According to VietNamNet Bridge, foreign investors are now permitted to set up a vocational education institution at its full ownership. The institution can be run in partnership with its local counterparts. The following conditions should be observed to obtain an Investment Certificate: 

• Conformity to Vietnam’s socio-economic development;
•  Pre-feasibility study on the establishment of vocational education institution;
• Land commitments i.e. minimum land area for construction, minimum land area per student;
• Financial viability;
•  Language for course delivery is the applicable foreign language;
• Curriculum include compulsory subjects as stipulated by Vietnam law;
• Teacher ratios;
• Operation duration not exceeding 50 years.

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Commentary:

According to Vietnam Foreign Investment Agency, until May 2015, Vietnam has attracted a total of 213 FDI projects in education and training, with the registered investment value up to USD 822 million. These numbers are considered to be very modest as compared to the potential of the education market in Vietnam. Majority of FDI projects in education are located in three main cities of Hanoi, HCMC and Danang.

FDI in vocational education still accounts for a very small percentage in the total FDI education projects. Challenges for foreign investors in  this sector are how to gain trust from Vietnamese students and their parents on the quality of training, after the breakdown of several TNE training programmes with Singapore, Australia in the past few years. Recently, when Vietnam MOET has removed “floor marks” to open wider doors for students to enter university, it becomes much more difficult for vocational colleges, including international ones, to recruit students. In establishing partnerships with local colleges, barriers can be low capacity in project management and delivery of local partners, their limited capability in communicating in English, and lack of experience in international collaboration work.

However, under the national strategy of developing 40 high-quality vocational colleges by 2020, and with the Law of Vocational Training coming into effect from 1 July 2015, Vietnamese vocational colleges are now given many rooms to develop and enhance their partnership work.

Further information about partnership opportunities with local vocational colleges in Vietnam, please contact Nga.Bui@britishcouncil.org.vn