What changes are in the order and procedures for establishing a foreign-invested vocational education institution from June 1, 2022?

Main Content

• What are conditions and procedures for allowing the establishment of a foreign-invested vocational training institution by the latest regulations?
• What are the conditions for allowing the establishment of a foreign-invested vocational education institution?
• What do application for permission to establish a foreign-invested vocational education institution include?
• What is the order and procedures for allowing the establishment of a foreign-invested educational institution?

What are conditions and procedures for allowing the establishment of a foreign-invested vocational training institution by the latest regulations?

According to Clause 3, Article 1 of Decree No. 143/2016/ND-CP on conditions for investment and operation in vocational education field, the conditions and procedures for permitting establishment, division, merger or dissolution of establishing foreign-invested vocational education as follows:

Article 1. Scope

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3. Requirements and procedures for establishment, total division, partial division and merger of foreign-invested vocational education institutions are prescribed in the Section 2 chapter III Decree No.48/2015/ND-CP dated May 15, 2015 by the Government detailing a number of Articles of the Law on educational education and training.

However, in Clause 1, Article 1 of Decree 24/2022/ND-CP, the above provisions have been amended and supplemented as follows:

"Article 1. Amending and supplementing a number of articles of the Government's Decree No. 143/2016/ND-CP dated October 14, 2016 on conditions for investment and operation in vocational education field have been amended and supplemented a number of articles in Decree No. 140/2018/ND-CP dated October 8, 2018 of the Government amending and supplementing Decrees related to business investment conditions and and administrative procedures under the state management of the Ministry of Labor, War Invalids and Social Affairs.

1. Amending and supplementing Clause 3, Article 1 as follows:

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3. Requirements and procedures for establishment, total division, partial division and merger of foreign-invested vocational education institutions are prescribed in the Chapter III of Decree No. 15/2019/ND-CP dated February 1, 2019 by the Government detailing a number of Articles of the Law on educational education and training.

Besides, pursuant to Clause 1, Article 1 of Decree 24/2022/ND-CP:

"Article 3. Transitional provisions

1. Agencies, organizations and individuals have submitted application for establishment, permission of establishment, division, separation, merger, dissolution or renaming of public and private vocational education institutions; the establishment, permission of establishment, and termination of operations of branches of public and private intermediate schools and colleges before the effective date of this Decree shall maintain the provisions of Decree No. 143/ 2016/ND-CP and Decree No. 140/2018/ND-CP;

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Thus,the conditions and procedures for permitting the establishment, division, merger, and dissolution of foreign-invested vocational education institutions are carried out by the provisions of Section 2, Chapter III of Decree 48/2015/ND-CP before Decree 24/2022/ND-CP takes effect. After the date, the conditions and procedures for permitting the establishment, division and merger The merger and dissolution of foreign-invested vocational education institutions shall maintain according to the provisions of Chapter III of Decree No. 15/2019/ND-CP. If you want to set up a foreign-invested vocational training institution in early 2023, because of effective of Decree 24/2022/ND-CP, it will apply the conditions, order, procedures and application for the establishment of a foreign-invested vocational education institution by Decree 24/2022/ND-CP.

What are the conditions for allowing the establishment of a foreign-invested vocational education institution?

According to Article 9 of Decree 15/2019/ND-CP on the conditions for allowing the establishment of foreign-invested vocational education institutions as follows:

Article 9. Requirements for establishing foreign-invested vocational schools

1. Have developed an establishment proposal which is suitable to the planning scheme of Vietnamese vocational school network.

2. Have received the investment registration certificate (for cases where the foreign investors must complete procedures for getting the investment registration certificates as regulated by the law on investment).

3. Have a location for building facilities with a minimum land use area of 1.000 m2 for vocational training center; 10.000 m2 for an intermediate school within an urban area and 20.000 m2 for such school within a rural area; 20.000 m2 for a college within an urban area and 40.000 m2 for such college within a rural area.

4. The investment capital shall be established by using legal sources, exclusive of the land values, to be specific:

a. At least 05 billion VND for a vocational training center;

b. At least 50 billion VND for an intermediate school;

c. At least 100 billion VND for a college.

