Conversion of Semi-public Secondary School to Private Secondary School in Vietnam

Conversion of Semi-public Secondary School to Private Secondary School in Vietnam​ (Illustration)

Circular 63/2008/TT-BGDDT stipulates the procedure for converting semi-public secondary schools to private secondary schools in Vietnam as follows:

Assets and capital: Before conversion, the semi-public school must:

- Inventory, classify, and appraise assets to determine the total value of actual assets and capital of the school at the time of conversion. Reconcile the books with the inventory time, clarifying any discrepancies (if any).

- Classify the total value of actual assets and capital according to their origin based on inventory, classification, and appraisal results.

Conversion of assets and capital values of semi-public secondary schools in Vietnam:

- For asset and capital values identified as contributions (or loans, borrowings, rentals) from organizations or individuals to the semi-public school, such values will be maintained according to the reassessment result at the conversion time, inheriting the rights and obligations of the owners when converting to a private school model;

- For asset and capital values formed from donations, gifts, and accumulated purchases during the operation of the semi-public school, these will be considered as non-divisible assets owned by the school, reassessed at the conversion time to transfer to the private school, managed, and utilized by the Board of Directors of the private school according to principles of preservation and development.

Land use rights: The semi-public school is responsible for transferring all the used land area and land use rights documents to the private school. The private school is responsible for utilizing the land for its intended purpose. The conversion process must comply with the current regulations on land management and use for educational establishments.

Capital contributing members:

- Social organizations, socio-professional organizations, economic organizations (collectively referred to as organizations) who have established the semi-public school are entitled to contribute capital from non-state budget sources to become capital contributing members of the private school. Any organization that established the semi-public school without contributing capital will no longer have rights and obligations towards the private school;

- Founding members and current members of the Board of Directors of the semi-public school who have not yet contributed capital are entitled to contribute capital to become capital contributing members of the private school; if they do not contribute capital, they will no longer have rights and obligations towards the private school;

- Investors who have capital contributions to establish the semi-public school are entitled to become capital contributing members of the private school.

Rights of officials, teachers, staff, and students:

- Rights of officials, teachers, staff: After the conversion decision, the principal of the private school will re-sign labor contracts with officials, teachers, and staff of the semi-public school under conditions agreed upon to ensure salaries, allowances, and other policies are not lower than those before the conversion;

- Rights of students:

• Upon having a conversion plan, the semi-public school must inform students and their parents to ensure proactive organization of educational activities;
• The conversion must not disrupt students’ learning process;
• From the conversion time, the private school will maintain the tuition fee level for students as stipulated by the semi-public school until the end of the semester. In the following semester, the school will determine the students' tuition fees based on the principle of covering training costs and societal acceptance;
• The private school will implement policies for students under the current regulations of the State.

More details can be found in Circular 63/2008/TT-BGDDT, effective from December 27, 2008.

Ngoc Tai

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