It looks like it is the same situation I have found with some students that have had the required six years of English, but can't hold a conversation. The problem is the teaching style. What I encountered is students that had learned in a lecture style classroom. The teacher stands at the front and lectures in the students' first language, but they are talking about English. Then they silently complete their exercises, check their answers, and discuss if there is a discrepency (in their first language). All the while they are not really using English. They are learining the theory of English. It is kind of like taking a class in art history using books and slides without actually experiencing the art in person. For the students to really learn it has to be a communicative style classroom. In this style, most of the talking is done by the students in activities, games, and role plays, etc. (practice), with the teacher explaining the grammar point and task in a few minutes beforehand. The rest is practice and fun. All the activities should have some element of fun. When the students think about class it should be "wow, I wonder what we will be doing next!" Then they learn and don't even know it.