Establishing a Pre-School in Vietnam

I. Legal Framework:

- Decree No. 86/2018/ND-CP dated June 06, 2018;

- Decree No. 135/2018/ND-CP dated October 04, 2018;

- Decree No. 46/2017/ND-CP dated April 21, 2017;

- Circular No. 04/2020/TT-BGDDT dated March 18, 2020;

II. Introduction

With the major percentage of the population in Viet Nam being under 30 years old, opening the pre-school is the ideal project for foreigners investing in Viet Nam. Therefore, we would like to provide a basic guide for those who would like to establish a preschool in Viet Nam in this article.

According to the Law of Viet Nam, licenses and certificates for setting up the Pre-school in Viet Nam are as follows:

- Investment Registration Certificate (“IRC”);

- Enterprise Registration Certificate (‘ERC”);

- Approval of establishment;

- License to provide education;

III. Preparing to set up the Pre-school in Viet Nam:

1) Capital:

According to Article 35 of Decree No. 86/2018/ND-CP dated June 06, 2018,  the capital for the project of setting up a pre-school educational institution is at least 30 million VND per kid (exclusive of the expense incurred from land tenancy) The total minimum capital shall be calculated when the estimated education scale is greatest.

Therefore, foreign investors should have a plan for capital investment in Viet Nam and this fund have to show in the bank balance statement. After the ERC is issued, the investor must transfer the money into the investment bank account opening in the bank in Vietnam within 90 days.

2) Facilities and equipment:

The pre-school must meet the requirements in the facilities and equipment according to Article 35 of the Decree No. 86/2018/ND-CP, specifically:

-  The preschool shall be located in a good environment. The pre-school area shall be calculated based on the number of classes and kids: at least 08 m² per kid, applicable to urban areas; 12m² per kid, applicable to rural areas.

- The preschool shall have appropriate lights, desks, chairs, and equipment used for taking care of or teaching kids in the classrooms, bedrooms, and other functional rooms.

- The offices, managing boards, administration rooms, school clinics, security rooms, and staff rooms shall have a suitable area, equipment, and materials used for managing, taking care of, and teaching children.

- The water supply and drainage systems and bathrooms must be appropriate, and the sanitation facilities shall be safe, clean, and suitable for the operation of the school.

- The kitchen (if any) shall be organized based on the flow-through pattern and use suitable equipment and materials that ensure food safety and hygiene.

- There must be a playground and surrounding walls, and a gate specifying the school’s name in accordance with the regulations stipulated in Article 29 the Decree No. 86/2018/ND-CP.

- There must be trees in the school area. All the constructions, equipment, materials, and toys of the school shall ensure absolute safety for the kids.

3) The requirements for teaching staff:

a. The teachers shall have at least college degrees in preschool pedagogy or equivalent.

b. The maximum number of kids within 01 group or 01 class shall be specified as follows:

As for kids in kindergarten:

- From 03 - 12 months old: 15 kids per group.

- From 13 – 24 months old: 20 kids per group.

- From 25 – 36 months old: 25 kids per group.

As for kids in pre-school:

- From 03 - 04 years old: 25 kids per class.

- From 04 – 05 years old: 30 kids per class.

- From 05 – 06 years old: 35 kids per class.

c. The number of teachers within 01 group or class shall be specified as follows:

- As for kids in kindergarten: 05 kids per teacher.

- As for kids in pre-school: 10 – 12 kids per teacher.

4) Preparing other documents for IRC and ERC:

For individuals, the investors have to prepare:

- The certified copies of Passports;

- The certified translation of Passports;

For Enterprise, the investor has to prepare;

- The investor’s financial statements for the last two years or commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support or guarantee for the investor’s financial capacity or other document proving the investor’s financial capacity;

- The Business Registration Certificate of the investor (has to be legalized, translated, and notarized);

- The certified copies of the Passports of the Legal Representative in the company in Viet Nam

- The certified translation of Passports of the Legal Representative in the company in Viet Nam

5) Preparing other documents for the License for the establishment and approving the Educational provision;

- The documents relating to the Director of Center: documents certifying working in the education sector for at least 3 years and more, a certified copy of a University Diploma in Foreign Languages

- Lists of teachers and staff of the Center:

- Programs, teaching plans, learning materials, lists of textbooks, and primary reference materials;

- The documents relating to the location of the school;

- The documents for proof of the financial ability;

- The documents for facilities and equipment;

- Other relevant documents relating to the operation of the Center.

It takes 15 working days to obtain the IRC, 5 working days to obtain the ERC, 45 working days to obtain the Approval of the establishment, and 20 working days to obtain the license for approving the Educational provision according to the Law of Viet Nam, but in reality, the duration usually takes much more time than expecting.

IV. Conclusion

Investing in pre-school in Viet Nam is now the ideal area for doing business in Vietnam because the demand of upper-class families for their children’s education is much more in recent years. The investors should be guided and advised by the Law Firm to assist to set up a pre-school in Viet Nam avoid administrative barriers.

 

DB Legal is a full legal service law firm in Da Nang, Viet Nam. Our Lawyers bring enormous legal experience for both local and foreign parties in Central Viet Nam, mainly areas in Da Nang, Hoi An, Nha Trang, Hue, Quy Nhon ,etc.

 

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