On October 5, 2024, the Government issued Decree 125/2024/ND-CP on conditions for investment and operation in the education sector, replacing Decrees 46/2017/ND-CP and 135/2018/ND-CP ("Decree 125"). In essence, Decree 125 adjusts the investment conditions to be more suitable for practical implementation and to meet the needs of society.
1. Permitting the substitution of a school's construction land area with its construction floor area
In the inner city areas of special-class cities, ensuring and meeting the minimum land area requirements for the construction of kindergartens (including private and public kindergartens), primary schools, and secondary schools (including lower secondary, upper secondary, and combined secondary schools) is very challenging, while the demand for education continues to rise. To address this situation, Decree 125 allows, for the inner city areas of special-class cities, the substitution of the construction land area of a school with the construction floor area, provided that the construction floor area is not less than the minimum average land area per child/student as prescribed.
This regulation is intended to accommodate the practical needs and learning requirements of children/students.
2. Educational institutions have a responsibility to secure financial resources to maintain and develop educational activities
While Decree 86/2018/ND-CP on foreign cooperation and investment in education previously limited the minimum investment capital requirement to foreign-invested preschools and general education institutions, Decree 125 has broadened this requirement to encompass all types of private educational institutions, regardless of foreign investment. The minimum investment level specified in Decree 125 is identical to that outlined in Decree 86, namely:
|
|
Schools |
Minimum Investment |
Note |
|
1 |
Private preschool |
30 million VND/child |
Not including land use fee |
|
2 |
Private primary school |
50 Million VND/student and the total investment is not lower than 50 billion VND |
|
|
3 |
Private high school
|
50 million VND/student and the total investment is not lower than 50 billion VND
|
3. Supplement the existing forms of centers for continuing education
To address the growing demand for learning and skill development, Decree 125 introduces new types of centers for continuing education, such as life skills centers, centers for cultural and artistic enrichment, and centers offering job-related training. At the same time, Decree 125 abolishes the requirement to comply with the network planning of educational institutions when establishing centers; thereby, the establishment of centers carrying out continuing education tasks will be determined according to market demand, ensuring suitability with the demand for continuing education and the orientation of building a learning society of the State.
Decree No. 125 takes effect from November 20, 2024.
Comment: