Vietnam has become a highlighted destination on the international investment map, not only in the fields of industry and technology but also in the field of education. With a population of about 100 million people, including more than 25 million students (according to statistics from the Ministry of Education and Training), the demand for high-quality education is increasing. Vietnamese families are willing to invest a large proportion of their income in education, as evidenced by spending on education reaching more than 5% of the national GDP each year (according to the World Bank).
On October 5, 2024, the Government issued Decree 124/2024/ND-CP, amending and supplementing Decree 86/2018/ND-CP, to create new momentum for foreign cooperation and investment in the field of education. Decree No. 124/2024/ND-CP has contributed to institutionalizing the Party's policy on proactive integration and improving the effectiveness of international cooperation in education and training and implementing Conclusion No. 91-KL/TW dated August 12, 2024 of the Politburo on encouraging domestic educational and training institutions to link and cooperate with advanced educational and training institutions in the world, attracting prestigious higher education institutions in the world to open branches in Vietnam. Thus, it can be said that Decree 124/2024/ND-CP is expected to promote a wave of foreign investment in Vietnam, especially high-quality educational projects.
Notable highlights of the Decree
Decree No. 124/2024/ND-CP supplements specific regulations on the establishment of branches of foreign higher education institutions in Vietnam, contributing to selectively attracting investment from quality higher education institutions. Specifically, “foreign higher education institutions investing in establishing branches in Vietnam must be legally established and operating abroad, belonging to the group of 500 higher education institutions ranked highest in the world's prestigious higher education institution rankings in one of the three most recent years; branches of foreign higher education institutions in Vietnam must operate according to the training and accreditation standards of the foreign higher education institution that established the branch (however, the conditions on facilities and lecturer standards must not be lower than the regulations for Vietnamese educational institutions)”.
Regulations on investment roadmaps according to progress to suit the reality when educational institutions are newly established and the number of students is still small, ensuring efficiency and creating favorable conditions for investors. Specifically, "by the time of appraisal to allow educational activities, the investment value must be implemented at over 50% of the total investment capital and the investor must commit to investing enough capital within 05 years from the date of the decision to allow operations".
The quality of foreign preschool and general education programs taught in Vietnam is also mentioned as "foreign preschool and general education programs, if implemented in Vietnam, must be recognized or quality-assessed by competent foreign educational agencies and organizations, must be directly taught for at least 05 years abroad and must ensure educational objectives consistent with Vietnam's educational objectives".
In order to contribute to enhancing the proactive role and strengthening the management and responsibility of localities in foreign cooperation and investment in the education sector, the Decree also adds the provision: “People’s Committees of provinces and centrally run cities, within the scope and authority assigned, are responsible for managing, inspecting, examining, and evaluating the results of cooperation and investment activities in the education sector; resolving complaints, denunciations, rewarding and handling violations according to their authority in this field at the local level”. In addition, the Decree also adds provisions on the form of online submission and reporting, provisions on the exploitation and sharing of common data between state management agencies; provisions on the responsibility to publicize to students, parents and society about educational institutions; provisions on the proper name of foreign-invested educational institutions must be clear, transparent, and not cause misunderstanding about the organization and content of the school’s activities.
Advantages and challenges from the Decree
Advantages
(1) Promoting transparency and stability: Decree No. 124/2024/ND-CP has amended and simplified 14/21 forms in Decree No. 86/2018/ND-CP. Using online public services to submit documents and reduce cumbersome procedures creates conditions and helps investors save time and reduce costs when performing administrative procedures, contributing to implementing the Government's guiding viewpoint of creating all favorable conditions for businesses and people to participate in business activities; cutting and simplifying unnecessary, unreasonable, illegal regulations that are barriers and cause difficulties for business activities of businesses and people; ensuring publicity and transparency; strongly improving the investment and business environment, enhancing national competitiveness.
(2) Expanding the scope of international cooperation: Encourage integrated training links between Vietnam and countries with developed education systems, attract foreign universities to establish branches in Vietnam or allow international certification organizations to expand their operations such as the British Council, IDP Education and ETS.
(3) Consistent education quality: Clear regulations on integrated programs must ensure that students are not overloaded and that they are connected to different levels of education, creating a sustainable educational foundation. In addition, branches of foreign higher education institutions in Vietnam must meet international quality assessment standards. This both creates trust for learners and enhances the reputation of the Vietnamese education system in the international arena.
Challenges: Despite many advantages, strict requirements on investment capital and quality assessment may limit some small investors. In addition, management and ensuring transparency in the implementation process are still issues that local agencies need to focus on.
