Establishing a Foreign-Owned Enterprise in the Short-Term Training Sector in Vietnam

Vietnam is rapidly integrating internationally, leading to a growing demand for English language learning and soft skills training. With economic growth and an increasing young population, the education market, particularly English centers and soft skills training centers, has become an attractive investment field. In this context, the short-term training and coaching sector is one of the potential industries that many foreign investors are interested in. However, to establish a business in this field, investors need to understand the legal regulations and related procedures.

1. Market Demand in the Short-Term Training Sector

Currently, English language centers and soft skills training centers are thriving, attracting a large number of learners. Recognizing the development potential of this training sector, many foreign investors wish to establish training centers in Vietnam.

Potential of English Centers

• International Integration: English is the international language and an essential tool to help Vietnam integrate deeply into the global economy. Businesses and organizations, both domestic and international, require personnel with good English communication skills.
• Education and Study Abroad: Many parents want their children to study in an international environment or go abroad for studies, making English an indispensable subject.
• Diverse Learning Needs: From children, students, to working professionals, there is a high demand for learning English to improve communication skills, career opportunities, and personal development.

Potential of Soft Skills Training Centers

• Employer Requirements: Soft skills like communication, teamwork, time management, and conflict resolution are increasingly valued by employers.
• Personal Development: Soft skills help individuals become more confident, improve adaptability, and enhance work efficiency.
• Comprehensive Education: Traditional education systems often focus on specialized knowledge, while soft skills are an important supplement to help students develop comprehensively.

2. Factors Boosting the Potential of the Short-Term Training Sector

• Investment Incentive Policies: The Vietnamese government has many policies encouraging investment in education, including tax incentives and simplified administrative procedures.
• Economic Growth: With a rapidly growing economy, the demand for high-quality labor is increasing, driving the need for education and training.
• Young Population: Vietnam has a young and dynamic population with high learning and self-development needs.

3. Opportunities and Challenges in the Short-Term Training Sector

Opportunities

• Potential Market: With the growing demand for English and soft skills training, the Vietnamese market promises attractive profits for investors.
• Technological Development: Modern technology allows the implementation of online education models, expanding the reach to learners.
• International Cooperation: Opportunities to collaborate with international educational organizations, bringing high-quality training programs.

Challenges

• Competition: The emergence of many new training centers leads to fierce competition in terms of quality and price.
• Teaching Quality: Requires a high-quality teaching staff and training programs that meet actual needs.
• Legal Compliance: Must comply with legal regulations on education and training, requiring understanding and strict adherence.

4. Necessary Conditions for Establishing a Foreign-Owned Enterprise in the Short-Term Training Sector

To establish a foreign-owned enterprise in the short-term training and coaching sector in Vietnam, investors need to meet the following conditions:

• Legal Status

Investors must have legal status and meet the legal requirements.

• Investment License

Must have an investment license issued by a competent Vietnamese authority (approval for establishing an educational institution or an investment registration certificate and an enterprise registration certificate).
Details on the procedures for establishing a 100% foreign-owned enterprise can be found at: https://zora.vn/en/establishing-a-100-foreign-owned-enterprise-in-vietnam

• Investment Capital

Investors need to prove sufficient investment capital as required by Vietnamese law. The investment project to establish a short-term training and coaching center must have an investment rate of at least VND 20 million per student (excluding land use costs). The total investment capital is calculated based on the highest projected scale.

• Teaching Staff

  • Teachers must have at least a college degree or equivalent, with training in the relevant field.
  • The maximum student/teacher ratio is 25 students per teacher.

• Facilities

Training and coaching centers (such as English training centers) must meet the following conditions:

- Classrooms must have adequate lighting, desks, chairs, equipment, and teaching aids.

- There must be a minimum average area of 2.5 m² per student.

- Must have offices for directors, leadership, teacher rooms, libraries, and other functional rooms.

- Foreign-invested educational institutions are allowed to lease stable facilities for at least five years and must ensure the facilities meet regulations.

• Training Curriculum

The educational programs implemented at foreign-invested educational institutions must reflect educational objectives and not contain content harmful to national defense, national security, community interests; must not propagate religion, distort history; and must not negatively affect Vietnamese culture, ethics, and customs.
In conclusion, if foreign enterprises can meet the conditions on capital, facilities, and specific training program content according to the specific training model registered, they can establish training centers in Vietnam.