VietNamNet Bridge - State-owned preschools have too many applicants for the number of seats available, at a time when the demand for high-quality education for very young children is on the rise. 

 

 

 

Most nursery schools in HCM City fulfilled their enrolment plans in late July 2015, though the new school year begins in early September.

Anh Duong Preschool set high tuition of VND7-9 million a month, which is relatively high compared with the monthly income of the majority of Vietnamese parents. 

However, there are many children queuing up to enter the school.

Established in 2007, Anh Duong now has 140 workers who serve 400 children in 22 classes. On average, a worker serves three children. Its healthcare division alone includes five workers.

In fact, though the tuition required by Anh Duong is high compared with the income of the majority of parents, it is not high compared with the tuition set by other high-end schools. 

Be Ong Sai Gon, Hat Dau Nho and KidCity require higher tuition of up to VND12 million a month. Parents are requested to pay tuition once every three months.

However, despite the high tuition, the schools are always full of children. 

Be Ong Sai Gon and KidCity have opened the second branches just two years after beginning operation.

Meanwhile, investors are still looking for land premises in order to expand their school networks. This shows extremely high demand for high-quality preschools in the city.

A representative from Lien Minh Bach Khoa JSC, which now runs six preschools in HCM City, including one international school, said it was within reach to receive 200-300 students in the first year of operation if schools can provide high-quality services and satisfy parents’ demand.

However, investors will have to face big challenges in opening preschools as it is very difficult to find premises large enough for the schools. 

High-income parents want to send their children to schools in the central districts, while the land in these areas is expensive. 
Anh Duong has found a land plot in an advantageous position to open its second branch in district 3, but the landlord only accepted to lease the land for 10 years. 

The school is not sure if it can take back the investment capital within that time. It also has to spend a great deal of money to build classrooms.

Do Quynh Chau, headmaster of Anh Duong, also complained that she has had difficulties in  recruitment. 

“It is costly to recruit teachers and train teachers, and then retain them,” she said.

DNSG