ĐIỀU KIỆN MỞ TRƯỜNG TƯ THỤC CÓ VỐN ĐẦU TƯ NƯỚC NGOÀI TẠI VIỆT NAM/CONDITIONS FOR ESTABLISHING PRIVAT

ĐIỀU KIỆN MỞ TRƯỜNG TƯ THỤC CÓ VỐN ĐẦU TƯ NƯỚC NGOÀI TẠI VIỆT NAM/CONDITIONS FOR ESTABLISHING PRIVATE SCHOOL WITH FOREIGN CAPITAL IN VIET NAM
Posted date: 04/01/2025

Legal situation: I’m an investor who comes from Japan. I'm planning to establish a private university in Viet Nam. May I ask which conditions I need to meet to open a private university in Vietnam? Thank you.

FDVN’s response:

Thank you for your inquiry to FDVN Law Firm (“FDVN”).After researching the relevant legal regulations, FDVN has the following opinion:

To establish a foreign-capitalized educational institution, foreign investors must meet the following conditions as stipulated in Articles 35, 36, 37 and 38 of Decree No. 86/2018/NĐ-CP dated on June 6, 2018 (as amended and supplemented by Decree No. 124/2024/ND-CP) regulating foreign cooperation and investment in education.

Regarding invested capital:

The project of investment in establishing a higher educational institution shall reach at least a total minimum capital of 1,000 billion VND (exclusive of the expense incurred from land tenancy). The foreign-invested business entity, which is the investor of the project, shall prove its financial capacity according to the Law on Investment. During the time appraising the application for the university establishment, the investment value shall reach more than 500 billion VND.

Regarding facilities and equipment:

- The land area for constructing a foreign-invested higher education institution must meet or exceed the required area for constructing a higher education institution established by a domestic investor and fulfilling operational requirements; the land area for establishing a branch of a foreign-invested higher education institution or a branch of an international higher education institution in Vietnam must similarly meet or exceed the minimum land area requirements for branches of higher education institutions established by domestic investors and fulfilling operational requirements;

- The average area for building shall be at least 09 m2/ student; the studying area shall be at least 06 m2 per student; the dormitory area shall be at least 03m2 per student;

- There must be enough lecture halls, classrooms and functional rooms that satisfy the training requirements in the disciplines and the forms of training.

- There must be enough offices, administration area and managing board that suit the organizational structure of the academic departments, faculties and disciplines. The minimum area shall be 08 m2 per person.

- There must be conference rooms, libraries, testing labs, workshops and other facilities that satisfy the requirements of the training program and science and technology activities.

- There must be canteens and constructions serving the recreation, sports and cultural activities, and medical constructions and services serving the managers, lecturers and students.

- There must be a technical construction area and a parking lot.

Regarding educational program: 

Foreign education programs implemented in Vietnam must meet the following requirements:

- Recognized or accredited by a competent education authority or organization in the home country for meeting quality standards set by that country; has been taught in the home country for at least 05  years prior to the application for operation; and approved for use in Vietnam by the foreign education institution or organization owning the educational program;

- Contains no content harmful to national defense, public security, or community interests; does not promote religious beliefs, distort history, or negatively impact Vietnamese culture, ethics, or traditional customs;

- Ensures educational continuity across educational levels and allows for transferability if students transition to public educational institutions, in line with Ministry of Education and Training regulations;

Foreign educational programs taught to Vietnamese students must align with Vietnam’s educational objectives and meet the requirements specified in points (a), (b) and (c) of clause 1 Article 20 Decree 124/2024/NĐ-CP.  The foreign-invested educational institutions may offer:

- Vietnamese education program according to the Vietnam’s laws;

- Foreign short-term training programs; programs at bachelor’s, master’s and doctorate levels within the joint training programs conducted with foreign partners.

Regarding the teaching staff: 

- As for higher educational institution

+ The lecturers shall hold at least master’s degrees or higher. The proportion of lecturers that hold master’s degrees shall not be lower than 50% of the total lecturers, except in some particular disciplines specified by the Minister of Education and Training.

+ The maximum ratio of students to lecturers is 10:01, applicable to arts majors; 15:01 applicable to science and technology majors; 25:01, applicable to social science, humanities and economics majors – business administration majors.

+ The higher educational institution shall have enough permanent lecturers to undertake at least 60% of the program of each discipline.

+ The foreign lecturers teaching at a foreign-invested educational institution shall have experience in the discipline that they teach except the cases stipulated in point dd of this clause.

+ The foreign lecturers who teach foreign language skills at a higher educational institution shall hold bachelor’s degrees or higher and qualifications for teaching foreign languages.

Thus, foreign investors must meet all of the above conditions to establish a higher educational institution in Vietnam. The above is FDVN's legal advice in response to your inquiry, based on the study of applicable laws. We hope that FDVN's advice will be helpful to you.

According to Tuan Thi - FDVN Lawyer

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