The Government of Vietnam’s Decree 15/2019/ND-CP dated 1 February 2019 detailing the regulations and measures for implementing the Law on Vocational Education (“Decree 15”) replaces Decree 48/2015/ND-CP detailing the regulations for the Law on Vocational Education (“Decree 48”). Decree 15 took effect on 20 March 2019 and introduces major differences with the requirements previously required under Decree 48.
MAJOR AMENDMENTS IN CONDITIONS TO ESTABLISH A VOCATIONAL EDUCATION INSTITUTION (“VEI”) WITH FOREIGN INVESTED CAPITAL (“FIC”)
The financial conditions as well as the conditions of minimum site size are two of the major changes which have been amended to facilitate the investment as follows:
(a) A Vocational Education Centre must be a minimum of 1,000 square metres; or
(b) An intermediate level school must be a minimum of 10,000 square metres in urban areas and 20,000 square metres in non-urban areas; or
(c) A college must be a minimum of 20,000 square metres in urban areas and 40,000 square metres in non-urban areas.
(a) A minimum 5 billion VND for a vocational education centre;
(b) A minimum 50 billion VND for an intermediate level school;
(c) A minimum 100 billion VND for a college.
In addition, the regulatory timeline to issue decisions on establishment of the VEI and the operational term have also been amended as follows:
CONDITIONS FOR ESTABLISHMENT OR TERMINATION OF OPERATION OF A REPRESENTATIVE OFFICE OF A FOREIGN VOCATIONAL EDUCATION ORGANIZATION OR INSTITUTION IN VIETNAM (“VEO”)
The applicant for establishment of a representative office of a VEO is subject to the following minimum requirements:
The term of an operational license of a VEO’s representative office in Vietnam shall not exceed 5 years as from the date of the decision permitting establishment. Such license may be extended for a term not exceeding 3 years. If the license is reissued, then the term shall not exceed the term of the previously issued license.
The regulatory timeline for the issuance of the license for establishment of a representative office in Vietnam is 20 working days from the date of receipt of a complete and valid application dossier.
NEW REGULATIONS FOR VEI WITH FIC OPERATING FOR NON-PROFIT PURPOSES
Decree 15 now stipulates conditions for establishment of a VEI with FIC, which was not previously regulated under Decree 48. The conditions for determining whether a VEI with FIC operates for non-profit purposes are as follows:
The competent authorities are responsible for assessing the grounds for whether or not a VEI with FIC implements its commitment to operate for non-profit purposes through review of the annual financial statements and periodical audit reports submitted by the VEI with FIC. It is not clear from the wording of Decree 15 who is given authority to conduct such a review.
The regulatory timeline for establishment of a new VEI with FIC to operate for non-profit purposes is 28 working days from the date of receipt of a complete and valid application dossier.
The regulatory timeline for recognition of a VEI with FIC to convert to a non-profit operation is 20 working days from the date of receipt of a complete and valid application dossier.
The information provided in this article is for information purposes only and is not intended to constitute legal advice should be obtained from qualified legal counsel for all specific situations.
Partner; Managing Director
Partner; Head of the Hanoi Office