The Ho Chi Minh City Education Department has suspended operation of the American International School Vietnam–known by its acronym AISV–due to questionable finances and a lack of staff. This is the latest in a series of setbacks for the school after teachers went on strike earlier this year over unpaid salaries.
The HCMC Education Department has said the school needs to ensure its employees get what they are owed, however, it is not clear where the school can find those funds.
For background, it has been clear for some time that AISV’s financial management has not been the best. Specifically, it raised funds by borrowing from parents under the proviso they would be paid back when their children graduated. However, the school did not have enough money to pay back said parents and as more students graduated the school fell deeper into debt.
Of note, it is not unusual for Vietnamese firms that have run out of money to hold out for as long as possible by selling assets and cutting staff. Furthermore, it is not unusual for them to be allowed to do so, with a firm not considered insolvent until its debts are over 90 days past due. That said, many firms often go well beyond 90 days.
See also: Insolvency in Vietnam 2024: Unpacked