education Foundation (VEF), governed by a 

Board of Directors, including U.S. Cabinet Members or their designees, U.S. Senators and Representatives, and Presidential appointees. The broad goal of the VEF, as established under law, is 

‘‘To further the process of reconciliation between the United States 


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and Vietnam and the building of a bilateral relationship serving 

the interests of both countries.’’ VEF’s specific mission is to administer an international fellowship program under which Vietnamese 

nationals can undertake graduate and post-graduate level studies 

in the sciences in the United States. To help accomplish this goal, 

the VEF also sends United States citizens to Vietnam to teach in 

appropriate Vietnamese institutions to help prepare Vietnamese 

college students for post-graduate work in the United States. 

Soon after the passage of the VEF Act of 2000, the Foundation 

established its headquarters in northern Virginia. The VEF later 

opened a representative office in Hanoi, Vietnam, to better oversee 

the recruitment of fellows and foster the relationship between the 

VEF and the government of Vietnam. 

Since its creation, the VEF has placed 270 Fellows at 64 universities in the United States. Fellows are selected through a competitive process that draws on the expertise of members of the National Academy of Sciences (NAS). VEF has worked closely with 

the NAS to develop the selection process, which includes sending 

scientists to Vietnam to interview candidates and conduct the oral 

exam. VEF has developed a consortium of over 100 U.S. universities interested in hosting VEF Fellows and willing to devote resources to support their studies in the United States (the VEF Alliance). 

VEF receives $5 million each fiscal year from the U.S. Treasury, 

drawing on payments made each year by the Socialist Republic of 

Vietnam to the Vietnam Debt Repayment Fund. This creative recycling of a portion of Vietnam’s national debt to the United States 

follows the successful model established more than 100 years ago 

when the Congress created the Boxer Indemnity Fund, allocating 

a portion of China’s debt to the United States to create Tsinghua 

University in Beijing. To this day, Tsinghua is one of China’s premier universities, with two Nobel Laureates, the former Premier of 

China Zhu Rong-ji, and the current President of China, Hu Jin-tao, 

among its more famous graduates. To augment its annual appropriation, the VEF is authorized to receive private contributions and 

grants to support its operations. 

S. 3097 builds on the accomplishments of the VEF and the example of the Boxer Indemnity Fund, and draws on lessons learned 

over the past eight years to strengthen and streamline VEF’s management and seek ways to enhance its long-term impact, including 

its ability to spur innovation in Vietnam’s education sector. 

Managing VEF’s operations on two continents has proven to be 

a complex undertaking. To strengthen and streamline oversight 

and management, S. 3097 brings VEF under the direct management of the State Department’s Bureau of Educational and Cultural Affairs. The Bureau has a sterling track record managing the 

successful Fulbright School in Ho Chi Minh City, Vietnam. It has 

allowed the Fulbright School to enjoy significant programmatic autonomy, while providing consistently strong oversight and managerial support. S. 3097 provides for the VEF Board of Directors to be 

replaced by an Advisory Committee to provide advice to the Secretary of State on VEF’s activities. The Advisory Board, which 

could include current board members, would continue to provide 

strategic guidance on VEF operations, to cultivate relations with 


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VEF Alliance partners, and to foster U.S.-Vietnamese cooperation 

in the field of educational exchange. 

Experience has also shown that there is a limited pool of Vietnamese college graduates in the sciences qualified to undertake 

post-graduate studies in the United States. To expand the reach of 

VEF and better prepare Vietnamese students for graduate level 

study in the United States, the bill expands eligibility for fellowships to include qualified college students seeking to pursue undergraduate opportunities at U.S. universities. By expanding the potential scope of VEF fellows, the Committee does not intend to shift 

the focus of VEF away from graduate level education. To the contrary, the intent of this provision is to allow selective outreach to 

college juniors and seniors who are qualified to enroll at a U.S. university for a semester of study, summer school, or a research educational unit at a laboratory. These students will then be in a 

stronger position to undertake graduate studies in the United 

States upon graduation from their Vietnamese universities. 

Finally, to maximize the impact of VEF and to deepen the educational links between Vietnam and the United States, S. 3097 authorizes the Secretary of State to award grants to one or more U.S. 

institutions of higher education to participate in partnership with 

the Government of Vietnam to establish an American Research 

College in Vietnam. The purpose of the American Research College 

shall be to provide a high quality general education to Vietnamese 

undergraduate students, better preparing them not only for foreign 

study but also to contribute directly to the development of Vietnam. 

The example of Tsinghua University in China shows how such a 

college can not only provide an excellent education to its students, 

but also spur innovation throughout the educational system and 

build lasting ties to the United States. 

The creation of an American Research College could begin to address the institutional constraints that are the chief barriers to 

emergence of world-class science and technology capacity in Vietnam. Vietnamese universities and institutes, and the ministries 

that oversee them, do not operate according to the core principles 

of academic freedom, autonomy, and merit. 

