In Vietnam, English has become the key second language, fueled by rapid international integration and growing demand for English education. With Vietnam in a Golden Population Structure Period, a significant labor force needs English proficiency to improve job prospects. As a result, parents are actively seeking English training centers for their children, while adults are keen to improve their language skills.
This presents a fantastic opportunity for entrepreneurs to establish an English center and tap into Vietnam’s booming education sector. This article will help you establish an English training center by outlining the necessary requirements and permits.
How to Open an English Training Center in Vietnam: Step-by-Step Guide
Opening an English training center involves several essential steps to ensure compliance and success.
First, register a business entity, like a corporation, and obtain the necessary business code for your license. The Department of Planning and Investment (DPI) must approve this registration.
Next, apply for a license from the Department of Education called the Certificate of Registration for Opening a Foreign Language Center. Once you receive this license, your English training center can officially begin operations.
The following will describe more detail about each step:
Step 1: Establishing an English Training Center in Vietnam
To successfully operate a foreign language or English training center, obtaining the necessary licenses is crucial. You’ll need to secure two key licenses: the Investment Registration Certificate (IRC) and the Business Registration Certificate (BRC). Additionally, it’s important to ensure that your company’s IRC includes the specific business codes CPC-929 and VSIC-8559.
The WTO’s Commitment fully covers the Educational Service Business, welcoming 100% international investment in this valuable sector.However, if you’re considering starting a foreign language center, it’s important to note that it operates as a conditional business. To ensure success, you must meet the detailed requirements outlined below.
Investment Capital for English Language Centers: Key Requirements
When it comes to establishing an English language center in Vietnam, it’s vital to understand the investment capital requirements. These centers are categorized as short-term language training institutions and must comply with specific financial guidelines.
The minimum investment capital is set at VND 20 million (approximately USD 1,000) per student. This amount reflects the highest expected scale of operations. If you decide to partner with an existing Vietnamese company that already has the necessary physical infrastructure, such as offices and classrooms, your initial investment can be reduced. In this scenario, you only need to register a minimum of 70% of the required capital, which translates to VND 14 million (around USD 700) per student.
For instance, if your center has a 10 square meter classroom accommodating 4 students, the total minimum capital required—according to the law—would be VND 80 million (USD 3,200). However, if you collaborate with a Vietnamese company that provides the classroom, your capital contribution drops to just VND 56 million (approximately USD 2,240). This approach significantly lowers the financial burden compared to setting up the center independently.
Choosing a Business Address for Your English Center in Vietnam
When registering a business in Vietnam, having a suitable business address is essential. This address can be either virtual or physical, but for establishing an English language center, a physical address is mandatory—virtual offices are not permitted.
If you decide to lease an office or building, ensure that the learning and teaching areas comply with regulations: you must allocate at least 2.5 square meters per student. Additionally, it’s crucial to secure a leasing term of a minimum of five years for stability.
Your English center should also feature essential facilities, including:
- Board of directors’ rooms
- Administrative offices
- Classrooms
- Libraries
- Other functional areas
Moreover, adequate classroom lighting, furniture, equipment, and teaching aids are necessary to provide a conducive learning environment.
Keep these requirements in mind when searching for a location for your English center. We can assist you in finding suitable facilities and negotiating with landlords, saving you valuable time and resources.
Personnel Requirements for Foreign Firms in Vietnam
All companies operating in Vietnam must designate at least one legal representative. Fortunately, there are no special qualifications required for this role, which can be filled by either a Vietnamese national or a foreigner, including yourself. The legal representative needs to have a permanent address to be recognized as a citizen.
Qualifications for Trainers (Teachers)
For educational institutions, trainers must meet specific qualifications. All teaching staff should possess at least a college degree or its equivalent, along with training in a relevant teaching discipline. Additionally, English training facilities are required to maintain a trainer-to-trainee ratio of one teacher for every 25 students.
If you hire foreign teachers, it’s crucial to have their degrees recognized by the Ministry of Education and Training. Furthermore, you must secure a Work Permit for each foreign instructor.
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 to Open a Foreign Language Center
To apply for a sub-license, simply fill out the application form and submit it to the Department of Education. Following your submission, civil servants will conduct an inspection of your facility to ensure it meets the required standards. If your facility complies, you will receive a certificate, allowing your business to commence operations.
While the approval process and application typically take about a month, inspections may cause additional delays due to extra requests from the Government.
How Can Iris International Assist You?
Iris International is a leading business consulting and solution provider in Vietnam, ready to support your business journey in any direction. We specialize in helping firms with company incorporation and obtaining the necessary sub-licenses. Our team can assist you in finding ideal locations and facilities tailored to your business needs. Additionally, we can manage contract negotiations with lessors on your behalf.
Our Employer of Record (EOR) solution allows you to host your team, regardless of size or operational level, ensuring a seamless experience. With a commitment to being Vietnam’s most efficient and cost-effective business solution provider, Iris International has earned the trust of thousands of clients and partners over the years.
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