In the context of globalization, international education service contracts (such as overseas study consultancy, foreign training cooperation, and vocational training abroad) are becoming increasingly common. However, many businesses and students still face risks due to vague contract terms or legal violations, leading to prolonged disputes. Below is an overview of the current legal framework, common issues, dispute resolution methods, and practical experiences in Vietnam to protect the interests of both students and service providers.

1. The Latest Legal Framework in Vietnam

To avoid relying on outdated regulations, here are essential legal documents and provisions that every international education service contract should comply with:

Decree No. 88/2022/ND-CP – Regulates administrative penalties in the field of vocational education. It includes sanctions for overseas study consultancy centers that operate improperly (e.g., failure to retain records, false information about tuition, training programs, or difficulties while studying abroad).
Decrees on foreign cooperation and investment in education, training, and vocational training (e.g., Decree No. 86/2018/ND-CP). These set requirements for foreign training partnerships, establishing foreign-invested institutions, and quality assurance for international training programs.
Civil Code 2015 – Contains provisions on service contracts, contract validity, nullification, breach of obligations, compensation, and unilateral termination.

2. Common Dispute Scenarios in International Education Service Contracts

Here are typical types of disputes with illustrative examples:

Misleading or Non-Transparent Overseas Study Consultancy

The consultancy party may make unsubstantiated promises regarding programs, tuition fees, visas, or training quality. When students face issues (e.g., visa denial, program quality not as advertised), they may demand refunds or compensation.

Example: Under Decree 88/2022, consultancy providers can be fined for misleading or dishonest information about training quality, tuition, or actual study conditions abroad.

Contracts Lacking Mandatory or Accurate Content

The contract may fail to specify duration, fees, responsibilities of the consultancy, visa commitment, refund terms if the contract is void, or may involve unauthorized foreign currency usage.

Example: Using foreign currency in a domestic education consultancy contract without legal permission may result in penalties or nullification.

Breach of International Training Program Commitments

Educational institutions in partnership with foreign entities may fail to deliver as advertised—regarding curriculum, quality, accreditation, facilities, or staff qualifications.

Discrepancies between advertised and actual training programs can cause losses to students. Foreign educational cooperation laws require mandatory quality control and accreditation.

Void Contracts

Contracts may be declared void due to violating prohibitions, lacking essential validity conditions, or having unlawful clauses. For instance, a court might declare a consultancy contract void and require the refund of service fees.

3. Dispute Resolution Methods for International Education Contracts

When disputes arise, the following legal steps and methods may be considered:

Negotiation and Mediation

The first step should be mutual negotiation to find a reasonable solution: refunds, compensation, or contract amendments. Mediation may be facilitated by a third party or a mediation center.

Commercial Arbitration

If the contract includes an arbitration clause, either party may bring the dispute to arbitration. This method is typically faster and more flexible than litigation.

Court Litigation

If negotiation and mediation fail, or if no arbitration clause exists, parties can file a lawsuit at a competent court.

Evidence is crucial: contracts, communications (emails/letters), quotations, invoices, and proof of violations.
Possible court claims: nullification or termination of the contract, reimbursement, compensation, and interest (if applicable).
The court will apply the Civil Code and may also refer to Decree 88/2022 if the case relates to vocational education or overseas study services.

4. Real-Life Case Studies and Lessons Learned

Court ruling on a void consultancy contract between Mrs. B, Mrs. D, and an international education firm F: The court declared the contract void and ordered the return of unused service fees.
Penalties for failing to retain student records: Overseas study centers that do not store records of students sent abroad may face fines ranging from VND 10 million to 20 million under Decree 88/2022.
Fines for dishonest consultancy content: A consultancy firm may be fined up to VND 20 million for misleading information.

5. Key Clauses to Include in International Education Contracts

To prevent disputes, both the consultancy and the student should ensure the contract clearly includes:

Full names, contact information, business licenses, or study consultancy licenses (if applicable).
Detailed service content: application support, visa processing, training partnerships, program commitments, quality assurance, teaching staff, facilities.
Fees, tuition, payment methods, currency (Vietnamese dong is recommended unless legal exceptions allow foreign currency).
Implementation timelines, schedules, and responsibilities in case of delays or failures.
Visa result clauses (should include disclaimers if visa decisions depend on consulates).
Termination clauses, unilateral termination, refund procedures, and conditions for invalidity.
Governing law and dispute resolution forum (Vietnamese court or arbitration, if legally valid).

6. Conclusion

Disputes over international education service contracts can cause substantial harm to both students and providers if not well-prepared. Staying updated with new laws (e.g., Decree 88/2022/ND-CP and regulations on international training cooperation) is crucial. Ensure that contracts are clear, transparent, with sufficient evidence and practical dispute resolution mechanisms (negotiation/mediation/arbitration/court) in place from the beginning.