28/02/2025
𝑨𝑳𝑳 𝑨𝑩𝑶𝑼𝑻 𝑶𝑾𝑵𝑰𝑵𝑮 𝑨 𝑯𝑶𝑻𝑬𝑳 𝑩𝑼𝑺𝑰𝑵𝑬𝑺𝑺 𝑰𝑵 𝑽𝑰𝑬𝑻𝑵𝑨𝑴
𝑾𝒐𝒏𝒅𝒆𝒓 𝒉𝒐𝒘 𝒕𝒐 𝒐𝒑𝒆𝒏/𝒓𝒖𝒏 𝒂 𝒉𝒐𝒕𝒆𝒍 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒊𝒏 𝑽𝒊𝒆𝒕𝒏𝒂𝒎?
Da Nang, Hoi An has long been a top tourist attraction in the region, with endless white sand beaches, magical old town in lights, and vast rice fields, winding rivers that make people's hearts flutter, small valleys, big mountains… Along with beautiful nature comes a diverse and rich cuisine and friendly people.
And for a long time, many foreign individuals and businesses have been fascinated with these places, constantly returning to experience and seek for business opportunities or live long-term here.
With the mission of supporting individuals and foreign businesses to live, work long-term and do business in Vietnam, WinnBC will open guides on popular business areas. For each specific type of business, along with instructions on procedures and paperwork, we will also provide notes related to offices, premises, and related business facilities.
𝑆𝑜 𝑓𝑖𝑟𝑠𝑡 𝑜𝑓 𝑎𝑙𝑙
𝑯𝑶𝑾 𝑻𝑶 𝑶𝑾𝑵 𝑨 𝑯𝑶𝑻𝑬𝑳 𝑩𝑼𝑺𝑰𝑵𝑬𝑺𝑺 𝑰𝑵 𝑽𝑰𝑬𝑻𝑵𝑨𝑴
𝐀. 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐢𝐧𝐠 𝐚 𝐇𝐨𝐭𝐞𝐥 𝐢𝐧 𝐕𝐢𝐞𝐭𝐧𝐚𝐦
𝐁. 𝐑𝐞𝐧𝐭𝐢𝐧𝐠 𝐚 𝐡𝐨𝐭𝐞𝐥 𝐢𝐧 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐟𝐨𝐫 𝐥𝐨𝐧𝐠 𝐭𝐞𝐫𝐦
𝐂. 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐚 𝐡𝐨𝐭𝐞𝐥 𝐢𝐧 𝐕𝐢𝐞𝐭𝐧𝐚𝐦
And now we are going to through the details of these processes
𝗔. 𝗣𝗨𝗥𝗖𝗛𝗔𝗦𝗜𝗡𝗚 𝗔 𝗛𝗢𝗧𝗘𝗟 𝗜𝗡 𝗩𝗜𝗘𝗧𝗡𝗔𝗠
There are two ways for foreign individuals and businesses to own hotels in Vietnam in the form of acquisition.
1. 𝑻𝒉𝒆 𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓 𝒑𝒖𝒓𝒄𝒉𝒂𝒔𝒆𝒔 𝒕𝒉𝒆 𝒉𝒐𝒕𝒆𝒍 𝒃𝒖𝒊𝒍𝒅𝒊𝒏𝒈 𝒘𝒊𝒕𝒉 𝒍𝒂𝒏𝒅 𝒖𝒔𝒆 𝒓𝒊𝒈𝒉𝒕𝒔 𝒂𝒏𝒅 𝒕𝒂𝒏𝒈𝒊𝒃𝒍𝒆 𝒂𝒔𝒔𝒆𝒕𝒔 𝒓𝒆𝒍𝒂𝒕𝒆𝒅 𝒕𝒐 𝒕𝒉𝒆 𝒉𝒐𝒕𝒆𝒍, 𝒕𝒉𝒆𝒏 𝒕𝒉𝒆 𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓 𝒄𝒐𝒎𝒑𝒍𝒆𝒕𝒆𝒔 𝒕𝒉𝒆 𝒍𝒆𝒈𝒂𝒍 𝒑𝒓𝒐𝒄𝒆𝒅𝒖𝒓𝒆𝒔 𝒕𝒐 𝒄𝒐𝒏𝒅𝒖𝒄𝒕 𝒕𝒉𝒆 𝒉𝒐𝒕𝒆𝒍 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔.
The procedural steps are as follows:
𝗦𝘁𝗲𝗽 𝟭: The investor signs a contract in principle to transfer and repurchase real estate assets associated with land use rights and other related tangible assets.
𝗦𝘁𝗲𝗽 𝟮: The investor registers investment in the hotel business project and establish a hotel business.
