Advantages of investing in the tourism sector

The tourism industry contributes significantly to the total annual income, especially tourism is considered as one of the 3 key economic sectors that the State focuses on investing in infrastructure development, transport is constantly developing, contributing a lot to the country’s income. So what are the advantages of investing in the tourism sector in Vietnam? Let’s find out with Siglaw Law Firm through the article below!

Favorable geographical location

Vietnam owns 3,260 km of coastline, 400 large and small beaches, thousands of natural landscapes and cultural relics spread throughout the country. These are precious “treasures”, attractive to strategic investors such as SunGroup, Vingroup, FLC, VinaCapital … strongly participate in investment and development of tourism infrastructure. Many modern hotel chains with international standards have been invested in key tourist destinations such as Hanoi, Da Nang, Nha Trang, Phu Quoc, Ho Chi Minh City. HCMC, Ha Long…

Legal system

Vietnam’s legal system is gradually building and perfecting the legal system, making an important contribution to the formation and development of a socialist-oriented market economy, gradually perfecting the political system, creating a legal environment for international integration. The reform of administrative procedures is simple, shortening the time for processing documents. Favorable for foreign individuals and organizations to invest in the tourism sector in Vietnam.

A number of preferential legal policies and incentives for investment in the tourism sector in Vietnam

Tax and fee policies: Extension of time limit for payment of value-added tax, corporate income tax, personal income tax and land tax; Reduction of land rent in 2020 and 2021; 30% reduction in VAT rate or 30% reduction in percentage rate for VAT calculation for goods and services: accommodation services; services of travel agents, tour business and support services related to tour promotion and organization… 30% reduction in taxable corporate income tax; Reduce the selling price of electricity for tourist accommodation establishments from the retail price of electricity applied to business equal to the retail price of electricity applied to manufacturing industries; 50% discount on fees for appraisal of travel business licenses; 80% reduction in deposit for provision of travel services until the end of 2023;

Political situation in Vietnam

Vietnam is considered a country with a relatively stable political situation. There are almost no cultural divisions, ethnic conflicts, etc. This helps ensure a business environment for foreign businesses to invest here.

Cultural heritage sites recognized by UNESCO

Up to now, Vietnam has 24 tangible, intangible and natural cultural heritages inscribed by UNESCO as world heritage sites; including 8 natural heritages and tangible cultural heritages (Ha Long Bay, Thang Long Imperial Citadel, Trang An Scenic Complex, Nha Ho Citadel, Phong Nha Ke Bang, Hue Ancient Capital, Hoi An Ancient Town, My Son Ruins); 12 intangible cultural heritages (Hue Imperial Music, Central Highlands Gong Cultural Space, Quan Ho Folk Song, Giong Festival, Ca Tru, Xoan Singing, Hung Vuong Worship, Vietnamese Mau Worship, Wallet Gim Nghe Tinh Folk Song, Tug of War Ritual, Southern Singer; Central Hut); and 4 documentary heritages (Dr. Temple of Literature, Quoc Tu Giam, Nguyen Dynasty Woodblock, Nguyen Dynasty Woodblock, Truc Lam Buddhist Sutra, Vinh Nghiem Pagoda, Bac Giang Province)

Attractions

The potential for tourism development not only in the plains but also in the mountainous or midland areas of our country also has countless memorable landscapes: Moc Chau plum blossom season, Northwest ripe rice season,…

Food culture

Vietnamese cuisine is very famous around the world, international friends are fascinated with Vietnamese dishes such as Pho, banh mi, Hue beef noodle soup,… In addition, intangible cultures such as quan ho, Hue court music, Central Highlands Gong cultural space,… are very attractive to tourists.

Development policies and strategies

Vietnam’s current legal policies are continuing to review, supplement and improve institutions, continue to substantially reduce business conditions that are barriers to foreign investment; Promote administrative reform, effectively implement one-stop procedures to create a favorable business environment for enterprises to establish and develop; Review and amend mechanisms and preferential policies to attract foreign investment in the context of global minimum tax application.

Facilities, infrastructure design techniques

The competent authorities are increasingly interested in improving the business environment for foreign enterprises investing in Vietnam, speeding up the construction of infrastructure such as highways linking border gates, international airport projects, etc infrastructure related to the electricity system, construction of more high industrial parks and new economic zones,…

Human resources with solid expertise

Vietnam is a country with a young population structure. The quality of Vietnam’s labor force is constantly improving. Workers who have been trained and have certificates and degrees at levels from vocational beginner, intermediate, college to university and postgraduate accounted for 20.92%. In the past 10 years, the proportion of trained workers has increased significantly, but still up to 76.9% of workers have not been trained professionally. Therefore, Vietnam is considered one of the countries with abundant labor resources. This is a plus point to create development conditions for foreign investors to invest in the field of foreign capital construction in Vietnam;

Large number of potential customers

Potential customers can be considered the key to expanding a company’s market share. Not all tourism businesses when newly established can gain a lot of market share in the market, but over time, businesses have had to use many different ways to bring information and reach customers to gain more market share in today’s fierce competitive environment. This will be a golden opportunity for businesses to increase revenue, thereby being the key to expanding the company’s market share.

Over the years, Vietnam’s tourism has been on the rise, the number of international visitors as well as domestic tourists is increasing. Vietnam tourism is becoming more and more known in the world, many domestic destinations are voted as favorite addresses of international tourists. Tourism is increasingly receiving the attention of the whole society. If you have any questions about the advantages of investing in tourism in Vietnam, please contact Siglaw Law Firm for detailed answers!

For more information, please contact:

Head office in Hanoi: 12A floor, Sao Mai Building, No. 19 Le Van Luong Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi City.

Email: [email protected]

Southern branch: No. 99 Cong Hoa, Ward 04, Tan Binh District, Ho Chi Minh City.

Central Branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City

Email: [email protected]

Hotline: 0961 366 238

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