Foreigners are allowed to set up corporation and make profit in hotels if they strictly comply with Vietnam’s effective legal regulations on investment, business, and land.
There are two administrative procedures for a foreigner to implement if he/she wants to run a hotel in Vietnam.
a) Applying for land lease:
Foreign individuals can contact with local Departments of Natural Resources and Environment for information of land lease. After the two sides reach agreement of locations, the local People’s Committee will issue written approval in principle.
Land lessees have to submit two dossiers to the local Departments of Natural Resources and Environment, each includes (1) applications for land lease, (2) in-principle written approval of the project, (3) copies of investment certificates.
Within 20 working days, the provincial People’s Committees will make decision on land lease and local Departments of Natural Resources and Environment will grant certificates of land use rights.
The duration of land lease to foreign investors in Vietnamshall not exist 50 years. Upon the expiry, the State shall consider the extension if the land user wishes to continue using the land and has strictly observed the laws.
b) Applying for investment certificates
A dossier of foreign-invested projects includes the investment registration form, the business registration files and the report on financial capacity of the investor.
If the project having the investment capital of VND 300 billion (US $1.5 billion) or more, the investor is required to present document which certifies their legal status, the economic-technical statement for the project.
Applicants have to submit the dossiers to the local Departments of Planning and Investment.
Investment certificates will be granted within 15 working days in case of projects and at least 30 days for over VND 300 billion ones./.