What is the cost per child for a daycare?

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The Dojo Business Team

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What is the average monthly cost per child in a licensed daycare center in Hanoi?

The average monthly cost per child in a licensed daycare center in Hanoi ranges from 5,000,000 to 15,000,000 VND ($200-$600 USD) for private facilities, while public options cost between 1,000,000 and 3,000,000 VND ($40-$120 USD).

Private daycare centers dominate the middle to upper market segments in Hanoi, serving families who seek better facilities, longer operating hours, and more comprehensive services than public options provide. These centers typically include meals, structured educational programs, and modern facilities in their monthly fees. The pricing reflects the quality of infrastructure, staff qualifications, and the range of developmental activities offered to children.

International and premium daycare centers charge significantly higher rates, often exceeding 15,000,000 VND per month and reaching up to 30,000,000 VND or more. These facilities cater primarily to expatriate families and affluent Vietnamese households seeking bilingual education, international curriculum standards, and premium amenities. The substantial price difference between basic and premium options creates clear market segmentation within Hanoi's daycare industry.

Public daycare centers remain the most affordable option for local families, though they often have limited capacity, shorter operating hours, and more basic facilities. These government-supported facilities serve as the safety net for low to middle-income families who cannot afford private care. Understanding this pricing spectrum is crucial for positioning your daycare business within the competitive Hanoi market.

How do costs differ between infant care, toddler care, and preschool programs?

Infant care costs between 10,000,000 and 15,000,000 VND monthly in private centers, toddler care ranges from 7,000,000 to 12,000,000 VND, and preschool programs start at 5,000,000 VND, with international options exceeding 15,000,000 VND.

What factors most influence daycare pricing in Hanoi?

Staff-to-child ratios, location, operating hours, and facility quality are the primary factors that influence daycare pricing in Hanoi's competitive market.

Staff-to-child ratios represent the most significant cost driver in daycare operations. Lower ratios required for infants and young toddlers mean hiring more caregivers per child, directly increasing labor costs which typically account for 60-70% of total operating expenses. Regulatory requirements mandate specific ratios based on age groups, and maintaining these standards while ensuring staff quality demands competitive wages. Centers that offer better ratios than required minimums can charge premium prices by marketing enhanced individual attention and safety.

Location within Hanoi dramatically affects pricing due to differences in rent, target demographics, and competitive landscape. Central districts like Ba Dinh, Hoan Kiem, and Tay Ho, which attract expatriates and affluent Vietnamese families, command higher fees due to expensive real estate and the ability to charge premium rates. Suburban and peripheral districts have lower overhead costs and serve more price-sensitive markets, resulting in fees 30-40% below central area rates. Proximity to international schools, business districts, and residential compounds also influences pricing power.

Operating hours and flexibility significantly impact cost structures and pricing. Centers offering extended hours from 7:00 AM to 7:00 PM incur higher staffing costs than standard 8:00 AM to 5:00 PM operations. Facilities providing flexible drop-off and pickup times, weekend care, or emergency backup services charge 15-25% more than rigid-schedule competitors. The convenience premium reflects the additional staffing complexity, scheduling coordination, and operational flexibility required to accommodate diverse family needs in urban Hanoi.

Facility reputation, age, and amenities create substantial pricing variation. Newly established centers with modern infrastructure, outdoor play areas, air conditioning, and specialized learning spaces justify higher fees than older facilities with basic amenities. International accreditation, bilingual programs, and brand recognition allow premium positioning. Centers investing in technology, security systems, and enrichment programs incorporate these costs into monthly fees, creating clear differentiation in the competitive market.

You'll find detailed market insights in our daycare business plan, updated every quarter.

Are meals, diapers, and educational materials included in the base cost or charged separately?

Meals are frequently included in mid-range and high-end daycare centers in Hanoi, while diapers are typically not included and educational materials vary by provider.

Most private daycare centers with monthly fees above 7,000,000 VND include nutritious meals and snacks as part of their base pricing. These facilities typically provide two meals and two snacks daily, prepared on-site or delivered by contracted catering services that meet child nutrition standards. The inclusion of meals simplifies billing for parents and allows centers to control food quality, portion sizes, and dietary accommodations. Lower-priced facilities, particularly public daycares charging under 3,000,000 VND monthly, often charge separately for meals or require parents to provide packed lunches.

Diapers represent a significant ongoing expense that most Hanoi daycare centers do not include in their base fees. Parents are expected to supply diapers, wipes, and diapering supplies for their infants and toddlers, or centers charge separately based on actual usage. Some premium facilities charging above 12,000,000 VND monthly include diapers as a convenience service, but this is not standard practice. The cost of diapers can add 500,000 to 1,000,000 VND monthly to a family's childcare expenses, depending on the child's age and needs.

Educational materials and supplies show mixed practices across Hanoi's daycare market. Reputable centers generally include basic learning materials, toys, books, and craft supplies in their monthly fees, viewing these as essential operating costs. However, many facilities charge an annual material fee ranging from 1,000,000 to 3,000,000 VND at enrollment or the beginning of each academic year. This fee covers workbooks, specialized learning tools, art supplies, and replacement of worn materials. International daycares often bundle comprehensive educational materials into their higher monthly fees, while budget facilities may require parents to purchase specific items as needed.

What are the typical registration fees, deposits, and annual renewal costs?

Registration fees in Hanoi daycare centers range from 1,000,000 to 5,000,000 VND, deposits typically equal one month's tuition, and annual renewal fees range from 1,000,000 to 2,000,000 VND.

Initial registration fees represent a one-time charge when enrolling a child in a daycare center for the first time. These fees cover administrative processing, file setup, initial assessments, and orientation sessions. Budget and public facilities charge minimal registration fees of 1,000,000 to 2,000,000 VND, while mid-range private centers charge 2,000,000 to 3,500,000 VND. Premium and international daycares command registration fees of 3,500,000 to 5,000,000 VND or higher, reflecting their brand positioning and extensive enrollment processes.

Security deposits serve as protection for daycare providers against potential damage, unpaid fees, or sudden withdrawal without proper notice. Most Hanoi daycare centers require a deposit equivalent to one month's tuition, held for the duration of enrollment and refunded when the child leaves, minus any outstanding charges. Some facilities accept deposits of half a month's tuition for established families or when capacity is high. The deposit also incentivizes parents to provide adequate notice before withdrawal, as most centers require 30-60 days' notice to refund deposits in full.

Annual renewal or re-registration fees are charged by many daycare centers at the start of each academic year, typically in August or September. These fees, ranging from 1,000,000 to 2,000,000 VND, cover updated materials, facility improvements, administrative updates, and curriculum enhancements. Not all centers charge renewal fees, particularly those with higher monthly tuition that incorporates ongoing material costs. International and premium facilities more commonly implement renewal fees as part of their structured academic year approach, while local centers with rolling enrollment may not charge annual fees.

Do part-time or flexible schedules change the price significantly compared to full-time care?

Part-time daycare schedules typically cost 60-80% of full-time rates in Hanoi, though many international and premium centers only offer full-time enrollment options.

Part-time care arrangements, usually defined as attendance three days per week or fewer, or half-day programs, provide cost savings but less than proportional to the reduced hours. A half-day program (4-5 hours daily) typically costs 60-70% of the full-day rate, while three days per week costs 70-80% of five-day weekly tuition. This pricing structure reflects the fact that centers must still allocate staff, space, and resources for part-time children, and the premium charges for full-time slots help offset the operational complexity of managing mixed schedules.

Flexible and drop-in care options command premium per-hour rates compared to contracted full-time arrangements. Centers offering flexible scheduling charge 150,000 to 300,000 VND per hour, significantly higher than the effective hourly rate of full-time care (which calculates to approximately 50,000 to 150,000 VND per hour depending on the facility). The premium reflects the operational challenges of variable attendance, inability to predict staffing needs accurately, and opportunity cost of turning away full-time enrollments.

Many international preschools and high-demand private centers in Hanoi do not offer part-time options, requiring full-time enrollment commitments. This policy ensures stable revenue, simplifies scheduling and staffing, and maintains community cohesion among enrolled children. Centers with waiting lists particularly avoid part-time arrangements since full-time slots generate higher revenue and are easier to administer. Budget-conscious families seeking part-time care typically must choose from local private centers or home-based providers willing to accommodate flexible schedules.

This is one of the strategies explained in our daycare business plan.

What discounts are available for siblings or long-term enrollment?

Sibling discounts of 5-10% per additional child are commonly offered by Hanoi daycare centers, while long-term prepayment discounts are less typical but occasionally available.

