What is the required minimum investment capital for private preschools in Vietnam to conduct their educational activities?

What is the required minimum investment capital for private preschools in Vietnam to conduct their educational activities?

Under Point a, Clause 4, Article 5 of Decree 125/2024/ND-CP on requirements to be satisfied by preschools for conducting their educational activities:

Requirements to be satisfied by preschools for conducting their educational activities

1. Own land, facilities, equipment, tools and toys, thereby meeting standards in terms of location, scale, area and basic facilities applied to preschools according to regulations issued by the Ministry of Education and Training.

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4. Have a sufficient amount of financial resources in order to maintain and develop educational activities:

a) Regarding a private preschool, the investment capital shall be at least 30 million VND/child (excluding expenses incurred from land tenancy). The total minimum capital shall be calculated when the estimated education scale is greatest. The capital plan shall conform to the estimated scale of each stage.

Regarding a private preschool of which the facilities are not newly built but are leased or the existing facilities are used to conduct child care, parenting and education activities, the capital shall be at least 70% of the capital specified in point a of this clause;

b) Regarding a public or non-public preschool, its financial resources shall be maintained by a competent management authority or local community so as to meet requirements for the early childhood education curriculum according to regulations.

5. Have the statutes of organization and operation of the preschool.

Thus, the minimum investment capital required for private preschools in Vietnam to conduct their educational activities must be at least 30 million VND/child (excluding expenses incurred from land tenancy).

Moreover, Regarding a private preschool of which the facilities are not newly built but are leased or the existing facilities are used to conduct child care, parenting and education activities, the capital shall be at least 70% of the capital specified in point a, Clause 4 mentioned above.

Which authority assesses realistic conditions concerning the establishment of a private preschool in Vietnam?

Under Point b, Clause 3, Article 4 of Decree 125/2024/ND-CP regulating procedures for the establishment of public preschools or permission for establishment of non-public or private preschools:

Procedures for permission for preschools to conduct their educational activities

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3. Procedures:

a) The People’s Committee of a commune, ward or town (hereinafter referred to as “the commune-level People’s Committee”; in case of application for establishment of a public preschool); an organization or individual (in case of application for permission for establishment of a non-public or private preschool) shall submit an application specified in clause 2 of this Article in person, via online public service portal or by post, to the district-level People’s Committee.

b) Within 05 working days from the date on which the sufficient application is received, if the application is unsatisfactory, the district-level People’s Committee shall give a written notification of contents to be amended to the applicant; if the application is satisfactory, the district-level People’s Committee shall give guidelines to the Subdepartment of Education and Training for organization of the assessment of realistic conditions concerning establishment or permission for establishment of a preschool;

c) Within 15 days from the date of receipt of the guidelines from the district-level People’s Committee, the Subdepartment of Education and Training shall preside over and cooperate with other relevant specialized divisions in assessing realistic conditions concerning establishment or permission for establishment of a preschool in the application; preparing an assessment report to assess fulfillment of requirements mentioned in Article 3 of this Decree; and submitting the report to the President of the district-level People’s Committee for consideration and decision;

d) Within 05 working days from the date of receipt of the assessment report from the Subdepartment of Education and Training, if the requirements are fulfilled, the President of the district-level People’s Committee shall issue a decision on establishment or permission for establishment of the preschool; if the requirements are not fulfilled, he/she shall send a written notification in which reasons should be clearly specified to the applicant.

The decision on establishment or permission for establishment of the preschool (according to Form No. 10 Appendix I enclosed with this Decree) shall be publicly announced on mass media.

When submitting the application for the establishment, if the application is satisfactory, the district-level People’s Committee shall give guidelines to the Subdepartment of Education and Training for the organization of the assessment of realistic conditions concerning the establishment or permission for the establishment of a preschool. Therefore, the Department of Education and Training assesses realistic conditions concerning the establishment of a private preschool in Vietnam

What is the required minimum investment capital for private preschools in Vietnam to conduct their educational activities? (Image from the Internet)

What are the required documents for preschools in Vietnam to conduct their educational activities?

Pursuant to Clause 2, Article 6 of Decree 125/2024/ND-CP regulating procedures for permission for preschools to conduct their educational activities, the application includes:

- A written request for permission for the preschool to conduct its educational activities (according to Form No. 03 Appendix I enclosed with this Decree);

- Copies of legal documents proving land use rights and house ownership or agreement on rental of location for a preschool of which the minimum term is 05 years;

- In case of a private preschool, a legal confirmation document on the amount of investment currently managed by the preschool, ensuring legitimacy and conformity with the estimated scale at the time of application for educational activities;

- Statutes of organization and operation of the preschool, specifying legal status, missions and powers of the preschool; organization and management structure; organization of child care, parenting and education activities; tasks and rights of administrative officers, teachers, staff, employees and children; finances and assets of the preschool; other issues related to organization and operation of the preschool.