The process of establishing a foreign language center

(short-term training institution)

Foreign enterprises or foreign investors who want to conduct activities in the field of education, specifically establishing short-term training institutions, need to meet procedures as prescribed by law. current. The followings are the process and documents required to establish and operate a foreign-invested short-term training institution. We hope that the information we provide can be helpful to our readers.

The process of establishing a foreign language center

According to Article 31 of Decree 86/2018/ND-CP, The procedures for approving the establishment of short-term foreign-invested training institution shall be completed as follows:

• Issue investment registration certificate.
• Issue the license to provide education and post the decision on the licensing authority’s website.

Procedure for issuance of Investment Registration Certificate

According to Clause 2, Article 38 of the Law on Investment 2020 If the investment project is not subject to approval for its investment guidelines as prescribed in Article 30, Article 31, and Article 32 of this Law, the investor shall be issued with the investment registration certificate if the following conditions are met:

• The investment project does not involve any banned business line;
• There is a location for the execution of the investment project;
• The investment project is conformable with the planning specified in Point a Clause 3 Article 33 of this Law;
• The investment per m2 (or investment per employee) is not smaller than the minimum requirement.
• Market access conditions applied to foreign investors are satisfied.

Dossier of application for an Investment Registration Certificate

• An application form for execution of the investment project, including a commitment to incur all costs and risks if the project is not approved;
• A document about the investor’s legal status;
• Document(s) proving the financial capacity of the investor including at least one of the following documents: the investor’s financial statements for the last two years; commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;
• Proposal for the investment project including the following main contents: investor or method of investor selection, investment objectives, investment scale, investment capital and plan for raising capital, location, duration, and schedule of the investment project, information about the current use of land in the location of the project and proposed demand for land use (if any), demand for labor, proposal for investment incentives, impact and socio–economic efficiency of the project and preliminary assessment of environmental impact (if any) in accordance with regulations of law on environmental protection.

If the law on construction requires formulation of a pre-feasibility study report, the investor is entitled to submit the pre-feasibility study report instead of a proposal for the investment project;

• If the project does not require the State to allocate or lease out land or to permit land repurposing, a copy of the document regarding the land use rights or other document identifying the right to use the location for execution of the investment project is required to be submitted;
• Contents of the explanation for the technology to be used in the investment project if the project requires appraisal and collection of opinions on the technology in accordance with the Law on Technology Transfer;
• Other documents relating to the investment project, and requirements on the eligibility and capacity of the investor in accordance with regulations of law (if any).

(According to Clause 1, Article 33 of the Law on Investment 2020)

The power to issue investment registration certificates

According to Article 39 of the Law on Investment 2020

• Management boards of industrial parks, export-processing zones, hi-tech zones, and the economic zone shall issue, adjust and revoke investment registration certificates with regard to the investment projects located therein, except for the case specified in Clause 3 of this Article.
• Provincial Departments of Planning and Investment shall issue, adjust and revoke investment registration certificates with respect to the investment projects outside industrial parks, export-processing zones, hi-tech zones, and economic zones, except for the case in Clause 3 of this Article.
• The investment registration authority of the administrative division where the investor executes the investment project, places or intends to place the head office or operating office to execute the investment project shall issue, adjust and revoke investment registration certificates with respect to the following investment projects:
  • Investment projects that are executed in at least 02 provinces;
  • Investment projects that are executed both inside and outside industrial parks, export processing zones, hi-tech zones, and economic zones;
  • Investment projects which are executed inside industrial parks, export processing zones, hi-tech zones, or economic zones where the industrial park, export processing zone, hi-tech zone, or economic zone management boards have not yet been established or which are not under the management of the industrial park, export processing zone, hi-tech zone or economic zone management boards.

According to Clause 3, Article 34 of Decree 86/2018/ND-CP, As for the projects of investment in establishing short-term training institutions, preschool educational institutions, and compulsory educational institutions, the agency that issues the investment registration certificates shall get the appraisal documents from the Department of Education and Training.

Processing Time

15 days from the receipt of the investor’s application for an investment registration certificate with respect to the investment project (Point b, Clause 1, Article 38 of the Law on Investment 2020).

The process for the foreign language center to conduct educational activities

According to Article 46 of Decree 86/2018/ND-CP

Profile composition

• An application form, using form No. 16 in the Appendix hereto;
• A certified true copy or a copy enclosed with an original of the decision on approving the establishment of the foreign-invested educational institutions; as for the short-term training institution, submit a certified true copy or a copy enclosed with an original of the investment registration certificate or the company registration certificate;
• Regulation on the organization and operation of the educational institution;
• Report on the progress of the project investment, capital contribution, capital loan, and the entire capital invested;
• The report on the fulfillment of the conditions in Articles 35, 36, 37, and 38 hereof, enclosed with:
  • A list of principals (director), deputy principal (deputy director), deans, department managers, and chief accountants. As for the application documents for licensing the operation of the branch campus of a higher educational institution, a list of persons in charge of the branch campus and its organizational structure is required;
  • A list of the employees, teachers, and lecturers (full-time or visiting lecturers) and their resumes;
  • A description of grades, training levels, and disciplines;
  • Programs, teaching plans, learning materials, lists of textbooks, and primary reference materials;
  • The subjects, regulations, and period of enrollment;
  • Training regulation;
  • Training scale (students);
  • Regulations on tuition fees and other relevant fees;
  • Regulations on inspection, assessment, and certification of the completion of the programs, modules, and grades;
  • The forms of qualifications are to be issued.

The implemented procedure

According to Article 48 of Decree 86/2018/ND-CP, The procedure includes the following steps:

• Step 1: The investor shall send 01 sets of application documents in person or by post to the Department of Education and Training;
• Step 2: Within 20 working days from the date on which the complete documents stipulated in Article 36 hereof are received, the receiving agency shall take charge and cooperate with the related agencies and units in appraising the required conditions and forward the documents to the competent authority for consideration and decision-making, using form No. 17 in the Appendix hereto.
  • If the documents are deemed incomplete, within 05 working days from the date on which the documents are received, the receiving agency shall send a written notification in person or by post to the investors.
  • In the case where the educational institutions do not satisfy the requirements for approving the operation, within 05 working days from the date the written opinions from the competent authority are received, the receiving agency shall provide an explanation in writing to the investors.

Authority to approve the educational provision

The Director of the Department of Education and Training.

(Point a, Clause 2, Article 47 of Decree 86/2018/ND-CP)