Official letter No. 3228/BGDDT-HTQT dated July 29th, 2019 of the Ministry of Education and Training regarding foreign investor’s purchase of shares in 100% Vietnamese company operating in education in Vietnam
According to Clause 2 Article 5 of Decree No. 86/2018/ND-CP, foreign investors are allowed to contribute capital, purchase shares of 100% Vietnamese schools and schools established by foreign – invested enterprises.
However, upon carrying out procedures for capital contribution, purchase of shares of schools, foreign investors have to comply with regulations of laws on investment.
Notably, after foreign investors complete procedures for capital contribution, purchase of shares of a Vietnamese enterprise and the latter becomes a foreign – invested enterprise, the schools affiliated to such enterprise must comply with Decree No. 86/2018/ND-CP on establishment and issuance of operation license of foreign – invested educational institutions.