You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 31, 2026

Vietnam’s New Law on Vocational Education Expands Access and Governance to Attract Broader Investment

Subscribe to Updates

On December 10, 2025, the National Assembly of Vietnam adopted Law on Vocational Education No. 124/2025/QH15, which took effect on January 1, 2026, replacing Law on Vocational Education No. 74/2014/QH13 of 2014. The new law broadens the categories of institutions eligible to deliver vocational training, introduces vocational upper secondary schools, and shifts governance structures for private institutions from ownership-representative boards of management to stakeholder-based school councils. These reforms aim to diversify training providers, align programs with labor market needs, and create a more flexible, open vocational education ecosystem, offering expanded opportunities for foreign and domestic investors, universities, and enterprises.

Some highlights of the new Law on Vocational Education are presented below.

Expansion of Vocational Training Levels and Programs

In addition to elementary, intermediate, and college—the three levels of vocational training program set out under the 2014 Law on Vocational Education—the new law expands the structure by introducing two new levels:

  • Vocational high school training programs are placed between elementary and intermediate levels, and are aimed at combining upper secondary education with vocational training, expanding options for learners after graduating from the lower secondary level.
  • Other vocational training programs are not specified in detail under the new law, but aim to equip learners with the capability to perform and handle one or several simple tasks of an occupation.

Expansion of Vocational Education Providers

The new law reclassifies and extends vocational education providers by classifying them into two distinct categories:

  • Vocational education institutions, which include colleges, intermediate schools, and vocational high schools.
  • Establishments participating in vocational education activities, which include vocational education centers, vocational-continuing education centers, continuing education centers, other centers with vocational education functions, enterprises, cooperatives, and higher education institutions.

Vocational education providers may provide one vocational training level only, or several/all levels, depending on the type of provider.

The new law notably allows higher education institutions to leverage their existing facilities and resources to participate more actively in vocational education. In particular, higher education institutions in the fields of arts, sports, teacher education, and strategic technology may offer several levels of vocational training programs in the same fields.

New Governance Structure for Private Institutions

The new law replaces the board of management (board of directors) previously required in private vocational education institutions with a “school council” functioning as a stakeholder-representative governance body. The school council will operate through collective decision‑making by majority vote and includes a broader and more inclusive membership, but does not include state authority stakeholders as the former board of management did. Specifically, the school council comprises representatives of investors, institutional leadership, lecturers and teachers, learners, educational experts and scientists, educational managers, and related enterprises. This inclusive governance structure aims to balance stakeholder interests and enhance transparency.

Existing boards of management recognized before January 1, 2026, may continue to operate until investors elect or appoint the new school council, but the transition must be completed by January 1, 2027.

Introduction of Training Locations

The new law introduces “training locations” for vocational education institutions for the first time, which include (i) headquarters, (ii) branch campuses, and (iii) the newly recognized “other training locations,” which, unlike headquarters and branch campuses, do not perform governance and management functions. Instead, they are defined as places where all or part of a training program is delivered, under the management of the vocational education institution, and in compliance with prescribed quality‑assurance conditions. These include premises owned by or lawfully used by the institution, venues for joint training programs, and sites for practical training.

This change marks a significant shift, providing a more comprehensive and accurate reflection of where a vocational education institution may conduct training, and facilitates the more efficient utilization of available societal resources for educational activities that can be shared or jointly utilized—such as sports fields or practical training sites—while enabling institutions to deliver training programs in a more flexible and effective manner.

Investment and Cooperation Opportunities

The new law encourages synergy and collaboration between vocational education institutions and relevant stakeholders, including other educational institutions, state agencies, research institutes, enterprises, socio-professional organizations, and partners within Vietnam as well as worldwide, to strengthen cooperation and training collaboration in the vocational education system.

Cooperation models include training, applied research, transfer of technology, innovation, practical training, and internships, as well as the development of training programs and learning models. Training collaboration includes implementation of training programs and establishment of faculties, centers, or specialized training units.

Increase of Reinvestment Ratio in Private Institutions

All private vocational education institutions must retain at least 25 percent of any annual profit from education, training, research, and technology transfer for reinvestment in the development of the institution and social responsibility. This change is expected to affect the business strategies of private vocational education institutions.

Outlook

The changes under the new law are expected to accelerate the diversification and modernization of Vietnam’s vocational training system as well as attract broader investment in this sector. At the same time, the new law also expects greater responsibility and contributions from private vocational education institutions in serving the public interest by increasing the required reinvestment ratio.

As more detailed regulations and guidelines are expected to be issued by the government in the near future, investors and stakeholders in the vocational education sector should closely monitor these developments to ensure compliance and to seize emerging investment and business opportunities.

This article was prepared with the assistance of Tilleke & Gibbins intern Nhu Quynh Ngo.

