The problem: investors eyeing Vietnamese education get lost in a maze of legal texts: which law is in force, which school levels allow foreign capital, where to apply? Quick answer: the current framework rests on the Education Law 43/2019 (amended by Law 123/2025, effective 1 January 2026), Decree 86/2018 on foreign cooperation and investment in education, and the new Decree 361/2026 (effective 17 September 2026) tightening conditions for vocational and higher education. Master these three and you hold 80% of the map.
Layer 1 — The Education Law: the standing umbrella
The Education Law 43/2019/QH14 (effective 1 July 2020) remains the root law for the national education system — still in force as of October 2026, but amended by Law 123/2025/QH15 (effective 1 January 2026). Always use consolidated text 72/VBHN-VPQH 2026 instead of the original 2019 law — many provisions on competence and procedures changed under the two-tier local government model.
Layer 2 — Decree 86/2018: the foreign-capital gateway
Decree 86/2018/ND-CP is the pivotal text for all foreign cooperation and investment in education: establishing foreign-invested schools, joint training, foreign programs. It was amended by Decree 124/2024/ND-CP (effective 20 November 2024) — use consolidated text 09/VBHN-BGDDT 2024.
The point investors often miss: part of Decree 86/2018 has been replaced — provisions on foreign-invested higher education institutions and foreign university branch campuses now fall under Decree 361/2026/ND-CP.
Layer 3 — Decree 361/2026: new rules for vocational and university levels
Decree 361/2026/ND-CP (issued 17 September 2026, effective from signing) governs investment conditions and operations in vocational education, higher education, and education quality accreditation. Numbers investors must remember:
- New universities: minimum 5 ha of head-office land; actual invested capital (accepted, audited/valued) of at least VND 300 billion for private institutions.
- Vocational schools: minimum 0.5 ha (vocational secondary/intermediate schools), 1 ha (colleges); college investment capital from VND 30 billion.
- FDI private universities: may lease stable, continuous facilities with each lease cycle of at least 05 years.
School levels and investment forms
- Preschool, general education: foreign investors may establish international and bilingual schools under Decree 86/2018 (capital, facilities, curriculum, staffing conditions).
- Vocational education: Vocational Education Law 124/2025/QH15 (effective 1 January 2026, replacing Law 74/2014) + Decree 361/2026 conditions.
- Higher education: new-establishment conditions under Decree 361/2026 (5 ha, VND 300 billion) — a materially higher capital bar than before.
- Language/IT centers, study-abroad consulting: conditions under Decree 46/2017/ND-CP (study-abroad consulting deposit: VND 500 million).
Practical roadmap for new investors
Step 1: define the level and model (100% foreign-invested school, joint venture, or partnership). Step 2: check conditions under the correct current text (not partially replaced ones). Step 3: prepare filings for policy approval, establishment, and operation licensing — each level has different licensing authorities. Step 4: in parallel, prepare land, facilities, and staffing (notably, foreign teachers need work permits under Decree 219/2025).
Frequently Asked Questions
1. What licenses does opening a school in Vietnam require?
Depending on level: establishment policy/approval decisions, education operation licenses, plus land, construction, and fire-safety permits — each level with its own authorities and conditions.
2. Can foreign investors own schools in Vietnam?
Yes, as foreign-invested schools, joint training ventures, or foreign programs — under Decree 86/2018 (amended by 124/2024) and Decree 361/2026 (universities, vocational).
3. Which levels allow foreign investment?
Preschool, general (international schools), vocational, higher education, language/IT centers, study-abroad consulting — each with its own conditions, strictest for universities (5 ha, VND 300 billion under Decree 361/2026).
4. Which texts currently govern education investment?
Education Law 43/2019 (amended by Law 123/2025); Decree 86/2018 (amended by 124/2024); Decree 361/2026; Vocational Education Law 124/2025; Investment Law 143/2025.
5. What capital is needed for a new university?
Under Decree 361/2026: private institutions need accepted facilities worth at least VND 300 billion in actual investment at appraisal, plus minimum 5 ha of head-office land.
This article has been quality-reviewed by the FLAW AI Legal Council.
