I. Current demand for investment in resorts
In 2024, Vietnam welcomed over 17.5 million international visitors, an increase of 39.5% compared to 2023, and served 110 million domestic tourists, up 1.6% year-on-year. Total revenue from tourism was estimated at 840 trillion VND, up 23.8% from the previous year. This growth creates favorable conditions for investing in resorts to meet the rising demand for leisure travel.
It is expected that in 2025, the supply of resort real estate will increase by about 70-80% compared to 2024, mainly serviced apartments in important tourist areas. This increase reflects investors’ large interest in the resort sector.
Tourist demand is shifting towards high-end resort models such as all-inclusive resorts, wellness retreats, and branded residences. It opens up opportunities for investors to develop resorts aligned with new market trends.
The Vietnamese Government is actively implementing measures to achieve its goal of making tourism a main economic sector by 2030. Supportive policies and improvements in tourism infrastructure will facilitate investment in resorts.
In summary, with the strong recovery of the tourism industry, the increasing supply of resort real estate, high-end tourism trends, and government support policies, investment demand in Vietnam’s resort sector is on an upward trajectory, promising many opportunities ahead.
II. Legal regulations on investment in resorts
1. What is resort investment?
Resort investment involves the construction, ownership, and operation of high-quality resorts to serve tourists’ accommodation, relaxation, and entertainment needs. This is a form of tourism real estate investment, combining lodging business (accommodations) with ancillary services such as restaurants, spas, golf courses, amusement areas, and conference centers.
2. Conditions for resort investment
To invest in and operate resorts in Vietnam, investors must meet legal, technical, and management conditions under current regulations. Specifically:
2.1. Legal business registration
Under current laws, organizations and individuals providing tourist accommodation services must register their business according to the law. It includes establishing an enterprise or business household, and registering the business lines related to tourist accommodation services.
2.2. Minimum technical facilities and services
According to Article 22 of Decree 168/2017/ND-CP, resorts must meet minimum requirements on facilities as follows:
- Having at least 10 bedrooms, a reception desk, and shared restrooms.
- Providing parking for guests (for both holiday resorts and roadside resorts).
- Having a kitchen, dining room, and food services (for holiday resorts, floating resorts, and roadside resorts).
- Providing beds, mattresses, blankets, pillows, face towels, bath towels, and replacing mattress covers, blanket covers, pillow covers, face towels, and bath towels when used by guests.
- Having staff on duty 24 hours a day.
2.3. Security and order
Under Article 7 of Decree 96/2016/ND-CP, resorts must obtain a Certificate of eligibility for security and order issued by the competent police authority. The person responsible for security and order must not fall under the prohibited categories defined by law.
2.4. Fire prevention and fighting requirements
According to Decree 136/2020/ND-CP, resorts must comply with fire prevention and fighting requirements, including:
- Having a fire prevention and fighting system suitable for the scale and nature of resort operations.
- Undergoing inspection and obtaining a Certificate of fire safety compliance from the competent authority.
2.5. Food hygiene and safety assurance
According to Article 11 of Decree 15/2018/ND-CP, food production and business establishments must have a Certificate of eligibility for food safety, except for cases specified in Article 12 of this Decree.
However, restaurants within hotels do not require this certificate but must still comply with corresponding food safety conditions under Article 29 of the Law on Food Safety 2010, including:
- Having separate utensils and containers for raw and cooked foods.
- Ensuring hygiene and safety for cooking and processing tools.
- Eating and drinking utensils must be made of safe materials, and cleaned and kept dry.
- Food service staff must be trained and undergo periodic health checks.
2.6. Compliance with environmental regulations
According to the Law on Environmental Protection 2020, resorts must comply with environmental protection regulations, including:
- Applying for an Environmental Permit or environmental protection commitment depending on the project’s scale and nature.
- Submitting dossiers to competent authorities such as the Department of Natural Resources and Environment or the local Division of Natural Resources and Environment.
Specifically, under Article 28 of the Law on Environmental Protection 2020, resorts with a wastewater discharge flow of less than 500 m³/day may only need to obtain an Environmental Permit without an Environmental Impact Assessment (EIA).
Thus, investing and operating resorts in Vietnam require investors to fully comply with legal provisions on business registration, facilities, security, fire safety, food safety, environmental protection, and other related conditions.
3. Procedures for resort investment
To invest in building and operating resorts in Vietnam, investors must follow these steps under current law:
- Step 1. Obtaining investment policy approval (if required)
For projects with large scale, extensive land use, or foreign involvement, investors must obtain investment policy approval from competent authorities under Articles 30, 31, and 32 of the Law on Investment 2020.
- Step 2. Registering for an Investment Registration Certificate (IRC)
Foreign investors or projects with foreign elements must register for an Investment Registration Certificate with the Department of Planning and Investment where the project is implemented, under Article 38 of the Law on Investment 2020.
