Private preschools are running out of steam.

I'm using my own money to cover the losses.

On Tran Dinh Xu Street, District 1, Ho Chi Minh City, CD Kindergarten has been closed and vacated since the Covid-19 pandemic. TOV Kindergarten, another large private preschool located on Tran Quoc Toan Street, District 3, has also been closed and inactive for quite some time.

A private preschool on Tran Quoc Toan Street, District 3, has closed down.

As one of the first private preschools in Binh Thanh District, Ho Chi Minh City, Kim Dong Preschool (1A1 Thanh Da, Ward 27) has been operating for 34 years. However, Ms. Ho Thi Thuong, 72 years old, the owner of this preschool, exclaimed to a reporter from Thanh Nien newspaper: "Since the Covid-19 pandemic, we have faced difficulties, and now they are even more challenging. The number of students has decreased by two-thirds; previously we had 100-120 children, but now we only have just over 40. Meanwhile, the school only has a dozen or so teachers and staff."

"The monthly land rent is 23,690,000 VND. Since the pandemic, the economy has become even more difficult. I sent a letter to the People's Committee of Binh Thanh District and the Binh Thanh District Public Service Company to explain the situation and request a reduction in land rent. Every penny saved is precious, but we haven't received a response yet. With so few children, to pay rent and staff salaries, I have to use my own money to cover the losses. My children urge me, 'Mom, don't do this anymore. You opened a school, but you keep having to use your own money to cover losses. Just retire and be healthy!' But I love my profession too much; I can't quit," Ms. Thuong confided.

THE NUMBER OF CHILDREN ATTENDING PRIVATE PRESCHOOLS IS GRADUALLY DECREASING

Ms. Thuong, a former teacher, served as the principal of Mang Non 27 Kindergarten (a public school, now Kindergarten 27) for 10 years. She explained that over 30 years ago, her motivation for opening a private kindergarten was to provide opportunities for children who moved to Ho Chi Minh City with their parents for work and did not have a household registration in the city to attend kindergarten (previously, to attend a public kindergarten, one needed a household registration or temporary residence permit (KT3) in the city; now, this is no longer required - PV ).

Kim Dong Kindergarten (Binh Thanh District, Ho Chi Minh City), a private school established 34 years ago, has faced many difficulties since the Covid-19 pandemic.

However, Ms. Thuong observed that since the end of the Covid-19 pandemic, more workers from Ho Chi Minh City have returned to their hometowns, their children have followed their parents, the birth rate has decreased, and it is easier for children to enroll in public preschools, so the number of children attending private preschools is not as high as before. "We really hope the government will support us, reduce the monthly land rent, and share the difficulties we face at this time. Many teachers and caregivers have been with the school for over 20 years, and now that the school is closing, they are getting older and don't know where to find work…," Ms. Thuong said sadly.

Mr. TM, the owner of a private preschool in Binh Thanh District, Ho Chi Minh City, said that enrollment this year is slower than in previous years. Around this time last year, at the beginning of the new school year, they had already filled all the classes. However, currently, the number of children registering is only about 80% compared to the same period last year.

According to TM, his school remains stable and the situation is more favorable than some other large private preschools in the higher tuition fee segment. Some schools are operating at a reduced capacity, delaying salaries, or deciding to close down due to slow enrollment, but still have to bear the burden of huge rents and staff salaries. Costs have increased significantly, but the number of children attending school has decreased, and tuition fees cannot be raised much when parents are facing financial difficulties.

The number of preschool children this school year is significantly lower than in previous years.

Ms. Luong Thi Hong Diep, Head of the Preschool Education Department of the Ho Chi Minh City Department of Education and Training, said that currently, preschool education institutions in suburban districts and counties such as Binh Tan District, Hoc Mon District, District 12, and Binh Chanh District... still maintain stable enrollment because these areas have high population density and a large number of children. In contrast, central districts with specific characteristics like District 1 and District 3 have low population density and fewer children.

Notably, according to preliminary reports from the Departments of Education and Training, Ms. Diep noted that this year the number of children in preschools is lower than in previous school years, with many public schools also having fewer children, possibly due to the impact of the Covid-19 pandemic from 2020 and 2021, when fewer children were born. In previous school years, the average total number of children in preschools in the city was about 350,000. However, currently, at the beginning of the 2024-2025 school year, the new data shows just over 280,000 children.

What are the reasons why private preschools are struggling this year? Mr. TM points out several reasons, such as the slowing economy and the impact on parents' income. Public schools are constantly opening new ones with modern and spacious facilities. In addition, during the Covid-19 pandemic, the number of new births was lower than average, leading to a decrease in the number of children enrolling in preschools this year.

According to TM, the segment of educational institutions with tuition fees of 8-10 million VND/child/month will face the most difficulties, due to high operating costs but lower-than-expected enrollment numbers. He observed that many school chains in this tuition fee segment have had to close down some of their facilities.

Ms. Nguyen Thuy Uyen Phuong, founder of Faros Education & Consulting, a firm specializing in consulting for educational organizations, acknowledges the difficult realities faced by many private preschools today. For example, in the past, preschools with several hundred children were very common, but now most have only 60-80 children per facility. Some large schools have closed due to insufficient enrollment.

Meanwhile, the investments required to operate a preschool are substantial. Therefore, when the number of children is low and operating costs are high, the school/preschool owner struggles year after year until they can no longer bear the burden and are forced to close. (to be continued)

Preschool level has surplus classrooms.

According to the industry database at https://csdl.hcm.edu.vn/ , as of the end of the 2023-2024 school year, the number of preschools in Ho Chi Minh City was 1,248 (474 ​​public and 774 private), a decrease of 39 schools compared to the 2022-2023 school year.

The number of independent private groups and classes is 1,955, an increase of 219 groups and classes compared to the previous school year.

The number of preschool groups (maximum 7 children) decreased by 44 groups compared to the 2022-2023 school year. However, the total number of children attending preschools, both public and private, in the 2023-2024 school year increased by 8,174 compared to the previous school year.

The number of schools decreased due to not meeting the conditions of Circular No. 13/2020/TT-BGDĐT dated May 26, 2020, of the Ministry of Education and Training, so they converted to the independent class group model to continue operating.

During the past school year, the Ho Chi Minh City People's Committee organized a conference on preparing for and ensuring the necessary infrastructure for the 2022-2025 period, aiming to achieve the target of 300 classrooms per 10,000 school-aged population (3-18 years old) by 2025. Relevant departments, the Thu Duc City People's Committee, and the 21 districts and communes discussed the issue, revealing a surplus of classrooms in preschools due to the large number of non-public preschools. Currently, Ho Chi Minh City has 16,608 preschool classrooms, of which 16,321 are structurally sound (98.27%) and 287 are semi-structurally sound (1.73%). Every ward and commune has a public preschool that has been built or renovated to be spacious, clean, and beautiful. By the end of the 2023-2024 school year, the entire city had 265 out of 1,248 preschools meeting national standards; a rate of 21.2%.

Source: https://thanhnien.vn/truong-mam-non-tu-thuc-hut-hoi-185240923211306378.htm