VietNamNet Bridge – Many investors own two to four schools in Vietnam as the costs to buy a university are low if they decide to buy a school that is already operating.

Under current law, the minimum required chartered capital of a university must not be lower than VND250 billion, an expensive outlay. But it is much cheaper to buy an existing school than to establish a new one. The cost is just tens of billions of dong.

As a result, the same investors contribute capital to more than one school, and run many schools at the same time. Schools can be bought with cash payments.

Local newspapers several days ago reported that the owners of the HCM City University of Economics and Finance (UEF) wrapped up a deal on transferring the school to the Hutech Investment & Education Development JSC.

The CEO of the company is Kieu Xuan Hung, who is also a member of the board of management of the HCM City University of Technology (Hutech).

Kieu Xuan Hung has become the new chair of the board of management of UEF, while most of the members of the board are from Hutech.

No official information about the deal has been released, but an officer of Hutech revealed that Hutech bought UEF for about VND100 billion.

The source also said that Hutech JSC contributed 51 percent of capital to UEF, while the other 49 percent came from individuals now working for Hutech.

Hung said the company contributed capital in cash and assets when it transferred the Hutech International Training Institute to UEF. The building was put into operation in October 2013.

Prior to that, in 2013, the Phan Thiet University was transferred to new investors in a deal worth VND60 billion. They paid for a land plot the school had leased and a part of the school’s facilities.

Observers noted that there was a “familiar face” among the new owners of the Phan Thiet University – Associate Professor Dr. Vo Khac Thuong, who is now deputy chair of the Tay Do University’s board of management.

The board of management of Phan Thiet school includes four members – Dr. Nguyen Tien Dung, Dr. Nguyen Phuoc Quy Quang, Dr. Vo Khac Thuong and another member.

Three of the four members are also owners of other universities and junior colleges.

Nguyen Phuoc Quy Quang, for example, is chair of the Mien Dong University of Technology which was set up in late 2013.

Vo Khac Thuong is chair of the Phan Thiet University and Nguyen Tien Dung is chair the Mien Nam Economics & Polytechniques Junior College. Dung is also a member of the founding council of Nam Can Tho University, established in early 2013.