Junior Associate – Lê Thị Dung

Paralegal – Lê Hữu Tiến

This is one of the new requirements stipulated in Decree No. 124/2024/ND-CP (“Decree 124”) amending and supplementing a number of articles of Decree No. 86/2018/ND-CP dated 06 June 2018 on cooperation and investment of foreign organizations in the education sector has come into effect. Accordingly, some notable new points should be noted as follows:

1.   New regulations regarding branch campuses of the foreign university educational institution in Vietnam

1. Adding the branch campus of a foreign university educational institution in Vietnam (“Branch Campus”) is a type of foreign-invested educational institution.

2. Adding conditions for granting an Investment Registration Certificate for Branch Campuses, as follows:

1. The foreign university educational institution investing in establishing a branch campus in Vietnam must be legally established and operated in its home country;

2. Being in the group of 500 ranked highest in the rankings of prestigious university education institutions in the world within the last three (03) years. These branch campuses are operated in accordance with the education and accreditation standards of the foreign higher educational institutions, but their facilities and teacher standards must not be lower compared to the Vietnamese educational institutions;

3. The minimum investment capital of the project applying for the establishment of the Branch Campus is at least VND 500 billion (excluding land use costs). By the time of appraisal to allow the establishment of branch campus, the investment value must be over VND 250 billion;

4. For the project to establish the Branch Campus, the Ministry of Planning and Investment shall seek appraisal opinions from the Ministry of Education and Training and relevant agencies to synthesize and submit to the Prime Minister for decision on investment policy.

3. Branch campus of foreign higher education institutions in Vietnam is allowed to grant diplomas and certificates of foreign higher education institutions investing in the establishment of branch campus.

2.    Supplementing specific regulation on joint education entity

1. Vietnamese entity: Private preschool educational institutions and private general education institutions invested by domestic investors and ensured operating conditions, established and operated in Vietnam

2. Overseas entity:  

Educational institutions that are legally established and operating abroad (i) Must have at least five (05) years of operation abroad by the date of submission of the application for implementation of joint education; (ii) Not violating the laws of the host country during the operation period; (iii) Direct teaching; (iv) Having a valid certificate of education quality accreditation or being recognized by a foreign competent education agency or organization for education quality.

Organizations providing the educational program are legally established and operating abroad and have been providing preschool or general education programs for at least five (05) years by the date of submission of the application for implementation of joint education.

3.      Supplementing regulations on foreign educational programs implemented in Vietnam

The prominent regulation added is that this educational program must be (i) recognized or accredited by the competent education agency or organization of the host country to meet the quality standards according to the standards of the host country; (ii) Being taught directly for at least five (05) years in the host country by the date of submission of the operation registration dossier; and (iii) Approved to use in Vietnam by the foreign educational institution or organization that owns the educational program.

4.     Supplementing regulations on dossiers of registration for licensing of educational operation of preschool and general                               educational institutions teaching foreign educational programs for Vietnamese students

1. Supplementing the components of the dossier include (i) Compulsory educational programs and contents; (ii) A valid document or certificate of education quality accreditation issued by a competent authority in the host country; (iii) Documents proving that the educational program has been taught directly for at least five (05) years in the host country by the date of submission of the application; and (iv) A document of the foreign educational institution or organization approving the use of the foreign educational program in Vietnam.

2. In case preschool educational institutions and general educational institutions are teaching foreign educational programs to Vietnamese students, they are not required to re-conduct the procedures for registration of educational operation, but must supplement and complete the dossiers in item (a) above for a period of six (06) months from 20 November 2024.

5.   Transitional regulations

1. Educational institutions that have been issued investment and operation licenses before the effective date of this Decree but have not yet been issued a Decision on establishment and a Decision on operation, if they fully meet the requirements on establishment, operation and quality assurance, within one (01) year from 20 November 2024,  the investor have to select the type of educational institution as prescribed, complete the dossier and send it to the Ministry of Education and Training for submission to the Prime Minister for issuance of a Decision to permit the establishment, and the Ministry of Education and Training shall issue a Decision on operation.

2. Educational institutions that have been issued investment and operation licenses before the effective date of this Decree but have not fully met the requirements on establishment, operation and quality assurance, investors must complete procedures related to investment, procedures for the establishment and operation in accordance with the respective laws.

Within one (01) year from the effective date of this Decree, if the educational institution is not issued an Investment registration certificate according to the provisions of the Law on Investment, it must stop enrolling students.

Within five (05) years from the effective date of this Decree, if an educational institution is not issued a Decision on establishment and Decision on operation, it must be terminated its operation and taken responsibility for ensuring the lawful rights of learners, teachers, managers, employees and other obligations and responsibilities as prescribed by law.

This Decree shall take effect officially from 20 November 2024.

Here is our advice on establishing branch campuses of the foreign university educational institution in Vietnam. As a professional corporate lawyer team in the field of investment, we are always ready to provide our clients with optimal solutions in terms of efficiency, cost, and simplified legal procedures. Please visit our DIMAC Website and other News Category to get the latest updates on legal advice and market experience sharing.