Vietnam: What does an application for converting a private higher education institution to a non-profit private higher education institution include?

Vietnam: What does an application for converting a private higher education institution to a non-profit private higher education institution include?

According to the provisions of Clause 1, Article 3 of Decree 99/2019/ND-CP, the application for converting a private higher education institution to a non-profit private higher education institution includes:

- A submission proposing the conversion of the private higher education institution to a non-profit private higher education institution, clearly stating the necessity for conversion; the principles, purposes of non-profit activities; the contributed capital, the indivisibly owned assets of the private higher education institution (if any);

- A written commitment from investors representing at least 75% of the total contributed capital for the conversion of the private higher education institution to a non-profit private higher education institution, ensuring the implementation of non-profit activities, no capital withdrawal, no profit-taking; the annually accumulated profit being an indivisible common ownership to continue investing in the development of the private higher education institution;

- Draft organizational and operational regulations; draft internal financial regulations of the non-profit private higher education institution;

- Other accompanying evidence:

+ Audit result reports, agreements on the resolution of contributed capital for investors who do not agree to the conversion to a non-profit private higher education institution (if any);

+ Documents, materials on land, assets, finance, organization, and personnel of the private higher education institution converted to a non-profit private higher education institution;

- Assessment of the impact of the conversion on personnel, finance, assets, and proposed handling plans;

- Decision on the establishment of the private higher education institution, decision recognizing the current board of trustees, decision recognizing the current rector of the private higher education institution, and other related documents (if any).

Application conversion of a private higher education institution to a non-profit private higher education institution in Vietnam (Image from the Internet)

What is the procedure for handling the application for converting a private higher education institution to a non-profit private higher education institution?

Based on Clause 2, Article 3 of Decree 99/2019/ND-CP, the procedure for handling the application for converting a private higher education institution to a non-profit private higher education institution is as follows:

Step 1: Higher education institution submits the application

The higher education institution submits 01 set of applications directly or via post along with a soft copy to the Ministry of Education and Training or through the online public service belonging to the electronic portal of the Ministry of Education and Training;

Step 2: application appraisal, submission to the Prime Minister for decision

Within 30 working days from the receipt of the complete application, the Ministry of Education and Training organizes the appraisal of the application and submits it to the Prime Minister for decision;

In case the application does not meet the requirements, within 10 working days from the receipt of the application, the Ministry of Education and Training sends a written notification to the private higher education institution stating the reasons.

What are responsibilities and rights of an investor who establishes a non-profit private higher education institution in Vietnam?

According to Section 1, Chapter II of Law on Higher Education 2012, supplemented by Clause 11, Article 1 of Amended Law on Higher Education 2018, the responsibilities and rights of an investor who establishes a non-profit private higher education institution are as follows:

- Approving strategies, development plans of the higher education institution, the plan to develop the university into another university or merge with another university as proposed by the board of trustees, university council;

- Deciding the total contributed capital of investors, investment projects for developing the higher education institution, the plan for mobilizing investment capital (if any); plans for using the annual income-expenditure difference or plans for handling losses of the higher education institution; approving the annual financial reports of the higher education institution;

- Electing or appointing, dismissing, removing elected members of the board of trustees, university council; approving the standards, personnel plans of the university rector, university director as proposed by the board of trustees, university council;

- Organizing supervision and evaluation of the activities of the board of trustees, university council;

- Deciding to issue, amend, supplement the financial regulations of the higher education institution; approving financial, asset-related contents in the organization's and operational regulations of the higher education institution, regarding policies on salary, bonuses, and other rights of managerial positions in the higher education institution;

- Fully and timely contributing capital and supervising the capital contribution to the higher education institution according to the proposal for establishing the higher education institution;

- Establishing a control committee to inspect and supervise the management and administration activities of the board of trustees, university council, university rector, vice-rector, university director, vice-director, and units in the higher education institution; the establishment, composition, tasks, and powers of the control committee shall be implemented under the provisions of Enterprise Law 2020 and other relevant legal provisions;

- Reviewing, handling violations of the board of trustees, university council causing damage to the higher education institution according to legal provisions, organizational, and operational regulations of the higher education institution;

- Deciding to reorganize or dissolve the higher education institution according to legal provisions;

- Publicizing the list of organizations and individuals investing capital in the higher education institution on the institution's website;

- Other responsibilities and rights according to the provisions of Investment Law 2020 and other relevant legal provisions;

- Investors who establish non-profit higher education institutions are honored for their contributions in investing, establishing, constructing, and developing the higher education institution.