1. What is a sports center? 

A sports center is a service facility operating in the field of physical training and sports, offering services such as coaching, training, or facility rental services for sports including gym, yoga, martial arts, swimming, mini football, badminton, etc.

A sports center may be established by individuals, enterprises, or organizations in various legal forms such as household business, limited liability company, or joint stock company.

Within the scope of this article, Phong & Partners focuses on the procedures for establishing a sports center in the form of an enterprise, in order to meet the increasing and widespread demand among individuals and businesses seeking to provide sports services legally.

2. What are the legal conditions for establishing a sports center?

According to Decree No. 36/2019/ND-CP, detailing certain articles of the Amended Law on Physical Training and Sports 2018, the conditions for operating a sports business center are as follows:

2.1. A team of professional staff

The professional staff of a sports business must include:

• Sports instructors, who must meet at least one of the following conditions:
  • Being a coach or athlete of ranked Second Class or equivalent, appropriate to the type of sports business;
  • Holding a diploma in sports and physical training from intermediate level or higher, relevant to the registered sport;
  • Undergoing specialized training as regulated by the Minister of Culture, Sports and Tourism.
• Lifeguards
• Healthcare staff

2.2. Facilities and equipment must comply with national technical regulations

Depending on the type of sport, the Minister of Culture, Sports and Tourism shall issue relevant national technical regulations for facilities and equipment.

For example, regarding football, Circular No. 18/2018/TT-BVHTTDL prescribes:

• Facilities:
  • The playing surface must be flat and covered with one of the following materials: natural or artificial grass, clay, fine sand, wooden flooring, synthetic rubber or plastic;
  • No obstacles or dangerous materials on or around the field; the perimeter must be level with the playing surface, if elevated, it must be covered with safe materials;
  • A minimum distance of 2.5m must be maintained between the sidelines/end lines and fences, spectator stands, or adjacent fields;
  • Football fields adjacent to housing, public works, or roads must have fences/nets of at least 5 meters high;
  • Lighting level must be at least 150 lux;
  • If there is a goal-shooting wall, it must be at least 5m wide, 2.5m high, and made of durable material;
  • A first aid kit as prescribed by the Ministry of Health is required;Having restrooms and changing rooms for participants and players;
  • Internal regulations board must include: training hours, eligible participants, prohibited individuals, required attire, and safety measures;
• Equipment
  • Goal frame must be made of metal, wood or synthetic materials, and must meet the size requirements specified by the Laws of the Game.  The goalposts must be round and must not pose any danger to players during training or football matches.
  • Balls must meet the size and weight requirements specified by the Laws of the Game.
  • All football-related competition equipment must comply with football regulations.

2.3. Mandatory presence of sports instructors for certain types of activities

If the sports center offers training or operates in a sport listed under the category requiring instructors, as issued by the Ministry of Culture, Sports and Tourism, then it must:

• Having qualified instructors as per Article 13.1 of Decree 36/2019/NĐ-CP
• Possessing facilities and equipment that comply with Article 14 of Decree 36/2019/NĐ-CP

2.4.  Conditions for operating extreme sports

Enterprises operating sports activities in the List of extreme sports activities prescribed by the Minister of Culture, Sports and Tourism, must meet the following conditions:

• Employing adequate specialized personnel according to Article 13 of Decree 36/2019/NĐ-CP, including:
  • Sports instructors;
  • Lifeguards;
  • Healthcare staff on duty or have an agreement with the nearest medical facility to provide first aid or emergency support for participants when necessary;
• Ensuring facilities and sports equipment comply with Article 14 of Decree 36/2019/NĐ-CP.

2.5. Conditions for water sports activities

• Having lifeguards;
• Having proper facilities and equipment under Article 14 of Decree 36/2019/NĐ-CP;
• For water sports activities on rivers, seas, large lakes or streams, having rescue motorboats;

3. Which authority issues the license for operating a sports center?

The specialized agency for physical education and sports under the People's Committee of the province - the Department of Culture, Sports and Tourism where the sports business location is registered or where the enterprise’s head office is competent to issue the Certificate of eligibility for Sports Business Operation (Article 20 of Decree 36/2019/ND-CP).

4. What does the application dossier for establishing a sports center include?

According to Article 19 of Decree No. 36/2019/ND-CP, the application dossier for the issuance of the Certificate of eligibility for Sports Business Operation shall include:

• An application form for the Certificate of eligibility for sports business operation, made according to Form No. 02 provided in the Appendix issued together with Decree No. 36/2019/ND-CP.
• A summary report on the preparation of conditions for sports business operation, made according to Form No. 03 provided in the Appendix issued together with Decree No. 36/2019/ND-CP (attached with a copy of the Enterprise Registration Certificate; copies of diplomas, certificates, or professional staff qualifications if applicable under the cases prescribed in Articles 15, 16, and 17 of Decree No. 36/2019/ND-CP).

5. What is the procedure for establishing a sports center?

Step 1: Establishing an enterprise or household business (if not yet established)

• Preparing the application dossier for enterprise/household business registration (with registered business line code 9311: Operation of sports facilities).
• Submitting the dossier to the Department of Planning and Investment (currently referred to the Department of Finance) or an equivalent competent authority.
• Receiving the Enterprise Registration Certificate / Household Business Registration Certificate within 3–5 working days.

Step 2: Preparing physical facilities, equipment, and qualified professional staff appropriate to each sport or discipline

The enterprise must ensure the fulfillment of all conditions related to facilities, equipment, and professional staff as outlined in Section 2 above.

Step 3: Submitting the application dossier for the Certificate of eligibility for sports business operation

• Submitting 01 set of the application dossier to the Department of Culture, Sports and Tourism.
• If amendment or supplementation of the dossier: the Department shall notify the applicant within 03 working days from the date of receipt of the dossier.

Step 4: Issuing the Certificate of eligibility for sports business operation

Within 07 working days, the competent authority shall appraise the conditions for conducting sports business activities and issue the Certificate if all conditions are met, or provide a written refusal clearly stating the reasons.

Note: The receipt of dossiers and delivery of results may be conducted directly, by post, or via electronic means. (Article 20 of Decree No. 36/2019/ND-CP)

6. FAQ
6.1. In what cases shall the Certificate of eligibility for sports business operation be revoked?

An enterprise shall have its Certificate of eligibility revoked in the following cases:

• Providing false information in the application dossier for the Certificate of eligibility;
• Terminating sports business operations

(Article 20 of Decree No. 36/2019/ND-CP)

6.2. Are foreign investors allowed to establish a sports center in Vietnam?

According to Commitment No. 318/WTO/CK of the Government of the Socialist Republic of Vietnam on services, the general provisions applicable to entertainment, cultural and sports services allow foreign investors to establish joint ventures, in which the foreign capital contribution must not exceed 49%.

In addition, the Law on Investment 2020 and its guiding documents classify sports services as a conditional market access sector for foreign investors.

Therefore, foreign investors may establish a sports center in Vietnam only by entering into a joint venture with a Vietnamese partner. The specific percentage of foreign capital ownership depends on the type of sport and must comply with Vietnamese legal regulations.