Regulations applicable to foreign investors engaging in cinematographic exhibition services in Vietnam

1. Legal Basis

- The WTO Specific Commitments on Trade in Services (GATS);

- Law on Investment No. 143/2025/QH15 dated February 11, 2025;

- Law on Cinematography No. 05/2022/QH15 dated June 15, 2022.

2. Definition of Cinematographic Exhibition Services

Pursuant to Item 96 of the Annex on the Classification of Services Listed in the United Nations Central Product Classification (CPC), as set out in the Handbook on Vietnam’s Commitments on Trade in Services under the WTO, cinematographic exhibition services (CPC 96121) are defined as follows:

96121 - Motion picture projection services

Motion picture projection services in cinemas or outdoors, in private screening rooms or other venues for film exhibition.

3. Market Access Restrictions

Pursuant to Point (b), Section II.2.D (Audiovisual Services) of Vietnam’s Schedule of Specific Commitments on Services under the WTO, cinematographic exhibition services (CPC 96121) are subject to the following commitments:

“Only through business cooperation contracts or joint venture with Vietnamese partners who are authorized to provide these services in Viet Nam. Foreign capital contribution shall not exceed 51% of legal capital.

Viet Nam's houses of culture, film projection place, public cinema clubs and societies and mobile projection teams are not allowed to engage in business cooperation contract or joint-venture with foreign service supplier.”

Accordingly, foreign investors wishing to engage in cinematographic exhibition services in Vietnam may only do so in the form of a business cooperation contract or a joint venture with a Vietnamese partner. In addition, the regulations specifically provide that certain Vietnamese organizations and entities are not permitted to enter into business cooperation contracts or joint ventures with foreign service providers.

4. Classification of Business Lines under Vietnamese Law

Pursuant to Appendix I (Vietnam Standard Industrial Classification – VSIC) issued together with Decision No. 36/2025/QD-TTg, the relevant VSIC code applicable to the registration of cinematographic exhibition services is Code 5914 – Motion Picture Projection Activities.

This group includes: Motion picture and video projection activities in cinemas, outdoors, or through other screening facilities.

This group also includes: Film projection activities at film festivals.

59141: Fixed-site Motion Picture Projection Activities

This group includes: Activities of cinema operators at fixed cinemas, which have a cinema building, audience seating, facilities serving viewers, a fixed projection room, regular screening schedules, and ticket sales and payment facilities (cinemas primarily used for screening films using film projectors).

59142: Mobile Motion Picture Projection Activities

This group includes: Activities of mobile cinema teams, which are cinematographic units with dedicated personnel, plans, regular screening schedules, and adequate equipment for film projection, such as projectors and generators, and which regularly screen films for the public (mobile cinema teams primarily responsible for screening films using film projectors).

5. Foreign Investment Cooperation in Cinematographic Exhibition Services under Vietnamese Law

Pursuant to Clause 8, Article 3 of the 2022 Law on Cinematography, film dissemination means making films available to audiences through various forms, including screening at cinemas, public screening venues, diplomatic missions, foreign cultural establishments established in Vietnam, television systems, cyberspace, and other audiovisual means.

Pursuant to Clause 1, Article 8 of the 2022 Law on Cinematography, foreign organizations and individuals may cooperate and invest with Vietnamese cinematographic establishments in the production, distribution, and dissemination of films in accordance with the investment laws, in the following forms:

(i) Establishment of an economic organization with foreign investment capital, capital contribution, purchase of shares, or purchase of contributed capital, provided that the foreign investor’s capital contribution does not exceed 51% of the charter capital; or

(ii) Business cooperation contracts.

In addition, pursuant to Clause 2, Article 8 of the 2022 Law on Cinematography, Vietnamese cultural centres, cinema units, public film clubs and associations, and mobile film projection teams are not permitted to enter into business cooperation contracts or joint ventures with foreign service providers.

In general, foreign investors may engage in cinematographic exhibition services in Vietnam, subject to the conditions prescribed under Vietnamese investment and cinematography laws. Conducting a prior review of market access conditions, investment structure, and relevant business requirements will enable investors to proactively ensure legal compliance and mitigate potential legal risks during their operations.