1. Conditions for foreign investors to open a hotel in Ho Chi Minh

In Vietnam's Schedule of Specific Commitments in Services when joining the WTO, code CPC 64110 (Hotel accommodation arrangement service) no longer has any restrictions for foreign investors. That means foreigners can establish 100% foreign-owned companies to conduct business in the hotel industry in Vietnam.

Because the hotel business is a conditional business, when operating in this field in Vietnam, foreign investors shall be treated the same as domestic investors.

In addition, foreign investors must also meet minimum conditions for facilities, techniques, and services when opening a hotel in Ho Chi Minh as follows:

• There are at least 10 bedrooms, a reception desk, and a shared bathroom;
• There is parking for guests at resort hotels and motels;
• There are kitchens, dining rooms and catering services for resort hotels, floating hotels, and roadside hotels;
• There are beds, mattresses, blankets, pillows, face towels, bath towels, replacement mattress covers, blanket covers, pillow covers, face towels, and bath towels when there are new guests;
• There is staff on duty 24 hours a day.

2. What are required licenses when opening a hotel in Ho Chi Minh?

The basic licenses that foreign investors must have when they open a hotel in Ho Chi Minh include:

• Investment registration Certificate
• Business registration Certificate
• Certificate of eligibility for security and order application
• Fire prevention and fighting Certificate application
• Certificate of food hygiene and safety
• Environmental license

In addition to the above licenses, foreign investors may voluntarily carry out star rating registration procedures for their hotels.

3. Step-by-step open a hotel in Ho Chi Minh Vietnam

3.1. Phase 1: Pre-investment approval

When entering Vietnam to open a hotel in Ho Chi Minh, foreign investors must complete procedures to apply for an Investment Registration Certificate. However, before applying for an Investment Registration Certificate, depending on the scale and form of hotel business, investors must register their investment policies under the authority of the National Assembly, the Prime Minister or the People's Committee provincial people.

After the investment policy has been approved by competent authorities. The investment registration agency issues Investment Registration Certificates for investment projects subject to investment policy approval within 5-15 days depending on each specific case.

3.2. Phase 2: Investment Registration Certificate Application

Step 1: The investors submit 01 set of application documents for an Investment Registration Certificate to the investment registration agency. The profile includes the following contents:

• Document requesting implementation of investment project, including commitment to bear all costs and risks if the project is not approved.
• Documents on the investor's legal status.
• Documents proving the investor's financial capacity.
• Proposed investment project. In cases where the law on construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal.
• In case the investment project does not request the State to allocate land, lease land, or allow change of land use purpose, submit a copy of land use rights documents or other documents determining the right to use the location for implementation of current investment project.
• Explanation content about technology used in investment projects for projects subject to evaluation and consultation on technology according to the provisions of law on technology transfer.
• BCC contract for investment projects in the form of BCC contract.
• Other documents related to the investment project, conditions and capacity requirements of the investor according to the provisions of law (if any).

Place of application: Department of Planning and Investment of Ho Chi Minh city .

Step 2: The investment registration agency considers the dossier and issues the Investment Registration Certificate to the investor within 45 days from the date of receipt of valid documents when the project meets all the regulations of law on: industries or occupations, location, planning of the city, market access conditions and so on.

3.3. Phase 3: Enterprise registration certificate application

Step 1: Prepare documents to open a hotel in Ho Chi Minh

After obtaining the Investment Registration Certificate, investors need to prepare documents to open a hotel in Ho Chi Minh, including:

• Application for business registration.
• Company rules.
• List of members/ List of founding shareholders and shareholders who are foreign investors.
• Copy: Citizen identification card or Identity card or Passport of individual members; Establishment decision, Business registration certificate of the organization and authorization document; Legal personal identification documents of the authorized representative of the organizational member.
• Enterprise registration certificate or equivalent document must be consular legalized for organizational members.
• Investment registration certificate for foreign investors

Step 2: Submit application to Ho Chi Minh City Department of Planning and Investment (Business Registration Office)

Working time: 05-07 working days from the date of receipt of complete and valid documents.