The committee recognizes that the establishment of such a college in Vietnam would be a major undertaking, and that the success of such a venture will depend on identifying a well-qualified 

U.S. institution to spearhead the effort and on a strong partnership 

with the Government of Vietnam. The Government of Vietnam is 

expected to contribute land, buildings, and other resources to establish and maintain such a college. U.S. partners are also expected 

to bring their own resources—faculty, curriculum, funding—to the 

effort. It will also be critical to generate financial support from the 

private sector. The committee envisions that launching the American Research College will proceed in phases, beginning with a detailed feasibility study. It is the intent of the committee that VEF 

continue to support fellowships for graduate study in the United 

States, although some adjustment in the number of fellowships 

awarded will almost certainly be necessary once the college is 

launched in the absence of any significant new public or private financing for VEF. 


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IV. COST ESTIMATE

In accordance with Rule XXVI, paragraph 11(a) of the Standing 

Rules of the Senate, the committee provides this estimate of the 

costs of this legislation prepared by the Congressional Budget Office. 

UNITED STATES CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, June 26, 2008. 

Hon. JOSEPH R. BIDEN, JR., 

Chairman, Committee on Foreign Relations, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 3097, the Vietnam Education Foundation Amendments Act of 2008. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sunita D’Monte. 

Sincerely, 

PETER R. ORSZAG. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

June 26, 2008. 

S. 3097 

Vietnam Education Foundation Amendments Act of 2008 

AS ORDERED REPORTED BY THE SENATE COMMITTEE ON

FOREIGN RELATIONS ON JUNE 24, 2008

S. 3097 would revoke the status of the Vietnam Education Foundation as an independent federal entity by incorporating it into the 

State Department. It would authorize the foundation to provide fellowships to Vietnamese nationals for post-secondary schooling in 

the United States and to make grants to institutions of higher education to foster a partnership with the Vietnamese government in 

establishing an undergraduate college in Vietnam. 

CBO estimates that enacting the bill would have no significant 

effect on direct spending and would not affect revenues. Implementing the legislation would not affect spending subject to appropriation. 

Under current law, the foundation operates as an independent 

federal entity and administers a fellowship program for Vietnamese 

students to undertake graduate and post-graduate studies in the 

United States in the fields of science, mathematics, and technology. 

The foundation is funded by repayments of federal loans made to 

Vietnam (which are considered offsetting receipts) and receives $5 

million each year. In recent years, the foundation has spent that 

amount each year, and CBO expects it would continue to do so 

under the bill. 

S. 3097 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 


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The CBO staff contact for this estimate is Sunita D’Monte. This 

estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to Rule XXVI, paragraph 11(b) of the Standing Rules 

of the Senate, the committee has determined that there is no regulatory impact as a result of this legislation. 

VI. CHANGES IN EXISTING LAW

In compliance with Rule XXVI, paragraph 12 of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman). 

TITLE 22—FOREIGN RELATIONS AND INTERCOURSE 

Chapter 33—Mutual Educational and 

Cultural Exchange Program 

* * * * * * * 

SEC. 2452. AUTHORIZATION OF ACTIVITIES

* * * * * * * 

SEC. 203. DEFINITIONS. 

In this title: 

ø(1) BOARD.—The term ‘‘Board’’ means the Board of Directors of the Foundation.¿ 

ø(2)¿ (1) FOUNDATION.—The term ‘‘Foundation’’ means the 

Vietnam Education Foundation established in section 204. 

ø(3)¿ (2) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the meaning given the term 

in section 101(a) of the Higher Education Act of 1965 (20 

U.S.C. 1001(a)). 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of 

State. 

(4) UNITED STATES-VIETNAM DEBT AGREEMENT.—The term 

‘‘United States-Vietnam debt agreement’’ means the Agreement 

Between the Government of the United States of America and 

the Government of the Socialist Republic of Vietnam Regarding the Consolidation and Rescheduling of Certain Debts Owed 

to, Guaranteed by, or Insured by the United States Government and the Agency for International Development, dated 

April 7, 1997. 

øSEC. 204. ESTABLISHMENT. 

øThere is established the Vietnam Education Foundation as an 

independent establishment of the executive branch under section 

104 of title 5, United States Code.¿ 

SEC. 204. ESTABLISHMENT. 

There is established, within the Bureau of Educational and Cultural Affairs of the Department of State, the Vietnam Education 

Foundation (referred to in this title as the ‘‘Foundation’’). 


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øSEC. 205. BOARD OF DIRECTORS. 