5. Training programs:

a. Expected training programs shall satisfy the requirements specified in clause 1, Article 34 of the Law on Vocational Education; they shall not have any contents that may harm the national defense and security and the community interests; they shall not disseminate religions, distort history; and shall not negatively affect Vietnamese culture, ethics, habits and customs;

b. Foreign-invested vocational schools shall provide Vietnamese and foreign training programs within the scope of international joint training programs.

c. Compulsory subjects which Vietnamese students participating in joint training programs must study at foreign-invested intermediate schools and colleges shall be taught under the regulations of the Ministry of Labor, Invalids and Social Affairs.

6. Specific expectations about the organizational structures; facilities and training equipment; training programs and teaching materials; teaching staff and administrative officials shall satisfy the vocational education registration requirements specified in Article 14 of the Government’s Decree No. 143/2016/ND-CP dated October 14, 2016 on investment and operation conditions pertaining to vocational education , and the requirements specified in this Decree.

What do application for permission to establish a foreign-invested vocational education institution include?

According to Clauses 1 and 2, Article 12 of Decree 15/2019/ND-CP, an application for permission to establish a foreign-invested vocational education institution includes:

Article 12. Application documents for permission to establish foreign-invested vocational schools and branch campuses of foreign-invested intermediate schools and colleges

1. There must be 01 application for permission to establish a foreign-invested vocational school, consisting of:

a. An application form using Form 1A specified in the Appendix hereto;

b. A copy of the Investment Registration Certificate (for cases where the foreign investors must complete procedures for getting the Investment Registration Certificate as regulated by the Law on Investment);

c. An establishment proposal using form 1B specified in Appendix hereto;

d. A copy of the certificate of land use rights, certificate of home ownership or land lease agreement of the applicant. Such copy must specify the address, area and boundary post of the land and the agreed principles for leasing existing facilities in compliance with the law regulations and related legal documents which do not expire within at least 05 years after the application documents are sent.

dd. Financial statements which specify the amount mentioned in clause 4, Article 9 hereof.

2. If the school is invested by more than 02 foreign organizations or individuals or a joint venture is established between the domestic and foreign investors, apart from the documents specified in clause 1 of this Article, the application dossier shall also consist of:

a. A copy of proof documents proving the property ownership rights. Such documents shall be enclosed with the documents on valuation of the assets contributed by foreign organizations or individuals or joint venture participants who request the establishment of the foreign-invested vocational school;

b. A document on appointment of representative in the name of the foreign-invested vocational school. Such document is provided by the foreign organizations or individuals or joint venture participants;

c. List, forms and document on capital contribution of joint venture participants who commit to contribute capital for the establishment of the school.

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What is the order and procedures for allowing the establishment of a foreign-invested educational institution?

According to Article 14 of Decree 15/2019/ND-CP, the order and procedures for permitting to srt up foreign-invested educational institutions are:

"Article 14. Procedures for getting the permission to establish foreign-invested vocational schools

1. Procedures

a. Organizations or individuals requesting the permission to establish a foreign-invested college shall send the documents specified in clause 1 and clause 2, Article 12 hereof to the General Department of Vocational Education in person or by using online public services or by post; if they apply for permission to establish a vocational training center or an intermediate school, they shall send the application documents to the Department of Labor, Invalids and Social Affairs;

b. General Department of Vocational Education, Department of Labor, Invalids and Social Affairs shall receive and appraise the application for permission to establish vocational schools. If the application documents are deemed unsatisfactory, within 05 working days after receiving such documents, the receiving agency shall send a written reply to the applicant and specify the explanations;

c. Within 03 working days after receiving sufficient and valid documents, the General Department of Vocational Education and Department of Labor, Invalids and Social Affairs shall send the application for permission to establish foreign-invested vocational schools to the Appraisal Council for appraisal;

d. The appraisal of the above-mentioned application shall be carried out in accordance with the regulations in clause 2, Article 8 of the Government's Decree No. 143/2016/ND-CP dated October 14, 2016 on investment and operation conditions pertaining to vocational education. Within 15 working days after receiving the documents, the Appraisal Council shall appraise them and announce the results;

dd. Within 10 working days after receiving the application which has been appraised as complete by Appraisal Council, the receiving agency shall send them to the competent person mentioned in Article 13 hereof for permission to establish the foreign-invested vocational school, using form 1C specified in Appendix hereto.

2. Deadline for sending the establishment permission

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b. Within 02 working days after issuing the permission to establish vocational training center or foreign-invested intermediate school within the area, the provincial People's Committee shall send the written permission to the General Department of Vocational Education for supervision and management. Also, they shall post such permission on their website.

Decree 24/2022/ND-CP takes effect from June 1, 2022.