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Establishing kindergarten in Vietnam has become a compelling venture for foreign investors, driven by a boom in the nation's preschool education sector. With over five million children enrolled and approximately 15,275 preschool facilities, including about 3,163 private schools attending private kindergarten institutions (20%) during the period 2023-2024, the demand is clear.
However, navigating the country’s shifting regulatory landscape, particularly recent updates to government Decrees (ND-CP), can be complex. This article will clarify the essential legal steps, investment thresholds, and market potential for 2025.
Key Takeaways:
- Vietnam’s preschool market is driven by a rising middle class, with a growing demand for high-quality care and education.
- The government has clarified the legal framework through Decree No.86/2018/ND-CP about cooperation and foreign investment in the field of education and recent updates in Decree No.124/2024/ND-CP and Decree No.125/2024/ND-CP, which are rooted in Vietnamese Law.
- A minimum investment capital is required, calculated based on 30 million VND per child, excluding land use costs, with a commitment to contribute the full amount within five years.
- A foreign education program must be accredited, approved by the Ministry of Education and Training (MOET), and include mandatory Vietnamese content for local students.
- The licensing procedures require obtaining an Investment Registration Certificate (IRC) before you can operate the school.
Market Opportunities For A Private Kindergarten In Vietnam
The market for preschool education institutions in Vietnam is not just growing; it's evolving. Parents are increasingly seeking comprehensive education over simple child care, creating a fertile ground for international and bilingual learning models focused on educating children effectively.
Strong Domestic Demand
The demand is rooted in strong demographic and economic fundamentals.
According to a 2025 market report by B&Company, Vietnam's preschool system served nearly 5 million children in the 2023-2024 school year, with the private sector growing significantly. This growth is fueled by dual-income families seeking premium education and training for their young ones.
Foreign Investment Momentum
Foreign direct investment (FDI) in education reached approximately US $4.5 billion in 2024. The market is seeing a wave of interest from investors looking to establish bilingual kindergartens, sometimes as part of a larger parent company structure, to meet this rising demand.
Challenges To Address From Higher Education And Beyond
Despite the opportunities, investors must prepare for challenges. Vietnam faces a significant shortage of qualified teachers, often requiring candidates from higher education institutions. Furthermore, regulatory changes require careful planning to ensure the organization can conduct its educational activities smoothly.
The Legal Framework For Establishing Kindergarten In Vietnam
For any enterprise, a clear understanding of Vietnam's legal requirements is the first step. The process for establishing a kindergarten must adhere to regulations set by the competent authority.
Core Regulations And Updates For Education And Training
Under these regulations, foreign investors are permitted to launch kindergartens. Decree 124/2024/ND-CP clarifies several conditions, including a crucial requirement that investors must commit to contributing their full registered capital within five years of receiving the establishment license. This demonstrates the investor's financial capacity to sustain the project long-term.
Investment And Capital Requirements
As detailed in a Thanh Nien newspaper report (2024), Decree 125/2024 establishes a total minimum capital of 30 million VND per child. This applies whether you are undertaking new school construction or leasing existing facilities.
Program Approval By The Ministry Of Education & Teacher Qualifications
Quality of education is a key focus. Under Decree 124/2024, any foreign curriculum used must meet strict criteria:
- It must have been taught for at least five years in its country of origin and be accredited by a recognized quality assurance body.
- It requires approval from Vietnam’s Ministry of Education.
- Critically, as per Article 37.3, the program must integrate mandatory Vietnamese educational content for all Vietnamese students, ensuring alignment with national education goals.
The teaching staff must also meet qualification standards, typically holding at least a college-level pedagogy degree.
Procedures For Licensing All Educational Activities
The process of launching a foreign-invested kindergarten involves a multi-stage approval sequence with the relevant People's Committee, which can take between 6 to 12 months.
- Obtain the Investment Registration Certificate (IRC)
First, you must apply for an IRC from the provincial Department of Planning and Investment. This is a foundational step before you can receive an Enterprise Registration Certificate. - Secure Establishment Approval
Once the IRC is granted, the investor applies for an Establishment Decision from the relevant level People's Committee (e.g., the District Level People's Committee). A complete dossier with all required information must be submitted. - Get the Education Operation Permit
Before you can conduct educational activities, the institution must obtain an Education Operation Permit from the Department of Education. This confirms all conditions regarding facilities, staff, and curriculum are met. - Leverage Updated Procedural Simplifications
Decree 124/2024 introduces measures to simplify administration by encouraging data-sharing between government agencies. This can reduce paperwork for investors. However, new documentation requirements for foreign curricula, including other relevant documents, demand careful preparation.
Capital, Facilities, And Staffing Standards
Meeting physical and human resource standards is non-negotiable for operational approval. The goal is ensuring safety and a high-quality learning environment.
Facility Standards: From Classrooms To Food Safety
The chosen location must meet specific guidelines detailed in Decree 124/2024. Beyond the minimum space of 8 square meters per child (urban) or 12 square meters (rural), facilities must have:
- Adequate lighting, and age-appropriate furniture and equipment.
- Dedicated functional rooms, including a medical room and administrative offices.
- If a kitchen is present, it must be organized with a one-way layout to comply with food safety standards.
Staffing Ratios For A Nursery Group And Kindergarten Class
The regulations mandate specific ratios for different age group divisions, such as the nursery group and kindergarten class. The maximum number of children per teacher is strictly defined to ensure quality training and supervision.
Market And Investment Insights For 2025 And Beyond
With the legal framework clarified, a smart market strategy is the final piece of the puzzle.
Market Segmentation: Private vs. Public Kindergartens
While Tier 1 cities have many premium private kindergartens, opportunities are emerging in Tier 2 and Tier 3 cities, where the quality of the average public kindergarten may not meet rising parental expectations. This includes both junior kindergartens and senior kindergartens.
Cost And ROI Estimates
The initial setup cost typically ranges from US $250,000 to $400,000. With a solid strategy, investors can expect a return on investment within four to six years.
Compliance And Risk Management
Vietnam’s regulatory environment is dynamic, and any changes will be publicly announced. Partnering with an experienced advisory firm can mitigate risks associated with licensing and ongoing compliance.
Conclusion: Seizing The Opportunity In Vietnam's Preschool Sector
Vietnam’s updated regulatory landscape has created a more predictable and secure environment for foreign investors. With strong demographic demand and clear procedures, the opportunity to successfully establish and operate a high-quality kindergarten is significant.
Drawing on over 15 years of experience in facilitating cross-border education investments and supporting over 2,000 successful projects, Viettonkin Consulting possesses the deep expertise needed to navigate this complex process.
Connect with Viettonkin Consulting to turn your education investment vision into a compliant and profitable venture in Vietnam.
Frequently Asked Questions
What is the minimum capital I need to establish a kindergarten in Vietnam?
The minimum required investment is 30 million VND per child, calculated based on the kindergarten's maximum planned enrollment capacity. This figure does not include costs associated with land use, and you must commit to investing the full amount within five years.
How long does the entire licensing process typically take for a foreign investor?
The full process, from applying for the Investment Registration Certificate to receiving the final Education Operation Permit, can take between 6 to 12 months, depending on the completeness of your documentation.
Can I use my home country's curriculum in my kindergarten in Vietnam?
Yes, but the curriculum must be accredited in its home country, have been in operation for at least five years, and be officially approved by Vietnam's Ministry of Education and Training. Crucially, it must also be adapted to include mandatory Vietnamese language and cultural subjects for local students.
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