ø(a) IN GENERAL.—The Foundation shall be subject to the supervision and direction of the Board of Directors, which shall consist 

of 13 members, as follows: 

ø(1) Two members of the House of Representatives appointed 

by the Speaker of the House of Representatives, one of whom 

shall be appointed upon the recommendation of the Majority 

Leader and one of whom shall be appointed upon the recommendation of the Minority Leader, and who shall serve as 

ex officio, nonvoting members. 

ø(2) Two members of the Senate, appointed by the President 

pro tempore, one of whom shall be appointed upon the recommendation of the Majority Leader and one of whom shall be 

appointed upon the recommendation of the Minority Leader, 

and who shall serve as ex officio, nonvoting members. 

ø(3) Secretary of State. 

ø(4) Secretary of Education. 

ø(5) Secretary of Treasury. 

ø(6) Six members to be appointed by the President from 

among individuals in the nongovernmental sector who have 

academic excellence or experience in the fields of concentration 

specified in section 202(1)(A) or a general knowledge of Vietnam, not less than three of whom shall be drawn from academic life. 

ø(b) ROTATION OF MEMBERSHIP.—(1) The term of office of each 

member appointed under subsection (a)(6) shall be 3 years, except 

that of the members initially appointed under that subsection, two 

shall serve for terms of 1 year, two shall serve for terms of 2 years, 

and two shall serve for terms of 3 years. 

ø(2) A member of Congress appointed under subsection (a)(1) or 

(2) shall not serve as a member of the Board for more than a total 

of 6 years. 

ø(3)(A) Any member appointed to fill a vacancy prior to the expiration of the term for which his or her predecessor was appointed 

shall be appointed for the remainder of such term. 

ø(B) Upon the expiration of his or her term of office, any member 

may continue to serve until a successor is appointed. 

ø(c) CHAIR.—The voting members of the Board shall elect one of 

the members appointed under subsection (a)(6) to serve as Chair. 

ø(d) MEETINGS.—The Board shall meet upon the call of the Chair 

but not less frequently than twice each year. A majority of the voting members of the Board shall constitute a quorum. 

ø(e) DUTIES.—The Board shall— ø(1) provide overall supervision and direction of the Foundation; 

ø(2) establish criteria for the eligibility of applicants, including criteria established by section 206(b), and for the selection 

of fellowship recipients; and 

ø(3) select the fellowship recipients. 

ø(f) COMPENSATION.—

ø(1) IN GENERAL.—Except as provided in paragraphs (2) and 

(3), each member of the Board shall serve without compensation. 

ø(2) TRAVEL EXPENSES.—The members of the Board shall be 

allowed travel expenses, including per diem in lieu of subsistVerDate Aug 31 2005 21:48 Sep 15, 2008 Jkt 069010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR458.XXX SR458

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ence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while 

away from their homes or regular places of business in the performance of service for the Board. 

ø(3) COMPENSATION OF PRESIDENTIAL APPOINTEES.—The 

members of the Board appointed under subsection (a)(6) shall 

be paid at the daily equivalent of the rate of basic pay payable 

for positions at level V of the Executive Schedule under section 

5316 of title 5, United States Code, for each day (including 

travel time) during which the member is engaged in the actual 

performance of duties as a Board member. 

ø(g) TREATMENT OF PRESIDENTIAL APPOINTEES AS SPECIAL GOVERNMENT EMPLOYEES.—The members of the Board appointed under 

subsection (a)(6) shall be special Government employees, as defined 

in section 202(a) of title 18, United States Code. 

ø(h) TRAVEL REGULATIONS.—Members of the Board shall be subject to the same travel regulations as apply to officers and employees of the Department of State.¿ 

SEC. 205. VIETNAM EDUCATION FOUNDATION ADVISORY COMMITTEE. 

(a) ESTABLISHMENT.—

(1) IN GENERAL.— There is established a Vietnam Education 

Foundation Advisory Committee (referred to in this section as 

the ‘‘Advisory Committee’’), which shall provide advice to the 

Secretary and the Assistant Secretary for Educational and Cultural Affairs regarding the Foundation’s activities. 

(2) MEMBERSHIP.—The Advisory Committee shall be composed of 7 members, of whom—

(A) 3 shall be appointed by the Secretary; 

(B) 1 shall be appointed by the majority leader of the 

Senate; 

(C) 1 shall be appointed by the minority leader of the 

Senate; 

(D) 1 shall be appointed by the Speaker of the House of 

Representatives; and 

(E) 1 shall be appointed by the minority leader of the 

House of Representatives. 

(3) APPOINTMENT OF INCUMBENT MEMBERS OF BOARD OF DIRECTORS.—Members appointed to the Advisory Committee 

under paragraph (2) may include individuals who were members of the Board of Directors of the Foundation on the date immediately preceding the date of the enactment of the Vietnam 

Education Foundation Amendments Act of 2008. 

