Foreign Investment in Education Sector in Vietnam

Foreign cooperation and investment in education are not new to Vietnam. There has been a number of schools and education institutions such as BVIS, Hanoi Academy, International School in Hanoi, Japanese International School, Vietnam-Australia School. Since Aug 1st, 1018, the decree 86/2018/ND-CP on international cooperation and investment in education in Vietnam will be effective, replacing Decree 72/2012/ ND-CP.

According to Decree 86/2018/ND-CP, foreign organizations and individuals are allowed to cooperate in investment in the field of education in accordance with Vietnamese law and treaties to which Vietnam is a member. However, with the education sector in the security, defense, political and religious sectors, the law does not allow foreign organizations to cooperate, or invest.

The law open ways for enterprise to cooperate in education services in Vietnam including pre-school education establishments;primary and secondary education establishments, and educational establishments operating in foreign countries, which are accredited; and post graduate programs that offer master and doctoral training courses and examination centers with foreign language certificates.

Foreign organizations and individuals cooperating and investing in Vietnam in education services must meet the requirements of the Vietnam laws, including facilities in service of educational activities; the educational program and the quality of teachers. Accordingly, the integrated educational program must be a program that has been accredited, ensure meeting the objectives of the educational program of Vietnam; and meet the requirements of the foreign educational program and must be approved by the Vietnam competent authority. Teachers must be qualified and have diplomas and certificates as prescribed by law. Foreigner and foreign organizations which cooperate in the field of education for a joint term of no more than 5 years from the date of approval. Upon the expiry of the extended time limit, each extension time shall not exceed 5 years.

Forms of foreign-invested educational establishments permitted are include short-term training and vocational training; pre-school education establishment; General education establishments (primary schools, secondary schools, primary and secondary schools; higher education institutions. The duration of operation shall not exceed 50 years. For the establishment of foreign educational organizations, foreign organizations and individuals must meet conditions on capital, facilities and equipment, educational program; teachers must meet the requirements of the Vietnam Ministry of Education and Training.

For pre-school and primary and secondary education establishments, which accept Vietnamese pupils, and study the foreign educational programs, the number of Vietnamese pupils studying in the foreign educational program must be lower 50% of the total number of students enrolled in the foreign educational program at the institution. Vietnamese pupils studying in this group must study compulsory subjects according to regulations.

Foreign investors in education service have to apply for investment registration certificate in Vietnam. Depending on the nature of the educational business, other licenses will need to be applied at Department of Education and Training before operation.