Invest, set up a hotel in Da Nang, Vietnam

Hi DMS Law office in Vietnam! Can you advise and supply services for foreign companies, foreign investors to develop a hotel and run hotel business in Da Nang, Vietnam ?

Hi!

Operate hotel business in Vietnam:

Foreign investors may invest to run hotel business in Vietnam (CPC 64110) in the form of investment in hotel construction, renovation, restoration or acquisition of hotel in Vietnam (Vietnam’s WTO No. WT/ACC/48/Add.2 dated October 27, 2006).

Investment Registration Certificate in Vietnam:

Foreign investors may establish a company in Vietnam in accordance with law. Before setting up a company in Vietnam, foreign investors must have investment project and carry out procedures for issuance of Investment Registration Certificate (Clause 1 Article 22 Law on Investment No. 67/2014/QH13 dated November 26, 2014).

Dossiers for Investment Registration Certificate (IRC) in Vietnam, include:

Written request for implementation of investment project;

Copy of ID card, or passport in the case investors being an individual, copy of Certificate of Incorporation or other equivalent papers certifying the legal status in the case of investors being an organization;

Investment project proposal comprising the following contents: investors implementing the project, investment objectives, investment scale, investment capital and method of raising capital, location, duration, investment schedule, demand for labour, proposal for investment incentives, assessment of impact and socio-economic efficiency of the project;

Copy of any one of the following documents: financial statements for the last two years of the investor; commitment of the parent company to provide financial support; commitment a financial institution(s) to provide financial support; guarantee for the financial capability of the investor; or a document proving the financial capability of the investor;

Proposal about demand for land use; where the project does not require the State to allocate or lease out land or to permit conversion of the land use purpose, a copy of the site lease agreement or other document certifying that the investor has the right to use the site for implementation of the investment project shall be submitted (Clause 1 Article 33 Law on Investment No.  67/2014/QH13 dated November 26, 2014).

The term for land lease in Vietnam:

The term for land lease to foreign-invested enterprises for implementing investment projects in Vietnam, shall be considered and decided on the basis of the investment projects or applications for land allocation or land lease, but must not exceed 50 years (Clause 3 Article 126 Law on Land No. 45/2013/QH13 dated  29 November 2013).

Ratings of tourist accommodation establishments in Vietnam:

Hotels, tourist villas, tourist apartments and cruise ships shall be rated according to the national standards on tourist accommodation establishments. Tourist accommodation establishments shall be rated as: 01-star, 02-star, 03-star, 04-star and 05-star ratings (Clause 2 Article 50 Law on Tourism No. 09/2017/QH14 dated June 19, 2017).

General conditions for tourist accommodation business in Vietnam:

Tourist accommodation establishments must not be built in or next to defense or security areas, nor affect the space of the national air-defense battlefield; and must ensure a safety distance from schools, hospitals and areas which cause or may cause pollution (Article 18 Decree No. 92/2007/NĐ-CP dated June 01, 2007).

General security and order conditions for accommodation business in Vietnam:

A business establishment must be registered, licensed or established under the law of Vietnam.

The person in charge of security and order of a business establishment must not be one of the following subjects:

For Vietnamese citizens:

A person has been criminally prosecuted and being under the investigation, prosecution or adjudication by a Vietnamese or foreign procedural body.

A person has a criminal record on infringing upon the national security or deliberate commission of a crime liable to a prison term of 03 years or more which has not yet been expunged; or is suspended from serving a prison sentence; or is serving a non-custodial rehabilitation; or is under the mandatory supervision, or the prohibition from residence or holding certain position or running a business sector subject to security and order conditions upon the court’s decision.

A person is liable to the compulsory educational measures at the community; is waiting for a decision on imposition of an administrative penalty granted; is addicted to drug; is suspended from the compliance with a decision on serving a sentence in correctional institution or rehabilitation center; or has faced an administrative penalty but the period for being considered as not yet facing an administrative penalty is not satisfactory as regulated;

For Vietnamese people who hold foreign passport and reside abroad, and foreigners:

A person is not permitted by a competent authority of Vietnam to stay in Vietnam.

Conditions on fire prevention and fighting have been satisfied as referred to by the law on fire prevention and fighting (Article 7 Decree No. 96/2016/NĐ-CP dated July 01, 2016).

In conclusion, foreign investors may invest to run hotel business by investment in hotel construction, renovation, restoration or acquisition of hotel in Vietnam; regarding land use rights, foreign investors may only lease land, the land lease term shall not exceed 50 years; in addition, foreign investors must meet conditions on ratings, accommodation business, security and order for tourist accommodation business./.

Consulting services:

Phone: 0914 165 703 or Email: dmslawfirm@gmail.com

Foreign investment in hotels in Da Nang, Vietnam