Circular 40/2021/TT-BGDDT regulations on organization and operations of private primary schools, lower secondary schools, upper secondary schools, and private multi-level general education schools

REGULATIONS

On organization and operations of private primary schools, private lower secondary schools, private upper secondary schools, and private multi-level general education schools

(Promulgated under Circular No. 40/2021/TT-BGDDT dated December 30, 2021 of the Minister of Education and Training)

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. The Regulations prescribe the organization and operations of private primary schools, private lower secondary schools, private upper secondary schools, and private multi-level general education schools, including regulations on school organization and management; teachers, administrators, staff, and students; facilities, finances and assets; inspection, examination, and accreditation of education quality, commendation, and handling of violations.

2. The Regulations apply to private primary schools, private lower secondary schools, private upper secondary schools, and private multi-level general education schools (hereinafter collectively referred to as private general education schools), as well as relevant organizations and individuals.

Article 2. Position of private general education schools within the national education system

1. Private general education school means an educational institution within the national education system, invested by domestic or foreign investors who ensure the necessary conditions for its operation and permitted to be established and to conduct educational activities by a competent State authority.

2. The investment in construction of facilities and the operating expenses of the private general education schools shall not be covered by the State Budget.

3. Private general education schools are legal entities which have their own bank accounts and seals.

Article 3. Duties and powers of private general education schools

1. Private general education schools shall have the same duties and powers as those of public general education schools as prescribed in the Charter for primary schools; the Charter for lower secondary schools, upper secondary schools, and multi-level general education schools (hereinafter collectively referred to as the Charter for general education schools) and the Regulations herein.

2. Private general education schools shall be autonomous and assumes responsibility for the implementation of their development master plans and strategies; the recruitment and development of their teaching staff; and the mobilization, utilization, and management of resources to achieve the goals of general education.

3. Private general education schools shall send periodic and ad-hoc reports in accordance with the regulations and upon request of the competent regulatory authorities.

4. Private general education schools shall fulfill other duties and exercise other rights as prescribed by the law regulations.

Article 4. Incentive policies

Private general education schools shall be allocated or leased land or facilities, or provided with budgetary support by the Sate when they perform the tasks assigned by the State; and benefited from tax and credit incentive policies and other incentive policies as prescribed by the law regulations.

Article 5. Decentralization of management

1. Primary schools, lower secondary schools, and multi-level general education schools, of which the highest level of education is lower secondary, shall be established under decisions of the Chairpersons of the district-level People's Committees and managed by the district-level People's Committees.

2. Upper secondary schools and multi-level general education schools, of which the highest level of education is upper secondary, shall be established under decisions of the Chairpersons of the provincial-level People's Committees and managed by the provincial-level Departments of Education and Training. The provincial-level Departments of Education and Training shall coordinate with the district-level People's Committees to develop plans for cooperative management and organization of relevant educational activities of multi-level general education schools, of which the highest level of education is upper secondary, in their respective localities.

3. The management of private general education schools invested by foreign investors shall be decentralized in accordance with the law regulations.

Chapter II

ORGANIZATION AND ADMINISTRATION OF THE SCHOOLS

Article 6. Organizational structure of private general education schools

The organizational structure of a private general education school shall be constituted by the School Board; the Supervisory Board; the Head of School and Deputy Head(s) of School; the Council for Emulation and Commendation; the Disciplinary Committee; the Advisory Board; the chapter of the Communist Party of Vietnam; the chapter of the Trade Union; the chapter of the Ho Chi Minh Communist Youth Union; the chapter of the Ho Chi Minh Young Pioneer Organization; teams of professional staff; clerical division; classes; teams of support staff in charge of specialized educational activities (if the school is a specialized school) and other necessary activities required for the private general education school to implement its tasks.

Article 7. School Board

1. School Board of a private general education school means the governing body of the school, representing the investors and interested parties and being responsible for implementing decisions of the investors.

2. Composition of a School Board

a) The composition of the School Board of a private general education school shall include investor representative(s), internal and external member(s) elected by the investor meeting, which shall be decided based on capital contribution ratios.

b) The composition of the School Board of a non-profit private general education school shall include investor representative(s) elected by investors, which shall be decided based on capital contribution ratios; internal and external member(s). Internal members shall include compulsory members who are the Party Committee Secretary, the Head of School, the Trade Union President, and the Ho Chi Minh Communist Youth Union Secretary, and elected members who are representatives of teachers and staff elected by a congress of delegates or a plenum of the school. External members shall include representatives of leaders, administrators, educators, businesspersons and alumni, who are elected by a congress of delegates or a plenum of the school.

c) The School Board shall include a chairperson, a secretary and board members. The term of office of the School Board is 05 years. The number of members on the School Board shall be an odd number, with a minimum of 5 and a maximum of 15.

