Vietnam is accelerating its transformation into a regional innovation powerhouse. With the issuance of Resolution No. 57-NQ/TW in December 2024, the country has committed to a bold, strategic overhaul of its science, technology, and innovation (STI) ecosystem. For foreign direct investors (FDIs), this resolution is more than a policy document—it’s a roadmap to a more […]
Introduction
The preschool education market in Vietnam has been experiencing robust growth in recent years. With the trend of international integration and a rising demand for quality education, more foreign investors are setting their sights on this sector. Notably, Southern Vietnam, characterized by its dense population and developed economy, has emerged as an attractive destination for Foreign Direct Investment (FDI) in preschool education. This article provides an overview of the market, current challenges, and opportunities for collaboration with Smiling Star School—a committed institution dedicated to delivering a high-quality educational environment for children.
An Overview of Vietnam's Preschool Education Market
Vietnam's preschool education market has achieved significant milestones in recent years. According to the Ministry of Education and Training, the country had approximately 15,256 preschool institutions by the end of the 2023-2024 academic year, with private schools accounting for 21% of the total. In particular, the Southern region has experienced a significant increase in the number of private preschools, addressing the growing demand for quality education from young families and the expatriate community. This development stems not only from domestic needs but also from rising FDI.
According to the Ministry of Planning and Investment, total FDI in Vietnam reached $15.19 billion in total FDI during the first half of 2024, showing a 13.1% increase compared to the same period last year. A significant portion of this investment was allocated to educational projects, particularly preschool education. International investors from Japan, Singapore, and South Korea are actively expanding their presence in major cities such as Ho Chi Minh City and Binh Duong, aiming to tap into this promising market.
Legal Framework for Foreign Investment in Vietnam's Education Sector
The recent updates to foreign investment regulations in Vietnam's education sector are outlined in Decree 124/2024/ND-CP, which revises and expands upon Decree 86/2018/ND-CP. A key provision requires that investors maintain at least 70% of their capital investment, even when utilizing rented facilities, along with a commitment to provide adequate investment over a five-year span (Article 35.6).
The decree specifies facility requirements, stating that lighting, furnishings, and educational resources must be appropriate for the curriculum. Additionally, ancillary spaces, such as health rooms and kitchens, must comply with safety standards (Article 36.2). Foreign educational programs are required to obtain quality accreditation in their home country and must align with Vietnam's educational goals, especially when catering to Vietnamese students (Article 37.1).
Administrative processes have been simplified through inter-agency data sharing, reducing costs, and saving time for investors. Nevertheless, stringent standards for quality accreditation remain in place to uphold transparency and maintain educational excellence.
Smiling Star: A Model for Smart Investment in a Changing Era
Legal issues continue to pose significant barriers for foreign investors entering the Vietnamese market. However, investors, such as Smiling Star Preschool, demonstrate resilience and acumen are determined to invest in Vietnam and spearhead a new wave of educational investment.
The Smiling Star Preschool curriculum originates from the Lion City of Singapore. Its educational programs are crafted to align with Singapore's Nurturing Early Learners (NEL) Framework with standards set by the Ministry of Education (MOE). This underscores Smiling Star’s capability as an investor in Vietnam’s education sector.
Smiling Star aims to establish itself as a leading brand in the region’s education sector. Its commitment to continuous learning and improvement to foster not only intellectual development in children but also their moral and life skills. The organization has demonstrated sharp market research capabilities and a keen awareness of trends. With a focus on establishing a presence in Vietnam, Smiling Star is eager to collaborate with local stakeholders to lay the groundwork for its international preschool system as the Vietnamese government gradually implements supportive policies for investors.
This illustrates that Vietnam remains an attractive market for prominent international education brands. Investors like Smiling Star recognize this potential and are strategically refining their plans to invest directly in Vietnam. Furthermore, Smiling Star and other prospective investors are paving the way for new FDI opportunities in the preschool education sector.
Conclusion
The preschool education market in Vietnam is on an upward trajectory, attracting increasing interest from foreign investors. This presents a promising opportunity for those looking to engage in the education sector in Vietnam, particularly as the demand for high-quality education continues to rise. Despite existing challenges, collaborations between international investors and educational organizations like Smiling Star can bring positive contributions to Vietnam's preschool education landscape. With strategic investments and partnerships, Vietnam's preschool education can not only meet domestic needs but also progress toward international standards.
