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.
Airbnb is an online marketplace that connects people who want to rent out their homes, apartment, or spare rooms to travelers seeking accommodations. It is the market leader in the short-stay rental industry.
II. Reality Regulations
According to the provisions of the WTO Commitment Schedule (Vietnam’s Schedule of Service Commitments to the WTO), there are no regulations on the Airbnb industry. As for domestic legal regulations, Airbnb and the short-stay rental industry is understood in general terms and does not have specific regulations, but that only relates to the rental and leasing of real estate.
Thus, it can be understood that the Airbnb businesses of foreign investors are not prohibited by law but there are no regulations specifically allowing it. Therefore, if foreign investors apply for a short-stay rental business application, like Airbnb, it may be rejected at the discretion of the Department of Planning and Investment.
In practice, Airbnb and other short-stay businesses are banned from operating in the apartment building of cities of Ho Chi Minh and Hanoi, both by foreign investors and Vietnamese citizens. Despite this, many black market short-stay rental businesses continue to operate in both cities. However, short-stay rental businesses may be permitted in private houses. So it is important to check local regulations with an expert in Vietnamese law.
For industries related to real estate, foreign investors are allowed to invest. However, with the difficult situation of the domestic real estate sector, it is currently very difficult for foreign investors to invest in this sector. This does not mean “it is impossible”.
In case a foreign investor wants to do business in Airbnb or Real estate business, the foreign investors may consider to put Vietnamese citizen on the business license who can support you to operate the company. If you need a detailed consultancy, please feel free to contact HTLaw. HT has a lot of experience consulting foreign investment in Vietnam from A-Z.
Hopefully, in the upcoming revision of the investment law, there will be expansion and specific regulations on service business on Airbnb so that foreign investors as well as Vietnamese investors can perform this service legally.
To save time learning about the law, filling out forms, and submitting documents, you can contact HTLaw for consultation and legal services related to Law on Investment.
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