REGULATIONS FOR FOREIGN INVESTORS ENGAGING IN ADVERTISING SERVICES IN VIETNAM

1. Legal Basis

-  Guide to Viet Nam’s commitments on trade in services in the WTO, 2006;

- Law on Advertising No. 16/2021/QH13 dated June 21, 2012;

- Law on Investment No. 61/2020/QH14 dated June 17, 2020;

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

2. Regulations on Market Access Restriction

2.1. Definition

According to Section 87 of the Explanatory Notes on the Services listed in the United Nations Central Product Classification (CPC) in Vietnam’s Schedule of Specific Commitments on Services under the WTO, advertising services are specifically defined as follows:

Advertising services are classified under CPC 871, including:

- CPC 8711 – 87110: Sale and rental of advertising time and space

Services provided for offering advertising time or space in newspapers, periodicals, and television stations.

- CPC 8712 – 87120: Advertising planning and placement services

Services related to planning and placing advertisements on mass media channels.

- CPC 8719 – 87190: Other advertising services

Other advertising services not classified elsewhere, including outdoor and aerial advertising services, as well as the distribution of promotional samples and materials.

2.2. Conditions on Market Access Restrictions

According to point (a), Section II.1.F (Other Business Services) of Vietnam’s Schedule of Specific Commitments on Services under the WTO, advertising services (CPC 871, excluding tobacco advertising) are committed to be unrestricted, except for the following:

- From the date of accession, foreign service providers are allowed to establish joint ventures or participate in business cooperation contracts with Vietnamese partners who are licensed to provide advertising services.

- From the date of accession, the establishment of joint ventures is permitted where the foreign capital contribution shall not exceed 51% of the joint venture’s charter capital. Since January 1, 2009, there has been no restriction on the foreign capital contribution in joint ventures.

- Additional commitment: Alcohol advertising must comply with Vietnamese legal regulations applied on a non-discriminatory basis.

Currently, for advertising services (excluding tobacco advertising), Vietnam commits to allowing foreign investors to operate provided that they establish a joint venture or participate in a business cooperation contract with a licensed Vietnamese advertising service provider. The foreign investor’s capital contribution in the joint venture is unrestricted.

3. Classification of Business Sectors and Investment Conditions

Pursuant to Appendix I (List of Economic Sectors in Vietnam) of Decision No. 36/2025/QD-TTg on promulgating the system of economic sectors in Vietnam, the corresponding economic sector code (VSIC) for the advertising services mentioned above is 7310 – Sector Name: Advertising.

According to Article 6 and Appendix IV of the Law on Investment, the advertising services sector is neither a prohibited sector nor a conditional investment sector.

4. Forms of Investment in Advertising Services

Pursuant to Article 40 of the 2012 Law on Advertising:

- Foreign organizations and individuals are permitted to cooperate and invest with Vietnamese advertising service providers in the form of joint ventures or business cooperation contracts.

- Foreign cooperation and investment in advertising activities must comply with investment laws.

Based on the regulations above, there are two forms through which foreign investors may engage in advertising services in Vietnam:

(i) Forming a joint venture with a Vietnamese advertising service provider;

(ii) Entering into a business cooperation contract with a Vietnamese advertising service provider.

Understanding market access conditions is a key factor for foreign investors to operate in the advertising services sector in Vietnam both legally and effectively. Only by fully complying with these requirements can investors sustainably and successfully seize opportunities in this high-potential market.