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 in Vietnam via three forms: (i) establishment of an FBC in Vietnam, (ii) establishment of a foreign invested private HEI in Vietnam, or (iii) participation in a joint education arrangement with an HEI established in Vietnam.

Establishment of an FBC in Vietnam

FBCs can be established in Vietnam by foreign HEIs that are in the worldwide top 500. Upon establishment, FBCs are permitted to deliver foreign training programs and grant foreign diplomas of the parent HEIs without further approval of the state authority. This characteristic distinguishes FBCs from other forms of foreign investment in Vietnam in higher education business.

The establishment of FBCs by foreign HEIs in Vietnam is quite new, and was first legislated in 2019 under the amended Law on Higher Education. However, it was not until the issuance in 2024 of Decree No. 124/2024/ND-CP that there were separate regulations governing the process as well as conditions for establishing and operating an FBC in Vietnam.

The process for establishment of an FBC in Vietnam includes three steps to obtaining the following regulatory approvals:

• Investment Registration Certificate from the provincial Department of Finance after an In Principle Approval from the Prime Minister;
• Establishment License from the Prime Minister; and
• Educational Operation Permit from the Ministry of Education and Training.

The critical conditions for establishing an FBC in Vietnam include the following:

• Minimum investment capital: Ranging from VND 350 billion to VND 500 billion (about USD 13.5 million to USD 19.2 million), depending on whether the FBC will develop and construct its own facilities for operation, or lease them.
• Facilities: Minimum land area of 2 hectares, minimum average construction area of 9 m² per learner.
• Education programs: Foreign education programs that are recognized or accredited in the home country and have been taught directly for at least five years in the home country. Additional mandatory courses for Vietnamese learners are required to be taught.

Establishment of a foreign-invested private HEI

The process for establishment of foreign-invested private HEIs is similar to the process for establishment of FBCs, with similar critical conditions—some of which have different requirements:

• Minimum investment capital: VND 1 trillion (about USD 38.5 million);
• Facilities: Minimum land area of 2 hectares, minimum average construction area of 9 m² per learner.
• Education programs: Vietnamese education programs or foreign education programs taught under a joint education arrangement between foreign HEIs and HEIs established in Vietnam;

Joint education arrangement between foreign HEI and HEI established in Vietnam

Joint education between foreign HEIs and HEIs established in Vietnam is for the purpose of delivering foreign training programs and granting foreign diplomas without establishment of any legal entity.

A joint education arrangement must be approved by the Ministry of Education and Training with a maximum term of five years, which is renewable.

Outlook

The outlook for establishing new universities and FBCs in Vietnam is highly promising. Rising demand for high-quality higher education, combined with Vietnam’s strong economic growth, expanding middle class, and government initiatives to internationalize the education sector, have created a favorable environment for development.

Foreign HEIs entering the Vietnamese market have opportunities to offer internationally recognized programs, specialized training aligned with labor market needs, and modern teaching models. However, success will require careful navigation of regulatory requirements, strategic positioning to build brand reputation, and long-term investment in academic quality and partnerships with local stakeholders. Overall, Vietnam is expected to remain an attractive and growing market for both domestic and international investors in higher education over the next decade.