Are foreign investors allowed to provide all types of advertising services in Vietnam? Which services are restricted under WTO commitments, and how do these limitations affect your investment strategy? This comprehensive guide breaks down the exact restrictions that apply to foreign investors in Vietnam’s advertising industry—based on the latest WTO commitments, Vietnamese laws, and practical licensing experience.
When Vietnam joined the World Trade Organization (WTO), it opened many service sectors to foreign investment. Advertising was included, but not without limitations. Classified under CPC 871, advertising services became a conditional business line—meaning market entry is permitted but must comply with specific rules regarding ownership, scope, and service categories.
Foreign investors must therefore understand the types of advertising they are–and are not–allowed to engage in.
Advertising is treated differently from commercial or manufacturing sectors for several reasons:
Cultural Influence – Advertising shapes public perception, consumer behavior, and social values.
National Sensitivity – Vietnam strictly controls messaging related to politics, religion, security, and public health.
Content Regulation – Many types of content must be reviewed or approved by authorities before publication.
Media Control – Certain advertising channels, especially mass media, require Vietnamese entities to maintain legal and operational ownership.
For these reasons, Vietnam accepted foreign investment with conditions to ensure national oversight.
Before discussing service restrictions, it is essential to emphasize the foundational rule:
➡️ Foreign investors are NOT permitted to establish a fully foreign-owned advertising company in Vietnam.
All advertising activities by foreign investors must be conducted through:
A joint-venture with a Vietnamese partner, or
A Business Cooperation Contract (BCC)
Ownership ratio may be up to 99.99% foreign, but the Vietnamese partner must hold at least a symbolic share.
Not all advertising activities are equally open to foreign participation. Some services may be operated fully, while others have restrictions or require cooperation with Vietnamese agencies.
Below are the categories restricted or conditionally restricted according to WTO commitments, Vietnamese law, and licensing authorities’ practices.
Mass media platforms—especially those operated by the government—are tightly regulated.
Foreign investors cannot independently provide:
Television advertising
Radio advertising
Advertising on state-owned broadcasting networks
Media placement on channels managed by government-controlled organizations
These channels require:
Vietnamese ownership
Domestic editorial control
Local content review authority
Foreign investors may participate only through joint-venture activities and cannot control these channels directly.
Vietnam fully prohibits advertising for certain sensitive products and services, regardless of whether the advertiser is domestic or foreign.
Key prohibited categories include:
Tobacco
Strong alcoholic beverages (above 15 degrees)
Products for infants under 24 months (such as formula milk)
Firearms and military equipment
Prescription drugs
Gambling services
Foreign investors cannot create, distribute, or broadcast advertisements related to these products under any structure, JV or otherwise.
Billboards, LED screens, and public advertising structures often require:
Permits from local authorities
Approval for location, size, and content
Coordination with city planning units
Foreign-invested companies may technically participate in outdoor advertising through a JV. However, several limitations apply:
Many strategic outdoor locations are controlled by Vietnamese enterprises.
Long-term land-use rights cannot be owned by foreign companies.
Authorities may favor domestic operators for public visibility sites.
Thus, foreign investors often rely on cooperation with Vietnamese partners to access premium outdoor spaces.
Vietnamese press agencies hold special legal status. Only Vietnamese entities can:
Own press licenses
Operate newsrooms
Control editorial content
Foreign investors cannot:
Own press outlets
Directly publish articles or advertorials
Operate advertising departments within press organizations
Foreign-invested companies may place ads through Vietnamese publishers only, never directly.
Vietnam’s Cybersecurity Law restricts the operation of certain digital advertising platforms by foreign entities.
Limitations include:
Mandatory local data storage
Content moderation in Vietnamese
Regulatory cooperation requirements
Foreign advertisers may still participate, but digital advertising services involving:
User data processing
Cross-border data transfer
Online profiling
must comply with strict data protection rules. In practice, this often means working with Vietnamese agencies or hosting content locally.
Despite the restrictions, foreign investors can still engage in many profitable advertising activities in Vietnam, including:
Creative advertising services
Digital advertising strategy and campaign management
Media buying (through JV partnerships)
Production of advertising materials
Branding, design, and marketing consulting
Influencer marketing and social media advertising
PR consulting (with content approvals)
Vietnam’s advertising landscape is open enough for foreign investors to operate successfully, provided they comply with legal restrictions.
Even when a service is allowed, the foreign-invested advertising company must:
Be established as a joint-venture
Register business line 7310 – Advertising Services
Follow content restrictions under the Law on Advertising
Submit certain content for approval (outdoor, press, media)
Avoid restricted product categories
This conditional compliance framework forms the basis of Vietnam’s advertising industry regulation.
Common misconceptions include:
Believing “advertising is open under WTO” means 100% ownership is allowed
Assuming all digital advertising is unrestricted
Overlooking content approval requirements
Underestimating the impact of data protection laws
Misinterpreting CPC 871 as a blanket authorization
These misunderstandings lead to rejected licensing applications or compliance violations.
Vietnam welcomes foreign investment in advertising, but only under strict conditions set out in its WTO commitments and national laws. Foreign investors cannot engage in all advertising services, and several activities—especially those involving mass media, restricted products, and government-controlled platforms—remain limited to Vietnamese entities.
To operate successfully, foreign investors must understand which services are restricted, which are permitted, and how to structure their market entry legally.
Are you planning to invest in Vietnam’s advertising industry?
DEDICA Law is ready to guide you through licensing, compliance, and strategic planning.
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
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