Establishing a private university is the largest-scale education investment project — with an “entry ticket” of minimum investment capital of VND 1,000 billion and procedures that must go through the Prime Minister. Since 20/11/2024, university establishment conditions have been uniformly governed by Decree 125/2024/ND-CP (replacing Decrees 46/2017/ND-CP and 135/2018/ND-CP), on the foundation of the Law on Higher Education 2025 (125/2025/QH15, effective 1 January 2026; replacing the Law on Higher Education 2012).
This article analyzes the investment capital conditions, land requirements and procedures for establishing a private university under current law.
1. Four university establishment conditions (Article 94, Decree 125/2024/ND-CP)
Condition 1 — Planning conformity: a university establishment project consistent with the approved network planning of higher education and teacher-training institutions. A proposal contradicting the planning is rejected at the policy appraisal stage — the first “test” many projects fail.
Condition 2 — Local approval: written approval from the provincial Peoples Committee of the province/city where the university will be headquartered, plus confirmation of land use rights.
Condition 3 — Land: construction land at the head office of at least 05 hectares; the site must ensure an educational environment and safety for learners and teachers; it must not be near polluting, toxic, fire- or explosion-prone facilities, nor in hazardous warning zones.
Condition 4 — Investment capital (private universities): investment capital of at least VND 1,000 billion, excluding the value of land for university construction. Capital is determined by cash and prepared assets, confirmed in writing by the competent authority. Critically: by the time of the establishment-permission appraisal, over VND 500 billion of investment must have been disbursed — investors must prove actual disbursement of more than half.
2. Understanding the “VND 1,000 billion” correctly
- This is the investment capital of the university establishment project, not the charter capital of a company — do not confuse the two;
- Land value is excluded from the VND 1,000 billion, even if the investor owns land worth thousands of billions;
- The “over VND 500 billion disbursed” requirement at appraisal means paper commitments are not enough — there must be real disbursement and formed assets.
3. The three-step procedure
Step 1 — Policy and site: the investor prepares the establishment proposal, works with the provincial Peoples Committee for site approval and land use rights confirmation, ensuring conformity with network planning.
Step 2 — Establishment permission: under Article 11(4) of the Law on Higher Education 2025 (referring to the Law on Education 2019 — Article 52(1)(e)), the Prime Minister decides on permitting the establishment of a private university, based on appraisal by the Ministry of Education and Training of the conditions (including capital appraisal).
Step 3 — Training operation permission: after establishment permission and completion of facilities, faculty, and programs, the Minister of Education and Training decides on permitting training operations. The university may enroll students only after this decision.
The three steps are three independent decisions — holding an establishment permission without the training operation permission still does not allow enrollment.
4. Common investor mistakes
- Counting land value into the VND 1,000 billion — the law excludes it, leaving the dossier short of capital;
- Confusing “establishment permission” with “training operation permission” — enrolling before the Ministers decision is a violation;
- Citing Decree 46/2017/ND-CP as current authority — expired since 20/11/2024;
- Ignoring network planning conditions — proposing training disciplines absent from the approved planning.
5. Frequently asked questions
Q: May foreign organizations or individuals establish a university in Vietnam?
A: The law permits foreign-invested higher education institutions; establishment permission authority also rests with the Prime Minister, subject to investment and education law conditions.
Q: After establishment permission, how long before applying for training operation permission?
A: The law sets no hard deadline, but a university may enroll only after the training operation decision. Investors must complete facilities, qualified faculty (meeting Law on Higher Education 2025 standards) and programs for inspection and recognition.
Q: May a private university set its own tuition?
A: Yes. Like private general schools, private universities proactively set tuition under Decree 238/2025/ND-CP, with annual increases capped at 15% and disclosure and accountability duties.
Preparing a university establishment project and need a legal appraisal of the proposal? 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.
