I. Legal basis

1. Law on Education 2005 amended on 2009;

2. Decree No.86/2018/ND-CP on foreign cooperation and investment in education;

3. Circular No.21/2018/TT-BGDDT on regulation on organization and operation of foreign language and computer centers issued by the Minister of Education and Training; and

4. Schedule of Specific Commitments in Services by Vietnam No. 318/WTO/CK.

II. Legal opinions

According to Schedule of Specific Commitments in Services by Vietnam No. 318/WTO/CK, other education services (CPC 929) is allowed in Vietnam to be conducted through establishment of a company with 100% foreign investment and there is no any restrictions on conditions on foreign investor.

Firstly, to establish a foreign language center, a foreign-invested enterprise has established an investment project, and has to carry out procedures for granting an investment certificate and and a certificate of business registration. Then, the enterprise has to perform the procedure for an operating license of language centers.

According to Decree No.86/2018/ND-CP,“ahort-term training institutions” refer to foreign-invested educational institutions including centers that provide training in foreign languages, IT, cultures and specialized skills, and training institutions established by foreign diplomatic missions and/or international governmental organizations, which are permitted to operate in Vietnam”. Therefore, a language center is considered as a short-term training center. The operating license for a language center is made under the provisions of Decree No. 86/2018 / ND-CP and other related instruments.

1. Conditions for establishment of foreign language centers

a. Charter Capital

Pursuant to Article 35 of Decree No. 86/2018/ND-CP, Charter capital for the establishment must have investment rate of at least VND 20 million/student (not including expenses relating to land use). Total minimum investmentd capital is calculated on the largest scale of the center expected.

b. Naming the foreign language center:

Pursuant to Article 29 of Decree No. 86/2018/ND-CP:

The center name is sorted in the following order: “The educational or training center”, “Primary disciplines” and proper name;

The proper name of the center is not identical to the name of an institution established earlier; does not use words, symbols violated historical tradition, culture, ethics and fine traditions of the people of Vietnam.

c. Facilities:

Pursuant to Article 36 of Decree No. 86/2018/ND-CP:

– Classes shall have appropriate light, desks, chairs, and teaching equipment and materials;

– The minimum average area for teaching shall be 2.5m² per student; and

– There must be offices for board of directors and teachers, libraries and other functional rooms.

d. Personnel:

Pursuant to Article 38 of Decree No. 86/2018/ND-CP:

– The teachers shall have college degrees or equivalent in the profession suitable with the subjects that they teach; and

– The maximum ratio of students to teacher shall be 25:01.

Pursuant to Article 5 of the Regulation on organization and operation of the language or computer centerissued together with Circular No.21/2018/TT-BGDĐT specifying standard of personnelalso has regulations on personnel of the center:

– Director of the center (5 year term): Possessing good records; Possessing managerial capability; Foreign language university graduates or university graduates and certified minimum language level 3 under the framework of foreign language competence level 6 for Vietnam or the equivalent; Possessing experience in education and training;

– Deputy director of the center (for tenure under term of director): Possessing good records; Possessing managerial capability; Foreign language university graduates or university graduates and foreign language certificates or information;

– A Vietnamese person is eligible for teaching a foreign language when they meet one of the following requirements: Possessing at least a pedagogical college degree in the foreign language; Possessing at least a college degree in the foreign language and a certificate in pedagogy;

– A foreigner is eligible for teaching their native language when they possess at least a college degree and a suitable foreign language teaching certificate; and

– A foreigner is eligible for teaching a foreign language when they meet one of the following requirements:Possessing at least a pedagogical college degree in the foreign language; Possessing at least a college degree in the foreign language and a suitable foreign language teaching certificate; Possessing at least a college degree, at least a level 5 certificate of language proficiency according to Vietnam’s language proficiency framework or equivalent and a suitable foreign language teaching certificate.

e. Teaching programs and materials

Foreign language and computer training centers shall employ the programs promulgated by the Ministry of Education and Training; or compile or select programs and materials of higher education institutions, colleges and domestic and international educational organizations that meet learner’s needs and each center’s capacity.

Education programs must reflect educational goals, no content detrimental to national defense, national security, public interest; not teach religion, distorting history; not adversely affect the culture, ethics and fine customs of Vietnam and to ensure conditions for continuity between grade and level of training.