Collaboration between foreign companies and universities has become increasingly common as a means of advancing research, education, and the recruitment of highly qualified talent. However, such collaborations must comply with various legal regulations governing investment, education, technology transfer, and contractual arrangements. A clear understanding of the applicable legal requirements, procedures, and potential legal risks will enable both enterprises and universities to establish effective, sustainable, and legally compliant partnerships.

I. Overview of issues relating to foreign companies collaborating with universities

Collaboration between foreign companies and universities is becoming increasingly widespread, aiming to promote research, technology transfer, and the development of high-quality human resources. Common forms of cooperation include joint research projects, scholarship sponsorships, curriculum development, internship and recruitment programs, and the establishment of research centers.

In Vietnam, these collaborative activities are governed by various legal instruments, including the Law on Higher Education 2025, the Law on Education 2019 (as amended in 2025), the Law on Science, Technology and Innovation 2025, and the Law on Technology Transfer 2017. These laws regulate matters relating to international cooperation, acceptance of sponsorships, scientific research, and the transfer of research outcomes.

In addition to legal compliance, the parties should clearly define approval mechanisms, ownership of research results, benefit-sharing arrangements, and each party's responsibilities in order to minimize legal risks and avoid disputes throughout the collaboration.

II. Understanding collaboration between foreign companies and universities

1. Why do foreign companies seek to collaborate with domestic universities?

Pursuant to Article 43 of the Law on Higher Education 2025 and Clause 3, Article 108 of the Law on Education 2019 (as amended in 2025), foreign companies may cooperate with Vietnamese universities through the following principal forms:

  • Establishing specialized units or research centers: Jointly establishing research institutes, main laboratories, innovation centers, faculties, or branch campuses to support education and research.
  • Conducting research collaboration and technology transfer: Implementing R&D projects, developing research networks, and commercializing research outcomes integrated with educational activities.
  • Development of academic programs and educational materials: Transferring curricula, digital learning platforms, educational resources, teaching materials, and educational technologies.
  • Joint degree and certification programs: Organizing collaborative academic programs and recognizing accumulated learning outcomes between the parties.
  • Cooperation in digital transformation in education: Implementing online education, developing digital university models, sharing open educational resources, and providing digital capability enhancement solutions.

Forms of cooperation and investment under the Law on Education include:

  • Educational and training partnerships;
  • Establishment of representative offices of foreign educational organizations;
  • Establishment of branch campuses;
  • Establishment of foreign-invested educational institutions;
  • Other forms of cooperation and investment as prescribed by law and applicable international treaties.

III. Legal regulations governing collaboration between foreign companies and universities

1. What legal requirements must foreign companies comply with when collaborating with universities?

Under the Law on Education 2019 (as amended in 2025):

  • Article 106: International cooperation in education must adhere to the principles of respect for national independence and sovereignty, equality, and mutual benefit.
  • Article 107: The State encourages Vietnamese educational institutions to cooperate with foreign organizations and individuals in teaching, scientific research, and academic exchange.
  • Article 108: Foreign organizations and individuals are permitted to cooperate, invest, provide sponsorships, conduct research, and transfer educational technologies in Vietnam, provided that such activities are consistent with educational objectives and comply with Vietnamese law and applicable international treaties.

Under the Law on Higher Education 2025:

  • Article 43: International cooperation and partnership activities must be transparent, protect learners' rights and interests, be consistent with the educational institution's functions, and comply with Vietnamese law.
  • Article 44 (Investment in Higher Education): Investment activities in higher education must conform to educational development planning, national education strategies, and socio-economic development orientations. Where foreign elements are involved, investments must comply with applicable international treaties and Vietnamese law while safeguarding national interests, national defense, security, cultural values, educational quality, and sustainable development.

2. What is the negotiation process between a foreign company and a university for establishing a partnership?

Pursuant to Articles 43 and 44 of the Law on Higher Education 2025, the negotiation process generally consists of the following stages:

- Step 1. The parties discuss their intended objectives, such as education, research, technology transfer, establishment of research centers, or joint academic programs. The selected model must fall within the forms of cooperation permitted under Article 43.

- Step 2. The university and the foreign company review the relevant legal framework concerning education, investment, technology transfer, data governance, and related matters. The proposed collaboration must align with the university's functions, must not inadvertently establish a new legal entity where only a cooperative arrangement is intended, and must comply with Vietnamese law and applicable international treaties.

- Step 3. The parties negotiate and agree on main contractual terms, including:

  • Scope and structure of the collaboration;
  • Rights and obligations of each party;
  • Financial arrangements and benefit-sharing mechanisms;
  • Intellectual property rights, data ownership, and ownership of research outcomes;
  • Responsibilities for ensuring educational quality and protecting learners' rights (as required under Article 43).

- Step 4. Depending on the form of cooperation (joint educational programs, research centers, investment projects, etc.), the parties prepare a cooperation proposal or application dossier for internal approval by the educational institution and subsequent submission to the competent authorities in accordance with regulations issued by the Government and the Ministry of Education and Training.

- Step 5. If the collaboration involves investment activities or joint degree-granting programs, the foreign company must complete the relevant approval, licensing, or investment registration procedures in accordance with the applicable legal framework and Article 44 governing investment in higher education.

- Step 6. Upon obtaining the necessary approvals, the parties execute the cooperation agreement or memorandum of understanding and commence implementation. During performance, they must ensure transparency, protect learners' interests, and comply with requirements relating to national defense, security, cultural values, and educational quality.