𝗦𝘁𝗲𝗽 𝟯: The newly established enterprise signs an official contract to transfer and repurchase real estate assets associated with land use rights and other related tangible assets;
𝗦𝘁𝗲𝗽 𝟰: The new company conducts land lease procedures with the State of Vietnam and is granted a Land Use Rights Certificate;
𝗦𝘁𝗲𝗽 𝟱: The new company completes the procedures to meet the conditions for hotel business according to the provisions of Vietnamese law.
𝑺𝒐𝒎𝒆 𝒑𝒐𝒊𝒏𝒕𝒔 𝒕𝒐 𝒏𝒐𝒕𝒆:
- If purchased in this form, the INVESTOR is NOT required to inherit the financial obligations of the former owner.
- Foreign-invested enterprises must carry out procedures to re-sign land lease contracts with the state, which is a time-consuming procedure. Investors and foreign-invested enterprises can only lease land from the state or be allocated land by the state with land use fees collected.
2.𝑻𝒉𝒆 𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓 𝒑𝒖𝒓𝒄𝒉𝒂𝒔𝒆𝒔 𝒂𝒍𝒍 𝒄𝒂𝒑𝒊𝒕𝒂𝒍 𝒄𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏𝒔 (𝑪𝒉𝒂𝒓𝒕𝒆𝒓 𝒄𝒂𝒑𝒊𝒕𝒂𝒍) 𝒊𝒏 𝒕𝒉𝒆 𝒍𝒆𝒈𝒂𝒍 𝒆𝒏𝒕𝒊𝒕𝒚 𝒕𝒉𝒂𝒕 𝒐𝒘𝒏𝒔 𝒕𝒉𝒆 𝒉𝒐𝒕𝒆𝒍.
𝗦𝘁𝗲𝗽 𝟭: The investor signs a principle contract on the acquisition of capital contribution in the hotel-owning enterprise, the investor conducts business appraisal (checks legal conditions for hotel business, legal inspection assets owned by legal entities, taxes, contracts and debts of third parties, employees... if any).
𝗦𝘁𝗲𝗽 𝟮: The investor signs a contract to repurchase capital contributions and carries out procedures to register to repurchase capital contributions in Vietnamese enterprises at the Department of Planning and Investment where the enterprise is headquartered;
𝗦𝘁𝗲𝗽 𝟯: Investors and Enterprises carry out procedures to change business registration content related to changing owners at the Business Registration Office - Department of Planning and Investment where the enterprise is headquartered;
𝑺𝒐𝒎𝒆 𝒑𝒐𝒊𝒏𝒕𝒔 𝒕𝒐 𝒏𝒐𝒕𝒆:
With this option, the investor can/must inherit all assets, rights and obligations of the legal entity that owns the hotel;
Implementation procedures are more convenient.
𝗕.𝗥𝗘𝗡𝗧𝗜𝗡𝗚 𝗔 𝗛𝗢𝗧𝗘𝗟 𝗜𝗡 𝗩𝗜𝗘𝗧𝗡𝗔𝗠 𝗙𝗢𝗥 𝗟𝗢𝗡𝗚 𝗧𝗘𝗥𝗠
Renting a hotel in Vietnam for the long term offers a simpler, quicker, and less risky alternative to purchasing or building one from scratch. This option is popular among many investors, including established 4- and 5-star hotels and resorts looking to sublease their properties for various reasons, such as:
Reducing management burden
Improving their reputation and market reach
Enhancing service quality
Accessing capital for expansion or other investments
Retiring or changing residence
Here's what you need to know about establishing your hotel business through long-term rental in Vietnam:
Legal Requirements: Thoroughly understand the hotel's legal status: Pay close attention to the fire protection system and licenses, ensuring they meet operational standards.
Negotiate and sign a rental contract with the hotel owner.
Use the lease contract to register your business, including obtaining an investment license and business registration certificate.
Complete additional procedures to qualify for operating a hotel business as per Vietnamese regulations.
𝑰𝒎𝒑𝒐𝒓𝒕𝒂𝒏𝒕 𝑵𝒐𝒕𝒆:
Have the rental contract notarized for legal validity.
Ensure your registered investment capital reflects the initial costs associated with renting the hotel.
𝑩𝒚 𝒄𝒉𝒐𝒐𝒔𝒊𝒏𝒈 𝒕𝒐 𝒓𝒆𝒏𝒕 𝒂 𝒉𝒐𝒕𝒆𝒍, 𝒚𝒐𝒖 𝒄𝒂𝒏:
Bypass time-consuming complexities involved in purchasing or building a hotel.
Reduce financial risks compared to other ownership options.
Start your business operations much sooner.
Remember, seeking professional guidance from legal and business advisors familiar with Vietnamese regulations is highly recommended to navigate the process smoothly.
