How do WTO commitments on advertising services affect investment rights in Vietnam? To what extent can foreign investors conduct or provide advertising services — and what legal risks might they encounter? The article below clarifies the legal landscape and offers practical guidance.
When Vietnam joined the WTO, advertising services became one of the conditional market-opening sectors. However, “being allowed to invest” does not mean “being allowed to do everything”. Many foreign investors coming to DEDICA often ask: Can I establish a wholly foreign-owned advertising company? What services am I allowed to provide? What is the licensing procedure?
To answer these questions, it is necessary to understand the scope of commitments and the legal constraints behind WTO terminology.
According to Vietnam’s WTO Schedule of Commitments, advertising services are opened under CPC 871, covering:
Advertising on newspapers, television, billboards, and the internet;
Consulting and strategic planning for advertising;
Producing advertising content;
Advertising agency services.
However, the commitments do not allow foreign investors to directly produce advertising films or engage in services classified under journalism or publishing—fields subject to special licensing conditions.
WTO commitments also allow the establishment of joint ventures, and over the liberalization roadmap, foreign investors may own up to 100% equity in an advertising enterprise in Vietnam. Nevertheless, operations must still comply with the Law on Advertising, the Law on Enterprises, and relevant regulatory guidelines.
DEDICA has observed that foreign investors frequently misunderstand WTO commitments. Typical risks include:
Treating WTO commitments as a “blanket authorization” and ignoring domestic legal conditions, which leads to rejected applications or required project adjustments.
Failing to distinguish advertising services from content creation or video production, which fall under different regulatory regimes.
Violating rules on image rights, copyright, or using the likeness of public figures, resulting in civil disputes or administrative sanctions.
Insufficient preparation of capability explanation dossiers when applying for an Investment Registration Certificate (IRC), delaying approval.
These issues show that understanding WTO commitments is only the first step; investors must also harmonize international commitments with Vietnam’s domestic legal framework.
In this section, we explore the specific rights foreign investors can exercise in Vietnam’s advertising sector. DEDICA typically guides clients through a three-step approach: identify allowed scope → assess risks → design a compliant business model.
Under WTO commitments and practical enforcement, foreign investors may:
Establish a wholly foreign-owned or joint-venture advertising company.
Provide advertising strategy consulting and media planning services.
Conduct media booking and buy/sell advertising space.
Produce advertising content not classified under journalism, broadcasting, or publishing.
Operate online advertising services such as social media ads, SEO ads, Google/Facebook ads.
However, foreign investors are not permitted to:
Produce advertising films deemed to fall under journalism or broadcasting without special licenses;
Publish or distribute advertising publications such as magazines or feature sections;
Provide services involving politically sensitive, security-related, or culturally sensitive content.
These boundaries are crucial—one small misunderstanding may trigger sanctions or even suspension of operations.
Establishing a foreign-invested advertising company requires:
Obtaining an Investment Registration Certificate (IRC) specifying CPC 871-compliant business lines;
Submitting a clear business model explanation demonstrating that activities do not infringe journalism or publishing laws;
Obtaining an Enterprise Registration Certificate (ERC) with appropriate advertising business codes;
Securing additional permits depending on specific activities (e.g., outdoor advertising involving construction, advertising of regulated products such as alcohol or pharmaceuticals).
This stage is often the most challenging, as documents must comply with both WTO commitments and domestic regulations. Authorities frequently request clarifications or supplementary documents.
DEDICA has helped dozens of FDI clients shorten processing time from 45 days to about 15–20 days by optimizing documentation and accurately defining service scopes outside restricted categories.
Understanding “what you are allowed to do” is only the beginning. The next question is: How can your business operate safely, cost-effectively, and with minimal legal risk?
DEDICA consistently recommends that investors build a parallel legal compliance strategy—especially when expanding advertising operations in Vietnam.
Define service scope from the outset
Accurate business descriptions help avoid classification into journalism or publishing, which have significantly stricter regulations.
Review advertising content before publication
While foreign companies often follow international standards, Vietnam has strict rules under the Law on Advertising, the Law on Intellectual Property, and cultural/ethical regulations.
Include content liability clauses in service contracts
Foreign companies are often blamed when client-provided materials violate the law.
Register trademarks and copyright early
Advertising activities involve extensive use of imagery, logos, and scripts—early registration prevents future disputes.
DEDICA’s experienced legal team provides end-to-end support:
Advising on service scope compliant with WTO commitments;
Preparing and obtaining IRC, ERC, and related permits;
Designing legally compliant business models;
Reviewing contracts, advertising content, and communication policies;
Representing clients in disputes and working with state authorities.
DEDICA partners with FDI clients to prevent risks, optimize legal costs, and support sustainable long-term growth in Vietnam.
WTO commitments on advertising services offer substantial opportunities for foreign investors—but they also impose clear legal boundaries. If you plan to establish or expand an advertising company in Vietnam, do not let regulatory obstacles delay your business goals.
Facing similar challenges?
Contact DEDICA Law for strategic legal advice tailored to your needs.
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