American International School faces license revocation over tax debts

Nguyen Van Thien, head of the tax department for the District 7-Nha Be area, said on Wednesday that a request has been submitted to the HCMC People’s Committee and the Department of Planning and Investment to revoke AISVN’s business license.

The AIS American International Education company, the main investor of AISVN, owes over VND100 billion (US$4 million) in taxes, Thien said. Various measures to demand payment, including a travel ban on responsible individuals, have proven ineffective, he said.

An official from the Department of Education and Training stated that if the business registration certificate is revoked, the school will be forced to shut down and cease operations.

AISVN was previously suspended for 12 months starting July 1 for failing to meet educational criteria. Despite this, the school announced plans to reopen and begin the new school year in August. However, the education department maintained that AISVN still does not meet the necessary requirements to resume operations. The school currently has only 28 teachers left, down from 400, and lacks a principal. As a result, the department has urged parents to find alternative schools for their children.

As of Aug. 24, over 300 students had completed procedures to transfer to other schools, but approximately 700 students remain.

Established in 2006, AISVN has been grappling with severe financial difficulties. In March, the school was forced to send all students home after most teachers refused to show up for classes due to unpaid salaries. The school had requested parents to contribute between VND9.5-25.5 million per student per month to help with its problems. Despite 750 parents contributing a total of VND31 billion, the school stated it needed at least VND125 billion to cover its expenses.

The school ended its academic year early on April 26, instead of the usual late May.