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​ 

January 16, 2025
On January 13, 2025, Thailand’s cabinet approved in principle the draft Entertainment Complex Act, as proposed by the Ministry of Finance. This landmark legislative proposal, which would allow casinos as part of larger “entertainment complexes,” will now proceed through further parliamentary review and approval. Key provisions of the draft act are described below. Corporate structure: Entertainment complexes must be operated by Thai-registered limited companies or public limited companies with a minimum paid-up capital of THB 10 billion. Directors of the licensed entity must be individuals and have the qualifications and none of the prohibited characteristics specified in the draft act. The draft act does not impose restrictions on foreign-majority ownership structures; however, it is worth monitoring whether any amendments addressing this matter are introduced during the legislative process. Operating conditions: Each entertainment complex must be located in an area designated under a royal decree. It must also include at least four types of entertainment businesses listed in the annex to the draft act (e.g., shopping mall, hotel, sports stadium, amusement park), along with a casino. The allocation of casino space must comply with regulations to be specified at a later date. Licensing conditions: Licenses will be valid for 30 years, renewable in increments of up to 10 years. The license issuance fee is THB 5 billion, the annual fee is THB 1 billion, and the renewal fee is THB 5 billion. The Entertainment Complex Policy Committee, chaired by the prime minister, will review and approve applications. Online gambling restrictions: Licensees are prohibited from offering gambling through internet-connected systems or electronic devices that allow access from outside the casino premises. Labor requirements: Thai and foreign employee ratios must adhere to prescribed regulations. Land privileges: Lease agreements for land use are limited to 50 years. Renewal is permitted for up to
Read More
January 15, 2025
Myanmar’s Directorate of Investment and Company Administration (DICA) has issued new documentation requirements for Myanmar-registered companies making changes to their shares or directors. Effective January 8, 2025, the DICA will only approve such changes when accompanied by specific supporting evidence as required under the Myanmar Companies Law 2017 (MCL). Key Changes and Requirements For share transfers, companies must submit the required application form, along with the following documents: Resolution from the company’s board of directors approving the change of shares or share transfer. Copy of the share-transfer agreement signed by both parties, with proof of stamp duty payment. For director changes, companies must submit the required application form, along with the following documents: Copy of new director’s ID or passport. Shareholder resolution approving the change of the director(s). New director’s consent to act (for appointments) or signed resignation (for departures) In addition to announcing the new documentation requirements, the DICA also reminded companies of an April 2023 announcement that requires companies to submit certain other required documentation within two months of establishment to the DICA by email. Next Steps Companies planning share transfers or director changes must ensure they prepare the complete documentation package before submission to the DICA. For more information on this announcement or assistance with corporate secretarial matters, please contact Tilleke & Gibbins at [email protected].
Read More
January 10, 2025
Project finance specialists from Tilleke & Gibbins’ Bangkok office have once again contributed the Thailand chapter to the latest edition of The Legal 500’s Project Finance guide. Part of The Legal 500’s Country Comparative Guides series, the publication serves as a valuable resource for investors and businesses seeking detailed insights into project finance in key jurisdictions worldwide. Each Q&A-style chapter offers comprehensive guidance on the legal frameworks impacting various aspects of project finance, including: Ownership structures and corporate governance; Security interests, regimes, and enforcement; Regulatory requirements and consents; Foreign exchange considerations; Environmental, social, and governance (ESG) issues; Public-private partnerships; Foreign judgments; Tax considerations; Common funding structures; and Insurance law principles. In addition to the Thailand chapter, Tilleke & Gibbins has contributed the Vietnam chapter to the guide. The Thailand chapter is available as a PDF through the link below. The full guide can also be accessed for free on The Legal 500 website.
Read More
January 10, 2025
Tilleke & Gibbins’ project finance team in Vietnam has contributed the Vietnam chapter to the 2025 edition of The Legal 500’s Project Finance guide. As part of The Legal 500’s Country Comparative Guides series, this publication provides businesses and investors with crucial information about the legal and regulatory aspects of project finance across jurisdictions worldwide. The Q&A-format chapters deliver detailed insights into the legal regimes governing an array of project finance topics, including: Ownership structures and corporate governance; Security interests, regimes, and enforcement; Regulatory requirements and consents; Foreign exchange considerations; Environmental, social, and governance (ESG) issues; Public-private partnerships; Foreign judgments; Tax considerations; Common funding structures; and Insurance law principles. Tilleke & Gibbins also prepared the Thailand chapter for this edition. The Vietnam chapter is available as a PDF via the button below, with the full guide freely accessible on The Legal 500 website.
Read More