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Education: Vietnam’s English centre chain owes US$2.38 million in delayed social insurance payments

Apax Leaders, the once-prominent English centre chain linked to embattled businessman Nguyen Ngoc Thuy, has accrued nearly VND 62 billion or US$2.38 million in unpaid social insurance obligations, in Hanoi, VN Express has reported→view source.

Key details:

  • Debt amount: Apax Leaders has delayed payment of compulsory employee insurances—including social, health, unemployment, and accident insurance—for 63 months, totalling VND 62 billion (US$2.38 million).
  • Egroup ecosystem: Parent company, Egroup Corporation, also linked to Thuy, owes VND 4.2 billion (US$161,538) after 59 months of delayed payments.
  • Operational fallout: Since late 2019, staff departures—especially among foreign teachers—have weakened Apax’s core value proposition, leading to parental backlash, tuition refund demands, and centre closures.
  • Leadership turmoil: Following Thuy’s arrest in March 2024 for alleged fraud, his sister Nguyen Thi Dung has taken over and is attempting to stabilise the organisation.
  • Broader trend: Other major firms, including Lilama3, Vinaxuki, and Song Da 6, are also listed as long-term insurance debtors in Hanoi, underscoring systemic compliance issues.

The fact that Apax Leaders has been able to delay mandatory insurance payments for over five years—amounting to US$2.38 million—suggests systemic enforcement gaps. 

This is not an isolated case; several large firms, including state-linked entities like Vinaxuki and Song Da 6, also appear on Hanoi’s delinquent list with debts spanning dozens of months.

The pattern reflects more than individual business failure—it points to a regulatory culture where labour obligations are deprioritised, oversight mechanisms are weak, and enforcement is often reactive rather than preventative. 

For workers, this translates to long-term insecurity; for the business environment, it undermines trust, particularly among foreign investors accustomed to stricter compliance norms.

See also: Insolvency in Vietnam: Unpacked

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