Home Blog What to Know about Foreign Investment in Vocational Institutions in Vietnam Uncategorized What to Know about Foreign Investment in Vocational Institutions in Vietnam InCorp Editorial Team 23 October 2019 4 minutes reading time Table of Contents Capital of Investment Size of Establishment Representative Office in Vietnam Branches in Vietnam Training Modules Start Your Business in the Vocational Education Sector with Assistance from Cekindo Decree No. 15/2019/ND-CP or Decree 15 was announced effective on March 20, 2019 by the government regarding foreign investment in the vocational education sector in Vietnam. This recently issued regulation has introduced new requirements for foreign investors with detailed instructions on Vocational Education and Training (LOVET). This regulation is expected to bring in more foreign investments in vocational education institutions. Previously without Decree 15, foreign investments in vocational education sector were not easy due to the lack of regulations laying out conditions on foreign-invested vocational training institutions in Vietnam. In Decree 15, the new conditions for foreign investors consist of investment capital size of establishment size, training modules, and representative offices or branches setup. In this article, you will learn more about Decree 15 and how you can invest in vocational education sector in Vietnam. Capital of Investment VND 5 billion (~US$217,000) is the minimum amount in order for a foreigner to start a vocational training center. The minimum investment capitals are different for a secondary vocational institution and vocational college: they are VND 50 billion (~US$ 2.1 million) and VND 100 billion (~US$4.2 million) respectively. Size of Establishment Decree 15 stated that in order to set up a basic vocational training center, a foreign investor must acquire a land with a size of 1,000 square meters. For urban-area secondary vocational training centers, suburban schools or rural-area schools, a foreign investor needs at least 10,000 square meters of land (urban areas) and 20,000 square meters of land (suburbs and rural areas). For urban-area and non-urban area vocational college, lands with 20,000 square meters (urban areas) and 40,000 square meters (non-urban areas) are compulsory. Representative Office in Vietnam Decree 15 allows foreign vocational educational institutions to set up representative offices to enhance the collaboration between foreign institutions and Vietnamese partners. Through the partnership, they can organise seminars and provide counseling services. However, a representative office is prohibited to participate in profit-generating commercial activities. It is also not allowed to open branches in Vietnam. The requirements for a foreign institution to open a representative in Vietnam are as follows: It has a legal entity status overseas It must have already operated for no fewer than five years in its own country abroad Related article: Restrictions for Representative Office in Vietnam Branches in Vietnam A new branch of a foreign-invested secondary vocational school or college is possible when investors fulfill the below conditions: The investor has a detailed development plan indicating why the new branch or campus is necessary The plan must also include the name, the entity’s scope, and detailed training subjects and fields Investors have to provide a minimum 5-year lease agreement of the infrastructure and facilities The capital of investment capital is 25% of the minimum capital requirement for establishing a vocational training institution Training Modules The training modules should comply with Article 34 in the Vocational Training Law and must include all the compulsory subjects. Contents that threaten public interest or national defense, misinterpret history of the country, publicise religions, or impair customs, ethics and culture are strictly prohibited. Start Your Business in the Vocational Education Sector with Assistance from Cekindo Cekindo is a professional business consulting company that can help smoothen your entrepreneurial journey in vocational education sector in Vietnam. Our experts will guide you through the business setup by providing their know-how to make the entire process much easier for you: Give advice on the ideal type of legal entity Provide accurate instructions on documents preparation and submission Submit the application on your behalf Offer legal assistance Apply for relevant business licenses and work permits Contact Cekindo now to be part of the booming economy in the heart of Southeast Asia. Start by filling in the form below and reap the benefits of foreign investment in Vietnam. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Should a foreigner deposit the minimum paid-up capital in a bank account to start a business in Indonesia? It is advisable to make a minimum paid-up capital deposit after the company completes its establishment process. Another option is after the company receives the Articles of Association and Deed of Establishment. What is a PT PMA? Limited liability company with foreign direct investment ranging from 1-100% What is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two What other things should be considered when hiring local and foreign employees in Indonesia? There are a few things to consider, such as: Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates Increase the competence of workers by giving or encouraging job training. Follow the termination procedures (Terminating an employee in Indonesia can be long, tedious, and expensive. Observe working hours, holidays, and overtime regulations Give mandatory employee benefits, including social security and health insurance Withhold only the right amount of income tax on behalf of the employees Follow the wages and other benefits outlined by the law Process work permits for foreign employees Get in touch with us. Lead Form Notify Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized Alexandrino Pais Read more Mandatory Use of Indonesian Language in Business Environment Read more How can Women Benefit from Coworking Spaces in Indonesia? Read more