American International School in Vietnam Faces Early Closure Amid Financial Woes and Teacher Resignations

The American International School in Vietnam is closing early due to teacher resignations and financial difficulties, raising concerns about student education and the risks of parents' financial investments in schools.

author-image
Shivani Chauhan
Updated On
New Update
American International School in Vietnam Faces Early Closure Amid Financial Woes and Teacher Resignations

American International School in Vietnam Faces Early Closure Amid Financial Woes and Teacher Resignations

The American International School in Vietnam (AISV), located in Hanoi, has announced that it will be closing its doors early this academic year due to a significant number of teacher resignations and ongoing financial difficulties. The school, which has been operating since 2006 and currently has over 1,310 students, will now end its school year on April 26, nearly two months earlier than the originally scheduled date in June.

According to reports, the decision to close early was made in response to the disruption caused by the high number of foreign teachers leaving the school. The remaining teachers have agreed to continue teaching until April 26 but have stated that they will not work beyond that date if they are not fully paid. AISV has been struggling to pay teacher salaries since late last year, which led to a teacher strike in March.

The school has faced financial difficulties and has been unable to afford basic necessities such as electricity and transportation. In an effort to keep the school running, the school council has requested donations from parents. However, the school still requires VND125 billion to continue teaching until the end of the school year in June.

AISV has been using a program where parents lend the school VND2-5 billion in exchange for a 12-year tuition exemption worth VND7 billion. Over 90% of parents have participated in this program, totaling VND3.2 trillion. While this provides the school with capital without needing to borrow from banks, experts warn that it puts parents at a disadvantage as the loans are unsecured and the promised returns of 10-12% per year are modest compared to the risks. The lack of financial education among Vietnamese parents is cited as a key reason they could not anticipate these risks.

Why this matters: The early closure of the American International School in Vietnam highlights the challenges faced by international schools in the country, particularly in terms of financial stability and teacher retention. The situation raises concerns about the education of the students enrolled at AISV and the potential impact on their academic progress. It also highlights the importance of financial transparency and risk assessment for parents when investing in their children's education.

Despite the early closure, the school has stated that it has met the required study hours for the International Baccalaureate (IB) program and will help 12th and 11th-grade students with their IB diplomas and program. The school's administration is working on a transition plan to ensure a smooth end to the academic year for students and their families.

Key Takeaways

  • AISV in Vietnam to close 2 months early due to teacher resignations, financial issues.
  • AISV unable to pay teacher salaries, leading to a teacher strike in March.
  • School uses parent loan program, but experts warn it puts parents at risk.
  • AISV still needs VND125 billion to continue teaching until June.
  • Early closure raises concerns about students' academic progress and education quality.