Dissolving 20 Apax Leaders centers in Ho Chi Minh City

The Department of Education and Training has dissolved 20 centers and is considering a similar plan for 19 other Apax Leaders centers.

Following the directive issued on April 8th by the Chairman of the People's Committee of Ho Chi Minh City, the Department of Education and Training has been tasked with coordinating with relevant departments and agencies, the People's Committees of districts and Thu Duc City to strengthen cooperation in resolving issues related to the Apax Leaders English center.

The Department of Education and Training reported that it had decided to dissolve 20 Apax centers at the end of March. The Department, in coordination with local authorities, is reviewing and assessing the actual situation of 19 other centers for "serious violations of regulations on the management, organization, and operation of foreign language and computer training centers" according to Decree 46/2017. Due to these violations, the remaining 19 centers face the risk of dissolution.

List of 20 Apax Leaders centers that have been dissolved.

Regarding the centers in District 6 and Phu Nhuan, Apax reported that they would relocate and reopen in June; however, the Department is considering suspending educational activities at these two centers due to objective reasons that prevent them from ensuring normal operation.

To ensure the rights and interests of students, the Department is encouraging foreign language centers in the area to support the acceptance of Apax Leaders students with preferential tuition fees in case these two centers no longer meet the conditions to continue operating.

Parents and students who have disputes with Apax are advised by the Department to contact the relevant authorities for resolution within their jurisdiction.

Apax Leaders English Center in Phu Nhuan District, morning of March 26th. Photo: Dinh Van — Apax Leaders English Center in Phu Nhuan District, morning of March 26th. Photo: *Dinh Van*

Apax Leaders is a chain of English language centers for children belonging to the Egroup ecosystem of Mr. Nguyen Ngoc Thuy. Since the end of 2022, the chain has faced numerous complaints from parents in Ho Chi Minh City, Hanoi , Dak Lak, and Da Nang due to many centers closing down, teaching quality not meeting promises, and parents abandoning customers with their money, demanding refunds of tuition fees.

Apax has nearly 11,300 students in Ho Chi Minh City. After 39 out of 41 centers ceased operations, parents of 4,400 students wanted to withdraw their tuition fees, 6,000 students deferred their studies, and 839 students are still enrolled.

After numerous negotiations, in March last year, Apax Leaders divided the parents into two groups with different repayment schedules. Many parents in Group 1 received their full refunds in three installments, spanning from June to August 2023.

The second group was promised tuition refunds in five installments of 20% each, scheduled from October 2023 to April 2024. However, the company subsequently failed to fulfill its commitment and proposed a new repayment plan, extending until the end of 2025, before announcing its insolvency at the end of 2023.

In Ho Chi Minh City, Apax Leaders stated that it still owes parents nearly 94 billion VND in tuition fees. In addition, the company owes 11.5 billion VND in salaries and is overdue on 32 billion VND in various insurance contributions for teachers and staff, as well as 9 billion VND in rent.

Following the arrest of Mr. Nguyen Ngoc Thuy, Chairman of Egroup, on charges of fraud and misappropriation of assets at the end of March, Apax announced that it would stop refunding tuition fees and confirming outstanding debts with parents.

Le Nguyen

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