Instructions for establishing a short-term training and fostering company in Vietnam

Article overview

Establishing a short-term training and fostering company in Vietnam offers attractive business opportunities in the context of the increasing need to improve workers’ skills and knowledge. With the rapid development of occupations and skill requirements, short-term training programs have become an effective choice for individuals and businesses. In the following article, Long Phan will provide detailed instructions on the process of establishing a short-term training facility. Please refer!

 Establishing a short-term training and fostering company in Vietnam
Establishing a short-term training and fostering company in Vietnam

What is a short-term training and refresher facility?

Short-term training and retraining establishments are educational organizations that provide short-term courses in foreign languages, information technology, skills and professional expertise. These establishments can be established by domestic or foreign organizations in Vietnam. Operations of short-term training and fostering facilities are governed by the Law on Education 2019 and related legal documents.

According to Clause 2, Article 2 of Decree 86/2018/ND-CP, short-term training and refresher training facilities include:

  • Foreign language center
  • Information center
  • Skills training center
  • Professional training center
  • Training facilities established by diplomatic agencies and international organizations

These establishments need to meet the conditions of facilities, training programs, and teaching staff according to regulations. Training time at these facilities is usually short-term, from a few weeks to a few months. The goal is to provide specialized knowledge and skills for learners.

What conditions do foreign investors have?

Foreign investors who want to establish short-term training and fostering company in Vietnam need to meet the following conditions:

According to Vietnam’s Schedule of Commitments in the WTO, the field of adult education services (CPC 924) is freely open. Investors from WTO member countries are allowed to contribute 100% capital when establishing a short-term training and fostering company in Vietnam. Decree 86/2018/ND-CP also confirms that foreign investors are not limited in capital contribution ratio in this field.

However, foreign investors must comply with the provisions of Vietnamese law, specifically:

  • Have enough investment capital according to regulations
  • Meet requirements for facilities and equipment
  • Have a suitable training program
  • There is a team of qualified teachers
  • Develop regulations on organization and operation of educational institutions

In addition, according to the Law on Investment 2020, foreign investors need to meet the conditions of financial capacity and management experience. The licensing agency will review the feasibility and effectiveness of the investment project before issuing a certificate.

 Conditions of foreign investors
Conditions of foreign investors

Procedures for establishing short-term training and fostering company with foreign investment

Conditions for operating a short-term training facility

  • Investment registration certificate and business registration certificate for short-term training and retraining establishments with foreign investment
  • Meet the conditions for investment capital, facilities, equipment, educational programs, and teaching staff specified in Articles 35, 36, 37, 38, 39 of Decree No. 86/2018/ND -CP.

Establishment sequence

Pursuant to Clause 1, Article 31 of Decree 86/2018/ND-CP, the process of establishing a short-term training and fostering company with foreign investment includes 2 main steps:

Step 1: Issue investment registration certificate

  • The investor submits an application for an investment registration certificate at the Department of Planning and Investment.
  • The Department of Planning and Investment reviews the dossier and gets appraisal opinions from the Department of Education and Training.
  • If all conditions are met, the Department of Planning and Investment issues an investment registration certificate for the project.

Processing time: 15 working days from the date of receipt of complete and valid documents.

Step 2: Issue a decision to allow educational activities and notify on the licensing agency’s website

  • After obtaining the investment registration certificate, the investor submits an application for permission to operate educational activities at the Department of Education and Training.
  • The Department of Education and Training evaluates documents and checks the actual operating conditions of the facility.
  • If the requirements are met, the Department of Education and Training issues a decision permitting educational activities.

Processing time: 20 working days from the date of receipt of complete and valid documents.

After the decision to allow operation, information about the training facility will be posted on the website of the Department of Education and Training.

Establishment order and procedures
Establishment order and procedures

Application dossier for issuance of investment certificate for short-term training and fostering company

According to Clause 2, Article 46 of Decree 86/2018/ND-CP to be granted an investment certificate, investors need to prepare documents including the following documents:

  • Application for registration of educational activities according to Model number 16;
  • Certified copy or copy with the original for comparison of the investment registration certificate and business registration certificate;
  • Regulations on the organization and operation of educational institutions;
  • Report on the progress of investment projects, capital contributions, loans, and total capital deployed;
  • Report explaining that the educational institution has met the conditions specified in Articles 35, 36, 37 and 38 of this Decree, accompanied by relevant documents.

Long Phan Services advises and supports the establishment of a short-term training and fostering company in Vietnam

To support the process of establishing a short-term training and fostering company in Vietnam, Long Phan provides the following consulting and support services:

  • Consulting on regulations and legal requirements for the establishment of short-term training facilities with domestic and foreign investment.
  • Support customers in drafting and preparing registration documents;
  • Customer representative submits registration application to competent authority;
  • Consulting on developing regulations on the organization and operation of educational institutions in accordance with the law, ensuring legal and effective operation;
  • Support in preparing project progress reports, capital contribution status, loan status, and other related requirements.
  • Consulting on other related issues.

Long Phan’s consulting and support services provide investors with a process to establish a short-term training and fostering company in Vietnam quickly, accurately and ensure full compliance with legal regulations. Customers who need detailed and dedicated support, please contact Long Phan via hotline 0906735386. We are always ready to advise and accompany you in every step of development.