Opening an Art Academy, Music School or Creative Studio with Foreign Investment in Vietnam
Are you considering investing in opening an art academy, music school or creative studio with foreign investment in Vietnam? Understanding the conditions for foreign investment, the licensing process for private training service business, and the legal considerations for establishing a company & training permit are key factors to help you avoid risks, protect your rights and promote development. Let’s explore the details in the article below.
Understanding the Concept, Risks and Reasons for Establishment
Below are the aspects you need to grasp before launching an investment project in the field of arts – music – creative studios in Vietnam.
The concept of “foreign capital” and “private training service”
When talking about opening an art academy, music school or creative studio with foreign investment, we refer to foreign investors (or a joint venture with a Vietnamese partner) participating in the establishment of a company or organisation providing training – education – creative services in Vietnam. This is different from an entity simply renting premises and operating like a regular training centre.
Reasons and risks enterprises need to recognise
Choosing to establish an art academy, music school or creative studio with foreign investment has many drivers: young market, increasing demand for creative education, stepping into international brand channels… However, there are also many risks if you do not prepare carefully regarding licensing, capital investment, personnel, quality management, compliance with foreign investment conditions. For example: if the investment conditions are not met, regulatory authorities may require closure or suspension of operations.
Therefore, reasonable investment, sound legal preparation and choosing a reputable advisory firm are very important to ensure the enterprise operates sustainably, develops and optimises legal costs.
Legal Solutions & Practical Guidance for Investors
Once you understand the risks and concepts, the next step is detailed solutions that help you implement your project effectively. Below are the legal steps and important notes when opening an art academy, music school or creative studio with foreign investment in Vietnam.
Choosing investment model & applying for enterprise incorporation licence
First, investors should clearly identify the model: establishing a 100% foreign-owned company, or a joint venture with a Vietnamese partner. According to regulations in Decree 86 and Decree 124, the education-training sector (short-term or medium-term) is a conditional foreign-investment industry.
Next, proceed to register the Investment Registration Certificate and the Enterprise Registration Certificate for the training-service entity. If it is a short-term training activity (creative studio, teaching artistic/musical skills) then the required investment is lower than for a school, but you still must meet conditions on facilities, teaching staff, minimum area according to regulations.
Note: even if you think the operation is “like an art centre” but you provide a fee-based training programme, enrol students, then it may still be considered a “private training service” – you must examine the appropriate licence.
Specific conditions on facilities, personnel and training programme
Once the enterprise is established, you need to prepare and meet the following professional conditions:
Facilities, equipment: For example in the case of a language centre, the average minimum area is 2.5 m² per learner, plus teacher rooms, library, function rooms. In the field of arts/music, although no separate figures like for languages, you should prepare equivalent or higher standards: rehearsal rooms, performance halls, studio, lighting/sound equipment.
Training programme & teachers: Teachers need appropriate degrees, and if the training programme has an international element it must be recognised/used abroad or have international experience. For example, Decree 124 requires international programmes to have been applied for at least 5 years abroad.
Registration of training operation: After meeting the conditions, you need to apply for an Education Activity Licence/programme approval (if international elements) or notify the local Department of Education & Training depending on the type. For example for a short-term centre: procedures include granting the Investment Registration Certificate then a decision permitting operation.
Compliance with quality management & reporting: Regulations such as quality accreditation, annual reporting,… apply also to foreign-invested organisations.
Notes on development strategy and call to action
Once you have met the legal requirements, the next step is to build your academy/studio’s development strategy:
Identify target market: learners are children, teens, adults, foreigners or Vietnamese who need international art/music training.
Build an international brand & creative differentiation: use foreign investment to promote, invite international instructors, use international training programmes, create the highlight “international art academy in Ho Chi Minh City”.
Ensure legal-compliance strategy & minimal risk: always update changes in law (such as Decree 124/2024) to avoid violations that may affect brand and customers.
Are you encountering difficulties in establishing an art academy, music school or creative studio with foreign investment? Contact CÔNG TY LUẬT TNHH DEDICA – a team of experienced lawyers in Ho Chi Minh City, specialising in corporate legal advice, foreign investment, M&A, support in licence issuance and adjustment – to receive the most appropriate legal strategy advice.
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