Vietnam Releases Legal Document on Foreign Investment in Education
By Dezan Shira & Associates
Posted: 31st October 2012 10:00Decree No. 73/2012/ND-CP regarding education management for foreign cooperation and investment was promulgated in September. Accordingly, the forms of foreign investment allowed in education include 100 percent foreign-capitalized educational institutions and associated educational institutions between domestic investors and foreign investors.
Foreign investors can conduct their investment project by establishing one of five permissible forms of foreign-capitalized educational institutions:
- Short-term training institutions
- Preschool education institutions following foreign educational programs for foreign children
- Compulsory education institutions (elementary schools, middle schools, high schools, and mixed compulsory education institution) following foreign educational programs, issuing foreign qualifications, for foreign students and part of Vietnamese students
- Vocational education institutions
- Higher education institutions (university)
Under these forms of foreign-capitalized educational institutions, Vietnamese students under five years old are not allowed to be admitted to study abroad program. Additionally, Vietnamese students in elementary and secondary school shall not exceed 10 percent of the students of the school, and in high school shall not exceed 20 percent of total number of student of the school.
The Decree also defines the requirements regarding investment capital for investors. Specifically:
- Investment projects in establishing preschool education institutions must reach at least VND30 million per child
- Investment projects in establishing compulsory education institutions must reach at least VND50 million per student (not including the expense on land tenancy)
- Investment projects in establishing short-term training institution must reach at least VND20 million per student
- Investment projects in establishing vocational training centers must reach at least VND60 million per student
- Investment projects in establishing vocational education institutions (except for vocational training centers) must reach at least VND100 million per student
- Investment projects in establishing higher education institutions must reach at least VND150 million per student
Additionally, there are other conditions in place concerning facilities, education programs and teaching staff. Above all, projects of investment in establishing the educational institution must be in conformity with the socio-economic development and the educational institution network planning approved by competent State agencies.
This Decree takes effect on November 15, 2012.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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