Da Nang - An ideal destination for educational investment
Resolution 43-NQ/TW on the construction and development of Da Nang city to 2030, with a vision to 2045, mentioned developing Da Nang city as one of the high-quality education and training centers of the key economic region of the Central - Central Highlands. The city itself also has great potential for education and training development.
Strategic location and connecting infrastructure
Da Nang is located in the center of Vietnam, a bridge between the North and the South and an international trade gateway through the largest seaport in the Central region. The city also owns Da Nang International Airport, a destination for many international tourists. In 2024, the total number of passengers arriving through Da Nang airport is estimated to reach 13.4 million, with Terminal T2 alone welcoming nearly 2.9 million passengers from 11 countries on more than 17,600 flights (Da Nang International Airport). With convenient connections to major educational centers in the Asian region such as Singapore, Korea and Japan, Da Nang has ideal conditions to attract international educational projects.
Duy Tan University in Da Nang is the first private university in Central Vietnam (Photo: Internet)
Potential market
The demand for high-quality international standard programs is increasing, not only from parents and students in Da Nang but also from neighboring provinces, as well as the foreign community and businessmen coming to the city to work and settle down permanently. With a population of more than 1.2 million people and a growth rate of 2.22% per year (General Statistics Office), it is forecasted that by 2030, Da Nang's population will reach more than 1.5 million. The number of students from kindergarten to high school will exceed 270,000, of which primary school accounts for nearly 110,000 students (40%) (Da Nang Newspaper). At the same time, the number of foreigners coming to live and work in the city is increasing, leading to a significant increase in the demand for education for their children. This creates many attractive opportunities for investors in the field of education and training. Many investors have come to Da Nang to establish high-quality international schools, integrating bilingualism, meeting the demand for learning according to global standards such as APU American International School, SIS Singapore International School, Greenwich University, etc.
APU American International School is one of the major investors in the education sector in Da Nang (Photo: Internet)
Investment support policy
The city government is always committed to improving the investment and business environment; implementing many programs to support businesses and investors in the process of establishing and expanding projects in the city in all fields; and consistently implementing preferential policies for investors in the education sector, in accordance with Decree 124/2024/ND-CP. To improve support, the one-stop service at the Da Nang Investment Promotion and Support Board is always ready to receive investment proposals, providing support services such as surveying investment locations, consulting on investment procedures and processes, connecting cooperation... for investors.
Opportunities for Da Nang from Decree 124/2024/ND-CP
Decree 124/2024/ND-CP creates many favorable opportunities for Da Nang to attract investment in the education sector based on existing conditions.
Developing international university branches
Da Nang can take advantage of the Decree's incentive provisions to invite the world's leading universities to open branches in the city.
Linking to organize international exams and issue international certificates
With the booming demand for learning foreign languages and taking international certificates, the Decree encourages linking to organize exams and issue international foreign language proficiency certificates, creating opportunities for Da Nang to become the IELTS, TOEFL, SAT testing center of the Central region.
Implementing integrated education
Da Nang can strongly develop an integrated international and Vietnamese education model to serve multinational students. With the increasing number of expatriates living in Da Nang, the demand for international education programs is increasing.
Developing services accompanying education and training
In addition to training facilities and schools, the city has opportunities to attract investment in supporting services such as student and lecturer housing, research centers, experiments, practices, etc.
Da Nang City needs to take specific actions to take advantage of its internal strengths and benefits from Resolution 124
In the coming time, the city can consider and research:
(1) Develop a promotion strategy: Organize seminars to promote international education investment, introduce Da Nang's potential and support policies; develop promotional materials, emphasizing the city's strategic location, modern infrastructure and investment incentives.
(2) Optimizing planning: Planning more land funds dedicated to education, while providing convenient transport infrastructure connections.
(3) Improving the quality of human resources: Cooperating with universities and international organizations to train teachers and educational managers to international standards; building research and innovation centers in Da Nang to serve education and research.
(4) Legal and financial support: The city government continues to simplify and shorten licensing procedures, and consider lending initial financial support for projects.
(5) Investment linkage: Encourage foreign investors to cooperate with domestic investors to build infrastructure, thereby minimizing risks for foreign investors.
(6) Building an educational ecosystem: In addition to schools, Da Nang needs to develop ancillary services such as dormitories, research centers, modern libraries and other support services to attract students.
Decree 124/2024/ND-CP not only brings great opportunities to the education sector in Vietnam but also puts Da Nang in a pioneering position in attracting international investment. With careful preparation and a reasonable implementation strategy, the city can become an international education center in the Central region, contributing to improving the quality of human resources and promoting sustainable socio-economic development. Da Nang, with all its available advantages, is ready to welcome a strong wave of investment in the education sector, affirming its position as one of the ideal destinations for high-quality education, a "knowledge destination" in Vietnam and the region.
IPA Da Nang
