Can foreigners establish an English center in Vietnam?
According to the WTO commitment form; the foreign language training profession belongs to the group of other services, code CPC 929, which Vietnam has committed to open freely; unlimited from January 1, 2009. Therefore, any Foreign Investor that is a member of the WTO can establish a foreign language training institution with a maximum foreign capital of 100% in Vietnam.
In Clause 1, Article 5″ Investors have the right to conduct business and investment activities in industries that are accepted by this Law.
For conditional business sectors, the investor must satisfy the conditions for business investment as prescribed by the law.
According to the provisions of the Investment Law in 2020, the operation of foreign-invested educational institutions is a CONDITIONAL BUSINESS LINE as prescribed in Decree 86/2018. /ND-CP. Therefore, when establishing an English language center, foreign investors must also meet the conditions prescribed by the Investment Law and relevant documents.
Conditions for establishing an English center.
Conditions to establish an English center in Vietnam:
Regarding investment capital:
According to Decree 86/2018/ND-CP; English language centers are classified as short-term training and retraining institutions and must have an investment rate of at least VND 20 million/student (excluding land use costs). The minimum total investment capital is calculated based on the time with the highest expected scale.
For the establishment of an English center; If you do not build new facilities but only rent them out or contribute capital with existing facilities from the Vietnamese party to carry out operations, the investment level must be at least 70%.
Regarding facilities and equipment
- Having appropriate classrooms in terms of lighting, furniture, equipment and teaching aids;
- Having an area used for learning and teaching to ensure an average of at least 2.5 m2/learner;
- There are offices of the board of directors, leaders, teachers’ rooms, libraries and other functional rooms.
In case of using rent facilities, the English center must ensure a stable lease term of 5 years and must satisfy the above-mentioned material conditions.
Regarding the educational program
The educational program implemented at the Center must reflect the educational objectives; possess no content harmful to national defense, security or community interests; must not propagate religion, distort history; must not adversely affect the culture, morality, customs and traditions of Vietnam and must ensure the connection conditions between educational levels and training levels.
Regarding the teaching staff:
Teachers must have at least a college degree or equivalent; have a training discipline suitable to their assigned teaching profession.
The maximum student/teacher ratio is 25 students/teacher.
Regarding the name of Foreign-Invested Language Center:
The name of a foreign-invested foreign language center must include the following elements arranged in the following order: “Education or training center”; “Main field or group of majors” and proper name.
The proper name of the foreign-invested center must not coincide with or cause confusion with the name of the registered educational institution; with the name of the enterprise implementing the investment project. Do not use words; symbols that violate the historical, cultural, ethical and fine traditions of the Vietnamese nation.
The Center can put the transaction name in Vietnamese and the international transaction name in English (or in another common foreign language) with equivalent content.
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Hi Gracie, Your infrmation is very helpful.
I am over sixty but still working. I love Vietnam and would love to live there but I need to be busy.
My understanding is that I need to have 70% of 20,000,000 Dong/ per student if I am to rent premises in Vietnam.
My background is in Food/business/teaching. I worked in China for 6 years training Air Crews and Medical Staff in Business English, taught children from 7 years to 18 years. I was an English examiner in Vietnam for Vietnamese English teachers with Anglia English in 2016, based in Shenzhen. I also taught students Business English in Australia for two years including online during COVID.
I am an Australian citizen, hold an MBA in International Business and a TESOL certificate. I studied Chinese in China and Australia for 10 years.
I am very keen to hear your advice.
Thank you
Hi Ian,
It would be great if you make it more clear about what you want to know about. Are you asking if you’re qualified for opening an English center in Vietnam?
Hi Ian, how did it go with setting up a school in Vietnam?
Frank Williams
Hi Gracie,
Thank you for the detailed information. I have a Language Academy and a Teacher Training Center in Ankara, Turkey. I was wondering if it’s possible to open the branch of my language Center over there in Vietnam? If yes, should it be a partnership with a National Vietnamese, or a fully Foreign-Owned company? Could you elaborate a bit? also about the expenses (in USD please) and other important details…
Hi James,
Thank you for your question. We recommend that you research the investment carefully, possibly with the help of an expert. The culture and customer needs in Vietnam may be quite different from your current location.
1. Is it possible to open a branch of my language center in Vietnam?
Yes, it is possible to open an English center in Vietnam. You will need to set up a company, and there are many support services available to help you with this process. Once you have a license to operate and an establishment license, you can begin enrolling students. Keep in mind that opening an English center is a conditional business and may have specific requirements.
2. Should it be a partnership with a National Vietnamese or a fully Foreign-Owned company?
It ultimately depends on your preference, but it may be more difficult and costly to open a foreign-owned company in Vietnam, especially for an education business. A partnership with a National Vietnamese may reduce investment costs and provide valuable insight into the market. Our parent company, VTJ, currently has 3 branches in 3 major cities in Vietnam that are fully licensed, but have not yet opened classes. If you are interested, we may be able to discuss a potential partnership.
3. Could you elaborate on the expenses (in USD please)?
As a Vietnamese company, we can provide you with an estimate of the expenses for setting up an English language center. The costs for a foreign investment company may be different. The estimated expenses include:
Procedure: company establishment license + sublicense to establish English center: < $1000 (if all requirements are met) Renting a place: at least 5 rooms and depending on the location, the city $2,000 - $7,000 Hiring personnel: 1 manager range $1,300 - $1,700, teachers if native, $2,200/month or hourly at $20 - 25 /hour. Vietnamese teachers are about $800 - $1,500/month, sales admins are about $650/month. Please note that these estimates are based on the current market and are subject to change.
I want to open a English language training school in Vietnam. If you got VTJ centre to waiting for open, than I want to join with you. My phone [hidden] email- [hidden]
Hi, I am interested in opening an English Center outside of Saigon. Would you be able to provide me with the requirements for opening this center i.e. required documents and experience levels for the management?
I am looking into the possibility of partnering with existing institutions in Vietnam and I would be interested in what you have to offer if any.
Looking forward to discussing these things further.
Thanks
Vincent
Did you open an English centre yet?