As closure looms, 360 American International School students transferred to public schools

With the new school year approaching soon around 700 students had transferred to public, private or international schools or gone abroad.

The city Department of Education and Training and local education offices have allocated the remaining 360 to various public schools based on their residency and other factors, Nguyen Bao Quoc, the department’s deputy director, said Wednesday.

If some parents have further requests, the department would support them, he promised.

The trouble began last year.

American International School Vietnam, founded in 2006 and based in Nha Be District, had over 1,310 students at the start of the last school year, with most following the International Baccalaureate program.

Its tuition fees were VND280-725 million (USD$11,500-29,700) a year, depending on grade.

In July 2023 the school drew attention when parents gathered to demand that it repaid their loans.

On March 18 students had been forced to stop attending classes because most teachers did not show up for work, with the owner admitting an inability to pay their salaries due to severe financial difficulties.

Meanwhile, 900 parents had given the school loans worth VND3.6 trillion.

They were interest-free and unsecured, and the owner had promised to repay them at the time their children graduated.

As the financial troubles mounted, AISVN called on parents to "contribute" an additional VND9.5 to 25.5 million per student per month.

The parents of nearly 750 children contributed VND31 billion, but AISVN said it needed a minimum of VND125 billion.

Consequently, it had to end the academic year early: on April 26 instead of the usual May end.

Authorities have ordered the school to shutter for 12 months, starting July 1 this year for failing to meet academic requirements.

But it continued to promise parents it would reopen soon.

City tax authorities on Wednesday said they have called for revoking the school's license for non-payment of taxes.

Nguyen Van Thien, head of the Districts 7 and Nha Be tax department, said the city People's Committee and the Department of Planning and Investment have been petitioned about the license.

He said AIS American International Education company, the main investor of AISVN, owes over VND100 billion (US$4 million) in taxes, and various measures such as a travel ban on individuals responsible have not worked.

Quoc said his department had called for a meeting with the parents of the 360 students to guide them on school transfer procedures on Wednesday, but only a few attended, so the department has made the arrangement itself.

He emphasized that AISVN does not fulfill the conditions required to resume operations and urged parents to transfer their children as soon as possible since the new school year is about to start.

Public school students begin the academic year on Aug. 26, with classes starting on Sept. 5.

Many private and international schools reopened on Aug. 12.