Vietnam tourism and hospitality sector has experienced strong growth over the past decade, driven by increasing international travel, a rising middle class, and continuous infrastructure development. As a result, many foreign investors are exploring opportunities to establish businesses in the accommodation sector, including hotels, serviced apartments, and tourist lodging facilities. Understanding the legal framework for setting up a 100% foreign-owned company in accommodation services in Vietnam is therefore essential for investors seeking long-term and compliant operations.
Foreign investment in the accommodation sector is permitted under Vietnamese law and international commitments to which Vietnam is a party, including WTO commitments and various free trade agreements. Accommodation services, such as hotel operation and tourist lodging, are classified as conditional business lines, meaning that foreign investors must satisfy specific legal and operational requirements.
Under Vietnamese regulations, foreign investors may establish a company with 100% foreign ownership to conduct accommodation service business, provided that the investment project complies with zoning regulations, tourism laws, and local development planning. While Vietnam does not impose a mandatory joint venture requirement for accommodation services, investors must still meet conditions relating to service standards, fire safety, security, and environmental protection.
1. Investment Conditions and Business Scope for Foreign-Owned Hospitality Companies
To establish a foreign-owned hospitality company in Vietnam, investors must clearly define the scope of accommodation services in accordance with Vietnam business classification system. Accommodation services may include hotels, resorts, tourist villas, serviced apartments, and guesthouses, depending on the specific licensing and operational model.
In addition to business scope clarity, foreign investors must ensure that the proposed location is legally suitable for accommodation purposes. This includes compliance with land use regulations, construction permits, and local tourism development plans. In practice, authorities will closely examine whether the accommodation project aligns with local planning objectives, particularly in major cities and tourist destinations.
2. Procedures for Establishing a 100% Foreign-Owned Company
Review project approval, investment registration and enterprise registration requirements for the actual accommodation model. The filing sequence must follow current law; the same sequence should not be assumed for every foreign investment.
After establishment, the company must still satisfy all applicable conditions before providing accommodation services. Enterprise registration does not replace tourism, safety, environmental or other operational requirements.
3. Hotel Business License and Operational Requirements
Operating accommodation services requires compliance with specialized regulations under tourism and hospitality laws. A hotel business license for foreign investors in Vietnam is not a single standalone license but rather a combination of statutory conditions that must be fulfilled before commencing operations.
These conditions typically include meeting minimum standards for accommodation facilities, ensuring fire prevention and fighting compliance, maintaining public security and order, and registering accommodation activities with local authorities. Depending on the scale and classification of the accommodation establishment, additional inspections or certifications may be required by tourism authorities.
Only after satisfying these operational requirements may the foreign-owned company legally provide accommodation services to guests.
4. Key Legal Considerations and Practical Recommendations
While Vietnam allows 100% foreign ownership in accommodation services, practical challenges often arise during implementation. Issues related to land use rights, construction compliance, and coordination between multiple authorities can significantly affect project timelines.
Foreign investors are therefore advised to conduct thorough legal due diligence before committing capital, particularly regarding land status, licensing feasibility, and local planning constraints. Professional legal support can assist investors in structuring the investment, preparing compliant dossiers, and navigating licensing procedures efficiently, identifying operational compliance requirements in Vietnam.
Establishing a 100% foreign-owned company in accommodation services in Vietnam offers attractive opportunities in a rapidly growing hospitality market. However, due to the conditional nature of the business line and the complexity of investment and operational regulations, careful legal planning is essential. With proper preparation and expert guidance, foreign investors can successfully enter Vietnam accommodation sector and build a compliant, long-term presence.
Jurion & Partners provides:
-
Comprehensive legal compliance reviews tailored to each business sector.
-
Ongoing corporate secretarial and compliance services, supporting filing preparation and regulatory monitoring.
-
Labor, and regulatory advisory to help businesses minimize legal risks.
-
Strategic legal support for foreign-invested enterprises, including post-licensing compliance.
View more >> How to Set Up a Business in Vietnam – Why You Need a Lawyer
View more >> Regulations On Converting Companies
Discuss the next steps with a lawyer
Ask Jurion & Partners to review your business documents, proposed transaction and practical legal options. A case-specific assessment can help you understand the requirements and choose an informed next step.
