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​ 

April 29, 2025
To foster foreign investment and attract leading international universities to establish campuses in Vietnam, the government has recently adopted several regulations, including Decree No. 124/2025 on foreign cooperation and investment in the field of education, Decree No. 125/2024 on regulatory requirements for educational investment and operation, and Decision No. 452/QD-TTg approving the Planning of the Network of University and Teaching Institutions for the Period 2021–2030, with a Vision to 2050 (the “University Network Plan”). However, foreign investors and private higher educational institutions must still navigate regulatory complexities, build strong academic reputations, and ensure financial sustainability to compete effectively in an increasingly competitive landscape. Below are highlights of recent developments in university-related regulations that may open new opportunities for foreign investment in Vietnam. Adopting the University Network Plan The University Network Plan encourages the development of private higher education institutions (“HEIs”), especially not-for-profit ones, and welcomes top foreign HEIs to open their own foreign branch campuses (“FBCs”) in Vietnam, with the following targets. Until 2030: Encouraging new establishment and expansion of the network of private HEIs (including their branch campuses) and FBCs of top foreign HEIs, especially those offering training majors of science, engineering, and technology. Developing regional HEI networks along economic corridors centered on large cities—not only the traditional economic hubs of Hanoi and Ho Chi Minh City, but also other provinces and cities throughout the country such as Hai Phong, Nghe An (Vinh), Thanh Hoa, Hue, Da Nang, Khanh Hoa (Nha Trang), Binh Đinh (Quy Nhon), Dak Lak (Buon Ma Thuot), Lam Dong (Da Lat), Binh Duong, and Can Tho. Vision to 2050: Increasing the number and proportion of private HEIs, especially not-for-profit ones. Having private HEIs account for about 50% of learners. Requirements for Foreign Investment in Higher Education Foreign investors can engage in higher education business
Read More
April 28, 2025
While Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA) has been in place for over two decades, the issue of nominee arrangements remains a hot topic—especially as authorities continue to crack down on businesses that use Thai nationals to hold shares in violation of foreign ownership restrictions under the FBA. The FBA was enacted to limit foreign parties (which includes foreign individuals, offshore legal entities, and foreign majority-owned companies in Thailand) ability to conduct certain business activities in Thailand without authorization. This legal restriction has led many business operators to use nominees to operate their businesses. Similar to many other countries, nominee arrangements are illegal in Thailand. The FBA expressly prohibits foreigners from using Thai nationals to hold shares on their behalf in a way that enables them to own and operate reserved businesses under the law. Engaging in such arrangements (including conducting a business without the necessary license under the FBA) can result in severe penalties, including imprisonment, fines, and the forced dissolution of the business. The authorities, particularly the Ministry of Commerce and the Department of Special Investigation, continue to actively pursue cases involving suspected nominees. The FBA categorizes businesses into three lists, each outlining different levels of restrictions on foreign ownership and participation: List 1: Foreign business operators are strictly prohibited from engaging in any of the business activities on list 1, such as media outlets (newspapers, radio, and television), rice farming, forestry, extraction of Thai medicinal herbs, and land trading. List 2: Foreign business operators must obtain a foreign business license (FBL) from the Department of Business Development (DBD) and secure approval from the Thai cabinet to engage in a business activity on list 2. In addition, the company must be at least 40% Thai-owned (this may be reduced to 25% with special approval from
Read More
April 22, 2025
Thailand’s Immigration Bureau has announced the launch of the Thailand Digital Arrival Card (TDAC) as part of ongoing efforts to improve entry procedures and streamline immigration processing. Effective May 1, 2025, all foreign nationals with any type of visa entering Thailand by any means will be required to complete the TDAC online prior to arrival. This requirement does not apply to individuals transiting or transferring through Thailand without passing through immigration control, or to those entering with a border pass. Foreign nationals planning to enter Thailand must complete and submit their TDAC within the three days prior to their arrival date. The form, which collects passport information, personal details, travel information (e.g., flight number), Thai accommodation information, and a health declaration—can be filled out in English online at https://tdac.immigration.go.th. Once the form is submitted, an acknowledgment will be sent to the email address entered on the form. This acknowledgment must be presented at the immigration checkpoint in Thailand along with travel documents for verification. The Thai government strongly encourages all foreign passport holders to complete the TDAC ahead of their departure to prevent any entry delays or issues at the checkpoint.
Read More
April 18, 2025
On March 31, 2025, Cambodia’s Ministry of Labour and Vocational Training (MLVT) issued Notification 009/25, which grants an extension for the renewal of foreign workers’ work permits and employment books in 2025. This extension is to ensure that those who have not yet applied for the renewal of their work permits are provided with sufficient time to complete the application process, as there have been delays in the submission of work permit extension requests. The new deadline for the submission of renewal applications for work permits and employment books is April 30, 2025. Applications and renewals must be processed via the MLVT’s online Foreign Workforce Centralized Management System before the specified deadline. Failure to extend the validity of work permits and employment books for foreign workers before the deadline may result in significant monetary penalties for both employers and foreign nationals. All foreign workers should renew their work permits and employment books within the extended deadline to ensure continued validity for working in Cambodia.
Read More