Regulations on foreign investment and cooperation in education

In September 26th 2012, The Government issued the Decree No. 73/2012/NDD-CP regulating on foreign investment and cooperation in the field of education. Applicable entities are Vietnamese individuals, organizations and foreign individuals, organizations which conduct acts in the field of education under the modes of linked training, establishing foreign-invested educational institutions, setting up representative office of education organizations in Vietnam.

According to the Decree No. 73, linked training is a cooperative method between Vietnamese educational institutions and foreign institutions with the aim of implementing training programs to issue Degrees/Diplomas or Certificates without establishing a company. This method is applied to vocational training, undergraduate educational institutions which has been established and acted legally in Vietnam and foreign education institutions which was established and acted legally according to their home-country Law, has been accreditation quality or recognized by the foreign competent authorities and Vietnam competent authorities. The qualified educational institutions can process linked training at the intermediate, professional second, college, university, masters and doctors following to the foreign training programs or other programs which are built by two side; practice wholly courses in Vietnam or a part of course in Vietnam, remain course in over sea; issue Degrees/Diplomas, Certificates as the national education system or foreign system.

The linked training duration shall not exceed five years from the date of approval, and maybe extended but not exceeding five years each extension.

Beside this one, this Decree also clarifies the direct investment methods of foreign investors on establishment education institutions including: wholly foreign owned education institution or joint-venture education institution. The foreign investors are allowed to set up one of five types as involving: short-term training institutions; early childhood education institutions (early childhood school, nursery school, crèches) educate programs as following to the foreign educational programs for foreign children; general education institutions (primary education, lower secondary education and upper secondary education) apply abroad education programs, to issue foreign degrees/diplomas, to be for foreign students and a part of Vietnamese students who has needs; Vocation education institutions; university institutions.

Consequently, the investment project of establishment early childhood education institutions, general education institutions, long-term training institutions and investment project of establishment vocation training centers have to has investment rate in turn as VND 30 million/child, VND 50 million/pupil, VND 60 million/trainee, VND 150 million/student (not include using land fee) ect. In the case of foreign-invested education institutions which only hire or activity based on material facilities contributed by Vietnamese Party without investing new facilities, have to investment rate reach at least of 70% above rates.

The activity duration of the foreign-invested education institutions are not exceed fifty (50) years from the date of issuing the investment certificate. In the case of necessity, The Government decides a long period, but not more than seventy (70) years.

The decree will be effective from November 15th 2012./.

Foreign Investment in Education Sector in Vietnam

What forms of investment in Vietnam?

Where Foreign Investors Obtain Investment License in Vietnam?

Decree 73/2012/ND-CP of the Government on cooperation, investment of foreign countries in education sector