It is a journey to set up a foreign language center, with your foreign capital, in Vietnam.  The first steps in this process are a tough challenge and require a deep understanding of Vietnamese legal regulations, thus the understanding of these regulations is one of the keys to success. Understanding and properly applying these regulations is not only a business issue but also a decisive factor in the sustainability of the foreign language education model.

Therefore the investor will need to consider the specific conditions of Vietnamese law, and the article below will provide you with that information.

1. Investment form to establish a foreign language center with foreign investment in Vietnam

WTO commitment schedule: allows the establishment of training facilities with 100% foreign capital.

Service Subsector: “other educational services (CPC 929 includes foreign language training)”.

2. Conditions for establishing a foreign language center

Foreign language training is a conditional business for foreign investors. After registering the investment and establishing an enterprise, the investor needs to carry out procedures for licensing the operation according to the provisions of Decree 86/2018/ND-CP. For the establishment of a Foreign Language Training Center, foreign investors need to meet the following conditions:

Name of the center

The name of the center must be arranged in the following order: “education or training center”, “main training industry or group” and then the proper name.

Note: The name of the center must not be identical or confusing with the name of the registered educational institution or the name of the enterprise implementing the investment project.  Do not use words or symbols that violate the historical, cultural, and ethical traditions and customs of Vietnamese people.

Investment capital

In the circumstance where you need to build a headquarters the minimum investment capital is 20 million VND/student (land use costs are not included). Therefore the minimum total investment capital is calculated based on the number of full-time students at the time of the highest expected training scale.

In the circumstance where you need to rent an office, the investment capital is equal to 70% of charter capital, a minimum of 20 million VND/student (excluding land-use costs).

Facilities, materials, equipment

– Have classrooms with appropriate lighting, tables, chairs, equipment, and teaching aids;

– Have an area used for learning and teaching at an average level of at least 2.5 m²/student/study shift;

– Have an office for the Board of Directors, a teachers’ room, a library and other functional rooms;

Note: if renting facilities, foreign-invested educational institutions are allowed to rent facilities on a stable basis for at least 5 years.

Education program

Within your program, you can teach Vietnamese educational programs according to Vietnamese law, short-term foreign language training, and foster programs within the framework of training links with foreign countries.

Team of teachers

“Teachers” of the foreign language center are those who are responsible for teaching and guiding practice, including full-time teachers, contract teachers, Vietnamese teachers, native speakers (may differ for each case), and foreigners;

Teachers must have a college degree in foreign languages or equivalent, and a field of training appropriate to the expertise assigned to teach;

Foreign teachers are qualified to teach foreign languages when they meet one of the following standards: have a college degree in a foreign language pedagogy or higher; or have a college degree or higher in foreign languages and an appropriate foreign language teaching training certificate; or have a college degree or higher, a foreign language competency certificate of level 5 or higher according to the 6-level foreign language competency framework used for Vietnam or equivalent and an appropriate foreign language teaching training certificate.

The ratio of students to one teacher should be 25 students/teacher.

Having regulations on the organization and operation of the educational institution.

3. Application for License to operate a foreign language center

To establish a foreign language center, foreign investors will need to prepare the following documents:

• An application for the registration of educational activities according to Form No. 16 in the Appendix issued with this Decree.
• A certified copy (or copy enclosed with the original for comparison) of the decision permitting the establishment of this foreign-invested educational institution; a certified copy (or copy enclosed with the original for comparison) of the Investment Registration Certificate and Enterprise Registration Certificate for short-term training and retraining establishments with foreign investment.
• Regulations on the organization and operation of educational institutions.
• Report on the progress of investment projects, capital contributions, loans, and total investment capital made.
• Report explaining that the educational institution or branch of the higher education institution has met the contents specified in Articles 35, 36, 37 and 38 of this Decree, and encloses:

List of principals (directors), vice principals (deputy directors), heads of faculties, departments, divisions, and chief accountants. For the dossier requesting a license for educational activities of a branch of a higher education institution, it is necessary to supplement the list of officers in charge of the branch and the structure and organizational apparatus of the branch;

List and personal resumes of officials, teachers, and lecturers (full-time, visiting lecturers);

Description of education level, training level, field of training;

Teaching program, plan, learning materials, list of textbooks, and main reference materials;

Enrollment subjects, regulations and enrollment period

Training regulations;

Scale of training (students, trainees);

Regulations on tuition and related fees;

Regulations on testing, evaluation, and recognition of completion of subject programs, modules, and training levels;

Sample diplomas and certificates will be used.

Thus, the issue that will greatly affect foreign investors when establishing a foreign language center is the specific regulations that belong to this specialized field of Vietnamese law. Therefore, you should carefully study this specific regulation to assess your ability as an investor. If any conditions are not met, the investor will be forced to adjust the business plan to be in harmony with Vietnamese legal regulations as well as the needs of the investor when establishing a foreign language center in Vietnam.

Time of writing: 16/01/2024

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:

• Procedures for Vietnamese Enterprises Regarding Outward Investment
• Transferring Profits to Vietnam and  how to handle Violations in Outward Investment Activities
• Conditions for Establishing a Travel Company in Vietnam for Foreign Investors