When it comes to starting a business in Vietnam, many foreign investors may be wondering what profitable sectors are available in 2020. Let us answer it for you, consider investing in the education sector.
As you may already know, Vietnam tops the list of one of the most popular investment destinations in Asia. Although the education sector was not a prioritized sector in the past, the situation has changed. The government has allocated approximately 20% of its budget for the education sector in the last few years.
From 2013 to 2019 the amount of Vietnamese students studying abroad increased by 69%, indicating a middle class that is ready to spend their disposable income on education. This alone makes Vietnam a hugely important destination to invest in the education sector (1).
In line with the support from the government, it can be observed that the middle class in Vietnam is geared towards the private education sector instead of the public school as they see private schools to be better, in terms of quality and prestige.
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This article discusses the reasons you should invest in Vietnam’s education sector and the how-to.
Why Invest in Education Sector in Vietnam
First of all, the shortage of quality educators is one of the main reasons for the growth of education sectors in Vietnam. Nowadays, more and more parents in Vietnam are sending their children to international school, creating a huge opportunity for all foreign investors.
However, Vietnam is still lacking qualified local instructors and teachers and that’s why foreign talents are very important and are an appealing reason to invest in the education sector.
Secondly, as previously mentioned, the fast-growing middle class in Vietnam is also part of the reasons why the education sector is developing so quickly.
Vietnam is ranked to have the most rapidly-growing middle class in the entire Southeast Asia regions. It is also estimated that by 2020, the middle and upper classes in Vietnam will increase by at least 50%, reaching 33 million people.
Since they are aiming at enrollment in international schools, starting a business in the education sector as early as now would generate handsome profits.
Then, there are the initiatives implemented by the Vietnamese government to support investment in the education sector. The surging requirement for international schools has driven the government to implement policies that are in favor of foreign investments and to improve the education quality.
For the Vietnamese government, education is, and will always be the priority of the country and the major contributor to its significant economic growth.
Last but not least, the demographics in Vietnam lead to a more positive effect on the overall education sector. More than half of Vietnam’s population, about 60%, is around the ages of 30 to 35.
In line with the growing middle-class population, this group of people has more income compared to a few years ago and therefore they are more likely to invest in the best education they can have.
Starting a Business in Education Sector in Vietnam
In Vietnam, there are two major types of school, namely public school and non-public school.
Non-public school can further be categorised into another three types, i.e. individual-founded institution, private institution and semi-public institution.
All institutions set up in Vietnam must comply with the required curriculum and activities. Good news for foreign investors, the foreign ownership of the education sector in Vietnam can be as much as 100%.
Foreign-owned education companies in Vietnam are allowed to establish kindergartens, training schools for short term, universities, compulsory educational institutions, and branches of foreign higher education schools.
An IRC (investment registration certificate) and an ERC (establishment registration certificate) is compulsory for foreign investors to be able to run a school, a kindergarten, or a university, for example.
How Cekindo can Assist
Cekindo can save you time and effort when you want to set up your education business in Vietnam. We have full A-Z company incorporation services that can help you in all aspects of market entry, incorporation, taxes ETC.
Our track record speaks for itself and we have helped numerous business owners like you establish their companies in the country.
Moreover, our expert consultants are familiar with the market and the different stages you have to go through when you embark on your entrepreneurial journey.
We offer a comprehensive business setup services on starting a business in Vietnam that are both transparent and straightforward. They are designed to help all investors run their operations anywhere in Vietnam efficiently, rapidly and without any headaches.
Contact us today to make an appointment for a free, no-obligation consultation through the form below.