How can foreign investors inject FDI into the education sector in Vietnam?
Vietnam is becoming one of the attractive destinations for foreign direct investment (FDI) in the education sector, especially preschool education and international schools. With the growing demand for high-quality learning from the middle class and foreigners living in Vietnam, investing in this field not only brings economic benefits but also contributes to the sustainable development of society. However, implementing FDI projects in the education sector in Vietnam requires investors to fully understand the specific legal regulations.
Is FDI investment in education allowed in Vietnam?
In fact, Vietnam not only permits but also encourages foreign investment in education. However, education is a conditional business sector, so investors must comply with many specific provisions in the Investment Law, the Education Law, and implementing regulations. Investors are allowed to establish foreign-invested educational institutions such as preschools, primary schools, lower secondary and upper secondary schools or international schools, provided they meet all criteria for legality, finance, facilities, and human resources.
Legal procedures and steps needed to prepare for FDI investment in preschools and international schools in Vietnam
To start implementing an education investment project, investors need to follow these sequential procedures:
Apply for an Investment Registration Certificate
This is the first and mandatory step for foreign investors. The investor must submit a dossier at the Department of Planning and Investment where the project headquarters is located, including information about the investor, project, location, investment capital, duration and commitments. The contents of the dossier must comply with legal regulations and the WTO commitments that Vietnam has joined.Establish a legal entity in Vietnam
Once granted the Investment Registration Certificate, the investor proceeds to establish a company (usually an LLC or joint-stock company) to carry out the education activities. This company will be the legal entity operating the school.Apply for an Education Operation License
This is one of the particular and most complex licenses in the whole process. To be granted the license, the investor must demonstrate:
• Facilities meeting standards for each level (classroom area, playground, safety system…);
• A teaching staff with sufficient professional qualifications;
• An educational program compliant with regulations or an international program approved;
• A financial plan ensuring sustainable operations.
In addition, international schools that have foreign elements in their curriculum or teachers need additional approvals from the Ministry of Education and Training.
Important notes when investing FDI into preschools and international schools
Investing in education in Vietnam demands not only capital and long‑term strategy, but also deep understanding of the specific legal framework. Besides the attractive growth potential, foreign investors must prepare carefully to avoid unnecessary risks. Here are important points to help you optimize effectiveness and comply with regulations when investing FDI in the education sector.
Form of capital contribution and ownership ratio
Currently, Vietnam allows foreign investors to hold 100% capital in the education sector, but it’s necessary to differentiate among educational levels. For example, for preschool and general education, the percentage of Vietnamese students must not exceed 10%‑20% of total students depending on the school model. This affects recruitment plan and business model which need careful calculation.Regulations on profit remittance
FDI educational enterprises are permitted to remit profits abroad after fulfilling financial obligations in Vietnam. However, one must pay attention to tax regulations, deductible expenses, fully contributed charter capital and timeliness in order to ensure profit remittance occurs smoothly.Time and costs for procedure implementation
The time to complete all investment procedures can take from 6‑12 months depending on locality, project scale and how well the dossier is prepared. Therefore, cooperation with a professional legal consultancy unit is a decisive factor to shorten time, avoid risk of dossier rejection or multiple revisions.
What support does DEDICA provide for FDI investors in education in Vietnam?
As a legal advisory firm accompanying many foreign investors in establishing international schools and education systems in Vietnam, DEDICA deeply understands the legal bottlenecks, procedural barriers, and key success factors of an education project.
In particular, DEDICA has strengths in handling complex procedures related to land, school construction planning, as well as advising on education brand development strategy in a highly competitive environment in major cities like Ho Chi Minh City, Hanoi, Da Nang.
FDI investment into preschool education and international schools in Vietnam is a great opportunity with strong growth potential. However, to actualize this opportunity, investors need thorough preparation in legal matters, investment strategy and long‑term operation. The support of a specialized legal advisory unit like DEDICA will be a solid foundation to ensure the investment process runs smoothly, complies with regulations and achieves highest efficiency.
Are you considering investing in the education sector in Vietnam?
Contact DEDICA for formal and effective FDI investment planning and implementation.
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