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Business conditions for vocational education services for foreign investors
Vocational education services ‘ main purpose is to develop and enhance students’ professional capacity and help them to apply the knowledge and skills they have learned to real work. At the same time, this service also aims to create high-quality human resources to meet the demands of the labor market in developing industries. Therefore, the vocational education service business has now been attracting a lot of foreign capital to invest in. What are the conditions for investing in vocational education services for foreign investors? Siglaw will provide you with more detailed information in this writing:
What is a vocational education service?
According to Clause 1, Article 3 in Law on Vocational Education and Training defines: “Vocational education is a level of the national education system aimed at training primary level, intermediate level, college level and other training programs for employees, meet directly human resources needs in production, business and services is carried out in two forms: regular training and continuing training”.
Thus, vocational education service is a form of providing knowledge and professional skills to train and develop learners in a specific field. This specialized educational service equips workers with the practical and specialized experience needed to work in a specific occupation.
Legal framework of vocational education service for foreign investors
When foreign investors want to invest in vocational education business in Vietnam, the law governing this relationship will include regulations from international commitments that Vietnam participates in such as WTO; AFAS; and CPTPP; and the investment law of the country in which the investor is a citizen and Vietnamese legal system. Some documents regulating the relationship in investing in vocational education business for foreign investors in the Vietnamese legal framework include the Investment Law 2020, Vocational Education Law 2014, etc.
Business conditions for vocational education services for foreign investors
According to Article 3 of the Investment Law 2020, market access conditions are prescribed as follows: “ market access conditions applied to foreign investors” mean those which must be satisfied by foreign investors to invest business lines in the List of business lines with restricted market access (hereinafter referred to as “the Negative List for Market Access”) specified in Clause 2 Article 9 of this Law.
Investors need to pay attention to professions that are banned from business investment in Vietnam. Vocational education services are not on the list of prohibited business lines in Vietnam. However, vocational training services are a conditional market access sector for foreign investors, so investors will need to meet specialized conditions if they want to invest in this field.
Conditions according to international law
Following the relations of the free trade agreement – CPTPP :
Appendix I NCM I – VN – 11:
- The scope of activities includes codes CPC 923, CPC 924, and CPC 929 which are Higher education, Adult education and other education services including foreign language training.
- Foreign investors are not allowed to provide educational services in the fields of: “security, defense, politics, religion, Vietnamese culture and other subjects necessary to protect Vietnamese social ethics”.
Appendix NCM I -VN-38:
- The scope of activities includes the following codes: Primary education services, intermediate education services
- Foreign investors are not allowed to provide the above educational services except through the following methods: General education institutions implement educational programs according to foreign programs, issue foreign diplomas, for foreign students and a portion of Vietnamese students in need; Preschool educational establishments implement educational programs according to foreign programs for foreign children; general education establishments are allowed to accept Vietnamese students, but the number of Vietnamese students in elementary and secondary school must not exceed 10% of the total number, highschool must not exceed 20% of the total school students.
Following the provisions of the ASEAN Framework Agreement on Services – AFAS:
- Scope of activities: adding codes CPC 921 and CPC 922 are Primary and Basic general education respectively. Requirements: In the study program of students who are Vietnamese citizens studying at foreign-invested general schools, they must study compulsory Vietnamese subjects according to Vietnamese regulations.
Following WTO regulations, FTAs
- Scope of activities: codes (CPC 9223 and 9231) provide vocational training services in the adult education subsectors and other educational services (including foreign language training)
- They are only committed to the fields of engineering, natural sciences and technology, business administration and business sciences, economics, accounting, international law and language training.
- The training program must be approved by the Ministry of Education and Training of Vietnam.
Following AANZFTA regulations
- Scope of activities; Codes (CPC 9223 and 9231) provide vocational training services in the adult education subsectors and other educational services (including foreign language training)
- They are only committed to the fields of agriculture, architecture, shipbuilding, business administration, management, computer science, construction, information systems, dental services, economics, pedagogy, engineering, environment, surveying, community services, land and marine resources, livestock, language studies, law, legal studies, life sciences, manufacturing, mathematics, science health studies, medicine, multidisciplinary education, nursing, pharmacy, physical sciences, sciences, services, culinary and tourism, transportation, veterinary sciences, performing and visual arts.
- The training program must be approved by the Ministry of Education and Training of Vietnam
Conditions followed by Vietnamese law
Educational conditions to be granted an Investment Registration Certificate
- Following the network planning of educational institutions approved by the competent authority: This ensures that educational institutions are located in the correct location and geographical scope previously planned. This planning may be related to educational development goals, reasonable allocation and balance of educational resources.
- Foreign organizations, individuals and international organizations are allowed to cooperate and invest in education under Vietnamese law and international treaties to which Vietnam is a member
- Foreign organizations and individuals are allowed to cooperate and invest in training fields according to current regulations, except for security, defense, politics and religion fields because these fields are sensitive, often requiring strict management and control from the government to ensure national security and stability.
Conditions for registration of vocational education activities
Vocational education institutions are granted a sub-license by a state agency, which is a certificate of registration for vocational education activities, when the following conditions are met:
- Have lands, facilities, and equipment that meet training requirements as committed. Therefore, the vocational education center ensures the construction location has a minimum land are of 1.000 m2; intermediate schools and colleges are 10.000-20.000 m2 and 20.000-40.000 m2 respectively depending on the area.
- There is a decision to establish or allow the establishment of a vocational education enterprise
- Have sufficient financial capacity according to regulations to ensure the maintenance and development of their educational activities
- Have sufficient training programes, textbooks, and teaching, learning materials according to regulations
- There are charters and regulations for organization and operation
- Have a team of teachers and vocational education managers who meet professional standards, are sufficient in number, and are consistent in structure
Capital conditions
- Vocational education centers’ minimum charter capital is 05 billion VND
- Intermediate schools’ minimum capital is 50 billion VND
- Colleges’ minimum capital is 100 billion VND.
The policy of Siglaw Law Firm guarantees the following incentives:
- Free consultation, 24/7, for all questions about capital contribution to securities trading companies in Vietnam
- Ensure to complete the work quickly, compactly, 100% on time agreed
- A team of lawyers and consultants with more than 10 years of experience in consulting and carrying out procedures for applying for capital contribution to securities trading companies
Above is the advice of Siglaw Law Firm on capital contribution to securities trading companies of foreign investors, if you have any questions, please contact us immediately via:
Phone: (+84) 961 366 238
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