Related Professionals

Practices

Corporate/M&A

Employment

Location

RELATED INSIGHTS​ 

October 31, 2025
On September 29, 2025, Thailand’s Office of the Personal Data Protection Committee (PDPC Office) published its Regulations on the Review and Certification of Binding Corporate Rules B.E. 2568 (2025) (the Regulations). The Regulations provide clarity on the PDPC Office’s approach to reviewing and certifying binding corporate rules (BCRs) under Section 29 of the Personal Data Protection Act B.E. 2562 (2019) (PDPA), and aim to facilitate international data transfers within a group of undertakings or enterprises (a “corporate group”). In conjunction with this development, the PDPC Office also approved BCRs for two companies operating in Thailand on September 30, 2025. This milestone represents the first concrete progress since the PDPC’s Notification on Criteria for the Protection of Personal Data Sent or Transferred to a Foreign Country pursuant to Section 29 of the PDPA B.E. 2566 (2023) came into effect in March 2024. Some key features of the Regulations are set out below. Categorization of BCRs BCRs are classified into two types: (1) BCRs for Controllers (BCR-C) and (2) BCRs for Processors (BCR-P). The category must be clearly specified when submitting the BCRs to the PDPC Office. Documentation Requirement The applicant must prepare and submit the application (a standard template may be provided by the PDPC Office in the future) along with supporting documents for review and certification in the Thai language. If the supporting documents are in a foreign language, a certified Thai translation should be provided. The translation must be notarized by a notary public or qualified person. Supporting documents may include, among others, a binding instrument such as an intra-group agreement, or a list of entities subject to the BCRs. Expedited Process Requirement Organizations with existing BCR approvals under the EU or UK GDPR, or from countries announced by the PDPC under Section 28, may apply through an
Read More
October 30, 2025
Recent events at a Thai listed company, where a proposal to remove the director was not successful, amid claims that a competitor was attempting to gain control of the company, illustrate how disputes over corporate control can unfold differently at the board level and shareholder level. At the board level, removing directors of a listed company mid-term to gain corporate control is not an easy task under Thai law, as it requires a higher threshold than appointing a new director, which typically only requires a simple majority vote in a listed company. At the shareholder level, Thailand’s tender offer and competition regimes add complexity where different shareholder groups act in concert to remove opposing board representatives or otherwise influence control. In this article, we will explore why the attempted removal of a director may fail, and how the tender offer regime may apply. Key Issues at a Glance Shareholder groups may seek to convene meetings to propose changes to board composition or company authority. Such proposals can be delayed or complicated by regulatory requirements and the need for additional disclosures. Regulatory authorities and minority shareholders may raise concerns when major shareholders coordinate to influence board control, especially if such actions could trigger tender offer or merger control obligations. Companies often respond by seeking further information on shareholder relationships and potential conflicts before proceeding. Why the Director Removal Failed Under Section 76 of the Public Limited Companies Act B.E. 2535 (as amended), the early removal of a director requires two conditions to be satisfied at the same meeting of shareholders: Headcount test: At least 75% of shareholders attending and entitled to vote must vote in favor. If multiple shareholders appoint the same person as proxy, each proxy is counted as a separate head for the purpose of the headcount test,
Read More
October 29, 2025
On September 15, 2025, Thailand’s Senate approved a draft amendment to the Labor Protection Act (LPA), which is currently awaiting publication in the Government Gazette. The amendment, which will take effect 30 days after publication, extends labor protections to certain service contractors working for state entities, enhances maternity and spousal support leave, and updates employer reporting obligations. Expanded Protections for State-Contracted Service Providers The amendment adds a section to the LPA that extends core labor protections to individuals engaged by government bodies under service contracts. This provision covers workers hired by central, regional, and local government agencies; state enterprises governed by the State Enterprise Labor Relations Act; public organizations; and other state agencies when these entities retain individuals under service procurement contracts (or similar arrangements) and exercise supervision, direction, and control over their work. In such cases, the hiring agencies must provide terms no less favorable than those required under the LPA for remuneration, weekly holidays, traditional holidays, annual leave, sick leave, maternity leave, working days and hours, and rest periods. Ministerial regulations will establish specific criteria for implementation. Disputes regarding rights and duties under this provision will fall under Labor Court jurisdiction. This change aligns the treatment of controlled service contractors with that of regular employees, addressing a longstanding coverage gap in the public sector. Enhanced Maternity Leave and New Caregiving Provisions The amendment includes a maternity leave entitlement of up to 120 days per pregnancy (an increase from the previous 98 days), unless otherwise prescribed by royal decree, and also introduces a new postnatal caregiving leave for mothers in complex medical situations who have used their childbirth leave, granting up to 15 additional days to care for children who are at risk of complications, have abnormalities, or have disabilities. This supplemental leave requires support from a medical
Read More
October 24, 2025
On October 22, 2025, the Thai government posted a directive not to grant gambling licenses for gambling involving poker nationwide to crack down on illegal gambling activities. The directive was issued by Thailand’s Ministry of Interior to align with government policies to prevent the legalization of all types of gambling businesses, including poker as a sporting activity. This will result in the revocation of poker activities as sport and institute a strict ban on such activities nationwide. Businesses should note the new government’s strict approach toward gambling activities as the legal situation regarding gambling in the country continues to draw close attention.
Read More