Sibling discounts represent the most prevalent discount structure in Hanoi's daycare market, with most private centers offering 5-10% reduction on the second and subsequent children enrolled. The discount typically applies to the younger child's tuition, maintaining full price for the oldest enrolled sibling. Some generous facilities offer escalating discounts, such as 5% for the second child and 10% for the third child, though this is less common. These discounts help retain families with multiple children and reduce marketing costs by securing multiple slots from existing satisfied customers.

Long-term enrollment discounts through annual or semester prepayment are offered by some daycare centers in Hanoi, though this practice is not widespread. Centers offering this option typically provide 3-5% discounts for paying six months in advance or 5-8% discounts for annual prepayment. The discount compensates for the cash flow benefit to the center and the commitment from the family. However, many families prefer monthly payment flexibility, and economic uncertainty makes large prepayments less attractive, limiting the popularity of this discount structure.

Referral bonuses and promotional discounts occasionally appear in Hanoi's competitive daycare market. Some centers offer one month's free tuition or discounted enrollment fees when existing families refer new enrollments. Early bird registration discounts of 500,000 to 1,000,000 VND off registration fees are sometimes available for families who enroll several months before their desired start date. New centers seeking to build enrollment often offer first-year discounts or waived registration fees as opening promotions to attract initial families and generate word-of-mouth marketing.

How do costs compare between private, nonprofit, and home-based daycare providers?

Public daycares cost 1,000,000-3,000,000 VND monthly, private local centers charge 5,000,000-10,000,000 VND, international facilities range from 12,000,000-30,000,000+ VND, and home-based care costs 3,000,000-7,000,000 VND.

What government subsidies or tax credits are currently available to reduce daycare expenses?

Vietnam offers limited direct subsidies for daycare, primarily targeting low-income families and factory workers, with no broad tax credits available for middle or upper-income households as of 2025.

Government subsidies for daycare in Vietnam remain restricted to specific vulnerable populations and employment sectors. Low-income families meeting defined poverty thresholds can access subsidized public daycare spaces with reduced fees or fee waivers, though availability is limited and often has long waiting lists. Manufacturing zones and industrial parks, particularly those employing large numbers of women, sometimes provide subsidized on-site childcare as part of labor retention programs, with costs partially covered by government workforce development initiatives. These programs aim to support female workforce participation but reach only a small percentage of families needing childcare support.

Corporate workplace childcare programs represent the most common form of indirect subsidy available to Vietnamese families. Large companies, particularly multinational corporations and state-owned enterprises, increasingly offer childcare benefits as part of employee compensation packages. These arrangements involve employer contributions to childcare costs, on-site daycare facilities, or partnerships with nearby centers offering preferential rates. However, these benefits typically serve only employees of large, well-resourced companies, leaving small business employees and self-employed individuals without support.

Tax deductions or credits for childcare expenses do not exist in Vietnam's current tax code for individual taxpayers. Unlike many developed countries where families can claim childcare costs as tax-deductible expenses or receive credits, Vietnamese families must pay daycare fees from post-tax income without any offsetting tax benefits. This absence of tax support increases the effective cost burden on families, particularly middle-income households who earn too much to qualify for subsidized programs but face significant financial strain from private daycare fees. The lack of comprehensive childcare support systems remains a policy gap that affects family economic security and female workforce participation rates.

We cover this exact topic in the daycare business plan.

Are there seasonal or yearly price increases that parents should plan for?

Annual price increases of 5-10% are common in Hanoi daycare centers, typically implemented at the start of the academic year in August or September to cover inflation and rising operational costs.

Most private and international daycare centers in Hanoi implement annual tuition increases aligned with inflation rates and wage growth in Vietnam. The typical increase ranges from 5-10% year-over-year, though economic conditions and competitive pressure influence the exact percentage. Centers usually notify parents 2-3 months in advance of rate changes, with increases taking effect at the beginning of the academic year in August/September or at the calendar year start in January. These increases reflect rising labor costs, rent adjustments, food prices, and facility maintenance expenses that centers must pass through to maintain service quality and financial viability.

Public and subsidized daycare centers show more stable pricing with smaller annual increases, typically 3-5%, as government budget allocations and subsidy levels limit dramatic fee changes. However, these facilities may experience sudden increases if government policy shifts or subsidy levels are reduced. The predictability of public daycare pricing represents a key advantage for families with tight budgets, though the trade-off involves limited service improvements and potential overcrowding.

