In December 1969, President Marcos issued an Executive Order creating the Presidential Commission to Survey Philippine Education (PCSPE) for the purpose of analyzing and recommending ways to improve the performance of the Philippine Educational System. When the study revealed that the country was faced with the shortage of middle level manpower, the President issued Presidential Decree 6-A which called for, among other things, the creation of a special project unit to supervise, implement and evaluate the educational development programs.

The project unit created was the Educational Development Projects Implementing Task Force (EDPITAF). The task force negotiated and signed Credit Agreement No. 349PH with the International Development Association and the World Bank as the funding institution for $12.7M which paved the way for the establishment of three TECHNICIAN INSTITUTES and ten Regional Manpower Training Centers in strategic locations in the country.

Under the INSTITUTES Project was the establishment of two Technician Institutes, namely; Bacolod Technician Institute (which was later on renamed Visayas Technician Institute) for the Visayas, the Manila Technician Institute for Luzon; and the upgrading of the facilities and selected faculty of the Iligan Institute of Technology under the Mindanao State University for the Mindanao area.

The loan amount intended for the INSTITUTES Project was used to construct the buildings and purchase the equipment of the three technician institutes. The original buildings of Visayas Technician Institute (VTI) cost P5.5M while the equipment was worth P7.2M.

Portion of the loan was also spent for the training of the core faculty of the three institutes, including the cost of technical assistance provided by technical experts and their local counterparts.

The core faculty of the institutes were trained in Manila by a consortium of schools headed by Don Bosco Technical College and a consortium of industries for about three years (from 1974 to 1977). It was this group of faculty together with the foreign and local technical experts who developed the original curriculum of the Technician Institutes.

Visayas Technician Institute opened its doors in June of 1977 with 196 students from the different provinces in the Visayas.

On January 1, 1978, President Marcos issued Letter of Instruction No. 654 directing the establishment of the Manila and the Visayas Technician Institutes and the upgrading of the technician program of MSU-Iligan Institute of Technology as prototype schools in order to ensure the promotion of technician education in the country.

On December 28, 1978, the President issued Letter of Implementation No. 79 (LOI 79), directing the establishment of the National Polytechnic System (NPS) through the integration of state-supported institutions in the Philippines. The Technological University of the Philippines (formerly Philippine College of Arts and Trades) became the umbrella institution. Visayas Technician Institute came under the administrative supervision of the Technological University of the Philippines (TUP).