3. What common legal violations may arise when a foreign company collaborates with universities?

In practice, several legal violations may arise when foreign companies collaborate with universities due to non-compliance with the Law on Education 2019 (as amended in 2025) and the Law on Higher Education 2025, including:

  • Failure to comply with procedures governing educational cooperation and joint programs: Implementing joint academic programs, awarding degrees, or conducting educational activities without satisfying statutory conditions or obtaining the required governmental approvals.
  • Violations relating to educational content and quality: Using curricula, educational materials, or digital learning platforms that have not been properly evaluated or that fail to meet educational objectives and quality assurance standards.
  • Lack of transparency in cooperative arrangements: Failing to publicly disclose information concerning the foreign partner, admission requirements, tuition and fees, qualifications awarded, or learners' rights as required by law.
  • Non-compliance with regulations governing foreign investment in education: Undertaking investment, sponsorship, technology transfer, or establishing research units or educational institutions without fulfilling applicable legal requirements.
  • Failure to safeguard the lawful rights and interests of learners and other stakeholders.
  • Inadequate cooperation agreements: Omitting essential contractual provisions relating to intellectual property ownership, allocation of benefits, financial responsibilities, risk management mechanisms, and dispute resolution procedures.

IV. Questions regarding foreign companies collaborating with universities

1. Is a foreign company required to notify the competent authorities when cooperating with a university?

Pursuant to Article 43 of the Law on Higher Education 2025, cooperative and affiliated activities between higher education institutions and foreign partners must be conducted in accordance with the laws governing education and other relevant legal regulations.

Specifically:

  • Clause 1, Article 43 stipulates that international cooperation activities must comply with the laws on education, other applicable legislation, and international treaties to which Vietnam is a party. Accordingly, the parties are required to comply with the relevant state administrative procedures when establishing such cooperation.
  • Clause 4, Article 43 provides that the Government shall prescribe the conditions, procedures, and competent authorities governing joint educational programs leading to degrees or certificates with foreign partners. Thus, cooperation involving academic programs, degree-granting activities, or other formal educational activities generally requires registration, licensing, or notification in accordance with implementing regulations.

2. What documents must a foreign company prepare to collaborate with universities?

Pursuant to Clause 1, Article 4 of Appendix I issued together with Decree No. 143/2025/ND-CP, the dossier for collaborative activities (such as cooperation in examinations, training programs, or similar academic activities) generally includes the following documents:

  • Application for approval of the cooperation or partnership: A prescribed application submitted to the competent authority requesting approval for the proposed collaboration.
  • Cooperation agreement or contract between the parties: A document specifying the scope of cooperation, rights and obligations, implementation mechanisms, and responsibilities of both the foreign company and the university.
  • Documents evidencing the legal status of each party: These include the certificate of incorporation, enterprise registration documents, and documents demonstrating the legal capacity and operational qualifications of the foreign partner.
  • Cooperation proposal (implementation plan).

Main documents should comprehensively describe:

  • The objectives and scope of the cooperation;
  • The form of implementation (education, research, examinations, etc.);
  • Quality assurance measures;
  • Facilities and human resources;
  • Financial arrangements and applicable fees (if any);
  • Rights and obligations of each party;
  • The scope of application and legal validity of the collaboration's outcomes.

3. What types of disputes may arise if the parties disagree on the terms of the cooperation agreement?

  • Disputes concerning the scope and content of the cooperation: The parties may interpret differently the objectives, expected deliverables, rights to exploit research outcomes, or educational programs, resulting in disagreements during implementation.
  • Disputes concerning intellectual property rights and research outcomes: These arise when the parties disagree over the ownership, use, transfer, commercialization, or exploitation of data, inventions, teaching materials, or research products generated through the collaboration.
  • Financial disputes and benefit-sharing: These include disagreements regarding investment costs, financial management mechanisms, revenue-sharing arrangements, sponsorships, tuition fees, or payment obligations.
  • Disputes concerning contractual performance: Such disputes arise if one party fails to meet project timelines, educational quality standards, resource commitments, or other contractual obligations.
  • Disputes relating to termination or amendment of the cooperation agreement: The parties may disagree on the conditions for termination, post-termination obligations, transfer of assets or data, or the protection of learners' rights upon the conclusion of the collaboration.

4. How may the parties resolve disputes if they disagree on the terms of the cooperation agreement?

Pursuant to Article 317 of the Commercial Law 2005, disputes arising from commercial activities may be resolved through the following mechanisms:

  • Negotiation: The parties engage in direct discussions to reach a mutually acceptable resolution regarding disputes arising from the cooperation agreement.
  • Mediation: The parties may resolve the dispute through an independent mediator or a commercial mediation organization, as agreed between them.
  • Commercial Arbitration: If the cooperation agreement contains a valid arbitration clause, the dispute may be submitted to arbitration. An arbitral award is final and binding upon the parties.
  • Court Proceedings: In case there is no valid arbitration agreement, or where such agreement cannot be implemented, either party may commence legal proceedings before the competent court in accordance with applicable law.

V. Looking for a trusted legal expert to assist with cooperation between foreign companies and universities?

If your foreign company intends to collaborate with a university in Vietnam but requires guidance regarding the applicable legal requirements, documentation, procedures, or the most appropriate legal framework, obtaining professional legal advice is essential to minimize legal risks and ensure regulatory compliance.

With extensive experience in advising on international cooperation projects in the education sector, NPLaw assists foreign enterprises in assessing legal eligibility, drafting and reviewing cooperation agreements, preparing approval applications, and advising on practical strategies for establishing long-term, effective, and legally compliant partnerships with Vietnamese universities.

The information provided above is for reference purposes only. Should you require detailed legal advice tailored to your specific circumstances, please contact NPLaw for prompt professional assistance.