Mid-year price adjustments occasionally occur in response to significant external shocks such as currency devaluation, fuel price spikes, or regulatory changes affecting operating costs. International daycare centers using dollar-denominated pricing may adjust VND fees quarterly based on exchange rate fluctuations, creating unpredictability for Vietnamese families paying in local currency. Centers implementing major facility upgrades, curriculum enhancements, or staffing improvements may announce supplemental fee increases with several months' notice, giving parents time to adjust budgets or seek alternative arrangements if necessary.

What is the average additional cost for extended hours or late pickup?

Extended hours and late pickup fees in Hanoi daycare centers range from 50,000 to 200,000 VND per hour, with specific charges varying by provider type and timing.

Standard daycare operating hours in Hanoi typically run from 7:30 or 8:00 AM to 5:00 or 5:30 PM, with pickup after closing time incurring late fees. Most centers implement graduated late pickup charges, such as 50,000 VND for the first 15 minutes, then 100,000 VND for each additional 15-minute increment. Premium and international facilities often charge higher late fees of 200,000 VND per 15 minutes or 500,000 VND per hour, both as a deterrent and to compensate staff who must remain after hours. Repeated late pickups may result in warnings or enrollment termination at centers with strict policies.

Extended hours programs for families needing care beyond standard operating times cost substantially more than regular tuition. Centers offering extended hours until 6:30 or 7:00 PM typically charge an additional 1,000,000 to 2,500,000 VND monthly, or 50,000 to 100,000 VND per hour for occasional use. Early morning drop-off before 7:30 AM similarly incurs extra fees of 500,000 to 1,500,000 VND monthly for regular access. These fees reflect additional staffing costs, as centers must pay premium rates to caregivers working extended shifts and maintain adequate ratios with fewer children present during early and late hours.

Weekend and holiday care, when available, commands significant premiums due to the specialized nature of non-standard hour care. The few centers offering Saturday care charge 1,500,000 to 3,000,000 VND per day, while Sunday and holiday care can cost 2,000,000 to 4,000,000 VND per day. Most Hanoi daycare centers do not offer weekend or holiday services, as demand is insufficient to justify the operational complexity and premium wages required to staff these shifts. Families requiring irregular hours typically rely on home-based providers or nannies who offer more flexible arrangements, albeit often at higher effective hourly rates than traditional daycare.

How do local daycare costs in Hanoi compare to the national average for similar age groups?

Hanoi daycare costs exceed the national Vietnamese average by 30-40%, with private center fees of 5,000,000-15,000,000 VND monthly compared to 3,500,000-10,000,000 VND in secondary cities and smaller towns.

Hanoi, as Vietnam's capital and second-largest city, demonstrates pricing levels aligned with Ho Chi Minh City but substantially higher than regional centers and rural areas. The concentration of expatriates, government offices, and corporate headquarters drives demand for premium childcare services that command urban price premiums. Real estate costs in central Hanoi districts significantly impact daycare operating expenses, with commercial rent often representing 15-20% of revenue compared to 8-12% in provincial cities. This cost structure necessitates higher tuition to maintain profitability while delivering quality services.

National averages for daycare costs in Vietnam, excluding major cities like Hanoi and Ho Chi Minh City, range from 2,000,000 to 7,000,000 VND monthly for private care and 800,000 to 2,000,000 VND for public facilities. Secondary cities such as Da Nang, Hai Phong, and Can Tho show pricing 20-30% below Hanoi levels, while provincial towns and rural areas offer daycare services at 40-50% of capital city rates. The lower costs reflect cheaper real estate, lower wage expectations among childcare workers, and less competitive markets with fewer premium options available to families.

International daycare pricing in Hanoi reaches global levels comparable to other Asian capitals, with fees of 12,000,000-30,000,000 VND monthly matching or exceeding costs in Bangkok, Kuala Lumpur, and Manila. This reflects the international school market's distinct positioning serving expatriate families with employer-provided allowances and affluent Vietnamese families willing to pay premium prices for English-language education. Outside Hanoi and Ho Chi Minh City, international daycare options barely exist, with families in smaller cities typically accessing only local Vietnamese-language programs at substantially lower but more limited service levels.

It's a key part of what we outline in the daycare business plan.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.