Noteworthy Points When Establishing Foreign Invested Vocational Education Institution In Vietnam

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When establishing a vocational education institution, foreign investors should take notice of certain conditions in order to be granted an Investment Certificate, decision permitting the establishment and certificate of registration of vocational education activities.

Foreign investors are permitted to invest 100% of the capital or enter into a joint venture with domestic investors to form a vocational education institution in Viet Nam. Fulfilling the following conditions shall result in being granted an Investment Certificate in the field of vocational education: 

  • The investment project must conform to socio-economic development and institution network planning approved by competent authority;
  • There is a pre-feasibility study on the establishment of vocational education institution;
  • Condition on land: Provincial People’s Committee have land plots allocated or leased to the foreign investor to invest in infrastructure construction for projects registered to operate for 20 years or more in Viet Nam; or there is a contract/agreement on renting appropriate and stable schools, classrooms, workshops, and auxiliary areas for at least 5 years for investment projects registered for operation for less than 20 years;
  • The foreign investor has enough financial capacity to carry out the investment project following the prescribed investment capital rates.

Once the Investment Certificate is obtained, foreign investors must prepare an establishment scheme of vocational education institution that satisfies the following requirements:

  • Investment rate is at least VND 60 million/student for vocational education centres and at least VND 100 million/student for vocational training schools or vocational colleges (excluding land use expenses). In case where the foreign investor does not construct new facilities, the investment rate is at least 70% of those prescribed above;
  • Minimum land area for construction: at least 25 m2/student for vocational training schools or vocational colleges and 4 m2/student for vocational education centres;
  • Compulsory subjects for students being Vietnamese citizens participating in foreign training programs offered by vocational education institutions shall be specified by law;
  • Foreigner educators teaching in Viet Nam must have at least 05 years of experience in the same disciplines and their foreign language level shall not be lower than the Third level of the Six-level framework of reference used in Viet Nam for foreign language capacity or equivalent;
  • Language used in teaching and learning of specialised subjects for foreign degrees/certificates is foreign language, teaching in Vietnamese or via translation is not permitted;
  • Rate of educators obtaining postgraduate qualifications must account for no less than 15% of all educators of the vocational training schools or vocational colleges;
  • Adequate number of tenured educators responsible for at least 60% of each training program.

In Viet Nam, vocational education institutions with foreign invested capital may only be brought into operation after obtaining a certificate of registration of vocational education activities. Head of state management of central vocational education shall specifically stipulate the conditions, competence, and procedures of granting and revoking certificates of registration of vocational education activities or certificates of registration to supplement vocational education activities.

The operation duration prescribed for foreign invested vocational education institutions shall not exceed 50 years, calculated from the date of establishment. If necessary, the Government can decide on a longer duration but no more than 70 years.

PLF Law Firm 

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