Step 3: Announce the business registration content

After completing the company registration procedures at the Department of Planning and Investment of Ho Chi Minh City, the next step to set up a company is to announce the business registration content.

Information on business registration must be published on the National Information Portal within 30 days from the date of issuance of the Enterprise Registration Certificate.

Implementing agency: Announcement publishing department of the Business Registration Agency.

Working time: within 30 days

Step 4: Company seal

This is the final step in the process of setting up a 100% foreign-owned hotel. This step is carried out after obtaining the Business Registration Certificate and posting the business establishment announcement.

The hotel engraves the seal and announces the use of the seal sample on the National Business Registration Portal. The hotel has the right to decide the seal model and number of seals.

Receiving agency: Enterprise registration office - Department of Planning and Investment of Ho Chi Minh city - where the business is headquartered.

Working time: about 5-8 working days

• Note: Documents issued or certified by competent foreign agencies must be consular legalized and translated and notarized according to Vietnamese law. In addition, depending on the case, you must provide some other necessary documents.

3.4. Phase 4: Certificate of eligibility for security and order application

Vietnamese law stipulates Certificate of eligibility for security and order application applicable to hotels rated 5 stars or higher. Therefore, for hotels with a rating of 5 stars or more, foreign investors need to submit an application to receive a Certificate of eligibility for security and order application.

Step 1: Prepare documents including:

• Document requesting issuance of Certificate of satisfaction of security and order conditions of the business establishment.
• Valid copy of one of the following types of documents: Business registration certificate; Investment registration certificate;
• Valid copies of papers and documents proving ensuring safety conditions for fire prevention and fighting for business areas and warehouses for storing raw materials and goods;
• Curriculum vitae attached with criminal record card or personnel declaration of the person responsible for security and order of the business establishment.
• In case the person responsible for security and order is a Vietnamese residing abroad holding a foreign passport and a foreigner, in addition to the Personnel Declaration, a valid copy of the Passport and Permanent Residence Card or Temporary residence card or Visa with valid stay in Vietnam must be attached.

Step 2: Submit application to the Police Department on Administrative Management of Social Order - Ministry of Public Security

Address: 47 Pham Van Dong - Cau Giay - Hanoi

Working time: 05-07 working days from the date of receipt of complete and valid documents.

3.5. Phase 5: Fire prevention and fighting Certificate application

Step1: To be able to apply for a fire prevention license for hotels and go into legal business, foreign investors need to meet the following conditions:

• There are regulations, rules, prohibition signs, signs, diagrams or instruction signs on fire prevention and fighting and escape appropriate to the characteristics and nature of the facility's operations.
• There are regulations and assignment of responsibilities and tasks for fire prevention and fighting in the facility.
• Electrical system, lightning protection, anti-static; equipment that uses electricity, generates fire, and generates heat; The use of fire and heat sources must ensure fire prevention and fighting safety.
• Have safe technical procedures for fire prevention and fighting suitable to production, business and service conditions.
• There are grassroots and specialized fire prevention and fighting forces that are trained in fire prevention and fighting skills and are permanently organized to be ready to fight fires to meet on-site fire fighting requirements.
• Have a firefighting and escape plan approved by competent authorities
• Have transportation, water supply, and communication systems for firefighting, fire alarm, firefighting, and fire prevention systems, other fire prevention and fighting means, and life-saving means appropriate to the nature and characteristics. of the facility to ensure quantity, quality and operation in accordance with standards and technical regulations on fire prevention and fighting or according to regulations of the Ministry of Public Security.
• There is a document of approval and acceptance of fire prevention and fighting from the Fire Prevention and Fighting Police agency
• There are records of management and monitoring of fire prevention and fighting activities according to regulations of the Ministry of Public Security.

