I. Vietnamese legal basics on AIRBNB service

The Vietnamese prevailing law has not yet stipulated specifically the AIRBNB service model, but it can be understood that this is a type of service that operates on an application platform that links between the party who would like to rent a house, the room for the purpose of resort and the party whose house or room needs to be rented out for the same purpose.

By the above definition, the AIRBNB service can be identified as the service providing tourist accommodation facilities, belonging to the travel service, and the type of residence is tourist apartments. According to the provisions of Clause 3, Article 21 of Decree 168/2017/ND-CP, a residence apartment is an apartment with necessary equipment and services to serve tourists. Guests can self-cater during their stay.

As for the question of whether foreign investors can do business in AIRBNB services in Vietnam, this depends on the type of industry that the foreign investor chooses. Including: Operating travel and tour services; arrange accommodation, hotels; sublease tourist sites.

Pursuant to the provisions of Article 30 of the Law on Tourism 2017 and Commitment no.318/WTO/CK-DV, foreign investors are only allowed to do business in travel services when they have entered into a joint venture with a domestic investor and are only allowed to do business related to international travel services. 

Can foreign investors do business in Airbnb service in Vietnam-

II. Mandotary conditions

Depending on the type of industry that the investor chooses, a number of requirements may be demanded:

– Regarding travel services, it shall meet the conditions of the Law on Tourism 2017

– Regarding the service of accommodation establishments and hotels, they shall meet conditions of Decree 168/2017/ND-CP

Conditions about doing business

At first, foreign investors set up by themselves or have to enter into joint ventures with domestic investors (if required by law) and apply for an investment registration certificate.

Secondly, foreign and domestic investors shall register for business establishment according to regulations.

Thirdly, the enterprise after being established applies for other sub-licenses because travel services, specifically accommodation services, are conditional business lines.

Conditions about sub-license

At first, according to the provisions of Point 1, Clause 1, Article 8 of Decree 96/2016/ND-CP, accommodation services must ensure security and order requirements.

Secondly, according to the provisions of Decree No. 136/2020/ND-CP, the AIRBNB service business unit may have to carry out procedures for applying for a fire prevention and fighting license. Cases subject to fire prevention and fighting management are factories, enterprises, warehouses, working offices, hospitals, schools, theaters, hotels, markets, commercial centers, force camps. armed forces and other works. Thus, if the accommodation service establishment integrates with the hotel service, it must meet the above license conditions.

Thirdly, pursuant to Articles 39 and 49 of the Law on Environmental Protection 2020, accommodation service providers might, depending on the size, nature and type of the unit, apply for environmental registration or apply for an environmental registration. environmental license.

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