Parents protest outside AISVN, claiming they signed zero-interest loan contracts worth billions of đồng to exempt their children from tuition fees, which were supposed to be repaid after graduation but this did not occur. — VNA/VNS Photo

HCM CITY — The HCM City education sector has announced plans to assist over 360 students from the American International School Vietnam (AISVN), which has ceased operations due to financial difficulties, including tax liabilities.

Speaking at a press conference on Wednesday, Nguyễn Bảo Quốc, deputy director of the city's Department of Education and Training, said the department is collaborating with various educational institutions to facilitate the transfer of affected students.

Around 700 AISVN students have already transitioned to other schools or chosen to study abroad, but over 360 remain unplaced.

The department recently held a meeting to assist families with the transfer process, although attendance was low.

“AISVN is not authorised to operate under the 2019 Law on Education and Decree 46/2017/NĐ-CP,” according to the department.

Parents are urged to expedite the transfer process as the new academic year approaches, with many private and international schools having commenced in mid-August.

The department has published transfer guidelines on its website (https://chuyentruong.hcm.edu.vn).

The department demanded the school’s investor, AIS American International Education JSC, be responsible for ensuring the educational rights of students and adhere to employment regulations.

Since July last year, parents have protested outside AISVN, claiming they signed zero-interest loan contracts worth billions of đồng to exempt their children from tuition fees.

Over 900 parents contributed about VNĐ3.6 trillion (US$144.7 million), which was supposed to be repaid after graduation. But this did not occur when students completed their programmes or transferred schools.

AISVN cited recent financial difficulties as the reason for delays in repayments.

On March 18, classes were canceled due to a teachers’ strike over unpaid salaries, and the school admitted it could not meet payroll.

To stay operational, AISVN requested additional contributions from parents but fell short of the required VNĐ125 billion.

The school ended the academic year early on April 26 and was suspended for 12 months starting July 1 for failing to meet teaching conditions. However, AISVN communicated plans for reopening.

In a related move, local tax authorities revoked the school and investor licenses due to tax arrears exceeding VNĐ100 billion.

Founded in 2006 in Nhà Bè District, AISVN had over 1,300 students and employed 129 foreign and 26 Vietnamese teachers before suspension, with annual tuition fees ranging from VNĐ280 million to VNĐ725 million. — VNS