Ho Chi Minh City-based PennSchool cites lease renewal hurdle as administrative academy says contract already expired

On Monday, several parents reported to Tuoi Tre (Youth) online newspaper that the PennSchool campus in Hoa Hung Ward had unexpectedly closed ahead of the 2026-27 school year.

Some parents said they had already paid tuition but were caught off guard when the school remained closed on the scheduled first day, with no explanation provided.

PennSchool said that the closure was linked to procedures to renew its lease for the premises at the Laos Student Dormitory under the Ho Chi Minh City branch of the academy.

The academy has issued a statement detailing the management, recovery, and handover of the dormitory at 10 Ba Thang Hai Street in connection with PennSchool Elementary and Secondary School.

According to the academy, the dormitory is a state-funded public asset.

On August 25, 2020, the Ho Chi Minh City branch of the National Academy of Public Administration, now the Ho Chi Minh City branch of the Academy of Public Administration and Governance, signed a contract with Song Duong Co., Ltd.

The contract was effective from September 26, 2020 to September 26, 2025, allowing the company to use the building for accommodation, classrooms, and an auditorium.

Under the agreement, any renovation or repair work required prior approval from the lessor and could not alter the building’s design, structure or intended use.

The academy said Song Duong did not name any subcontractor or third party during the bidding, negotiation or contract-signing process.

The firm was the sole tenant authorized to use the property.

“The former branch and the current branch did not approve the involvement of any third party in directly managing, using or exploiting the building,” the statement said.

The academy said an inspection conducted on December 28, 2022, and a working session on February 10, 2023 found that PennSchool was directly managing and using the building.

The facility had originally been designed as a four-story building, but had subsequently been renovated and put into use as a six-story structure, according to the academy.

A review of documents also showed that Song Duong and PennSchool had signed a business cooperation agreement on March 19, 2021 to operate the building.

However, the company did not notify the academy of the agreement.

At the working session on February 10, 2023, the company also failed to provide documents relating to the arrangement when requested by the academy.

Therefore, the academy determined that Song Duong had breached its obligations concerning the purpose and scope of the property's use by allowing a third party to operate the facility without authorization and carrying out renovations and repairs that altered the building’s design, structure, and function.

The academy said that should disputes arise, the legal responsibilities of the parties would be determined by the competent authorities in accordance with the law.

Over 9 months allowed for relocation

According to the statement, beginning in 2023, the Ho Chi Minh City branch of the academy repeatedly notified Song Duong of the alleged violations and requested that the company terminate the contract, cease operations, and return the property.

The company continued to provide explanations, dispute the alleged violations and request permission to continue performing the contract, but the academy did not approve the request.

After the contract expired, the two sides signed a contract liquidation record on September 30, 2025.

Nevertheless, the academy said it gave Song Duong more than nine months, from September 30, 2025 to July 3, 2026, to formulate and implement a relocation plan.

On July 3, the two sides signed a handover record, with the academy taking back the building, its grounds and related assets.

At Song Duong’s request, the academy subsequently allowed the company to temporarily use part of the ground-floor space until August 10 to complete final matters involving students and parents.

The academy stressed that allowing the company additional time to relocate and temporarily use part of the ground floor ‘did not constitute an extension of the operating contract.’

It said the temporary use did not create any right to continue using the building after the specified date, nor did it constitute approval for a third party to manage, use or operate the property.

The academy called on Song Duong to fully fulfill its responsibilities arising from the relationships, contracts and commitments the company had entered into during its management and use of the building.

It also requested that the company provide complete and accurate information to avoid causing misunderstanding about the legal status of the contract.

PennSchool cites incomplete lease renewal procedures

According to a PennSchool representative, the lease renewal was delayed due to the merger and restructuring of the entities overseeing the premises.

"The process itself is not complicated. It simply involves transitioning from one lease agreement to another, specifically the renewal process. The restructuring of the overseeing agencies caused the lease renewal to be delayed," the representative said.

The school explained that the Academy of Public Administration and Governance, formerly the National Academy of Public Administration, was previously under the Ministry of Home Affairs before being merged into the Ho Chi Minh National Academy of Politics and later separated again.

Last year, the Ministry of Home Affairs and the Ministry of Labor, Invalids and Social Affairs also underwent a merger.

Asked why the school had announced the start of the school year despite knowing that the lease renewal was delayed, the representative described the situation as an unexpected issue.

"The school never wanted this to happen because we have built our reputation since our establishment," the representative said.

"We always wanted the administrative procedures to be completed as soon as possible and tried to work around the timeline for the lease renewal. This was an unexpected situation."

The PennSchool campus on Ba Thang Hai Street currently has 25 classes with 477 students.