ESTABLISHMENT OF A FOREIGN-INVESTED ENTERPRISE IN VIETNAM: ESTABLISHING A FOREIGN-INVESTED LANGUAGE CENTER IN VIETNAM
In recent years, the demand for learning foreign languages to improve qualifications, serve work, and study abroad among Vietnamese citizens as well as the international community in major urban areas has grown very strongly. The development of the non-public education system, along with policies encouraging international cooperation and investment in education, has made Vietnam a highly potential market for foreign-invested foreign language centers.
This is also a sector receiving special attention from international educational corporations, training organizations, and foreign investors. However, education and foreign language training is a conditional business line under strict state management, requiring investors to fully satisfy stringent criteria regarding finance, facilities, training programs, and teaching staff. To bring an FDI foreign language center into legal operation, investors need to clearly determine market access conditions and comply with licensing procedures.
In the article below, Dai Quang Minh Consulting will analyze in detail market access conditions, legal regulations, and procedures for establishing a foreign-invested foreign language center in Vietnam under current regulations.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat:(+84) 337926405 (ID: _pouniverse)/(+84) 869672216 (ID:DQM_Verna)
- Telegram: (+84) 337926405/ (+84)869672216
I. Establishment of a Foreign-Invested Enterprise in Vietnam: Market access conditions
- Form of Investment: Foreign language training activities are categorized under “Other education services (CPC 929), including foreign language training” in Vietnam's Schedule of Specific Commitments in Services to the World Trade Organization (WTO). Under the commitment roadmap, Vietnam does not apply restrictions on investment forms for foreign investors in this sector. Foreign investors are permitted to access the Vietnamese market through Commercial Presence under the following forms:
+ Establishing a 100% foreign-invested economic organization;
+ Establishing a joint venture with a Vietnamese partner (with no restriction on foreign equity ownership).
- Classification of Investors:
+ Individual Investors: Foreign nationals using their own lawful capital to establish the center, required to prove full civil capacity and financial capacity corresponding to the project scale.
+ Organizational Investors: Foreign-established enterprises or educational organizations expanding branches or establishing a 100% foreign-owned subsidiary in Vietnam (required to provide consularly legalized financial statements for the last 2 years).
II. Establishment of a Foreign-Invested Enterprise in Vietnam: Conditions for establishing and operating an foreign-invested language center
Pursuant to Decree No. 86/2018/ND-CP (amended and supplemented by Decree No. 124/2024/ND-CP), a foreign-invested foreign language center is defined as a short-term training and refresher institution. The establishment must concurrently satisfy the following conditions:
- Conditions on Type and Name: The center must be registered as a short-term training and refresher facility. The name of the center must include a full structure: Facility type “educational/training center” + Main field of training + Proper name. The name must not be identical or confusingly similar to other educational institutions and must not violate Vietnamese culture and customs.
- Conditions on Minimum Investment Capital:
+ In case of constructing facilities: Minimum investment capital is VND 20 million/student (excluding land use costs).
+ In case of leasing facilities: Minimum investment capital is equal to 70% of the above level (equivalent to VND 14 million/student).
+ Total investment capital is calculated based on the maximum projected scale of students at the peak point of the project.
- Conditions on Facilities:
+ Minimum learning area must reach 2.5 m²/student/shift.
+ Equipped with appropriate classrooms, administrative offices, teachers' rooms, library, and teaching equipment.
+ In case of leased facilities, the lease contract must have a stable term of at least 05 years and satisfy safety standards on structural safety, fire prevention and fighting.
- Conditions on Educational Programs: Training programs must accord with educational objectives, not harm national defense and security, not propagate religion, not distort history, and ensure consistency with Vietnamese culture, ethics, and customs.
- Conditions on Teaching Staff:
+ Teachers must hold at least a college diploma or equivalent in a relevant foreign language teaching major.
+ Maximum student-to-teacher ratio is 25 students/teacher.
+ Foreign teachers: Must hold a relevant university/college degree, foreign language teaching certificates (TEFL, TESOL, CELTA, etc.), work permits, and meet entry/residence requirements in Vietnam.
+ Conditions on Governance and Organization: Must have a qualified head (Center Director), clear internal operational regulations, and publicly disclose information on training programs, tuition fees, and output standards.
Why choose Dai Quang Minh Company?
With years of practical experience in legal consulting, Dai Quang Minh Company is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Company:
Human Resources: Gather a team of corporate legal experts and project legal experts with a long working history at domestic private economic groups; large foreign-invested enterprises operating in Vietnam.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Company.
Professionalism and Experience: Dai Quang Minh Company has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Company 's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Company ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Company has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Company is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Company provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Company is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
III. Establishment of a Foreign-Invested Enterprise in Vietnam: Procedure for establishing a foreign-invested language center in Vietnam
- Step 1: Apply for the Investment Registration Certificate (IRC): Foreign investors forming a new enterprise must execute investment project registration procedures to obtain an Investment Registration Certificate (IRC).
- Step 2: Apply for the Enterprise Registration Certificate (ERC): Upon receiving the IRC, the investor submits an enterprise registration dossier to the Department of Finance to obtain the Enterprise Registration Certificate (ERC). Common corporate forms include Limited Liability Company (LLC - Single or Multi-member) or Joint Stock Company (JSC).
- Step 3: Apply for an Educational Operating License at the Department of Education and Training: After completing facility construction, equipment installation, and personnel recruitment, the enterprise submits an application dossier for a Decision permitting educational operations. Within 20 working days from receiving full valid dossiers, the competent authority will conduct an on-site inspection and issue the Decision permitting educational operations. The center may officially recruit students and offer courses only after obtaining this license.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
During the course of operations, should you have any questions or require any assistance, please contact Dai Quang Minh Company. We are always ready to provide support and accompany you throughout the process of construction, operation, and development.
We wish you sustainable development and breakthrough success.
Sincerely thank you./.
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