(b) SUPERVISION.—The Foundation shall be subject to the supervision and direction of the Secretary, working through the Assistant 

Secretary for Educational and Cultural Affairs, and in consultation 

with the Advisory Committee established under subsection (a). 

SEC. 206. FELLOWSHIP PROGRAM. 

(a) AWARD OF FELLOWSHIPS.— (1) IN GENERAL.—To carry out the purposes of this title, the 

Foundation shall award fellowships to—

(A) Vietnamese nationals øto study at institutions of 

higher education in the United States at graduate and 

post-graduate levels¿ for post-secondary studies at institutions of higher education in the United States in the folVerDate Aug 31 2005 21:48 Sep 15, 2008 Jkt 069010 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\SR458.XXX SR458

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lowing fields: physical sciences, natural sciences, mathematics, environmental sciences, medicine, technology, and 

computer sciences; and 

(B) United States citizens to teach in Vietnam in appropriate Vietnamese institutions in the fields of study described in subparagraph (A). 

(2) SCIENTIFIC AND TECHNICAL VOCABULARY IN ENGLISH.—

Fellowships awarded to Vietnamese nationals under paragraph 

(1) ømay include funding to improve¿ may include funding to—

(A) improve English proficiency in a fellowship recipient’s field of studyø.¿ ; and 

(B) prepare the fellowship recipient for post-secondary 

education in any field described in paragraph (1)(A). 

(3) PRIORITY FOR BASIC SCIENCES.—In awarding fellowships 

under this subsection, the Foundation shall give priority to individuals described in paragraph (1)(A) who are studying the 

basic sciences. 

* * * * * * * 

(e) FELLOWSHIP CONDITIONS.—A person awarded a fellowship 

under this title may receive payments authorized under this title 

only during such periods as the Foundation finds that the person 

is maintaining satisfactory progress and devoting full time to study 

or teaching, as appropriate, and is not engaging in gainful employment other than employment approved by the Foundation pursuant 

to regulations øof the Board¿ promulgated by the Secretary and applicable law. 

* * * * * * * 

SEC. 208. FOUNDATION PERSONNEL MATTERS. 

(a) APPOINTMENT BY øBoard¿ SECRETARY.—There shall be an Executive Director of the Foundation who shall be appointed by the 

øBoard¿ Secretary without regard to the provisions of title 5, 

United States Code, or any regulation thereunder, governing appointment in the competitive service. The Executive Director shall 

be the Chief Executive Officer of the Foundation and shall carry 

out the functions of the Foundation subject to the supervision and 

direction of the øBoard¿ Secretary. The Executive Director shall 

carry out such other functions consistent with the provisions of this 

title as the øBoard¿ Secretary shall prescribe. The decision to employ or terminate an Executive Director shall be made by an affirmative vote of at least six of the nine voting members of the 

øBoard¿ Secretary. 

* * * * * * * 

(d) COMPENSATION.—The øBoard¿ Secretary may fix the compensation of the Executive Director and other personnel without regard to the provisions of chapter 51 and subchapter III of chapter 

53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay 

for the Executive Director and other personnel may not exceed the 

rate payable for level IV of the Executive Schedule under section 

5315 of such title. 


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SEC. 209. ADMINISTRATIVE PROVISIONS. 

(a) IN GENERAL.—* * * 

* * * * * * * 

(b) ANNUAL REPORT.—The øBoard¿ Secretary shall submit to the 

President and to the Committee on Foreign Relations of the Senate 

and the Committee on International Relations of the House of Representatives an annual report of the operations of the Foundation 

under this title, including the financial condition of the Foundation. 

* * * * * * * 

SEC. 2460. BUREAU OF EDUCATIONAL AND CULTURAL AFFAIRS 

(a) ESTABLISHMENT; RESPONSIBILITIES.—In order to carry out the 

purposes of this chapter, there is established in the United States 

Information Agency, or in such appropriate agency of the United 

States as the President shall determine, a Bureau of Educational 

and Cultural Affairs (hereinafter in this section referred to as the 

‘‘Bureau’’). The Bureau shall be responsible for managing, coordinating, and overseeing programs established pursuant to this chapter, including but not limited to—

* * * * * * * 

(8) the Samantha Smith Memorial Exchange Program which 

advances understanding between the United States and the 

independent states of the former Soviet Union and between the 

United States and Eastern European countries through the exchange of persons under the age of 21 years and of students 

at an institution of higher education (as defined in section 1001 

of title 20) who have not received their initial baccalaureate degree or through other programs designed to promote contact 

between the young peoples of the United States, the independent states of the former Soviet Union, and Eastern European countries; øand¿ 

(9) the Arts America program which promotes a greater appreciation and understanding of American art abroad by supporting exhibitions and tours by American artists in other 

countriesø.¿ ; and 

(10) programs administered by the Vietnam Educational 

Foundation. 

Æ 


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