Insight Hub

By LevelAdvise Legal Team | May 27th, 2025, Ho Chi Minh City​

 

Vietnam’s demand for English education continues to grow, especially in major cities like Ho Chi Minh City, Hanoi, and Da Nang. For foreigners looking to open an English center here, the opportunity is real—but so are the legal and procedural challenges.

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Here’s a detailed, step-by-step guide to help you understand what you need, how to set up, and where to go when launching your own English center in Vietnam.

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Step 1: Decide on Your Business Model

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As a foreigner, you can choose to:

• Start a 100% foreign-owned enterprise

• Enter a joint venture with a Vietnamese partner
   

Pros & Cons:

• 100% foreign-owned: Full control and independence, but often requires higher investment capital and stricter approval processes.

• Joint venture: Easier licensing if the local partner already holds an education license, but you’ll share control and profit.
   

 In practice, many foreigners opt for a joint venture to reduce complexity, especially during the licensing phase.

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Step 2: Choose the Right Business Line

 

Your company must register under the correct business line, which affects your ability to apply for an education license.

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Commonly used codes include:

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• P8559 – Other education not elsewhere classified, often used for foreign language training

• P8560 – Educational support activities
   

Important: This must be registered correctly in both your Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC).

 

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Step 3: Apply for the Investment Registration Certificate (IRC)

 

This is your first legal approval. The IRC is issued by the Department of Finance (DOF) and confirms that Vietnam approves your foreign investment.

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You’ll need to prepare:

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• Detailed business plan

• Information about your experience and qualifications in education (if any)

• Expected initial capital investment (although there's no official minimum, expect to declare around $20,000–$50,000)

• Office lease contract

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Processing time: Around 15 working days

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Step 4: Get the Enterprise Registration Certificate (ERC)

 

This step officially registers your company in Vietnam and allows you to operate legally as a business.

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Documents required include:

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• Company charter (similar to company bylaws)

• Office lease contract

• Details of legal representative (can be a foreigner or local)

• Capital contribution plan
   

After obtaining the ERC, you’ll also receive your tax code and be required to open a business bank account.

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Step 5: Apply for the Education Operation License

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This license is issued by the Department of Education and Training (DOET). It’s required before you begin offering courses or collecting tuition.

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Key requirements:

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• Facility standards: Classrooms of at least 1.5m² per student, properly equipped, with fire safety approval and a valid lease

• Curriculum: Must align with Vietnam’s educational standards; you can submit your own or use an approved curriculum

• Teachers: Must have appropriate qualifications (e.g., university degree + TEFL/TESOL/CELTA)

• Managerial staff: The center director should have a relevant background in education or management
   

Processing time: 20–30 working days (varies by city)

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Step 6: Recruit Teachers and Local Staff

 

To meet both legal and operational needs, you’ll need to hire:

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• Qualified foreign teachers (with work permits and teaching credentials)

• Vietnamese admin staff (to handle local tasks and communication)

• Accountant or tax agent (to manage monthly reports and compliance)
   

Foreign teachers will need work permits, which require a criminal record certificate, medical check, and legalized documents.

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Step 7: Handle Tax, Compliance & Ongoing Reporting​

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Your center must comply with Vietnamese tax and labor laws, including:

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• Monthly/quarterly VAT and PIT filings

• Annual financial statements

• Labor contracts and insurance for all employees

• Maintenance of fire safety certificates and other building compliance
   

You must also renew your education license periodically and submit reports to DOET as required.

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Additional Notes

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You can’t operate classes or collect student tuition until the education license is granted.

 

Choosing the right location is important—educational authorities may inspect and reject facilities that do not meet standards.

 

Having a local legal advisor or consultant helps reduce mistakes and speed up approval.

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​Final Takeaway

Opening an English center in Vietnam is achievable—but only when you understand the rules, timelines, and paperwork involved. With the right preparation and local support, you can launch a successful and compliant center that meets the country’s high demand for English education.

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📩 Need help setting up?

Level Advise is here to walk you through every step—from registration to licensing to staff onboarding.

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📍 Office: 32 Pham Ngoc Thach, Vo Thi Sau Ward, District 3, HCMC
📧 Email: info@leveladvise.com
🌐 Web: www.leveladvise.com

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