Step 2: Design and approve fire prevention and fighting designs

• In case of approval of hotel construction location:

• Written request for approval of the construction location for fire prevention and fighting from the investor. In case the investor authorizes another unit, there must be a written authorization according to the provisions of law;
• Certificate of land use rights or document proving legal land use rights for projects and works;
• Drawings and documents clearly show the current topographical status of the land related to fire prevention and fighting, such as the fire resistance level of the building, the distance from the proposed construction to surrounding structures, and wind direction. , construction elevation;

• In the case of basic design of hotel projects and buildings:

• Written request for review and comments on the investor's fire prevention and fighting solution. In case the investor authorizes another unit, there must be a written authorization according to the provisions of law;
• Decision approving construction investment policies for projects using public investment capital;
• Document approving the construction investment policy (if any) or Investment registration certificate (if any) or Certificate of land use rights or document proving legal land use rights for the project, works using other capital;
• Certificate of eligibility to provide fire prevention and fighting services from the fire prevention and fighting design consulting unit; Basic design drawings and descriptions show the requirements for fire prevention and fighting solutions.

After fully meeting the following documents, the business will submit it to the competent authority to request approval of the project for its hotel.

Step 3: Acceptance, check the acceptance results on fire prevention and fighting

To obtain an acceptance record from a competent authority, businesses need to prepare a dossier including the following documents:

• A copy of the Certificate or document approving the fire prevention and fighting design, enclosed with a dossier stamped with the approval stamp of the Fire Prevention and Fighting Police agency;
• Copy of Fire Prevention and Fighting Equipment Inspection Certificate;
• Minutes of testing, partial acceptance and overall acceptance of the fire prevention and fighting system;
• As-built drawings of the fire prevention and fighting system and items related to fire prevention and fighting are consistent with the approved design documents;
• Documents and procedures guiding the operation and maintenance of fire prevention and fighting equipment and systems and systems related to fire prevention and fighting of works and motor vehicles;
• Acceptance documents for completed items and systems related to fire prevention and fighting;
• Copy of Certificate of eligibility to conduct business in fire prevention and fighting services of the supervision-consulting unit (if any), the unit that constructs and installs the fire prevention and fighting system.

Note: Documents included in the file must be confirmed by the investor, vehicle owner, supervision consultant, and construction unit. If documents are in a foreign language, they must be translated into Vietnamese.

Step 4: Apply for approval of the fire fighting plan

To apply for approval of the fire fighting plan, foreign investors need to prepare the following documents:

• Written request for approval of the facility's firefighting plan;
• 02 copies of the facility's firefighting plan have been signed and stamped by the person responsible for organizing the development of the plan (if any).

In addition, the fire prevention license for the hotel You must also apply for a training certificate for fire prevention and fighting for employees working at the hotel. Only when all the above documents are complete can it operate legally.

3.6. Phase 6 : Certificate of food hygiene safety application

Step 1: Application for Certificate of food hygiene and safety:

• Application for issuance of Certificate of establishment meeting food safety conditions;
• Copy of Business Registration Certificate;
• Explanation of facilities, equipment and tools to ensure food hygiene and safety conditions;
• Certificate of good health of the facility owner and person directly producing and trading food issued by a district-level medical facility or higher;
• Certificate of training in food safety and hygiene of the establishment owner and of those directly producing and trading food.

Place of application: Department of Health of Ho Chi Minh city.

Step 2: Within 15 days from the date of receipt of complete and valid documents, the Department of Health conducts an actual inspection of food safety conditions at food production and business establishments; If eligible, a Certificate of establishment meeting food safety conditions must be issued; In case of refusal, they must respond in writing and clearly state the reason.

3.7. Phase 7 : Environmental license

Document to request an environmental license includes:

• Document requesting environmental permit;
• Report proposal for environmental licensing;
• Documents of investment projects, facilities, concentrated production, business, service zones, and industrial clusters.

Step 1: Submit your application for an environmental permit in person or electronically through the online public service system to the competent authority;

Step 2: Competent authority checks and reviews documents: Depending on the size of the hotel belonging to group (I, II or III), the authority is the Ministry of Natural Resources and Environment; or Provincial People's Committee; District People's Committee.

