Short answer: From 1 July 2026, opening a driver training institution or driving test center is governed by Decree 94/2026/ND-CP — which fully replaced Decree 160/2024/ND-CP (Article 41). Highlights: significantly relaxed conditions, abolition of the simulation test, mandatory trainee digitalization, and training-vehicle licenses now issued by the Department of Construction.
1. Current legal basis: Decree 94/2026
Decree 94/2026/ND-CP on driver training and testing activities was issued 31 March 2026, effective 1 July 2026, and abolishes Decree 160/2024/ND-CP (Article 41). It has 5 chapters and 43 articles. The surrounding framework includes:
- The Law on Road Traffic Order and Safety 36/2024/QH15 (effective 1 January 2025) — the parent law;
- Circular 14/2025/TT-BXD on driver training (effective 1 September 2025, replacing Circular 35/2024/TT-BGTVT), amended by Circular 17/2026/TT-BXD (effective 1 July 2026); consolidated text 27/VBHN-BXD (2026).
Note: Decree 94/2026 does not apply to driver training/testing for the military and police forces performing national defense and security duties.
2. Opening a driver training institution: relaxed conditions
Head of the institution
Under Article 7 of Decree 94/2026, the head of a car driver training institution needs only a college diploma or higher — the previous requirement for a vocational-education management training certificate has been abolished.
Driving instructors
Under Article 10, the seniority requirement for instructors is gone: instructors no longer need 3 or 5 years of license-holding seniority depending on class. For theory instructors: law/automotive specialized training content must account for 30% or more for those trained in other majors.
Mandatory digitalization
A new technology mandate:
- Article 9(4): institutions must perform electronic identification and authentication of trainees and connect data via API to the national digital platform;
- Article 12(2): training certificates are issued as electronic versions integrated with VNeID.
Investors should build the IT infrastructure for this connectivity from day one to avoid costly retrofits.
Training-vehicle licenses: Department of Construction
Under Article 15, authority to issue training-vehicle licenses moved from the Department of Transport to the Department of Construction. File with the new authority — filing at the wrong office means a returned dossier.
3. Opening a test center: classification and authorized classes
Decree 94/2026 classifies driving test centers and sets which license classes each type may test. A notable change in Article 3: Class-2 driving test centers may test classes A1, A, B1, B, C1, C, and D1 — adding D1 compared to before.
This opens expansion opportunities for Class-2 centers, while also demanding capacity to organize testing for the new class.
4. Simulation test abolished from 1 July 2026
Under Article 24 of Decree 94/2026:
- The simulation test is removed from driving examinations;
- The requirement to equip simulation testing rooms/devices is removed for test centers.
Centers investing (or that have invested) in simulation rooms should revisit their equipment investment plans under the new rules.
5. Transitional provisions and detailed conditions
- Institutions licensed under Decree 160/2024 should review the implementation/transitional provisions in the full text of Decree 94/2026 to determine whether existing licenses remain recognized or must be re-filed.
- Detailed facility conditions (practice grounds, training vehicles, equipment) sit in the full text of Decree 94/2026 and Circular 14/2025/TT-BXD (as amended by Circular 17/2026) — consult the originals directly, not press summaries.
FAQ
Which decree governs opening a driving school now? Decree 94/2026/ND-CP, effective 1 July 2026, replacing Decree 160/2024/ND-CP. Anything citing Decree 160/2024 as current law is outdated.
Do driving instructors need seniority? No. Decree 94/2026 abolished the license-holding seniority requirement for instructors (Article 10).
Which authority issues training-vehicle licenses now? The Department of Construction (Article 15 of Decree 94/2026), no longer the Department of Transport.
Is the simulation test still required? No. From 1 July 2026, Decree 94/2026 abolishes the simulation test and the simulation-room equipment requirement (Article 24).
Legal sources
- Decree 94/2026/ND-CP (issued 31 March 2026, effective 1 July 2026) — Articles 3, 7, 9, 10, 12, 15, 24, 41.
- Law on Road Traffic Order and Safety 36/2024/QH15 (effective 1 January 2025).
- Circular 14/2025/TT-BXD (effective 1 September 2025); Circular 17/2026/TT-BXD (effective 1 July 2026); consolidated text 27/VBHN-BXD (2026).
See also: FLAT Law Firm’s [Corporate Legal Services](/en/corporate-legal-services-en/) updates on sectoral business conditions and sub-licenses.
Need help opening a driver training institution or test center? [Contact FLAT Law Firm](/en/contact/) for an assessment of conditions, dossiers, and a roadmap for your specific case.
Disclaimer: This article is for general information only and does not constitute legal advice for any specific case. Regulations may change; always verify against the original legal text in force at the time of application.
Transparency note: This article was reviewed for quality and legal accuracy by FLAT Law Firm’s AI Legal Council; it has not been reviewed or approved by a human lawyer of FLAT Law Firm.