Conditions for foreign investors to operate Homestay businesses in Vietnam

The provision of homestay services is no longer a new business sector. However, in order for foreign investors to conduct such business activities in Vietnam, they must satisfy all applicable conditions as prescribed by law.

In this article, the author provides legal analysis and opinions based on the prevailing laws and regulations for reference purposes. Please note that this article does not constitute legally binding advice and should not be relied upon as a basis for obtaining approval from competent authorities. Accordingly, readers are advised to consult with the relevant authorities prior to implementing any project to ensure full compliance with applicable laws.

I. CONTENTS UNDER VIETNAM’S WTO COMMITMENTS

According to Vietnam’s WTO Schedule of Commitments, Vietnam has only committed to market access for foreign investors in the following sectors:

9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotel and restaurant including

Lodging services (CPC 64110)

With respect to the mode of service supply by foreign investors through commercial presence in Vietnam:

Unbound, except that for a period of 8 years from the date of accession, the provision of services must be carried out in parallel with investment in the construction, renovation, upgrading, or acquisition of hotels. Thereafter, no limitation shall apply.

Accordingly, under international commitments, a foreign-invested enterprise (“FDI Enterprise”) lawfully established in Vietnam is entitled to provide Lodging services without being subject to market access restrictions.

II. DEFINITION OF HOTEL ACCOMMODATION SERVICES

In terms of definition, Lodging services may be understood as accommodation services and related services provided by hotels. Related services include those typically provided and included in the accommodation price, such as room services, furniture-related services, mail services, and concierge services.

Hotels also typically provide other services such as parking, food and beverages, entertainment, swimming pools, banquets, meetings, and conferences. Resort hotels may offer a wider range of recreational facilities. These services are also included in this sub-sector if they are charged as part of the accommodation price. If they are charged separately, they shall be classified according to the type of service provided.

Services provided by hotels are generally more comprehensive than those provided by other lodging establishments such as guesthouses.

However, it cannot be definitively concluded that a homestay is a hotel; rather, it is necessary to compare and contrast it with other definitions set out in the commitments.

III. DEFINITION OF OTHER ACCOMMODATION SERVICES

Accordingly, the WTO Schedule of Commitments provides a definition under CPC code 64120 as follows:

Guesthouse accommodation services are understood as accommodation services and related services provided by guesthouses, including all services typically included in the accommodation price. Guesthouses are usually located along highways or major roads and primarily serve the needs of travelers. Parking services are therefore included in the accommodation price. Services provided by guesthouses are generally not as comprehensive as those provided by hotels.

However, this CPC code has not been committed by Vietnam under the WTO Schedule of Commitments.

IV. OPINION

It can be seen that one of the differences between these two terms lies in whether the enterprise provides direct services to customers, such as room services, furniture-related services, mail services, and concierge services, whereas under the guesthouse category, such services are more limited.

In practice, many homestays do not provide a wide range of direct services to customers and are therefore generally not classified as hotel services. For this reason, in the author’s view, the business line of homestay services may be considered as not yet open to market access.

Submission date: 20/03/2026

Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Business and Investment and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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