𝗖.𝗕𝗨𝗜𝗟𝗗𝗜𝗡𝗚 𝗔 𝗛𝗢𝗧𝗘𝗟 𝗜𝗡 𝗩𝗜𝗘𝗧𝗡𝗔𝗠
𝑳𝒆𝒈𝒂𝒍 𝒂𝒏𝒅 𝑻𝒂𝒙 𝑨𝒅𝒗𝒊𝒔𝒐𝒓𝒔: Navigate legal complexities and ensure compliance with relevant regulations.
𝑨𝒓𝒄𝒉𝒊𝒕𝒆𝒄𝒕 𝒂𝒏𝒅 𝑬𝒏𝒈𝒊𝒏𝒆𝒆𝒓: Design and plan the hotel based on local building codes and regulations.
𝑪𝒐𝒏𝒔𝒕𝒓𝒖𝒄𝒕𝒊𝒐𝒏 𝑪𝒐𝒎𝒑𝒂𝒏𝒚: Oversee the construction process, ensuring quality and adherence to timelines and budgets.
𝑺𝒆𝒄𝒖𝒓𝒆 𝑭𝒖𝒏𝒅𝒊𝒏𝒈: Develop a comprehensive financial plan and secure funding for the project through debt financing, equity investment, or a combination of both.
𝑳𝒂𝒏𝒅 𝑨𝒄𝒒𝒖𝒊𝒔𝒊𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝑷𝒆𝒓𝒎𝒊𝒕𝒔 (6-24 𝑴𝒐𝒏𝒕𝒉𝒔):
- Land Lease Agreement: Secure a long-term land lease agreement (up to 50 years) from a Vietnam state.
- Investment Registration Certificate (IRC): Obtain the IRC from the provincial People's Committee, authorizing your investment project.
- Construction Permits: Apply for necessary building permits from relevant local authorities, including environmental impact assessments and construction licenses.
𝑪𝒐𝒏𝒔𝒕𝒓𝒖𝒄𝒕𝒊𝒐𝒏 𝑷𝒉𝒂𝒔𝒆 (12-18 𝑴𝒐𝒏𝒕𝒉𝒔 𝒐𝒓 𝑴𝒐𝒓𝒆):
- Construction Management: Oversee the construction process by your chosen construction company, ensuring adherence to plans, quality standards, and safety regulations.
- Hotel Operations Planning: Develop a business plan outlining hotel operations, including staffing, marketing strategies, and revenue projections.
𝑭𝒊𝒏𝒂𝒍𝒊𝒛𝒂𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝑶𝒑𝒆𝒏𝒊𝒏𝒈 (3-6 𝑴𝒐𝒏𝒕𝒉𝒔):
- Inspections and Approvals: Obtain final inspections and approvals from relevant authorities, including fire safety and operational licenses.
- Company Registration and Licensing: Register your hotel business and obtain necessary licenses for operation, such as a business registration certificate and a tourism business license.
𝑪𝒐𝒏𝒄𝒍𝒖𝒔𝒊𝒐𝒏: Hotel businesses in Vietnam allow 100% Foreign Direct Investment (FDI)
The easiest and most popular method for foreigners to own and run a hotel business in Vietnam is through method B: Renting a hotel in Vietnam for long term. This option offers several advantages:
- Simpler procedure: Compared to purchasing a hotel or building one from scratch, renting involves less complex legal and administrative processes.
- Faster setup: It allows you to start your business much sooner, bypassing the lengthy procedures involved in acquiring or building a hotel.
- Lower risk: Renting minimizes financial risks associated with purchasing or building a hotel, making it a good entry point for new investors.
Therefore, if you're considering entering the Vietnamese hotel market, renting a hotel for a long term might be the most accessible and efficient option to get started.
𝑹𝒆𝒂𝒅𝒚 𝒕𝒐 𝒆𝒎𝒃𝒂𝒓𝒌 𝒐𝒏 𝒚𝒐𝒖𝒓 𝑽𝒊𝒆𝒕𝒏𝒂𝒎𝒆𝒔𝒆 𝒅𝒓𝒆𝒂𝒎?
WinnBC, with over 5 years of experience and a diverse portfolio of properties available for rent in Danang and Hoian, is here to assist you throughout the entire process. From navigating paperwork complexities to finding the perfect hotel location, our team of experts is dedicated to your success.
Contact us today for a free consultation and let's turn your vision into reality!
𝐖𝐢𝐧𝐧𝐁𝐂 - Your trusted partner in Vietnamese real estate and company setup.
Ms. 𝐖𝐢𝐧𝐧𝐲(Nguyen Cao)
𝑷𝒉𝒐𝒏𝒆: (+84) 901 076 920
𝑬𝒎𝒂𝒊𝒍: 𝒘𝒊𝒏𝒏𝒚.𝒘𝒊𝒏𝒏𝒃𝒄@𝒈𝒎𝒂𝒊𝒍.𝒄𝒐𝒎