In today’s Vietnamese market, numerous beauty centers have been established to meet consumer demand. Customers are increasingly paying attention to service quality. This also presents a valuable opportunity for beauty service providers to assert their brand and position. However, operating a beauty service business must comply with certain legal conditions as required by law. The following article from NPLaw provides major information to clarify this issue.
I. Current status of the beauty service business
Previously, spas, beauty care facilities, and cosmetic surgery centers, collectively referred to as the beauty care service industry, were considered luxury services reserved for affluent women. However, as living standards rise and beauty awareness grows in Vietnam, combined with advancements in technology, perceptions of the beauty industry have significantly shifted.
Over the past three years, major cities in Vietnam have gradually become significantly concerned for investors in beauty services. Up to now, it is a strong attraction and the booming market has led to fierce competition. Amid this mass-market trend, there is still opportunity to capitalize and maximize profits. Experts in the beauty field believe that the next decade will be a “golden era” for this sector because it is forecasted that approximately 2,000 new spas will open annually to meet public demand, creating tens of thousands of new job openings.
II. Types of the beauty service business
As mentioned, the beauty service industry in Vietnam is diverse. Below are four common types of spas currently operating in Vietnam:
- Day Spa: Offers various services to improve health, beauty, and relaxation (e.g., hair care, facials, massage), but does not provide overnight accommodation. Services are available during the day only.
- Destination Spa: Similar to a day spa but includes overnight lodging.
- Hotel/Resort Spa: In addition to typical spa services, these spas offer luxury amenities such as golf courses, tennis courts, kids’ clubs, gyms, swimming pools, and fitness classes.
- Medical Spa: Provides beauty services under the supervision of professionally licensed and experienced health care personnel.
Thus, the beauty sector is broad and offers a range of services, each providing unique experiences to customers. However, customers should carefully choose reputable and quality service providers. Due to the rising demand for beauty services, unlicensed individuals and entities often operate unlawfully, failing to meet legal requirements and leading to serious consequences.
III. Legal regulations on the beauty service business
As discussed above, the beauty service industry is both broad and diverse. Therefore, in addition to general regulations applicable to all professions, certain specific rules apply depending on the particular service. Below, NPLaw outlines key legal provisions related to massage services:
Previously, under Article 38 of Decree 109/2016/ND-CP dated January 7, 2016, massage service providers were required to meet certain conditions relating to infrastructure, equipment, and staffing. Massage establishments were not required to obtain an operation license but had to notify the Department of Health at least 10 days before commencing operations. However, on November 12, 2018, the Government issued Decree 155/2018/ND-CP, which amended and abolished several investment and business conditions under the management of the Ministry of Health, including the repeal of Article 38 of Decree 109/2016/ND-CP.
Following this, Official Letter No. 579/KCB-PHCN&GD on the management of massage services was sent to the Departments of Health of centrally-run provinces and cities, stating:
- Massage service practice conditions are no longer regulated as a conditional business line, and the procedure for announcing the eligibility of massage establishments is no longer within the Ministry of Health’s scope of management. As such, the Departments of Health will no longer receive or process eligibility declarations from massage establishments.
Accordingly, previous requirements on facilities, equipment, personnel, and the obligation to notify the Department of Health have been abolished. Massage service providers now only need to meet general business conditions to operate in accordance with industry standards.
However, Clause 5, Article 3 of Decree 96/2016/ND-CP on security and order conditions for certain conditional business lines provides:
- Massage service business includes the use of physiotherapy techniques to provide massage and acupressure for human health care, and is considered a conditional business requiring compliance with public security and order regulations.
Therefore, to operate legally, massage businesses must obtain a Certificate of Eligibility for Security and Order.
This demonstrates that not only massage but also other beauty-related professions must meet specific legal requirements before official operations can commence. Thus, compliance with legal regulations is essential when engaging in the beauty service industry to avoid violations.
IV. Legal consultancy services for the beauty service business
As demand for beauty services continues to rise, many entrepreneurs see the sector as a profitable investment opportunity. However, each type of business comes with unique operational and legal challenges, especially in relation to licensing and procedures. To ensure all documents and procedures complete, accurate and timely, receiving comprehensive and lawful consultancy will give clients peace of mind and confidence to succeed in business.
With many years of consulting experience, particularly in the beauty industry, NPLaw confidently commits to providing accurate, beneficial, and tailored legal advice that meets client needs and minimizes potential risks.
