Setting up an English language centre in Vietnam has become big business. Over the past few years several big and small English language training centers have come up to cater to the growing demands of aspirants wishing to learn and excel in English.
These are essentially three groups of people.
1. Vietnamese kids who are likely to go overseas for higher education.
2. Adult learners who are looking to learn business English to improve their employability or who are preparing for IELTS.
3. Kids of foreign nationals who are residing in Vietnam on work assignments and who do not have English as their mother tongue eg. Koreans, Chinese etc.
The blanket law on foreign investment in the education sector is covered by Decree No. No.73/2012/ND-CP dated September 26, 2012, on foreign cooperation and investment in education. In a nutshell, the decree states that 100% foreign direct investment (FDI) is permitted in the education sector in Vietnam subject to certain conditions. These conditions are typically associated with capital investment and educational qualifications of the teaching staff.
Capital Investment
Facilities
i) The light, furniture, and teaching equipment in classrooms must be appropriate;
ii) The minimum average area for teaching must be 2.5 m2 per students
iii) Having offices for the Board of Directors, teachers, libraries, and other functional rooms
iv) Having necessary equipment serving the teaching and management
Education program
The education program must demonstrate the educational target, without damaging the national security and public interests; without spreading religion, distorting history; without negatively affect the cultures, ethics, and traditional customs of Vietnam, and must ensure the connection between the levels and grades.
The teaching staff
i) The teachers must have college degrees, or the equivalent, in the profession suitable for the subjects that they teach;
ii) The maximum ratio of students to teachers is 25 students per teacher.
iii) Foreign Teachers should have at least 5 years experience.
iv) Foreign teachers must have valid accreditation recognized by the Ministry of Education and Training in Vietnam.
The basic process to setup an entity to provide education related services follow the four essential steps which are common to setting up of any foreign invested business. These are as follows.
In order to be able to operate legally, post incorporation, the entity will need to apply for a special education license from the department of education.
This is applying for a special license from the department of education, after the criteria has been satisfied. The following figure summarises the process.
With regards to setting up an English language centre, some gencies in Vietnam seem to suggest that a English language centre is classified under non-formal business lines i.e. undefined in the law and hence do not require a special education license. Alternatively, they may also recommend classifying a business of this nature as a tutoring centre or short term training centre to skirt the rules and avoid having to applying for an education license. Unaware to most agencies however is the fact that the establishment and operation of both, English language centres and tutoring centers are clearly defined in Circulars 03/2011/TT-BGDDT & 17/2012/TT-BGDDT. Needless to say both of these mandate the requirement of a special education license.
English language centre in Vietnam – Decree & Criteria
Circular No. 03/2011/TT-BGDDT dated 28 January 2011 issued by the Ministry of Education and Training outlines the rules and regulation pertaining to their establishment and operation of an English language centre. This circular is applicable to organization (local & foreign invested) operating a foreign language and/or IT centers.
Based on the guidelines stated in this Circular, foreign language centres are permitted to carry out the following activities
i) Foreign language programs;
ii) Other foreign language programs satisfying the students’ demand.
Conditions to establish and operate an English language centre in Vietnam are as follows:
(i) They must conform to socio-economic development planning and educational institution network planning approved by competent agencies;
(ii) The center establishment scheme shall contain: objectives and tasks, training programs; land, facilities, equipment, expected location, organization structure, finance; strategies for center establishment and development;
(iii) Professional and pedagogical qualifications of teachers, technicians (including theory and practice) shall comply with the provision prescribed by laws. The student-teacher ratio shall not exceed 25:1 per class;
(iv) There should be adequate classrooms and suitable rooms serving the training program; and administrative offices serving the management and training activities. Each classroom must have sufficient lighting and a minimum area of 1.5 m2/ student/ class;
(v) The center must possess course books, materials, teaching equipment at the request of the training program; libraries, laboratories, workshops and other facilities serving the training program and science and technology activities;
(vi)There should be rooms for staff, teachers and students; and
(vii) The competent state agency must approve the centre and award a license.
Tutoring centre in Vietnam – Decree & Criteria
The law in Vietnam does not distinguish tutoring centers as a separate entity. Extra class training centres are the equivalent of tutoring centers under the famework of the law. Circular No. 17/2012/TT-BGDDT dated 16 May 2012 issued by the Ministry of Education and Training outlines the rules and regulation pertaining to their establishment and operation of a extra class centres/ tutuoring centre.
As per this Circular, extra class centers are permitted to carry out the following activities
i) Provide additional classes to learners with fees, of which the contents may be based on compulsory education programs but which may not be included in the education plan of compulsory education issued by the Ministry of Education and Training.
Conditions to establish and operate an extra class centre (external) are as follows:
i) Submit a commitment to comply with regulations on external extra classes.
ii) Ensure order, security and environment hygiene to the People’s Committee of commune, ward or town where the extra classes are situated.
iii) Publish the following documents at the location of extra classes before and during the operation of the extra classes so as to be able to verify the authenci
a. The license;
b. A list of teachers;
c. A timetable of extra classes; and
d. Fees for extra classes.
Based on the prevailing laws it is thus apparent that if an investor (local or foreign) intends to invest in the setting up a foreign language center or a tutoring center offering training in English, they are required to satisfy the afore mentioned conditions as prescribed by laws.