Why Ho Chi Minh City is a Top City for an Education Franchise
Hello and welcome to the New Horizons English language franchise website. We believe you have found this page as you are considering the various education franchise opportunities that exist in your market. We are confident that Ho Chi Minh City, Vietnam is a great city with ample potential for an education business and would like to provide a few thoughts about this as well as give you a simple overview of our franchise opportunity.
As a potential business owner please review this page as well as our entire site to further understand what a franchise offer like New Horizons English can bring to your desire to build an English language franchise.
Ho Chi Minh City (HCMC or HCM), also known as Saigon, is the largest city of Vietnam in terms of population. It is a bustling city in southern Vietnam, famous for its French colonial architecture and trade. It has moderate English proficiency, a large population and high economic growth, which contribute to make it a highly rewarding market for an education franchise. Here are some facts on why Ho Chi Minh City is a destination worth considering for an English language franchise.
- Vietnam has moderate English proficiency, according to EF EPI index.[ii] The medium of instruction in public schools is Vietnamese.
- Ho Chi Minh City is the largest city of Vietnam with a population of over 3.4 million (2017) whereas Vietnam is the 15th most populous country in the world with over 94 million inhabitants.[iii]
- It is the most important economic center of the country with the GDP growth rate of 9.85% (2015).[iv]
- Ho Chi Minh City is a modern city, rich in culture and commerce. It has modern infrastructure and amenities, and is the focal point of economic prosperity.
Here are further reasons on why Ho Chi Minh City is a location worth considering for an education franchise.
Education and English Learning
Home to a large number of expats, Ho Chi Minh City has a number of private and international schools. Though the quality of education in public schools is good, the style of teaching leans more towards passive learning. Academically, Vietnamese students face a lot of pressure to perform well from teachers and their families. Due to the intense focus on education, most students take private tuitions after school.
As for English education in HCMC, English is taught as a foreign language in lower secondary school. The medium of instruction remains Vietnamese at all levels of education. However, in private and international schools, English is often used for instructing. Vietnam has moderate English proficiency in the EF EPI index with a score of 54.06.[ii] The country has been swinging between low and moderate proficiency since 2012.[ii] Mirroring the country’s proficiency, Ho Chi Minh City’s EP EFI score is 56.53, making it a city with moderate English proficiency. Due to limited proficiency and demand for English learning, students and the youth join private English teaching centers to learn the language. Growing importance of English learning in Vietnam coupled with limited proficiency makes Ho Chi Minh City a good destination for an English language franchise.
Population & GDP
Vietnam is densely populated with a population of over 94 million, making it the 15th most populous country in the world.[iii] In the next decade, the population of Ho Chi Minh City is expected to grow further and reach 14 million.[iii] Opening an education franchise will seem logical to accommodate the huge population in HCMC.
Ho Chi Minh City is the most important economic center of Vietnam, contributing heavily to the country’s GDP. In 2015, the GDP growth rate of HCMC was 9.85%.[iv] Some of the industries that support its economy are mining, seafood processing, agriculture, finance, industry, trading and tourism.[v] HCMC is a part of the Southern Focal Economic Zone (SFEZ), which includes various cities, including Dong Nai, Long An and Binh Phuoc. It is a key strategic area for trade and commerce, making it a prosperous and bustling city with energy. Therefore, opening an English language franchise will be a lucrative choice for a potential business owner as there are several industries growing in HCMC.
Infrastructure and Facilities
Due to rapid growth in the last 10-15 years, Ho Chi Minch City’s infrastructure is proving insufficient to support its growing needs. To improve the city’s infrastructure, development programs have been undertaken such as reconstruction of lakes, canals and bridges; improvements in road networks; and increase in environmental safety.[vi]
According to a report, Ho Chi Minh City will require $22 billion in the next five years to improve its infrastructure.[vii] As the city has rapidly expanded, municipal authorities have been unable to keep up with the change. Suggestions are being made to give it a special mechanism to allow it more control over its fiscal budget. To resolve funding problems, the city plans to partner with the private sector and sell stakes in state-owned organizations to the public.
Ho Chi Minh City is rich in culture and commerce, a busy place where you find all the amenities of modern life. From the finest hotels and restaurants to architecturally brilliant temples, HCMC has it all. Its modern skyscrapers stand beside French colonial buildings, revealing the mix of ancient and modern. Some of the places to visit in the city include the Norte Dame Cathedral, Jade Emperor Pagoda and the War Remnants Museum.
With that said, no wonder Ho Chi Minh City is one of the favorable tourist destinations. Most tourists do not speak Vietnamese and would require the help of an English speaking staff. This can be great news to new business owners looking to open an English language franchise in HCMC as most businesses in the tourism/hospitality sector will have a demand in English speaking staff.
Government Incentives to Businesses
For 2017, the Vietnamese government has set a GDP growth target of 6.7%, which will be produced mostly by trade. Vietnam signed a free trade agreement with the European Union (EVFTA) in 2016 in which, among other things, trade tariffs will be removed by 2018.[viii] Additionally, steps are taken to increase the ease of doing business in Vietnam. According to the World Bank’s “Doing Business in 2017”, Vietnam ranked 82 out of 190 countries, up nine ranks from 2016. [viii]
Tax incentives are provided to businesses based on their sector, location and the size of their projects.[ix] Some of these sectors include education, high technology, healthcare, sport/culture and scientific research. Qualifying businesses enjoy two preferential tax rates of 10% for 15 years and 17% for 10 years. The usual corporate tax rate in Vietnam is 20%. Qualifying investors may also receive tax holidays and tax reductions. Opening an education franchise in HCMC will be a great opportunity for a new business owner due to the support from the Vietnamese government.
The most important city of Vietnam, Ho Chi Minh City is an economically rich and vibrant city holding the promise of further rapid development. Due to speedy economic growth, it now has the fastest-growing middle and upper middle class in the region. The focus on education, moderate English proficiency and a large population are vital factors that make Ho Chi Minh City an attractive location for an English language franchise. If you are looking for a good location for your education franchise in Asia, Ho Chi Minh City can be a good choice.
New Horizons English Overview
We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.
The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always mores important).
New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.
The New Horizons English teaching method enables students by giving them three key learning advantages:
- Learn at your own pace
- Learn anywhere, anytime with Online Live®
- Learn with your own teacher with Mentored Learning®
All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.
How does it work?
The New Horizons English Method uses the natural method of second language acquisition which focuses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.
The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.
Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.
We genuinely believe now is the right time for a new and modern approach to an English language franchise in Ho Chi Minh City, Vietnam. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.