3. Procedures for establishing a School Board

a) Based on the composition of a School Board prescribed in Clause 2 of this Article, the investor conference or the owner shall decide on the number of members of the School Board; appoint or elect investor representatives, internal and external members; elect the chairperson of the School Board; send a written request to the competent authority prescribed at Point b of this Clause for issuance of a decision on recognition of the School Board and its chairperson.

b) The Chairpersons of district-level People's Committees shall decide on recognition of School Boards and chairpersons of School Boards of primary schools, lower secondary schools, and multi-level general education schools, of which the highest level of education is lower secondary. The Directors of the provincial-level Departments of Education and Training shall decide on recognition of the School Boards and chairpersons of School Boards of secondary schools and multi-level general education schools, of which the highest level of education is upper secondary. The secretary of a School Board shall be appointed by the chairperson of such School Board.

School Boards and chairpersons of School Boards of private general education schools invested by foreign investors shall be recognized under decisions of the competent authorities that have permitted the establishment of such schools.

c) On an annual basis, upon any personnel change, the investor conference or the owner shall send a written request to the competent authority for recognition of additional appointment to the School Board.

d) Private general education schools with existing Boards of Directors shall transform them into School Boards as prescribed in this Clause within 06 months from the effective date of this Circular.

4. Duties and powers of the School Board

a) To resolve on development strategies, visions, and plans of the school and put forward such resolutions to the investor conference or the owner for adoption;

b) To resolve on the organizational and operational regulations of the school and put forward them to the investor conference or the owner for adoption;

c) To approve organizational plans and issues regarding the organization and personnel of the school at the proposal of the Head of School; recommend the addition, removal, or dismissal of members of the School Board; propose the recognition, removal, or dismissal of the Head and Deputy Head(s) of the School; submit such proposals to the investor conference or the owner for approval and then escalate the approved proposals to the competent authority for consideration and decision on recognition;

d) To approve the educational plans of the school; supervise admissions and organization of activities under the educational plans of the school;

dd) To supervise the implementation of the School Board’s resolutions, the management of finance and assets of the school, and the democratic practice in activities of the school.

5. Operations of the School Board

a) The School Board shall convene 03 regular meetings per year.

b) A meeting of the School Board is considered valid when at least 3/4 (three-fourths) of the board members are present, including the chairperson of the School Board.

c) In case of necessity and upon the request of the Head of School or more than 1/2 (half) of the members of the School Board, the chairperson of the School Board shall convene an extraordinary meeting to address issues that arise during the execution of the duties and powers of the school. A meeting of the School Board may be convened in the form of written consultation. The School Board may invite representatives of related parties to its meeting in case of necessity.

d) A resolution of the School Board is adopted and takes effect when at least 2/3 (two-thirds) of the members present agree. Resolutions off the School Board shall be publicly disclosed to the whole school.

Article 8. Supervisory Board

1. The Supervisory Board of a private general education school shall be elected by the investor conference or the owner. The Supervisory Board shall be composed of the head and other members. The Supervisory Board shall consist of between 03 and 05 members, including the representatives of the investors, the teachers, the staff and the parents of the students. The Supervisory Board must consist of at least 01 member with accounting expertise.

2. A member of the Supervisory Board must not simultaneously be a member of the School Board, the Head of School, or the Chief Accountant; nor should he/she be a parent, spouse, or child of a School Board member, the Head of School, or the Chief Accountant of the school.

3. The term of office of the Supervisory Board is the same as that of the School Board.

4. The Supervisory Board has the following rights and obligations:

a) To inspect and supervise the operations of the school, the School Board, the leaders and organizations within the school.

b) To inspect and supervise all financial activities, and ensure financial transparency of the school.

c) To notify, on a periodic basis, the School Board of their performance and reports, decisions, recommendations before officially putting forward them to the investor conference or the owner.

d) To report their inspection and supervision of operations of the school to the investor conference or the owner at respective meetings thereof.

dd) To exercise other rights and fulfill other obligations as prescribed in the regulations on organization and operations of the school.

Article 9. Head and Deputy Head of School

1. Head of School

a) Head of a private general education school means a person responsible for the management, day-to-day running, and educational quality of such school.

b) The Head of a private general education school must meet the qualifications for a school head as prescribed in the Charter for general education schools, be no older than 70 years of age at the time of nomination, and not be a civil servant or public employee.

c) The term of office of the Head of School

The term of office of the Head of School is 05 years. In cases where the Head of a private general education school is a foreigner, his/her term of office shall comply with the work permit and not exceed 05 years.

