“Private schools can charge whatever they want; the State does not regulate them” — this is a common misunderstanding, but it is equally wrong to say “private school tuition is capped by the State.” The truth lies in between: current law sets no absolute ceiling on private school tuition, but imposes very specific constraints on how schools set and adjust their fees. Since 03/9/2025, this framework has been governed by Decree 238/2025/ND-CP (fully replacing Decrees 81/2021/ND-CP and 97/2023/ND-CP).
This article clarifies who decides private school tuition and which legal limits schools must not cross.
1. Who decides private school tuition?
Under Article 7 of Decree 238/2025/ND-CP, non-public educational institutions may proactively set their tuition levels and prices of other education and training services (except services priced by the State). Organizationally, the level is decided by the school council (or the owner/investor under the school charter), based on the principals proposal.
The fundamental difference from public schools: public school tuition frameworks are decided by provincial Peoples Councils, while for private schools the school itself decides. The State does not approve each specific fee level of a private school.
2. Three legal constraints private schools must respect
Self-determination does not mean arbitrariness. The law sets three constraints:
Constraint 1 — Compliance with the Law on Prices 2023: fees must ensure cost recovery and reasonable accumulation. Unreasonable fees disproportionate to service quality may be inspected and sanctioned by price authorities.
Constraint 2 — Annual increase caps: when setting tuition roadmaps for subsequent years, schools must disclose them, and the annual increase must not exceed 10% for preschool and general education, and not exceed 15% for vocational and higher education. This is a “growth cap,” not an absolute ceiling — schools may raise tuition yearly, but not beyond these ratios.
Constraint 3 — Disclosure and accountability: schools must publicly disclose tuition for each school year and projections for the whole education level (under Circular 36/2017/TT-BGDDT), explain the price components, and answer to learners and society for the levels they set.
3. State-priced services — the exception to remember
A private schools right to self-determine does not cover services priced by the State. For example, when a private school supplies education services ordered by the State, that service price must follow the officially set price. Contracts with parents should clearly distinguish tuition (self-determined within the framework above) from other agreed services (boarding, school buses, extracurricular activities).
4. What can parents do about unreasonable tuition hikes?
- Check the public disclosure: did the school publish the years tuition and projections? Does the increase exceed 10% per year (for general education)?
- Review the education service contract: the signed contract is the direct legal basis; a unilateral increase beyond the commitment breaches the contract;
- Complain to the Department of Education and Training: if a school raises tuition beyond the permitted ratio or fails disclosure duties, parents may report it for inspection and handling.
5. Frequently asked questions
Q: May a private school collect a whole years tuition at once?
A: Yes, if agreed in the contract and proper invoices are used. However, advance collection does not change the disclosure duty or the annual increase cap.
Q: Is it a violation for an international school to charge tuition in USD?
A: Price listing and payment must follow foreign exchange regulations — in Vietnam, service prices must be listed in VND; payment in foreign currency is only permitted under foreign exchange law.
Q: Is Decree 81/2021/ND-CP still in force?
A: No. Decrees 81/2021/ND-CP and 97/2023/ND-CP have been fully replaced by Decree 238/2025/ND-CP since 03/9/2025. All tuition references should rely on the new instrument.
Does your school need a legally compliant tuition framework, or do you need advice on a tuition dispute? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. Content is pending QA Council review before submission for approval; information is for reference only and does not replace legal advice for your specific case.
