How to Set Up an English Training Center in Vietnam

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How to Set Up an English Training Center in Vietnam

In Vietnam, English is the most important second language. The country’s international integration accelerates, so does the demand for English learning.

Moreover, Vietnam is in the midst of the Golden Population Structure Period, which means that there is a large number of labor, and individuals who need to fluent in English to have a better chance of finding work. As a result, parents are seeking English training centers for their children, and adults are eager to improve their language skills. This is an incredible opportunity for you to create an English center and participate in Vietnam’s rapidly increasing business.

This article will explain how to create an English center, what the specific conditions are, and what permits are required.

STEPS TO OPEN AN ENGLISH TRAINING CENTER IN VIETNAM

To open an English training center, you must first register a business entity (a corporation) with the appropriate business code in your license. This is subject to approval by the Department of Planning and Investment (DPI).

The second stage is to apply for a specific license provided by the Department of Education known as a Certificate of registration for opening a foreign language center. After acquire this license, your business can officially starts its operation.

The following will describe more detail about each step:

STEP 1: HOW TO ESTABLISH AN ENGLISH TRAINING CENTER IN VIETNAM

To operate a foreign language or English training center, you must first obtain two licenses: the IRC (Investment Registration Certificate) and the BRC (Business Registration Certificate). In addition, your company’s IRC must include the business code CPC-929 and VSIC-8559.

The good thing is, the Educational Service Business is covered by the WTO’s Commitment. As a result, it is open to 100% international investment. However, because the foreign language center is a conditional business, you must complete the detailed requirements listed below.

The investment capital: English centers are classed as short-term language training and retraining institutions and must have at least the investment capital rate of VND 20 million (~USD 1,000) per student. The minimum investment capital is estimated based on the highest expected scale.

In the case where a foreign investor partners with an existing Vietnamese company that already has the physical infrastructure (offices, classrooms), your initial investment capital which you need to register can be minimum at 70% of the amount stated above – VND 20 million (~USD 1,000) per student.

For example, if you have a 10 square meter classroom with 4 students, the minimum capital contribution according to the law is VND 20 million (~USD 1,000) per student. This means the total minimum capital needed is VND 80 million. However, if you have established partnership with a Vietnamese company who has and provides the classroom, you only need to contribute 70% of that VND 80 million minimum. This means you would only need 56 million VND in capital contribution, which is much lower compared to establishing the center yourself.

The business address: When you register a business in Vietnam, you must have a business address where your company will be located. This address might be virtual or physical for many businesses. However, for an English center establishment, you must use a physical address (virtual office does not work).

If you lease an office or a building for your business, you must ensure that the area utilized for learning and teaching is at least 2.5 sqm per student and that you have a leasing term of minimum of 5 years.

Furthermore, your facilities must include spaces for the board of directors, leaders, classrooms, libraries, and other functional areas.

Finally, the institution must provide adequate classroom lighting, furniture, equipment, and teaching aids.

Keep in mind all above requirements when searching for a business location for your English center. The good thing is, we can assist you in finding suitable facilities and working with the lessor on your behalf to save both time and resources.

Personnel requirements: All firms in Vietnam must also have at least one legal representative. The good thing is that no special qualifications are required for this person. This position could be filled by a Vietnamese native or a foreigner (including you). They must, however, obtain a permanent address in order to be declared citizens. In any case, if you are not in Vietnam or do not have suitable personnel to be your legal representative. You can consider employing a VNBG director nominee for six months before sending your own candidate or hiring one of your own.

The Trainers (Teachers), on the other hand, must meet certain qualifications. All teaching employees must have a college degree or equivalent, as well as training in a discipline relevant to their designated teaching profession. The English training facility must maintain a trainer/trainee ratio of 01 teacher for maximum 25 students.

If you have foreign teachers teaching in your facilities, the Ministry of Education and Training must be acknowledged their degrees (qualifications) and you must obtain a Work Permit for them.

Last but not least, a processing time of typically three to four weeks elapses between the date of paper submission and the completion of the company’s registration. Even so, if the application is challenged or questioned regarding its practicality, a few extra weeks will be added until DPI’s concerns are addressed.

Know more from our channel for 10 steps to open and operate a business in Vietnam.

After you’ve registered your company, you’ll need to apply for the Certificate of registration for opening a foreign language center before your English center can officially operates.

STEP 2: APPLY FOR THE CERTIFICATE OF REGISTRATION FOR OPENING THE FOREIGN LANGUAGE CENTER

To apply for this sub-license, fill out an application form and submit it to the Department of Education. They will dispatch civil servants to inspect your facility to see if it meet the aforementioned standards. If the facility standards are met, you will be issued a certificate and your business will be able to begin operations.

The approval and completion of the application will take around a month, but in fact the inspection would result in much further delay due to the extra documentation and additional requests from the Government.

HOW CAN VNBG ASSIST YOU?

VNBG, being a top-tier business consultant and solution provider in Vietnam, can assist you in any business direction. We can assist you in incorporating your firm and obtaining the relevant sub-licenses. In addition, we can locate suitable locations and facilities that fulfill your company’s needs. You could also delegate to us the task of negotiating contracts with the lessor. Furthermore, we can provide our EOR solution to host your team at any size and level of operation.

VNBG is delighted to be Vietnam’s most efficient and cost-effective business solution provider. Thousands of clients and partners have placed their trust in us throughout the years.