In the previous article, we have provided you with market access conditions according to the WTO schedule of commitments to which Vietnam is a member, and the general conditions that Investor shall meet to operate in the education field in Vietnam. In this Part 2, we want to share with you the specific regulations on investment capital, facilities, and procedures related to the seperate licenses that Investor shall provide this service in Vietnam.

1. Investment capital conditions for foreign-invested educational institutions

Investment capital conditions will be different between the forms  depeding on the forms of education, specifically:

• The investment project on the establishment of a pre-school educational institution shall have an investment rate of at least VND 30 million/child (excluding land use costs). The total minimum investment capital is calculated based on the expected highest scale at a specific point in time. The investment capital plan shall be suitable to the expected scale of each phase.
• The investment project on the establishment of a general education institution shall have an investment rate of at least VND 50 million/student (excluding land use costs). The total minium investment capital is calculated based on the expected highest scale at a specific point in time, but not be lower than VND 50 billion.
• The investment project on the establishment of short-term training, retraining institution shall have an investment rate of at least VND 20 million/student (excluding land use costs). The total minium investment capital is calculated based on the expected highest scale at a specific point in time.
• The investment project on the establishment of higher education institutions shall have a total investment capital of at least VND 1,000 billion (excluding land use costs). Foreign-invested economic organization that are project Investor shall perform prove its financial capacity according to the Law on Investment . By the time of appraisal to allow the establishment of the university, the investment value shall be over 500 billion VND.
• The investment project to establish a branch of a foreign-invested university-level educational institution in Vietnam shall have a minimum investment capital of VND 250 billion (excluding land use costs). By the time of appraisal to allow the establishment of a university branch, the investment value shall be over VND 150 billion.
• For foreign-invested educational institutions are not allowed to build new facilities but only rent them out or have capital contributed by the Vietnamese party with existing facilities to perform their operations, the minimum investment shall reach 70% of one of the above-mentioned

In addition, educational institutions shall also meet additional physical facilities conditions. Depending on the type of educational institution, the requirements for facilities such as the number of classrooms, room size, lighting, water source, food, etc. also have specific differences.

2. The procedure for applying for a decision permitting the establishment of a foreign-invested educational institution

As mentioned above, in order to be allowed to establish a foreign-invested educational institution, the Investor shall meet basic conditions such as: Investment capital; Facilities and equipment; Educational program; Team of teachers; Receiving Vietnamese students, and submitting the following dossier to the competent authority:

Components of the dossier for a pre-school educational institution, a general education institution and a foreign-invested university-level institution:

• An application form for permission to establish an educational institution (made according to Form No. 13 in the Appendix issued together with Decree 86/2018/ND-CP)
• A certified copy or a copy enclosed with the original for comparison of the investment registration certificate.
• Project on establishment of an educational institution (according to Form No. 14 in the Appendix issued together with Decree 86/2018/ND-CP)
• A certified copy or a copy enclosed with the original for comparison of the written approval of land lease issued by the People’s Committee of the province in the case of construction of physical facilities (in which the address, area of the land are clearly identified, landmarks of the land area) or an agreement on the principle of renting facilities meeting the second condition mentioned above;
• The plan on the facilities of the educational institution or the investment project on the construction of the facilities, including the explanation and detailed design of the educational institution.
• Documents proving financial capacity to satisfy the first condition on investment capital.

Deadline for settlement:

– Within 5 working days

– Within 10 working days after receiving the written request for opinions from the dossier-receiving agency, the consulted agency or unit shall give a written reply.

– Within 30 working days from the day on which the complete dossier is received, the application-receiving agency shall make a report on appraisal of the application and submit it to the competent authority for consideration and decision on approval of the establishment of the educational institution with foreign investment.

In case the dossier is not approved, within 05 working days from the date of receiving the competent authority’s opinion, the dossier-receiving agency shall notify in writing and send it directly or by post to the Investor, clearly stating the reason.

3. Conditions and dossiers of permits for educational activities

Conditions

In order to be issued for educational activities, the Investor shall obtain a decision permitting the establishment of an educational institution or an investment registration certificate and an enterprise registration certificate for a short-term training institution. The Investor shall also satisfy the conditions for investment capital, equipment, educational programs, teaching team, and have regulations on organization and operation of educational institutions.

Dossier for registration of educational activities

Investor shall prepare the following documents to submit to the competent authority, specifically:

• An application for registration of educational activities, made according to Form No. 16 in the Appendix issued with this Decree.
• A certified true copy or a copy enclosed with the original for comparison of the decision on permitting the establishment of a foreign-invested educational institution; a certified true copy or a copy enclosed with the original for comparison of the investment registration certificate and the enterprise registration certificate, for foreign-invested short-term training and retraining institutions.
• Regulations on organization and operation of educational institutions.
• Report on the implementation progress of the investment project, the situation of capital contribution and borrowing, the total amount of realized investment capital.
• A report explaining that the educational institution or branch of the higher education institution has satisfied the contents as prescribed by law, and enclosed with:
  1. List of principals (directors), vice-chancellors (deputies of directors), heads of faculties, departments, and chief accountants. For the application file for an educational operation license of the branch of the higher education institution, it is necessary to add the list of officers in charge of the branch and the structure and organizational structure of the branch;
  2. List and personal curriculum vitae of officials, teachers, lecturers (organic, visiting lecturers);
  3. Description of education level, training level, training major;
  4. Curriculum, lesson plans, study materials, list of textbooks and key references;
  5. Enrollment subjects, regulations and enrollment time;
  6. Training Regulations;
  7. Training scale (students, students, trainees);
  8. Regulations on tuition fees and related fees;
  9. Regulations on examination, assessment and recognition of completion of subject programs, modules, and training levels;
  10. Sample diplomas and certificates will be used.

Applications for permits will be processed within 20 working days,  in case the educational institution has not yet met the conditions for operation, within 05 working days from the date of receipt of the opinion of the competent authority, the application-receiving agency shall reply in writing to the Investor, stating the reasons.

Time of writing: 20/05/2023

The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at info@cdlaf.vn

You can refer for more information:

• Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 1)
• Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 2)
• Procedure for Foreign Investor to contribute capital, purchase shares in the enterprise in Vietnam.
• The enterprise with opening and using direct investment capital account
• Avoiding the risks when leasing the office in Vietnam – some recommendations
• Foreign Investors provide Employment Services in Vietnam
• Franchise in Vietnam (Part 1)
• Franchise in Vietnam (Part 2)
• Foreign investor doing hotel business in Vietnam