The front view of the American International School campus in HCM City, which has been officially dissolved by city authorities. — VNA/VNS Photo

HCM CITY — HCM City authorities have officially dissolved the American International School (AIS) after months of suspension and repeated failures to rectify serious violations, bringing an end to what was once one of the country’s most prominent and controversial international schools.

The HCM City People’s Committee has issued a decision to dissolve AIS, which provided primary, lower secondary and upper secondary education, at its campus at No.220 Nguyễn Văn Tạo Street, Hiệp Phước Commune (formerly Long Thới Commune, Nhà Bè District).

The decision was made under Article 51 of the 2019 Education Law, which allows for the dissolution of educational institutions that fail to remedy violations following a suspension. AIS had been suspended for 12 months from July 1, 2024, but did not meet regulatory requirements by the end of that period.

Obligations to students, parents and staff

Under the decision signed by the Chairman of the HCM City People’s Committee, AIS International Education JSC, the school’s investor and operator, is required to address all outstanding issues related to personnel, finance, assets and land use, while ensuring the lawful rights and interests of students and employees.

The company must settle all outstanding debts, particularly overdue payments to social insurance, health insurance and unemployment insurance funds, fulfill its tax obligations, and refund tuition fees and other payments already collected but not yet used.

It is also required to pay all salaries, allowances and insurance benefits owed to employees in accordance with labour contracts and Vietnamese law.

All academic records and administrative documents must be handed over to the Department of Education and Training, which has been tasked with coordinating the transfer of students to licensed schools to ensure their education is not disrupted.

The city has also instructed the Department of Home Affairs, municipal tax authority and Social Insurance Agency to supervise and enforce the settlement of debts, employee benefits and related obligations.

Financial, legal troubles

AIS was suspended after regulators concluded that it failed to meet minimum standards on teaching conditions, financial capacity and staffing, as required under the Education Law and Decree 46/2017.

By mid-2025, unpaid social insurance and related obligations owed by the company and the school exceeded VNĐ31 billion (US$1.2 million).

The school’s collapse followed a series of high-profile controversies. In late 2023, hundreds of parents staged protests, demanding the return of funds paid under long-term “education investment” and advance tuition schemes.

According to official figures, more than 900 parents contributed an estimated VNĐ3.6 trillion ($140 million) under such arrangements, many without interest.

The school’s chairwoman, Nguyễn Thị Út Em, was later arrested on charges of disturbing public order.

The HCM City Inspectorate has also transferred case files to police to investigate alleged illegal capital mobilisation, focusing on contracts signed between AIS and parents that resembled loans or investment agreements.

Founded in 2006, AIS was long regarded as a flagship international school in southern Việt Nam, serving largely affluent families and offering the International Baccalaureate (IB) programme.

Before its suspension, the school had around 1,200 students and employed 129 foreign teachers, 26 Vietnamese teachers and more than 100 staff members.

Following the suspension and closure, hundreds of students transferred to public schools, private institutions, other international schools or overseas education programmes, according to education authorities.

The dissolution of AIS marks one of the most significant crackdowns on a private international school in Việt Nam to date. — VNS