- Step 3. Establishing an enterprise
Investors must establish enterprises in Vietnam to implement their projects under Articles 22-25 of the Law on Enterprise 2020. The application includes:
+ Application form for enterprise registration
+ Company charter
+ List of founding members/shareholders
+ Copies of legal documents of individuals and organizations contributing capital
- Step 4. Obtaining a construction permit
Before construction, investors must apply for a Construction Permit from the Department of Construction under Articles 89, 91, and 95 of the Law on Construction 2014 (amended in 2020). The application includes:
+ Application form for a construction permit
+ Copies of land use right documents
+ Construction design drawings
+ Environmental impact assessment report (if required)
- Step 5. Obtaining Environmental Impact Assessment (EIA)
If the project is subject to setting up an environmental impact assessment report, investors must prepare and submit the report to the Department of Natural Resources and Environment for appraisal and approval under Articles 34 and 35 of the Law on Environmental Protection 2020.
- Step 6. Obtaining specialized licenses
Depending on resort operations, investors must apply for:
+ Certificate of fire safety compliance (fire safety inspection certificate)
+ Certificate of eligibility for security and order
+ Certificate of food safety (if providing food services)
- Step 7. Notifying tourism accommodation business
After construction, investors must notify the operation of the tourist accommodation service to the Department of Tourism or the Department of Culture, Sports, and Tourism where the enterprise is located under Article 49 of the Law on Tourism 2017; Article 29 of Decree 168/2017/ND-CP.
- Step 8. Commencing construction and operation
After completing legal procedures, investors implement construction according to the approved design. Upon completion, the works must be inspected and accepted before use. Finally, the resort is operated, including recruiting staff, establishing service processes, marketing, etc.
Therefore, proactively seeking information, consulting experts, and cooperating with reputable advisory units will help investors save time, costs, and minimize legal risks during project implementation.
III. Questions on investment in resorts
1. Can foreign investors invest in resorts in Vietnam?
Foreign investors are allowed to invest in resort projects in Vietnam but must comply with specific conditions and legal regulations:
- Establishing an enterprise in Vietnam: Foreign investors must establish an enterprise under Clause 1, Article 9 of the Law on Real Estate Business 2023. Such an enterprise will conduct resort investment procedures and business activities.
- Complying with market access conditions: Under Article 9 of the Law on Investment 2020, foreign investors must meet market access conditions for the real estate sector, including national defense, security, and land use regulations.
- Implementing investment procedures: Investors must obtain the Investment Registration Certificate and Enterprise Registration Certificate before project implementation.
- Being ownership restrictions: Depending on the industry and Clause 10, Article 17 of Decree 31/2021/ND-CP, foreign investors may be restricted in their ownership ratio in Vietnamese enterprises.
Thus, foreign investors can completely invest in resorts in Vietnam, provided they fully comply with current laws. Thorough understanding and accurately implementing legal procedures will help protect rights and investment efficiency.
2. What regulations must be followed when investing in resorts?
Investing in resorts in Vietnam requires compliance with various regulations related to investment, construction, real estate business, and tourism. Detailed in Section II above.
3. Is investment policy approval required for resort projects?
Resort investment projects in Vietnam may require investment policy approval, depending on the project’s scale, nature, and location under Articles 30-32 of the Law on Investment 2020. Investors should refer to these provisions to identify the competent authority for approval. Full compliance ensures protection of rights and investment efficiency.
4. What factors should be considered when investing in resorts in potential tourist areas?
When deciding to invest in resorts in Vietnam’s promising tourist areas, investors should consider key factors to ensure project efficiency and sustainability:
- Location and tourism potential: Choose locations with convenient transportation and high tourist attraction.
- Market analysis and customer demand: Clearly identify target customers and grasp tourism trends to design suitable services.
- Legal compliance and planning: Ensure the project aligns with local planning and completes all required legal procedures.
- Financial capacity and capital mobilization: Determine total investment and plan appropriate capital sources.
- Design and construction: Choose suitable designs and ensure construction quality meets standards.
- Management and operation: Recruit and train professional staff, apply modern management systems to optimize operations.
Careful consideration of these factors helps investors make informed decisions and increases success chances when investing in resorts.
5. Is a construction permit and other legal procedures required for resort investment?
Before starting resort construction, a construction permit from the competent authority is mandatory. This permit must be based on approved construction designs and comply with the Law on Construction 2014, amended in 2020, ensuring conformity with planning, safety, and legality. Additionally, other legal procedures must be performed.
6. What common risks are there in resort investment?
Common risks include:
- Legal: Difficulties in obtaining construction permits, complex administrative procedures, and land ownership issues.
- Financial: Cost overruns, profits below expectations, challenges in raising capital.
- Market: Fluctuation of tourism demand, fierce competition, and change in customer trends.
- Environmental: Natural disasters, impacts of climate change.
- Management: Poor operations management, staff retention difficulties.
- Facilities: Deterioration, unexpected incidents.
- Security: Customer safety, asset protection.
To mitigate these risks, thorough market research, strict legal compliance, and effective management plans are essential.
IV. Legal consultancy services for investment in resorts
The above provides an overview of legal issues related to resort investment that NPLaw would like to share with our valued readers. If you have any concerns or need further assistance, please contact us at:
