However, according to FIA, the majority of foreign educational and training projects are focused solely in big cities like Hanoi, Ho Chi Minh City and Danang. The average size of these projects remain relatively small. Vietnam’s improper policies to call for foreign direct investment in the education and training sector make these projects less appealing for foreign investors.
According to the Vietnam Business Forum’s Education and Training Working Group, the current legislation contains no provisions that would encourage foreign and local investors already operational in Vietnam to re-invest their profits into the country, instead of diverting them overseas. The legal procedures for granting licences for new investment projects are the same as those required of re-investment projects. For example, if a successful university wished to expand its campus into a new location, it would have to endure the same application process as would a new investment. The same applies to foreign language training centres and vocational training centres.
The group also said that the new legislation recently circulated is much more complicated than before.
Additionally, there are no specific legal instructions for the launching of new programmes by foreign-invested higher education institutions. Most of the provisions on education have been developed for Vietnamese education institutions. Due to incomplete legislation for foreign investment in education, foreign investors must refer to the legal regulations which apply to Vietnamese education institutions. This creates daunting obstacles for foreign investors attempting to operate in Vietnam.