Investors in international schools in Vietnam face a significant framework change: the Ministry of Education and Training has published a draft decree on cooperation and investment with foreign partners in education for public consultation. Once issued, it will replace Decree 86/2018/ND-CP (as amended by Decree 124/2024/ND-CP). This article analyses the draft’s most notable changes and what investors should prepare now — noting that a draft is not yet law in force at the time of writing.
The current framework and where the draft sits
Foreign investment in education is currently governed by Decree 86/2018/ND-CP: foreign-invested institutions must meet minimum investment capital by education level, foreign curricula require appraisal, and the share of Vietnamese students in foreign programmes is capped by level. The new draft, built to implement Resolution 71-NQ/TW, moves toward simpler procedures, stronger decentralisation and a shift from pre-approval to post-inspection, while tightening disclosure duties and learner protection.
Three headline changes
First, for preschool and general education the draft systematises three linkage forms: delivering the Vietnamese programme to a higher quality target; delivering an integrated Vietnamese-foreign programme; and delivering a foreign programme. Linkage at public institutions must not displace their assigned public-education mission or the compulsory curriculum. Second, the draft proposes removing the cap on Vietnamese students in foreign programmes at upper-secondary level — the single biggest constraint on the international-school model — provided students still complete the subjects compulsory under Vietnamese law. Third, an integrated programme already appraised and approved by one provincial Department of Education and Training may be reused by another institution without fresh appraisal if its content is unchanged, materially shortening launch timelines.
Practical impact and preparation
For schools operating under Decree 86/2018/ND-CP, the draft creates no immediate entitlements: current conditions continue to apply until the new decree is issued and takes effect. Enrolment planning, integrated-programme design and Vietnamese-student growth plans should nevertheless be modelled under both scenarios. New-project investors should watch the ‘between two frameworks’ risk: filings made under the old rules but operations under the new ones, especially on tuition disclosure, foreign-teacher conditions and post-inspection — stronger post-checks mean regulators can inspect and suspend linkage activities after launch if violations surface.
Recommendations
Track the drafting process on the Ministry’s portal, audit current charters and linkage contracts to identify clauses that will need amendment once the new framework takes effect, and avoid long-term enrolment commitments premised on benefits that exist only in the draft. When the decree is officially issued, review the full text — above all the transitional provisions for operating institutions — before adjusting investment plans.
Frequently Asked Questions
How does the draft change capital and facility conditions?
The draft favours simpler procedures, more institutional autonomy and post-inspection over pre-approval; the specific capital and facility conditions must await the issued text. At the time of writing, the minimum-capital conditions of Decree 86/2018/ND-CP still govern new filings.
What is new on foreign programmes and teachers?
The draft systematises three linkage forms for preschool and general education and lets an integrated programme approved by one provincial department be reused without re-appraisal if unchanged. Teacher requirements and quality disclosure remain oriented to learner protection; details await the official text.
Will the Vietnamese-student ratio still be capped?
Under the draft, the cap on Vietnamese students in foreign programmes at upper-secondary level would be removed — the change international-school investors have awaited most. Vietnamese students must still take the subjects compulsory under Vietnamese law. This is draft content only and is not yet in force.
What is the expected timeline?
The Ministry published the draft for consultation from September; the issuance and effective dates were not yet fixed at the time of writing. Investors should plan under both scenarios and monitor the transitional provisions of the final text.
This article has been quality-reviewed by the FLAW AI Legal Council