An Introduction into Education Landscape in Vietnam

With a quickly expanding middle class and more and more students studying abroad, thi is the time to invest in the education sector in Vietnam

Being the fastest growing economy in the Southeast Asian region, Vietnam has undertaken several initiatives to ramp up the educational infrastructure in the country. In the year 2021, 4.03% of the country’s total GDP was allocated toward the country’s education and training sector.

Thus, its contribution amounted to a GDP value of almost USD 362 million while Vietnam’s total GDP was approximately USD 14 billion in the same year. 

Moreover, in recent years, the annual expenditure on education and training has only been rising. As per a report by Opengovasia, Vietnam’s e-learning market is expected to generate revenues of approximately USD 3 billion by 2023 apart from recording a compound annual growth rate (CAGR) of about 20.2% from 2019 to 2023.

Investing in Vietnam? See Cekindo’s A-Z Company Incorporation Services

This article discusses the reasons you should invest in Vietnam’s education sector and the how-to.

Vietnam’s e-learning market is expected to generate revenues of approximately USD 3 billion by 2023 apart from recording a compound annual growth rate (CAGR) of about 20.2% from 2019 to 2023

Recent years have seen an increase in the establishment of education services businesses, resulting in new jobs. Approximately USD 250 per month is the median gross salary for entry-level jobs, USD 345 for experienced staff, USD 561 for supervisors and leaders, and USD 863 for managers in the education and training sector in 2019.

Latest developments in the education sector  in Vietnam

In the past, many socio-economic development plans have led to a number of steps being taken to modernize Vietnam’s education system in the country’s socio-economic development strategy 2011-2020. One of the measures was developing human capital and expanding access to higher education.

The Vietnamese government has also taken several measures to bring about a change in the country’s education system. It further strives to go beyond facilitating the internationalization of education.

Due to its fast-paced growth, the rate of foreign direct investment in the country has also witnessed a rise in the past few years. This in turn has led to many expatriates flocking to the country to live and work, creating the demand for international schools and high-quality educational institutions. Of late with the change in the country’s socio-economic status along with the ongoing tensions between the US and China, Vietnam is turning out to be an alternative to China for many foreign investors. This further provides an impetus for investment in education.

Set of Regulations for Investment in the Education sector

The legal bindings of the country mandate a regular check on the activities of institutions that run on foreign investments. Here are a few legal formulations that might be pertinent to foreign education providers:

  • The Decree 31/2011/ND-CP extends on conditions to be met by any institution, namely, a government-approved contract and a well-kept infrastructure as mandated by the Law on Education. It also identifies the group of people who are eligible for Vietnamese Government subsidies. It further helps graduates of secondary vocational education and training institutions with their fees.
  • Decree 70/2009/ND-CPA specifies the responsibilities of various government bodies (comprising local People’s Committees, Provincial Departments and Ministries ) in the VET sector. The Ministry of Labour, Invalid and Social Affairs (MOLISA) and General Department of Vocational Training (GDVT) are central to VET functioning and supervision.
  • Decree 73/2012ND-CP, issued under the Investment Law (2005), addresses many education-related concerns. It is applicable to collaboration projects and foreign investment in education and VET in Vietnam. The decree is also mandatory for foreign-invested universities, colleges, schools and kindergartens, twinning programs, and representative offices of foreign education institutions. 

How Cekindo can Assist

Cekindo can save you time and effort when you want to set up your education business in Vietnam. We have full A-Z company incorporation services that can help you in all aspects of market entry, incorporation, taxes ETC.

Our track record speaks for itself and we have helped numerous business owners like you establish their companies in the country.

Moreover, our expert consultants are familiar with the market and the different stages you have to go through when you embark on your entrepreneurial journey.

We offer a comprehensive business setup services on starting a business in Vietnam that are both transparent and straightforward. They are designed to help all investors run their operations anywhere in Vietnam efficiently, rapidly and without any headaches.

Contact us today to make an appointment for a free, no-obligation consultation through the form below.

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Tomas Svoboda - Cekindo - Vietnam Country Manager

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Ing. Tomas Svoboda

Tomas is the co-founder & Chief Business Development Officer responsible for Vietnam. His role is to define the key potential of the Vietnamese market and to ensure that Incorp's branch in Vietnam provides its clients with smooth and hassle-free market entry solutions.