A Comparison of Regulations for Public, Domestic Private, and Foreign-Invested Schools in Vietnam

Under Vietnam's Law on Education 2019 (as amended in 2025), the national education system from preschool to the end of upper secondary school includes preschool, primary school, lower secondary school, and upper secondary school. Upper secondary education is organized over three academic years (from grade 10 to grade 12). Correspondingly, schools are categorized into three main types: public schools, community-based schools (applicable only at the preschool level), and private schools established by either domestic or foreign investors.

Public schools are invested in and operationally secured by the State. Community-based schools are established and managed by local residential communities. Private schools are founded by domestic or foreign investors (individuals or organizations). Consequently, all three models—public, domestic private, and foreign-invested schools—are integral parts of the general education system and are subject to the Law on Education and its guiding legal documents.

The Law on Education 2019 stipulates that all schools, regardless of their type, must comply with the conditions for establishment and operation. According to Article 49 of the Law, a school's establishment requires a detailed proposal that aligns with socio-economic development plans and the educational institution network planning. This proposal must clearly define the school's objectives, missions, educational programs, land area, facilities, organizational structure, human and financial resources, and its development strategy.

To commence operations, a school must ensure adequate facilities and educational equipment, a safe environment for learners and staff, and have an educational program and teaching materials appropriate for each level. It must also have a sufficient number of qualified teachers and management staff and possess the financial resources to sustain its activities. All schools must develop their own organizational and operational regulations. If these conditions are not met within the permitted timeframe, the competent authority will revoke the establishment license or operational permit.

While the general regulatory framework is uniform, practical application reveals significant differences based on the nature of each school type, particularly in areas such as funding, licensing authorities, and capital requirements.

1. Public Schools

Establishment and Governance: Public schools are established based on State policy and decisions from competent state administrative agencies. Article 52 of the Law on Education 2019 specifies that the Chairman of the district-level People's Committee approves the establishment of public preschools, primary schools, lower secondary schools, and multi-level schools up to the lower secondary level. The Chairman of the provincial-level People's Committee decides on the establishment of upper secondary schools and multi-level schools up to the upper secondary level. The Ministry of Education and Training (MOET) holds authority over certain specialized schools or those proposed by foreign diplomatic missions. The establishment process for public schools follows the state management structure and is funded by the state budget, not private capital investment.

Finance and Facilities: Public schools receive state investment for the construction of facilities and a regular budget to cover recurrent expenditures. The land and physical assets of public schools are owned or managed by the State. Therefore, the establishment process is closely tied to land allocation, construction funding, and equipment provision from the state budget. Public schools must meet the same general facility standards set by the MOET as other school types (e.g., minimum land area per class size, number of classrooms, functional rooms). However, being state-funded, they are not required to demonstrate owner's equity like private schools. Their financial resources primarily consist of the state budget and tuition fees, with fee caps managed by the State on a non-profit basis.

Curriculum and Staff: Public schools are mandated to implement the national general education curriculum issued by the MOET, which is applied uniformly nationwide. Teachers in public schools are recruited as public employees or civil servants and must meet the professional standards stipulated by the MOET. Their salaries and benefits are governed by state regulations (e.g., the Law on Public Employees, Law on Teachers). Public schools are not permitted to distribute profits; all revenue must be publicly disclosed and used in accordance with state budget regulations.

2. Domestic Private Schools

Establishment and Investment: Similar to public schools, domestic private schools are established upon the proposal of a domestic investor (individual or organization) and with the permission of the competent state authority. According to Article 52, the Chairman of the district- or provincial-level People's Committee is authorized to permit the establishment of private schools depending on the educational level. The investor's establishment proposal must detail the legal entity, investment capital, facility plan, curriculum, teaching staff, and financial strategy. The investor must be an individual or entity legally permitted to operate in the education sector (e.g., a company or educational fund established under the Law on Investment and Law on Enterprises).

Finance and Facilities: Unlike public schools, private schools must secure their own financial resources. The Law on Education requires them to have "sufficient financial resources" to maintain and develop their educational activities. Although the law does not specify a minimum capital requirement for domestic private schools (except for certain investment project regulations under Decree 125/2024/ND-CP), licensing authorities will review the capital mobilization plan, tuition fee structure, and other financial sources during the appraisal process. Private schools are financially autonomous and can set tuition fees to cover costs and generate reasonable savings. However, these fees must be publicly disclosed, and any profit must be reinvested in the school's development (for non-profit private schools).

