Education services, including foreign language training

Education services (Primary education services (CPC 921), secondary education services (CPC 922), higher education services (CPC 923), adult education (CPC 924), and other education services, including foreign language training (CPC 929)

Legal basis

• WTO, FTAs, AFAS, AANZFTA
• Decree 73/2012 of the Government dated 26 September 2012 on the foreign cooperation and investment in education

Investment conditions

1. WTO, FTAs:

• Commitments in the following areas only: technical, natural sciences and technology, business administration and business studies, economics, accounting, international law and language training fields.
• Scope: Secondary education services, higher education services, adult education, and other education services including foreign language training.
• The education content must be approved by competent authorities

2. AFAS:

• Commitments in the following areas only: technical, natural sciences and technology, business administration and business studies, economics, accounting, international law and language training fields.
• Scope: Primary education services, secondary education services, higher education services, adult education, and other education services including foreign language training.
• The education content must be approved by a competent state agency

3. AANZFTA:

• Commitments in the following areas only: agriculture, architecture, shipbuilding (building), corporate governance, management, computer science, construction, information systems, dentistry service, economics, pedagogy, engineering, environmental, surveying, community Services, land and marine resources, breeding, language studies, law, legal research, life sciences, manufacturing, mathematics, science health, medical , multi-disciplinary education, nursing, pharmacy, physical science, science, service, cuisine and tourism, transport, veterinary sciences, performing and visual arts.
• Scope: Secondary education (Only includes: higher secondary education services (92220) and technical and vocational secondary education services (92230) for 9^th grade-completing students according to Law of Vietnam), higher educational services, adult services and other educational services (including foreign language training).
• The education content must be approved by competent authorities

4. The Law of Vietnam:

Investment rate:

• The projects of investment in establishing preschool education institutions must reach at least VND 30 million per kid (not including the expense on land tenancy).
• Theprojects of investment in establishing general education institutions must reach at least VND 50 million  per student (not including the expense on land tenancy).  The total minimum capital is calculated when the estimated education scale is greatest, but must not be lower than VND 50 billion.
• Theprojects of investment in establishing short-term training institutions must reach at least VND 20 million  per student (not including the expense on land tenancy).
• The projects of investment in establishing higher education institutions must reach at least VND 150 million  per student (not including the expense on land tenancy).  The total minimum capital is calculated when the estimated education scale is greatest, but must not be lower than VND 300 billion .
• Theminimum capital and the rate of the investment in establishing a campus of a foreign-capitalized educational institution in Vietnam must be equal to those in establishing the educational institutions prescribed above.
• For foreign-capitalized educational institutions of which the facilities are leased or contributed by the Vietnamese party, investment must reach at least 70% of the investment.

Form of investment: Joint-venture, 100% foreign-invested business organizations

Investors are allowed to provide educational services in the form of:

• Short-term training institutions.
• Preschool education institutions (including preschool education, kindergarten, day-care center) provide international educational programs, programs for foreign children.
• General education institutions (elementary schools, middle schools, high schools, and mixed general education institution) providinginternational education programs, awarding foreign qualifications, for foreign students and part of Vietnamese students (the number of Vietnamese students in primary schools and middle schools must not exceed 10% of the total number of students, and that in high schools must not exceed 20% of the total number of student).
• Higher education institutions.

The form of foreign-invested educational institutions permitted to establish campuses is:

• Short-term training institutions
• Higher education institutions

Facilities

• A foreign-invested educational institution that applies for 20 years of operation or more in Vietnam must have a plan on building their facilities, and the land transfer or lease must be approved by a provincial People’s Committee. If the institution registers for operation for within 05 years in Vietnam, it is required an agreement on rules for renting facilities stably in order to provide training programs and ensure the investment in facility construction under rate of progress of the project;
• A foreign-invested institution registering for operation for under 20 years in Vietnam is not required to construct its own facilities, but it is required to have an agreement on renting appropriate and stable schools, classrooms, workshops, auxiliary areas for at least 05 years.