Vietnam is rapidly becoming an attractive destination for foreign investors looking to expand their businesses in the Southeast Asian region. With a growing middle class and increasing awareness of health and wellness, the fitness industry in Vietnam is experiencing significant growth. Gym, fitness, and yoga centers are emerging as promising investment opportunities, especially for foreign investors seeking to tap into the country’s potential. This blog will give you a comprehensive guide about the conditions, requirements, and processes to open a gym, fitness, and yoga center in Vietnam.
CAN I OPEN A 100% FOREIGN-OWNED GYM/ FITNESS CENTER IN VIETNAM?
Based on the trade agreements that have been established between Vietnam and other nations, foreign investors from ASEAN countries are permitted to invest in Gym/Fitness Centers. However, to comply with regulations, they must establish a Joint Venture with a Vietnamese local entity where the foreign-owned capital does not exceed 70%.
For foreign investors from countries outside of the ASEAN Free Trade Area (AFAS) agreement, it is advisable to check with the Ministry of Culture, Sports, and Tourism before making any investment decisions.
WHAT ARE THE OTHER CONDITIONS FOR OPENING A GYM/ FITNESS CENTER IN VIETNAM?
To operate a gym or fitness center, certain requirements must be met. These requirements can be categorized into two categories: personnel and facility.
PERSONNEL REQUIREMENTS
Regarding personnel, personal trainers and staff must meet one of the following requirements:
- Being a coach or athlete of a secondary or higher grade in accordance with the registered business sports;
- Having a certificate in physical and sports training at the intermediate level or higher in accordance with the registered sports activities;
- Being trained in professional sports according to the regulations of the Minister of Culture, Sports, and Tourism.
- In addition to personal trainers, the center must have at least one guard and a medical staff.
FACILITY REQUIREMENTS
When it comes to facilities, the requirements are:
- The gym or fitness center must have a floor area of at least 0.8m x 0.8m with a minimum height of 3m per floor.
- The floor must be flat and non-slip with carpeting, and a sound system with a minimum intensity of 90 dBA and lighting of at least 150 lux must be installed.
- The density of the area must be a minimum of 2smq per person, and personal trainers must not train more than 30 people per session.
If Yoga classes are offered, additional requirements must be met, such as a minimum density of 2.5smq per person, and if there is a Yoga fly, a silk rope or strap with a load capacity of 300kg or more must be provided. Each student must have a personal yoga mat and other necessary equipment.
Once all the necessary requirements are met, the process of establishing a gym or fitness center can begin.
STEPS TO OPEN A GYM/ FITNESS CENTER IN VIETNAM?
In order to set up a business entity, it is imperative to acquire two vital Certificates issued by the Department of Planning and Investment – the Investment Registration Certificate (IRC) and the Business Registration Certificate (BRC). The IRC will provide you with the appropriate business code, and for gym/fitness center operations, the code to be used is CPC-96413.
Subsequently, obtaining the necessary license for gym/fitness center operations or the Certificate of Eligibility to Conduct Physical Education and Sports Business Activities, issued by the Department of Culture, Sports, and Tourism, becomes the next crucial step towards establishing a successful enterprise in this field. This certificate is mandatory to ensure your compliance with the industry’s legal and regulatory requirements and will enable you to conduct business operations in the area of physical education and sports without any hindrance.
STEP 1: HOW TO ESTABLISH A FITNESS TRAINING CENTER IN VIETNAM
To obtain the necessary certificates for conducting physical education and sports business activities in Vietnam, you must have a Business Address, either virtual or physical. However, a physical location is required for the fitness center to conduct business activities. Therefore, it is imperative to have a registered physical location. In the event that you do not have a facility, VNBG can assist you in finding an appropriate location using our extensive real estate service network.
Another requirement is the appointment of a Legal Representative, which is mandatory for all businesses in Vietnam. This individual can be a local or foreign resident, including yourself, with a permanent address in Vietnam. If you do not have a suitable candidate for this position during the processing time, you can use our director nominee for six months until you find a candidate or hire someone on your own.
In terms of Investment Capital, there is no specific initial investment amount required by law, but a “fair” amount of money is necessary to cover operational costs such as facilities, salaries, taxes, and other expenses until the business can be self-sufficient.
The processing time for registration is approximately 4-6 weeks from the time of paper submission. However, if the application is challenged or questioned for its practicality, additional weeks may be required until the concerns are addressed by the DPI.
Know more from our channel for 10 steps to open and operate a business in Vietnam.
Once the process of setting up your company has been completed, it is crucial to acquire the requisite sublicense – the Certificate of Eligibility to Conduct Physical Education and Sports Business Activities, as previously discussed. This certification is mandatory for conducting business operations in the domain of physical education and sports, and obtaining it should be prioritized to ensure legal compliance and seamless business functioning.
STEP 2: APPLY FOR THE LICENSE FOR GYM/FITNESS CENTER OPERATIONS
Acquiring this license is a simple process that involves completing an application form and submitting it to the Department of Culture, Sports, and Tourism. Subsequently, officials will visit your premises to verify that it meets the prescribed standards. Once approved, the license will be issued within 5 business days, enabling you to commence operations. In the event that your application is challenged or requires additional information, the processing time may be extended. To expedite the process and minimize expenses, it is recommended that you engage the services of an experienced consultancy firm.
It is worth noting that the license must be renewed every 2 years. Fortunately, this process is considerably faster than the initial application process.
HOW CAN VNBG ASSIST YOU?
As a leading consulting firm in Vietnam, we offer comprehensive assistance throughout the entire process of company incorporation and business operations. Our team can guide you in selecting suitable locations or facilities for your business, and even provide a director nominee if necessary. We have a wealth of experience in obtaining sub-licenses to expedite your business operations.
Moreover, we offer employer of record (EOR) services to oversee and manage your business operations, including payroll management, tax compliance, benefits administration, team management, and more. We take pride in being the most efficient and cost-effective business solution provider in Vietnam, earning the trust of thousands of businesses.
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