To be licensed, a private school must have land and facilities that meet the general requirements of Article 49. These standards are detailed in MOET circulars, which typically mandate playgrounds, sports fields, subject-specific rooms, libraries, multi-purpose halls, and adequate sanitation. Investors may lease or use land allocated/leased by the State, provided it meets area requirements (e.g., a minimum of 6 m²/student in urban areas and 10 m²/student in rural areas).

Curriculum and Staff: Private schools are responsible for recruiting and compensating their teaching staff. All teachers must meet the professional standards set by the MOET. The law generally requires a "sufficient number of qualified teachers" to implement the curriculum, which is the same standard applied to public schools. Private schools must deliver the national education curriculum. While they may offer bilingual or international programs (e.g., teaching certain subjects in a foreign language), they must still cover all compulsory content mandated by the MOET.

Legally, private schools operate on the principles of autonomy and self-responsibility. They have the right to develop their own plans for development, organization, finance, and personnel, while complying with regulations on financial and asset transparency.

3. Foreign-Invested Schools

Establishment and Legal Framework: A foreign-invested school is a private school established and operated by a foreign-invested economic organization. The regulations for this school type are detailed in Decree No. 86/2018/ND-CP (as amended by Decree 124/2024/ND-CP) on foreign cooperation and investment in education.

The establishment process for foreign investors involves three key steps: a) Obtaining an Investment Registration Certificate (IRC), satisfying conditions under the Law on Investment. b) Obtaining a Decision on Establishment from the competent educational authority. c) Obtaining a Decision Permitting Educational Activities.

A crucial distinction from domestic schools is the mandatory IRC requirement. Decree 86 also sets specific rules regarding the school's name, operational duration (not to exceed 50 years from the IRC issuance date), and other rights and obligations.

Minimum Investment Capital: Decree 86/2018/ND-CP sets a clear minimum investment threshold. For a general education school project (primary to upper secondary), the minimum investment rate is VND 50 million per student, with a total minimum investment capital of at least VND 50 billion. For preschools, the minimum rate is VND 30 million per child. When applying for an operational permit, the investor must have disbursed over 50% of this capital and commit to disbursing the remainder within five years. If an investor leases existing facilities, the minimum required capital must be at least 70% of the above figures.

Facilities and Staffing: Facility standards are similar to other school types, with specific requirements on land area (minimum 6 m²/student in urban areas and 10 m²/student in rural areas) and floor space (minimum 2.5 m²/student). The school must be fully equipped with functional rooms, a library, sports facilities, and other necessary amenities.

Decree 86 imposes stricter staffing requirements:

• Qualifications: Teachers must hold a bachelor's degree in education or an equivalent qualification.

• Teacher-to-Class Ratio: A minimum of 1.5 teachers/class for primary, 1.95 for lower secondary, and 2.25 for upper secondary.

• Class Size: Not to exceed 30 students for primary and 35 students for secondary levels.

Curriculum: Foreign-invested schools may teach the Vietnamese national curriculum. Alternatively, they are permitted to implement foreign educational programs under strict conditions. A foreign curriculum must be accredited by a competent authority in its home country and must not contain content that undermines Vietnam's national security, promotes illegal religious activities, distorts history, or contravenes Vietnamese culture and traditions.

Notably, when a foreign curriculum is taught to Vietnamese students, the MOET requires the integration of certain compulsory subjects (e.g., national defense education, Vietnamese history, and civics) to ensure national educational objectives are met.

4. Foreign Investment in General Education: A Summary

Foreign investors seeking to establish a general education school in Vietnam must navigate a dual legal framework encompassing the Law on Investment and the Law on Education. As education is a conditional business sector, investors must satisfy all conditions outlined in Decree 86/2018/ND-CP (as amended). The procedure involves obtaining an IRC first, followed by applying for establishment and operational permits.

Vietnam encourages international cooperation in education, and recent amendments aim to streamline procedures to attract foreign investment. Foreign investors are permitted to establish 100% foreign-owned schools or enter into joint ventures with Vietnamese partners, provided all legal conditions are met. However, regulations protecting national security, cultural identity, and traditional Vietnamese values remain paramount.

5. Conclusion

In summary, Vietnam's legal framework for general education provides a unified structure for all schools while delineating clear distinctions between public, domestic private, and foreign-invested institutions. Public schools are state-funded and managed. Private schools, whether domestic or foreign-invested, are established by investors who are responsible for their own capital and operations. While both types of private schools must adhere to the fundamental conditions of the Law on Education, foreign-invested schools are subject to additional, more stringent requirements under the Law on Investment and Decree 86/2018/ND-CP, particularly concerning the investment process, minimum capital, staffing ratios, and curriculum approval. Each model serves the overarching goals of Vietnam's education system but operates under a distinct legal and organizational mechanism.

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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