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​ 

December 19, 2025
On December 12, 2025, Thailand’s Ministry of Labor published a ministerial regulation prescribing the minimum and maximum wages used as a base for calculating social security contributions. The regulation, which takes effect on January 1, 2026, sets a flat minimum base wage of THB 1,650 per month and a phased increase of the maximum base wage over the following six years, as outlined in the table below. Impact on Social Security Benefits Not only will monthly contributions increase as a result of the adjustment to the maximum wages used as a base for calculating social security contributions, but the maximum benefits available to insured persons will also be enhanced, as shown in the next table. Employer Obligations From January 1, 2026, employers must correctly withhold wages and remit social security contributions for both the employer’s and employees’ portions in compliance with the revised thresholds. Failure to comply may expose employers to penalties under the Social Security Act B.E. 2533 (1990). Employers should ensure that payroll systems are updated as necessary to reflect these changes to the wage ceiling used for social security contribution calculations.
Read More
December 15, 2025
Thailand is taking steps to energize its startup scene by drafting the Startup Promotion Law. This draft law aims to remove obstacles, open new funding opportunities, and provide coordinated government support. The goal is to make it easier for Thailand-based startups to grow and compete on a global stage. Why Is This Law Needed? For many years, Thai startups have operated under traditional company law frameworks that were not designed with high-growth businesses or with fundraising opportunities in mind. Restrictions on issuing bonds, offering shares to outside investors, and repurchasing shares for employee incentive programs made it challenging for emerging companies to access capital and accelerate their growth. The draft Startup Promotion Act seeks to remove these obstacles and foster a more competitive, entrepreneur-friendly environment in Thailand. Who’s in Charge? Two main organizations will oversee the startup ecosystem: Startup Promotion Committee: This group, to be appointed by the National Science, Research, and Innovation Policy Council, will set national strategies, policies, and budget; design promotional campaign and incentives; and propose further legislative amendments to promote startups. National Innovation Agency (NIA): Under the draft act, the NIA will be the main contact for startups and will serve as the secretariat office of the Startup Promotion Committee, coordinating data, advising startups, maintaining the public registry, and providing funding and investment (grants, repayable grants, loans, and equity) under committee criteria and, where applicable, cabinet approval. What Startups Are Eligible for Benefits? To be officially recognized and access benefits, a company must: Be a private limited company less than 10 years old at the time of application. Existing companies that already exceed the 10-year threshold may still apply for startup statues within one year of the law’s enactment, as long as they otherwise still qualify for the new regime. Have average annual revenue not
Read More
December 8, 2025
As Thailand transitions into an aged society, retirement policy and workplace protections for older workers have come into sharper focus. With public sentiment increasingly open to working beyond the traditional retirement age, questions about employee rights and employer obligations are more relevant than ever. In October 2025, Prime Minister Anutin Charnvirakul proposed increasing the statutory retirement age to 65 for government officers, citing Thailand’s aged-society status and the potential social and economic benefits of longer working lives. While academics and stakeholders have raised concerns about systemic impacts, public opinion remains divided, with many workers signaling a willingness to continue working beyond the current norm. Against this backdrop, it’s worth revisiting what the Labor Protection Act B.E. 2541 (1998) (LPA) requires in regard to retirement and severance pay. This article explains the current legal landscape under the LPA, with a focus on retirement and severance pay for employees over 60, recent judicial developments, and practical options for structuring postretirement engagements. Retirement as Termination Under the LPA Under the LPA, retirement—whether set by agreement between employer and employee or unilaterally stipulated by the employer—is deemed a termination of employment. As a result, employees who retire under such terms are entitled to severance pay. The law also adds a default rule: if there is no agreed or prescribed retirement age, or if the prescribed retirement age exceeds 60, an employee aged 60 or older may declare an intention to retire. The declaration takes effect 30 days after notice, and the employer must pay severance accordingly. In short, retirement triggered by agreement, the employer’s work rules, or an employee’s valid notice is treated as a termination, and statutory severance pay is owed. Hiring or Rehiring Employees Over 60 Practical issues arise when an employer’s work rules set a retirement age that does not
Read More
December 4, 2025
Thailand has expanded the circumstances under which state agencies may bypass competitive bidding procedures to address urgent security challenges. On November 28, 2025, Thailand’s Ministry of Finance published the Ministerial Regulation Determining Cases of Procurement by Specific Method (No. 6) B.E. 2568 in the Royal Gazette, introducing a new pathway for procuring supplies and services needed to address cyber and military threats that may affect the stability of government agencies or the nation. For technology vendors, cybersecurity firms, and defense contractors, this regulatory change creates immediate opportunities to engage directly with government buyers facing urgent security challenges. New Fast-Track Category for Security Threats The regulation amends Thailand’s Public Procurement and Supplies Management Act B.E. 2560 (2017) to add a new category of procurement that qualifies for the “specific method”—a noncompetitive, direct selection process. Previously, agencies could use this expedited method only in limited circumstances, such as emergencies, cases with proprietary technology requirements, or national security operations. The new provision explicitly covers procurement of supplies related to preventing or resolving cyber or military threats that could impact the stability of a state agency or the country. This addition recognizes the urgent nature of modern security challenges, where competitive bidding timelines may leave agencies vulnerable during critical threat windows. State agencies dealing with active cyberattacks, preparing defensive measures against anticipated threats, or responding to military security concerns can now move directly to negotiate with qualified vendors rather than conducting lengthy public tender processes. Vendor Considerations Vendors offering cybersecurity solutions now have a regulatory avenue to work directly with government clients when stability concerns are present. These solutions include threat detection systems, anti-ransomware tools, incident response services, firewalls, and security consulting. Similarly, defense contractors providing military equipment or specialized security supplies can pursue direct engagement channels where traditional procurement methods would create
Read More