At any given time, a person may only serve as the Head of one private general education school.

d) Duties and powers of the Head of School

- To formulate the development strategies of the school; the organizational and operational regulations of the school; and the annual educational plans of the school, and put forward them to the School Board for adoption and implementation;

- To organize and implement teaching activities and other operations of the school in accordance with regulations, ensuring quality and compliance with the law regulations and the plans approved by the School Board to achieve development goals of the school;

- To implement the resolutions of the School Board; organize and manage professional and operational activities, ensuring the educational quality and operations of the school within the ambit of duties and powers assigned to him/her;

- To sign employment contracts with teachers and staff if he/she is authorized to do so by the investor conference or the owner; appoint and dismiss team leaders and deputy team leaders, commend and take disciplinary actions against teachers, staff, and students in accordance with the law regulations after obtaining approval of the School Board;

- To prepare annual budget estimates and final accounts, put forward them to the investor conference or the owner for approval, and organize their implementation in accordance with regulations; provide periodic reports to the investor conference or the owner, the School Board, and relevant management levels on financial matters and operations of the school;

- To ensure order, security, environmental protection, and safety within the school;

- To attend meetings the School Board without voting rights if not a member of the School Board; report to the School Board, the investor conference, or the owner on teaching activities of the school; and reserve the right to disagree with decisions of the School Board and report such disagreements to the educational authority directly managing them for consideration and resolution.

- To perform other tasks and exercise other rights as prescribed by law.

2. Deputy Head of School

a) Be responsible for the tasks assigned by the Head of School; in charge of day-to-day running of the school under authorization by the Head of School.

b) A person appointed or recognized as the Deputy Head of a private general education school must meet the qualifications prescribed at Point b, Clause 1 of this Article.

c) The term of office of the Deputy Head of a private general education school is 05 years.

d) Duties and powers of the Deputy Head of School

- To manage the tasks assigned or authorized by the Head of School;

- To participate in activities of teams of professional staff; engage in self-study and self-development to enhance professional skills and administrative capabilities.

3. The competence to recognize the Head and Deputy Head of school

a) The Chairpersons of district-level People's Committees shall decide on recognition of Heads and Deputy Heads of School of primary schools, lower secondary schools, and multi-level general education schools, of which the highest level of education is lower secondary. The Directors of the provincial-level Departments of Education and Training shall decide on recognition of the Heads and Deputy Heads of School of secondary schools and multi-level general education schools, of which the highest level of education is upper secondary.

b) Heads and Deputy Heads of private general education schools invested by foreign investors shall be recognized by the competent authorities that have permitted the establishment of such schools.

Article 10. Educational programs

1. A private general education school must implement the General Education Program as prescribed by law.

2. A private general education school must follow the academic calendar framework set by the Ministry of Education and Training. For lower and upper secondary school levels, the school may extend learning time by up to 4 weeks per academic year compared to public general education schools without charging additional tuition fees for the extra time.

Chapter III

TEACHERS, ADMINISTRATORS, STAFF AND STUDENTS

Article 11. Standards, rights and duties of teachers, administrators, and staff

1. Teachers, administrators, and staff of private general education schools must meet the required qualifications and professional standards as prescribed by the Law on Education and the Charter for general education schools, and other relevant law regulations.

2. Teachers, administrators, and staff shall be responsible for fulfilling the duties outlined in their employment contracts with the schools; and have the rights and responsibilities as defined by the Law on Education, the Charter for general education schools, and other rights as prescribed by law.

Article 12. Required tenured teacher percentage and staffing norms for teachers and staff

1. A private general education school must ensure that from the first academic year, the percentage of tenured teachers to the total number of teachers meets the standard set for public general education schools at the respective educational level: at least 90% of them are tenured teachers for the primary level, and at least 40% of them are tenured teachers for the lower and upper secondary levels.

2. The number of teachers and staff of a private general education school shall not be lower than the staffing norms for teachers and staff set by the State for each educational level.

Article 13. Recruitment of administrators, tenured teachers, and staff

1. Administrators, tenured teachers, and employees of private general education schools are employees who are civil servants. They are recruited by the schools and subject to working conditions and policies in accordance with the Law on Education, the Charter for general education schools, and other relevant law regulations.

2. Tenured teacher means a teacher recruited by the school under a employment contract with a tenure of 36 months or an indefinite employment contract as prescribed by the Labor Code, who must not be working under a employment contract with a tenure of 03 months or more with another employer.

Article 14. Rights and obligations of students

Students at a private general education school shall have the rights and responsibilities as outlined in the Charter for general education schools and be entitled to benefits and policies provided by the State.

Chapter IV

FACILITIES, FINANCE AND ASSETS

Article 15. Facilities

A private general education school shall be responsible for ensuring that its facilities and equipment meet the requirements set by the Charter for general education schools and the regulations on educational equipment issued by the Ministry of Education and Training.