Working time: maximum 45 days.

Step 3: Competent authority conducts appraisal;

Step 4: The competent authority returns the documents in person or electronically according to the wishes of the person requesting the paper.

3.8. Phrase 8: Apply for a star rating and Decide on recognition of tourist accommodation establishment standard class (hotel star class)

This is a voluntary procedure for foreign investors when opening a hotel in Ho Chi Minh. Therefore, this procedure may or may not be performed. However, foreign investors are encouraged to register for star ratings for their hotels to have the best business conditions.

Step 1: Documents to register for hotel standard ranking include:

• Application for recognition of tourist accommodation establishment class

• Self-assessment of the quality of tourist accommodation establishments according to the provisions of national standards on ranking tourist accommodation establishments;
• List of managers and employees in tourist accommodation establishments;
• Certified copies of diplomas, certificates, professional training certificates and certificates of working time in the tourism sector of managers and department heads in tourist accommodation establishments.

Step 2: Foreign investors submit 01 set of documents to competent state agencies including: General Department of Tourism to appraise and recognize 04-star and 05-star tourist accommodation establishments; Provincial specialized tourism agencies evaluate and recognize 1-star, 2-star and 3-star tourist accommodation establishments.

Working days: 30 days from the date of receiving valid documents

4. How can you find legal advice when you open a hotel in Ho Chi Minh?

With more complicated requirements and procedures than domestic investors, it is certain that foreign investors shall encounter difficulties when they open a hotel in Ho Chi Minh. Therefore, to support foreign investors in opening a hotel in Ho Chi Minh, Phong & Partners is honored to introduce and provide you legal services with our knowledgeable and experiences in opening a hotel in Ho Chi Minh.

Find out more legal services of Phong & Partners at www.phong-partners.com

5. FAQ related to opening a hotel in Ho Chi Minh

1. How long does it take to open a hotel in Ho Chi Minh?

Based on the provisions of Vietnamese law and the actual situation, the time for foreign investors to open a Ho Chi Minh hotel is calculated as follows:

• Time to apply for investment policy approval (for projects subject to investment policy approval) and issue investment registration certificate: about 55-70 days;
• Time to issue investment registration certificate (for projects that do not require approval) and enterprise registration certificate: about 45 days;
• Time to apply for other certificates:

• Certificate of eligibility for security and order application: about 07 days
• Fire prevention and fighting Certificate application: about 20 days
• Certificate of food hygiene safety application: about 15 days
• Environmental license: about 45 days
• These certificates/licenses can be applied for concurrently or separately (depending on each specific case). The time it is granted depends on the regulations of each type of certificate/license.

Thus, the time to open a hotel in Ho Chi Minh is not fixed. The short or long time depends on many factors: the project is/is not subject to investment policy approval; Time to prepare documents and conditions to apply for a certificate/license; Preparation time for design, appraisal and approval by investors and state agencies; Time to receive documents from state agencies; The investor's documents are valid or invalid and must be resubmitted;...

Therefore, to shorten the time and foreign investors can put the hotel into business as soon as possible, before opening a hotel in Ho Chi Minh, foreign investors should get help from experts in this field. At Phong & Partners, we will consult and accompany clients when opening hotels in Ho Chi Minh. See more at: https://phong-partners.com/en/dich-vu-phap-ly/investment-consulting/investment-consulting.html

2. Is it possible to rent a building to do hotel business?

Foreign investors who want to open a hotel in Ho Chi Minh can rent a building for hotel business. Through the following forms: purchasing assets attached to land (buildings); Sign business cooperation contracts with individuals and businesses in Vietnam that are in the hotel business; Contribute capital to the company or buy shares of a hotel company, etc.

To easily invest in hotel business using the above forms, Phong & Partners provides consulting services for opening hotel in Ho Chi Minh. We will resolve legal and language barriers, helping clients feel secure  when investing in Vietnam.

Customers contact us at: https://phong-partners.com/

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