Selling 2 major universities in Ho Chi Minh City

According to DealStreetAsia , Nguyen Hoang Group is offering shares of Hoa Sen University and Hong Bang International University to raise capital, aiming for about 150-200 million USD per school.

Nguyen Hoang's plan to sell the university has attracted public attention in the context of the education business sector in Southeast Asia being assessed as having positive prospects.

However, finding capital in recent years has not been easy, both in the domestic and international markets.

In mid-2022, according to international media, Nguyen Hoang Group planned to sell 10-20% of the company's shares, with the group's valuation at around 1 billion USD. However, at the end of 2022, the group suspended the sale of shares due to the lower than expected price.

Nguyen Hoang Group postponed the sale of shares as Vietnam faces challenges arising from weakening global investment activities and the strengthening of the US dollar. In addition, the Vietnamese government tightened regulations on corporate bond issuance following a number of violations at Tan Hoang Minh, Van Thinh Phat, etc.

Currently, the world financial market has become more active. Mergers and acquisitions are less gloomy, and the USD in the international market has cooled down somewhat. However, the domestic USD/VND exchange rate has climbed quite rapidly in the first 5 months of the year. The corporate bond market is still quite quiet.

Investment activities in international and domestic markets have not been prioritized in recent years, when the world financial market faced many instabilities, geopolitical tensions...

The education business sector in Vietnam is potential and considered a sustainable investment channel, with steady and stable cash flow, but the initial investment capital is quite large and the profit margin is not too high.

HongBang University NHG.gif
Hong Bang University belongs to Nguyen Hoang Group. Photo: NHG

How big is Nguyen Hoang?

Hoa Sen University and Hong Bang International University are just 2 of 5 university systems owned by Nguyen Hoang Education Group.

Nguyen Hoang Group also owns Gia Dinh University, Ba Ria - Vung Tau University and Eastern University of Technology (MIT).

In addition, Nguyen Hoang also has Hoa Sen College, the North American International School System (SNA), the UK Academy bilingual international school system, the iSchool international integration school system... mainly located in the southern provinces.

Nguyen Hoang Group (NHG) is known as one of the high-quality private education groups in Vietnam with an educational ecosystem from preschool to doctoral training, bilingual international and fully international systems, with a history of 25 years.

NHG's system includes 60 schools in 24 provinces and cities across the country with more than 75,000 students and more than 4,500 staff.

Since the beginning of the last decade, Nguyen Hoang has rapidly expanded a number of other educational systems such as the UK Academy International Bilingual School, iStudent Institute for International Cooperation and Study Abroad, and the Saigon Academy International Kindergarten system (SGA).

The system of schools from kindergarten to high school is called iSchool International Integration School in Rach Gia, Kien Giang. Later, NHG expanded to An Giang, Binh Dinh, Khanh Hoa.

Hoa Sen University was established in 1991 and currently has 4 campuses in Ho Chi Minh City. Hong Bang International University was established in 1997 and currently has 2 campuses in Ho Chi Minh City.

Both schools offer multidisciplinary training, but Hong Bang International University focuses on healthcare education.

Nguyen Hoang Group acquired Hong Bang International University in 2015 and Hoa Sen University in 2018. Both are among the top private universities in Ho Chi Minh City, with revenue of nearly a trillion VND each.

Hoa Sen University has 100 domestic and foreign partners, including many foreign enterprises such as MM Mega Market, HG Holdings Group, Grand Hyatt Hotel (USA)... and foreign universities.

Nguyen Hoang Group initially operated in the computer distribution business, and since 2007 switched to the education sector. The Group's main business lines are real estate, buying and selling computers, electronic and telecommunications components...

By 2017, this enterprise had a charter capital of 2,000 billion VND and in early 2019 it increased to 3,000 billion VND.

In 2018, Nguyen Hoang Group started construction of International Education City - IEC in Quang Ngai province with a scale of 10 hectares, total investment of more than 1,000 billion VND.

In addition, NHG is the owner of a series of hotel and tourism real estate projects such as: 5-star Sulyna Hotel and Tourism Practice Complex in the campus of Hong Bang International University; My Khe Beach Resort (previously invested by Idico, with a 5-star sea-view hotel complex with a scale of 400 rooms); Bac Lieu Prince Non-Public Multi-Functional Cultural Area (investment capital of 1,000 billion VND); Bac Lieu Prince Cultural, Architectural and Trade - Service - Tourism Conservation Area...

In 2022 and 2023, NHG signed strategic cooperation agreements with HSBC and Shinhan Banks.

Behind the parents spending billions on international schools: Transactions that 'hold the handle' Talking about the capital mobilization model at the American International School Vietnam, financial experts said that the possibility of parents facing the risk of losing up to 100% of their capital in exchange for only a 10% profit is extremely absurd.