Update day: May 31 , 2023

Business conditions for foreign investor in the education service field (Part 1)

Education is always a top priority in Vietnam, and the Vietnamese government has implemented many special policies specifically for enterprises in the education field. The societal concern, government support, and the trend of international integration in knowledge have made Vietnam a potential market for foreign investors in the field of education. However, education is a unique business activity, and Vietnam has not completely opened its doors in this regard. In addition, there are specific regulations under Vietnamese law. Therefore, Foreign investor engaging in the education field in Vietnam shall clear these regulations to ensure a favorable investment environment in Vietnam.

Table of contents:

1. Market Access Conditions

Business field: Education Services

Based on the WTO Commitments table, Foreign investor is only allowed to provide education services in the fields of technical, natural sciences and technology, business administration and management sciences, economics, accounting, international law, and language training. For the subdivision (2), (3), and (4) listed below: The training programs shall be approved by the Ministry of Education and Training of Vietnam.

No.	Industry	VSIC	CPC	Restrictions on market access	Branch License
1.	Secondary education services	8522 8523	922	Not committed (However, in reality, and according to Vietnamese laws and regulations, this type of business activity is allowed)	– Decision to permit the establishment of educational institutions with foreign investment. – Decision to allow the educational operation of educational institutions with foreign investment.
2.	Higher education services	8541	923	None
3.	Adult education	8551 8552	924	None
4.	Other education services (CPC 929 including foreign language training)	8559	929	None

2. General Conditions under Vietnamese Law

– Foreign-Invested Educational Institutions forms in Vietnam

Firstly, it is important to understand that foreign-invested educational institutions are educational establishments in which foreign-invested economic organizations invest capital and operate following the laws of Vietnam. They are allowed to use their own seals and bank accounts. Currently, Vietnamese law allows the following types of foreign-invested educational institutions to operate in Vietnam:

Short-term training and professional development institutions.
Preschool educational institutions.
Geducation institutions (primary schools, lower secondary schools, upper secondary schools, multi-level high schools).
Higher education institutions.
Branches of foreign-invested higher education institutions in Vietnam.

– The name of Foreign-Invested Educational Institutions

Foreign-invested educational institutions are established and operated as schools or centers, and their names shall follow the following regulations:

For schools, the name shall include the following elements in the specified order: “School”, “Educational level or training level”, and a specific name.

For training and short-term professional development institutions, the name shall include the following elements in the specified order: “Education or training center”, “Main field or group of fields of training”, and a specific name.

For branches of foreign-invested higher education institutions in Vietnam, the name shall include the following elements in the specified order: “Branch”, “Name of the foreign-invested higher education institution”, and “in the province or city”.

Please note that the Specific Name of the foreign-invested educational institution shall not be identical or confusingly similar to the registered name of any other educational institution or the name of the enterprise implementing the investment project. It shall not use words or symbols that violate the traditions, history, culture, ethics, and customs of the Vietnamese people. The foreign-invested educational institution shall have a trading name in Vietnamese and an international trading name in English (or another commonly used foreign language) with equivalent content.

– Duration of Operation for Foreign-Invested Educational Institutions

The duration of operation for foreign-invested educational institutions shall not exceed 50 years, calculated from the date of issuance of the investment registration certificate but not exceeding the land lease term.

– Required licenses for foreign investor to operate educational Institutions in Vietnam

The specific licenses required for foreign investors to operate educational institutions in Vietnam may vary depending on the form and type of educational institution. For example, in the case of establishing a foreign-invested training and short-term professional development institution, the investor shall apply for (i) an investment registrationthe registration certificate of the decision certificate and (ii) a decision on the educational operation and announce it on the licensing authority’s website.

For foreign diplomatic missions, inter-governmental organizations permitted to operate in Vietnam, to establish preschool or basic education institutions, these organizations shall complete the procedures to (i) apply for a decision on the establishment and (ii) obtain a decision on the educational operation and announce it on the licensing authority’s website.

For the establishment of foreign-invested preschools, basic education, and higher education institutions, the foreign investor shall (i) apply for an investment registration certificate, (ii) obtain a decision on the establishment, and (iii) apply for a decision on the educational operation and announce it on the licensing authority’s website.

In the case of establishing a branch of a foreign-invested higher education institution in Vietnam, the investor shall complete the procedures to (i) obtain an investment registration certificate, (ii) obtain a decision on the establishment of the branch of the higher education institution, and (iii) apply for a decision on the operation and announce it on the licensing authority’s website.

The above are general conditions. You may refer to specific requirements regarding investment capital, facilities of foreign-invested educational institutions under Vietnamese law, as well as the sequence of steps to obtain corresponding operating licenses in the next article.

Time of writing: 20/05/2023

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