What Licenses Are Required to Invest in the Hospitality and Tourism Sector in Vietnam?
In recent years, Vietnam has emerged as a leading destination in Southeast Asia, attracting millions of visitors annually. The strong post-pandemic recovery, coupled with open-door policies, visa exemptions, and significant investment in tourism infrastructure, has turned the hospitality and tourism industry into a “golden” field for both domestic and foreign investors. However, alongside the sector’s vast potential, it also poses numerous legal requirements, particularly regarding licenses to ensure investment and business activities are lawful and sustainable. Many new investors entering the Vietnamese market often “stumble” at the licensing stage due to a lack of knowledge or inadequate preparation. Legal mistakes can lead to administrative fines, suspension of operations, or even project termination. So, what specific licenses are required to invest in Vietnam’s hospitality and tourism sector?
Licenses Required for Investment in Hospitality and Tourism
Before launching any hotel, resort, or travel agency project, investors must clearly understand the mandatory licenses. Properly classifying and preparing these documents ensures a smoother investment process and protects investors from unwanted legal risks.
Investment Registration Certificate (IRC)
For foreign investors, the first step is to obtain an Investment Registration Certificate (IRC). This license is issued by the Department of Planning and Investment or the Management Board of Economic Zones, depending on the project’s location. The IRC serves as the legal basis allowing investors to contribute capital and execute their project in Vietnam.
The IRC application must clearly outline the project’s objectives, scale, investment capital, implementation location, and duration. This step requires careful preparation because any later changes will require amendments, which may prolong the process and incur additional costs.
Enterprise Registration Certificate (ERC)
Once the IRC is granted, investors must establish a company to obtain the Enterprise Registration Certificate (ERC). This is essentially the “birth certificate” of the legal entity in Vietnam, allowing the company to proceed with further activities such as leasing land, applying for construction permits, and signing commercial contracts.
The ERC also specifies the registered business lines. Investors must select the correct codes for activities such as: short-term accommodation services, tour operation services, and domestic/international travel services. These codes form the legal basis for obtaining specialized business licenses.
Construction Permits and Planning Approvals
If the project involves building new facilities, investors must obtain a construction permit under the Law on Construction. In addition, they must secure master plan approval, basic design appraisal, environmental impact assessment (if required), fire prevention and fighting approval, and other utility-related approvals (electricity, water, drainage).
Any omission at this stage may result in project delays or even forced suspension. For projects located in coastal areas, protective forests, or sensitive locations related to national defense or security, additional approvals from specialized agencies are required.
Licenses for Travel Services and Accommodation
If the company provides domestic or international travel services, it must obtain a Travel Business License under the Law on Tourism 2017. This requires proof of financial capacity, qualified personnel, and a mandatory bank deposit.
For accommodation activities, hotels must register for star ratings (from 1 to 5 stars) with the local tourism authority. Star ratings directly affect the hotel’s reputation and commercial viability. Additionally, the hotel must meet security, food hygiene, and fire safety conditions to obtain official operation permits.
Key Considerations When Applying for Investment Licenses
The licensing process for the hospitality and tourism sector in Vietnam is often lengthy, multi-step, and can face difficulties due to inconsistent interpretations by state agencies. To avoid risks and delays, investors should keep in mind the following:
Choose the Right Business Lines
Many companies are denied licenses or penalized for registering the wrong or incomplete business lines. Consulting with legal experts ensures that the chosen business codes match current operations and future expansion plans.Prepare Complete and Compliant Documentation
Applications usually require numerous legal documents, business plans, and technical drawings. Investors should ensure that all documents are well-prepared, logically structured, and in compliance with legal requirements. Poorly presented or inconsistent dossiers are a common reason for rejection.Proactively Engage with Authorities
Actively communicating and clarifying requirements with relevant state agencies helps expedite the approval process. Misinterpretation or skipping steps can result in months of delay just to amend or supplement documents. Having legal counsel or a professional advisory firm as a partner can significantly reduce processing time.
DEDICA – Trusted Legal Partner for Tourism Investors in Vietnam
With years of experience supporting investors in the hospitality and resort sector, DEDICA understands each step, each “legal bottleneck,” and is ready to assist clients from planning and preparing applications to the successful completion of all legal procedures.
We not only save investors time and costs but also ensure their projects are implemented legally, sustainably, and safely. DEDICA always prioritizes clients’ interests, delivering optimal solutions in compliance with Vietnamese law and practical management practices.
If you are planning to invest in Vietnam’s tourism and hospitality sector, don’t let legal hurdles stand in your way. Let DEDICA accompany you on a legally solid and efficient journey.
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