Legal Framework on Financial Activities of Private Higher Education Institutions in Vietnam

Abstract

Under Vietnam law, the owners of private higher education institutions (“PHEIs”) established by Vietnamese or foreign investors with the purpose of providing educational services plays a crucial role in the “socialization of education sector” policy. The rules and regulations of Vietnam law are incomplete, inconsistent, ambiguous and cannot provide adequate protection for investors, education services users, and have not been able to create a safe environment for PHEIs to efficiently and stably operate in. Thus, it is necessary to continue with the research for sufficient rationales on the basis of practicality to establish this area of law. The contents of this article shall lay down the characteristics of PHEIs and their financial activities; regulations on the establishment, owner’s capital management, revenue collection, expenditures and profit distribution at PHEIs. This article also provides insights and recommendations to further finalize the legal framework on the financial activities of PHEIs in Vietnam.