Our economy is integrating with a high "openness", creating a favorable environment for multinational corporations to invest heavily in Vietnam. This requires Vietnamese human resources to equip themselves with foreign language skills, especially English, so they can be ready to participate in a professional working environment with attractive income at foreign enterprises.
That is also why the demand for learning English in recent years has tended to be increasingly expanded in subjects, not only limited to young students or students wishing to learn English to get an international certificate to graduate or study abroad.
That is also why the demand for learning English in recent years has tended to be increasingly "expanded" in subjects, not only limited to young students or students wishing to learn English. get an international certificate to graduate or study abroad.
On the other hand, with a scale of nearly 100 million people and a golden population structure, Vietnam has an attractive education market. With the economic growth rate of about 7%/year and the increasing openness of the economy, the demand for learning foreign languages, especially English, is growing.
These factors have contributed to creating a fertile English language training (ELT) market for businesses at home and abroad.
In the Vietnamese market, some big names have appeared and participated in this market such as VUS, ILA, Apollo, Apax English, Ms Hoa,...
Apax English rose to the top of the ELT market in terms of center size and revenue
VUS is one of the leading ELT suppliers in Vietnam. The company has grown rapidly and currently operates more than 50 English training centers in provinces, especially in Ho Chi Minh City. Here, there are more than 76,000 students studying. It can be said that VUS is one of the largest companies in the Vietnam ELT market.
Targeting the mid-range market segment and targeting an audience of all ages. This English center has dominated this market share in previous years. However, by 2020, VUS's market share will gradually fall into the hands of other English centers, typically Apax English.
In the previous period, VUS's revenue continuously increased and reached VND1.7 trillion in 2019, an increase of more than 20% compared to the same period in 2018. However, after that, VUS's business situation began to show signs of decline, when revenue in 2021 was only about VND1 trillion (down more than 41% compared to the same period in 2019). Profit after tax in 2021 also decreased significantly compared to previous years. However, this is still the highest profit compared to other centers in the same industry.
Apax English is a subsidiary of Apax Holdings Joint Stock Company. Among the subsidiaries of Apax Holdings, Apax English is the most effective one. This system currently has more than 120 centers nationwide with the brand name Apax Leaders, spread in more than 30 provinces and cities with more than 120,000 students studying.
In terms of business results, 2021 is the third year in a row, Apax English achieves revenue of over VND1 trillion and risen to the top of the English language training market. Specifically, in 2020, Apax English achieved the highest revenue, up to more than VND1.7 trillion, an increase of about 15% over the same period in 2019. However, 2019 is the time when the company achieves "huge" profits of up to VND113 billion.
In 2021, Apax English's business results declined in both revenue and profit. Specifically, Apax English's revenue in 2021 is just over VND1.5 trillion, down 11% compared to the same period in 2020. Profit after tax is only about VND20 billion, down 65% compared to 2020.
The English center explained that because the system of centers had to be closed for 8 months in 2021 according to epidemic prevention regulations, the centers had to shift to online training, so revenue decreased. In addition, since most of the costs are fixed costs, the decrease in revenue leads to lower profits.
Apollo English is also a 100% foreign-owned English center in the high-end segment. Founded in 1995, Apollo has more than 1 million students enrolled and more than 60 large-scale centers across the country and continues to expand.
With a larger number of teaching centers than VUS, the business situation of this foreign language center seems to be worse than that of VUS. Accordingly, Apollo's revenue in 2021 is about VND650 billion, down 10% compared to 2020. Also in 2021, its profit after tax is at a negative growth rate, down about 35% compared to the same period in 2020.
Wall Street English
Wall Street English is one of the largest English franchising brands in the world, established in 1972. Appearing on the Vietnamese market since 2013, Wall Street English Vietnam (WSE Vietnam) operates mainly in the high-end segment. In 2020, Myanmar Strategic Holdings (MSH) acquired the English language training system Wall Street English in Ho Chi Minh City. Ho Chi Minh.
In 2021, WSE Vietnam brought in about VND185 billion in revenue (up 2.8 times over the same period in 2020). However, WSE Vietnam lost more than VND13 billion while before that in 2020, its profit after tax reached about VND13 billion.
The British Council is an international educational and cultural cooperation organization of the United Kingdom established in 1934 with offices in more than 100 countries and has been present in Vietnam since 1993.
British Council operates in the high-end segment and is recognized as an "independent and non-profit foreign cultural and educational organization" (according to Decree 18/2001 CP-ND of the Vietnamese Government in 2009).
In recent years, the British Council's revenue has continuously achieved a positive growth rate. Especially in 2018, the British Council's revenue increased 4 times compared to 2017. By 2020, the revenue of this center will reach more than 460 billion VND (up about 5% compared to 2019) and bring more than 22 billion dong profit after tax.
Established in 2009, Yola is a leading center for English language training and exam preparation for all ages. It offers exam preparation courses such as TOEFL, SAT, IELTS, SSAT, GMAT,..., and other skills courses including Academic Writing, Public Speaking, and Writing that Matters...
In the last 9 years, Yola has always maintained the growth rate of the center and the number of students at the rate of 50% even though the service price has always increased by 5-7% per year.
In 2019, Yola received an investment of USD10 million from an investment fund specializing in education based in Singapore and India - Kaizen Private Equity (Kaizen PE). Before Kaizen PE, Yola was invested in USD4.9 million by Mekong Capital in 2016.
In the context of the strong outbreak of the Covid pandemic, Yola English Center was also inevitably affected. Accordingly, Yola's business picture also becomes darker in the period of 2020 - 2021. Specifically, the revenue in 2021 of this center is only about VND200 billion (down 18% compared to 2020 and down 36 % compared to 2019), and profit after tax was also at negative growth.
IMAP Vietnam Education and Training Joint Stock Company was established in October 2012. Over a decade of development, IMAP has owned English training brands such as IELTS Fighter, English Ms. Hoa, Ms. Hoa Communication, and Ms. Hoa Junior with a network of facilities spread across major provinces and cities across the country.
IMAP has continuously expanded its teaching scale across the country and achieved remarkable growth. Accordingly, IMAP's revenue in 2021 almost doubled compared to the same period in 2020 at about VND115 billion. Profit after tax has also grown at a positive rate in recent years, albeit at a lower rate than industry tycoons.
In the current context of global integration, English is the most commonly used common language in international trade transactions, as a bridge between countries, not only for business relations and cooperation but also for business cooperation exchange of knowledge and cultures. This context creates a vibrant English training market with great opportunities. However, the advantage still seems to belong to the English system with the methodical investment and bold application of high technology, helping learners not only confidently communicate in English but also develop comprehensively their skills mindset and skills needed to become global citizens.
Source: Vietdata's 2022 ELT Market Report