Article 16. Finance and assets

1. Financial management: A private general education school operates on the principle of financial autonomy, adhering to accounting, auditing, taxation, asset valuation, and financial transparency requirements as prescribed by law.

2. Financial sources of a private general education school include:

a) Capital contributed by organizations and individuals who establish the school and other lawful fundraising sources;

b) Tuition fees in accordance with the Law on Education and other relevant law regulations;

c) Interest income from deposits with banks, the State Treasury, and financial institutions;

d) Investments, sponsorships, aids, grants, donations, and gifts from domestic and foreign organizations and individuals in accordance with regulations;

dd) Loans from banks, financial institutions, and individuals;

e) Budgetary support for fulfilling tasks assigned by the State;

g) Other lawful revenues.

3. Expenditures:

a) Salaries, allowances, wages, bonuses and contributions of social insurance, health insurance and unemployment insurance for employees; expenses for professional activities and refresher courses for teaching staff, administrators and staff of the school;

b) Financial management;

c) Investments in construction and repair of facilities; rentals for facilities (if any); purchases of teaching materials, equipment, and supplies;

d) Depreciation of fixed assets;

dd) Interests on loans and capital contributions;

e) Tax obligations toward the State authorities;

g) Expenditures for the common good, commendation; humanitarian and charitable activities;

h) Other expenditures as prescribed by law and the regulations on finance of the school, which shall be approved by the investors in accordance with the law regulations;

4. The assets of a private general education school include:

a) Initial assets contributed by the capital-contributing members;

b) Assets acquired during the operations of the school;

c) Assets donated, gifted, or received through sponsorship, support, or non-refundable aid.

5. Management of finance and assets:

a) A private general education school must collect tuition fees and other charges in accordance with the Law on Education and relevant law regulations; manage finances, accounting, taxes, and fulfill other financial obligations as prescribed by law;

b) The finances and assets of a private general education school are formed from the financial sources prescribed in Clause 2 and Clause 4 of this Article. The finances and assets donated, gifted, or provided as non-repayable aid by organizations or individuals during its operations may not be distributed to individuals and must be used solely for the common benefit of the school;

c) The school must set forth financial regulations, which must be approved by the investor conference or the owner before being endorsed by the chairperson of the School Board, to serve as the legal basis for managing finances of the school;

d) The annual budget statements and final accounts must be put forward by the Head of School to the investor conference or the owner for approval;

dd) The school must set forth asset utilization regulations and, on an annual basis, establish a committee to inventory and assess the value of assets, reinvest in and augment assets. In case of asset conversion, asset transfer, or cessation of teaching activities, the school must establish an asset disposition committee to conduct a full inventory of all assets, present the findings to the investor conference for approval, and refund the paid-in capital to the capital-contributing members in accordance with regulations;

e) The school shall comply with regulations of the State regarding fundraising and use of capital, revenues and expenditures, and distribution of financial results; adhere to inspections by financial authorities concerning the use of funds and the capital increase or decrease of the school, and register any increases or decreases in capital in accordance with the law regulations. The withdrawal and transfer of capital must comply with the law regulations on capital and investment, and must ensure the development and stability of the school;

g) The revenues of a private general education school shall be used to cover the operating expenses of such educational institution, fulfill obligations to the State Budget, establish a development investment fund and other funds of such educational institution, with any remaining balance distributed to investors in commensurate with their respective capital contribution ratios, unless the school is a non-profit educational institution;

h) On an annual basis, private general education schools shall publicly disclose the quality assurance conditions as prescribed by the regulations; disclose financial information and send financial statements to the relevant regulatory authority, financial authority, and tax office at the same level in accordance with the applicable accounting standards; and organize accounting and statistics in accordance with the law regulations.

i) A private general education school shall not allow any individual or organization to exploit its name or facilities for illegal activities or for personal gain, contrary to the educational operations of the school.

Chapter V

INSPECTION AND ACCREDITATION OF EDUCATION QUALITY, COMMENDATION AND HANDLING OF VIOLATIONS

Article 17. Inspection and accreditation of education quality

1. Private general education schools shall conduct self-assessments and evaluations of their operations in accordance with the applicable regulations.

2. Private general education schools shall be subject to examinations and inspections by competent State authorities in accordance with the law regulations.

3. Private general education schools shall conduct educational quality accreditation in accordance with the regulations of the Minister of Education and Training.

Article 18. Commendation

Organizations and individuals within a private general education school, who have made achievements in advancing education, shall be commended and rewarded in accordance with the regulations of the State.

Article 19. Handling of violations

Private general education schools that violate the law, breach the regulations on organization and operations, fail to ensure educational quality, or do not meet the conditions regarding facilities, teaching and learning equipment, hygiene, and safety, shall be subject to penalties as prescribed by law, depending on the severity of the violation./.