Education is one of the sectors Vietnam has opened strongly to foreign investment (WTO commitments allow 100% foreign ownership since 2009). However, since 17 September 2026, the legal framework for investment conditions and education operations has fundamentally changed with Decree 360/2026/ND-CP. This guide covers the licenses needed to newly establish a foreign-invested kindergarten and a foreign-language center.
1. Applicable Legal Framework (in force as of 14 October 2026)
- Decree 360/2026/ND-CP (effective from signing, 17 September 2026) — conditions for investment and operation of preschool, general education, continuing education and other education establishments. It repeals Chapters II, III, IV, V and VIII of Decree 125/2024/ND-CP and the corresponding articles of Decree 86/2018/ND-CP (Articles 28, 31, 33–36, 38, 40–42, 45–51).
- Decree 86/2018/ND-CP — now only partially in force (remaining cooperation/investment framework).
- Investment Law 143/2025/QH15 (effective 1 March 2026) — replacing Investment Law 61/2020/QH14; governing IRC procedures.
Citation rule: for investment and operating conditions in preschool and continuing education, cite only Decree 360/2026 — not the repealed articles of Decrees 86/2018 or 125/2024.
Watch-out: Decree 360/2026 has been effective only since 17 September 2026 and is in a transition phase; local implementation guidance may continue to be issued.
2. The Two-Tier Licensing Sequence
Newly establishing a foreign-invested education establishment requires two tiers of licenses:
- Tier 1 — Investment Registration Certificate (IRC) under Investment Law 143/2025;
- Tier 2 — Decision permitting establishment and decision permitting educational operation under Decree 360/2026.
Transitional provision (Article 47, Decree 360/2026): establishments already established / permitted to be established / permitted to operate before 17 September 2026 do not need to redo procedures under the new decree.
3. Foreign-Invested Kindergarten (Article 9, Decree 360/2026)
Conditions for being permitted to conduct educational operations:
- Facilities: minimum facilities, toys, learning materials and teaching equipment per Ministry of Education and Training regulations. Private kindergartens must have a roadmap to secure minimum facilities matching their highest projected scale;
- Personnel: sufficient managers, teachers and support staff meeting job-position requirements;
- Financial resources (private schools): minimum investment of VND 30 million per child, excluding land-use costs, calculated at the highest projected scale. For schools that only lease existing facilities (no new construction): minimum investment of ≥ 70% of the above level.
Competent Authority
Under Article 4 of Decree 360/2026, the Chairperson of the commune-level People’s Committee decides on establishment/permission for establishment and educational operation licensing for kindergartens. This reflects strong decentralization to local government; investors should work with the competent local authority and consult the provincial Department of Education and Training on specific professional requirements.
4. Foreign-Invested Language Center (Article 39, Decree 360/2026)
A language center falls under “other centers performing continuing-education tasks” (Article 39(3)(a): foreign language, informatics, language-informatics, language-culture, life-skills centers, etc.). Three groups of conditions (Article 39(3)(b)):
- Location and facilities: classrooms and equipment meeting program requirements;
- Teaching and learning materials;
- Personnel: sufficient managers, teachers and staff meeting job-position requirements.
Dossier note: the establishment dossier accepts a facility lease contract of at least 3 years — convenient for investors not yet ready to invest in real estate.
5. Common Pitfalls and Recommendations
- Citing old texts: conditions under Decrees 86/2018 and 125/2024 have been repealed — dossiers and advice based on them will cite the wrong basis.
- Confusing the “VND 20 million per learner” figure: that belongs to the old framework; it does not apply unless found in Decree 360/2026.
- Overlooking the transition phase: the new decree has been effective for less than a month (as of 14 October 2026); local forms and detailed processes may not yet be synchronized — allow extra time.
- Lease shorter than 3 years for language centers: the dossier will not qualify for consideration.
6. Frequently Asked Questions
What foreign ownership ratio is allowed for kindergartens?
Under WTO commitments (CPC 929), Vietnam allows 100% foreign ownership in education since 2009.
What is the minimum investment for a private kindergarten?
VND 30 million per child (excluding land-use costs), calculated at the highest projected scale; 70% of that level if only leasing existing facilities (Article 9, Decree 360/2026).
Must a language center buy or build its premises?
No. The dossier accepts a facility lease contract of at least 3 years (Article 40(1), Decree 360/2026).
Do establishments operating before 17 September 2026 need re-licensing?
No. Article 47 of Decree 360/2026 provides that establishments already established/permitted before 17 September 2026 do not need to redo the procedures.
Who licenses a foreign-invested kindergarten?
Under Article 4 of Decree 360/2026, the Chairperson of the commune-level People’s Committee decides establishment and educational operation licensing for kindergartens. Investors should confirm coordination procedures with the local Department of Education and Training.
7. Legal Sources
- Decree 360/2026/ND-CP on investment and operating conditions in education (effective 17 September 2026).
- Investment Law 143/2025/QH15 (effective 1 March 2026).
Validity status checked on 14 October 2026 via vanban.chinhphu.vn and thuvienphapluat.vn.
Transparency Note
This article is for general reference only and does not constitute legal advice for your specific case. It has been quality-checked by FLAT’s AI Legal Council; it is not a conclusion reviewed by a licensed human lawyer.
Contact Us
Planning to invest in Vietnam’s education sector? Contact FLAT Law Firm for advice on investment structuring, IRC dossiers and establishment/operation licensing under Decree 360/2026.