Conditions for Foreign Investment in Vietnam's Education Services Sector

Table of Contents

Conditions for Foreign Investment in Vietnam's Education Services Sector

01 - Industry Classification (Details of Business Activities)

The details of education service activities are as follows.

Early childhood education (nurseries, kindergartens)
Primary and secondary education (elementary schools, junior high schools, high schools)
Vocational education (elementary, intermediate, and short-cycle college programs)
Higher education (undergraduate, master's, and doctoral programs)
Other education (sports and recreation, culture and the arts, etc.)

02 - Conditions on Market Access Restrictions

2.1. Restrictions under the WTO, VKFTA, VJEPA, and EVFTA

■ Education Services (CPC Classification: CPC 921–929)

Committed sectors: technical subjects, natural sciences, business management, economics, accounting, international law, and language education
Primary education (CPC 922): not committed
Higher education (CPC 923), adult education (CPC 924), and other education services (CPC 929, including language education): no restrictions; a 100% foreign-owned educational institution may be established

*Education programs require accreditation by Vietnam's Ministry of Education and Training. *Foreign teachers must have at least five years of teaching experience and must be certified as qualified by the Vietnamese authorities.

■ Vocational Education (CPC 9223, 9231)

The committed sectors are the same as above.
May be provided only in adult education and language education.
Education programs require accreditation by the competent authority.

2.2. Restrictions under the CPTPP

■ NCM I-VN-11:

For other education services, including higher education, adult education, and language education, foreign investment is prohibited in the following areas.
Subjects relating to security, national defense, politics, religion, Vietnamese culture, and social ethics/morality
However, exceptions apply to subjects that are opened under other FTAs

NCM I-VN-38:

Primary and secondary school education services: foreign investment is prohibited. However, exceptions apply under the following conditions.
Early childhood education institutions adopting a foreign curriculum for foreign children
Schools adopting a foreign curriculum for foreign children and a limited number of Vietnamese children (up to 10% at the primary/secondary level and up to 20% at the high school level)

2.3. Provisions under Vietnamese Domestic Law
Foreign investment in the education sector is governed by Decree No. 86/2018/ND-CP
Joint administration of foreign language proficiency certification exams: regulated under Article 15, Clause 2 of the same decree
Conditions for establishing vocational education institutions: Articles 9 through 11 of Decree No. 15/2019/ND-CP

03 - Specific Investment and Operating Conditions in the Education Services Sector

3.1. Investment Conditions
Foreign ownership ratio: no restriction. A 100% foreign-owned education business may be operated
Forms of investment: ① establishment of an economic organization ② acquisition of shares/equity

3.2. Operating Conditions

■ Minimum Capital Requirements

Early childhood education facilities: minimum VND 30 million per child (excluding land costs)
Primary and secondary education facilities: VND 50 million per student, with a total minimum investment of VND 500 billion (excluding land costs)
Short-term training facilities: minimum VND 20 million per trainee
University education facilities: minimum VND 150 million per student, with a total minimum investment of VND 300 billion
Establishment of a branch campus: the same investment levels as above apply
Where existing facilities are leased or otherwise utilized rather than newly constructed: at least 70% of the above investment amounts is required
Vocational training centers: minimum VND 60 million per learner
Intermediate and junior college-level vocational schools: minimum VND 100 million per learner, with a total minimum of VND 100 billion

■ Types of Educational Institutions

Short-term training facilities
Early childhood education facilities (foreign curriculum for foreign children)
Primary, secondary, and high school institutions offering a foreign curriculum and awarding foreign qualifications (subject to a cap on the proportion of Vietnamese students)
University and graduate education facilities

■ Facility Requirements (Representative Examples)

Early childhood education: average of 8 sqm per child (urban areas), 12 sqm (rural areas)
Primary and secondary education: average of 6 sqm per student (urban areas), 10 sqm (rural areas)
Higher education: average of 25 sqm per student (land), 9 sqm (building: 6 sqm for study plus 3 sqm for living)
All facilities: classrooms, functional rooms, water supply, restrooms, and safety standards must be in place, and playgrounds, sports facilities, libraries, and meal-service facilities are required

■ Conditions for the Education Program

The content must not infringe upon Vietnam's national interests, morality, culture, or security
Either a Vietnamese or a foreign accredited program may be adopted (subject to applicable regulations)

■ Conditions for Teachers

Short-term training: an advanced professional qualification, with a maximum of 25 learners per teacher
Early childhood education: kindergarten teacher qualification, complying with the student-to-teacher ratio standards set by age group
Primary/secondary/high school education: a bachelor's degree in education or higher, satisfying the applicable teacher ratio (e.g., 2.25 teachers per class at the high school level)
Higher education: a master's degree or higher, with at least 50% holding a doctorate (certain fields excluded); full-time faculty must teach at least 60% of classes; a maximum of 25 students per teacher (varying by major)
Foreign instructors: must have relevant work experience, an academic degree, and language qualifications