The beauty industry, especially hair salon, cutting and styling services in Vietnam is growing strongly. With the increasingly sophisticated aesthetic taste of Vietnamese people and the trend of profound influence from Korean culture, it is not difficult to see the attractive profit potential in opening Korean salons in big cities like Ho Chi Minh City. Ho Chi Minh, Hanoi, Da Nang... But to invest effectively, Korean investors need to clearly understand the legal process, specific conditions and practical notes in the process of establishing a business.
When investing abroad in the field of hair care, cutting, shampooing and styling - which is a profession in the conditional service group in Vietnam - Korean investors need to meet many specific regulations.
The industry "beauty care services" (including hair cutting, shampooing, and styling) is not restricted from foreign investment but is on the conditional list. According to Vietnam's commitments to the WTO and the current Investment Law, Korean investors are allowed to contribute capital or establish 100% foreign-owned companies to do business in this field.
However, the licensing agency will carefully consider factors such as location, scale, personnel and commitment to comply with Vietnamese laws in the field of cosmetic practice.
To establish a hair salon company in Vietnam, Korean investors need to carry out procedures to apply for an Investment Registration Certificate and a Business Registration Certificate. The application must clearly show the business model, capital contribution ratio, financial plan, business location, expected registered profession, etc.
In addition to investment procedures, investors need to ensure hygiene, labor safety and personnel conditions. Salons that provide beauty services such as dyeing, perming, steaming, etc. may be considered as cosmetology establishments, so they may need to apply for a License to operate. This is especially true if the salon uses modern techniques, specific chemicals, or equipment that requires inspection.
After completing the establishment of a legal entity, the process of operating a salon in Vietnam also requires Korean investors to clearly understand common legal issues. This is a vital factor to maintain stable operations and long-term brand expansion.
Salons often hire barbers, shampoo staff, receptionists and accountants. Investors need to sign a labor contract, pay social insurance and ensure benefits according to the provisions of the Labor Code. In some cases, investors also want to invite Korean experts to Vietnam for training or management, they need to apply for an appropriate Work Permit and work visa.
Improper use of labor, especially signing verbal contracts, not paying insurance, or violating regulations on working hours can easily lead to complaints and administrative sanctions.
To protect the name and brand recognition of the Korean-style salon, investors should register the trademark at the Vietnam Intellectual Property Department. This not only helps limit copying and counterfeiting of brands, but is also a stepping stone to expanding the salon chain system later.
In addition, the salon interior design according to its own brand identity, staff uniforms, signs... also needs to be done in compliance with local regulations and construction and cultural management agencies.
Korean salons often invest in technology, modern equipment, chemicals and high-standard styling techniques. Therefore, the import of machinery and chemicals must also comply with Vietnamese law on technical and safety standards.
In addition, controlling income and expenditure, invoicing, declaring taxes on time, working closely with internal accountants and tax consultants is essential to avoid being fined or incurring unnecessary costs.
Many Korean investors when opening salons in Vietnam encounter difficulties due to differences in administrative processes and language barriers. Choosing a reputable legal consulting unit is the key to helping the investment process take place quickly, economically and legally.
With experience supporting many foreign investors, especially Korean investors in the service sector, DEDICA Law Firm provides comprehensive legal services from industry consulting, investment registration, business establishment, applying for licenses, to operating support and handling arising legal situations.
We not only help investors understand the law but also help them operate their businesses effectively, save costs and create a solid foundation to expand their brand in the Vietnamese market.
Are you a Korean investor interested in the salon industry in Vietnam?
Please contact DEDICA for comprehensive - fast - legal advice for your investment plan.
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