Last week, the Australian government announced it will raise its cap on foreign students by 9%, to 295,000, and will prioritize applicants from Southeast Asia.

Japan aims to increase its foreign student population to 400,000 by 2033, while South Korea is targeting 300,000 by 2027. In Taiwan, the government announced plans last year to attract 25,000 Southeast Asian students annually to help address labor shortages in key industries.

A 2023 report by international education consultancy Acumen found that approximately 132,000 Vietnamese were studying abroad, accounting for 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, according to Acumen.

Europe looks for talent

European universities, struggling with chronic underfunding and aware that demographic challenges across the continent necessitate higher-skilled migrant workers, have begun looking toward Southeast Asia.

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 gave a keynote speech at the University of Science and Technology in Hanoi during a state visit.

Meanwhile, Indonesian President Prabowo Subianto, speaking in Brussels in July, called for more Indonesians to pursue higher education in Europe. Around 3,300 Indonesians study in Europe annually, he said.

However, students from Southeast Asia remain underrepresented.

Of the 1.66 million international students currently enrolled at universities across the EU, only a small proportion are Southeast Asian.

In Germany, there are around 7,060 Vietnamese undergraduate students, according to the German Academic Exchange Service (DAAD).

"Despite the growing significance of Southeast Asia, there is still little focus on the region in European academia," said Alfred Gerstl, head of a European–Southeast Asian relations project at the Central European Institute of Asian Studies think tank.

European universities under financial strain

Many European universities face growing 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 said.

Respondents to the study noted that foreign student recruitment remains "a key factor in generating much-needed income," suggesting that competition for this demographic will only intensify.

How can Europe attract more students?

Since the Myanmar coup in 2021, Kristina Kironska, of Palacky University Olomouc in the Czech Republic, has helped secure prestigious fellowships for Burmese students fleeing the military junta.

Many accessed prestigious EU funds and grants, but the main challenge remained the visa and residency documentation, Kironska told DW.

She said European governments could review their visa and long-term stay requirements for documents for Southeast Asian citizens and simplify the procedure.

However, the solution seems to always come 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 from the Central European Institute of Asian Studies.

Several European countries are beginning to adapt their policies to remain competitive.

In July, 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 enrolment.

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.

East Asia has new appeal

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 looking closer to home.

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 World University Rankings of the world's top 100 universities, a 35% increase compared to 2015.

Window of opportunity 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.

Edited by: Wesley Rahn