What do you do when you have an entrepreneurial spirit and want to do good to the Vietnamese society and the generations to come? You can open a school in Vietnam.
Apart from fulfilling your dreams of giving back and becoming a successful entrepreneur, education businesses are also one of the profitable sectors in Vietnam.
The promising outlook of the education sector in Vietnam is due to the country’s booming economy, growing middle class, lack of quality educational institutions, and government support.
By 2020, the middle and upper classes in Vietnam will reach 33 million with a shocking rise of 50%. The Vietnamese government has set aside 20% of its national budget to strengthen the education sector.
This guide elaborates on the 5 key factors for consideration before opening a school in Vietnam.
Opening a School in Vietnam: 5 Key Considerations
1. Strategic Planning
You need long-term strategic planning to achieve your goal of opening a school in Vietnam.
A good school management team often comes up with strategic planning between five and ten years in advance.
It is also vital to look into details of the plan as it’s not uncommon for most new schools in Vietnam to only generate significant profit in the 4th year since its operation.
2. Financial Planning
Regardless of whether you set up a profit or non-profit school in Vietnam, you will have to have a detailed business strategy laying out a short-term and long-term financial plan. Just like strategic planning, it is usually a five to ten-year plan.
Investors also need to keep in mind that a school usually does not achieve its financial goal until the 3rd or 5th year of operation. You must also take into account all associated factors that may affect your financial performance.
3. Infrastructure and Facilities
Your school’s infrastructure and facilities reflect greatly your school’s curriculum nature, vision, and mission. Furthermore, they are designed in a way to meet the local needs and requirements.
Therefore, before you start constructing and designing your school infrastructure and facilities, you must first understand the school curriculum, local teaching, and learning priorities.
With that information, only then you will be able to consider the class sizes, capacity, and other future needs.
Of course, the construction standards, processes, and costs are important factors to deal with and you need to engage with specialists to fulfill these parts.
4. Licensing, Accreditation, and Curriculum
Running a school in Vietnam is just like running a business. You will need an education license, certain local licenses, accreditation, and standard curriculum to operate it legally.
The licensing process involves the Ministry of Education in Vietnam and endorsement from other governmental departments, depending on what type of school you open.
It is also worth noting that a school with foreign investments has a different set of regulations from a school with only local investments.
5. Company Registration
For foreigners setting up a school or education business in Vietnam, you must choose a legal business structure for your company registration. You can register your education business as a public school or non-public school.
It is also mandatory for you to get an Investment Registration Certificate (IRC) and an Establishment Registration Certificate (ERC) to run your school after the company upon the completion of your company registration.
How Cekindo Can be of Assistance
For entrepreneurs and foreign investors who are seeking expansion and opening a school in Vietnam, be ready to reap the many benefits of the company registration.
Company registration is one of the most important steps you need to go through to open a school in Vietnam.
Our team at Cekindo can help you save significant time and financial resources through our company registration services.
Cekindo’s trusted solutions diminish possible risks that may occur by complying with local procedures and deadlines. In addition, we can also open a bank account for your newly established school and provide support to take off the burden of all administrative and secretarial matters.
Cekindo is here to help you with your business incorporation process and ensure your school’s full operation. Get in touch with us today by completing the form below.