Key Locations & Considerations to Start a Restaurant in Vietnam

Vietnam’s Food and Beverage (F&B) industry is one of the most attractive sectors for foreign investment. Driven by the country’s tourism, digital economy, and the market’s fast-growing middle class, many foreigners are starting their own restaurants in hot spot areas in the country. 

Whether you are dreaming of a fine-dining establishment in the heart of Hanoi or a beachside bistro in Da Nang, entering the Vietnamese market requires more than just a great menu. You need to navigate the country’s legal landscape, understand local consumer behavior, and choose a location that aligns with your concept.

In this guide, we will walk you through the essentials of starting a restaurant in Vietnam. We will cover popular locations to start a restaurant, the legal requirements for starting an F&B business as a foreigner, and what you need to prepare. 

Where is the Best Place to Start a Restaurant Business in Vietnam?

Location is the single most important factor for any restaurant. You want a location that satisfies your customers as well as the direction you want to take for your business. 

1. Hanoi

Hanoi is widely recognized as the cultural heart of Vietnam– a title rooted in its status as a 1,000-year-old capital. In the F&B sector, Hanoian cuisine is more traditional with iconic staples like Phở or Bún Chả. 

Reputation is everything in Hanoi. Hanoians value tradition and are often loyal to established brands. Building a “brand story” that connects with the city’s heritage can be a powerful marketing tool for your food business. 

Key areas to start a restaurant in Hanoi:

• Hoan Kiem (Old Quarter): offers high foot traffic and massive tourist exposure, but space is limited, buildings are often protected, and rents are at a premium.
• Tay Ho (West Lake): The popular expat hub. This is the primary market for international cuisines, upscale brunch spots, and sophisticated wine bars.
• Ba Dinh: The political center, home to embassies and corporate headquarters. This area is ideal for high-end business lunch spots and formal evening dining.

2. Da Nang

Da Nang is often cited as the most livable city in Vietnam. It offers a unique balance of urban infrastructure and a relaxed beach lifestyle. The foot traffic in Da Nang can be dependent on the fluctuating tourist season between the sunny summer months and the rainy “winter” season. 

In Da Nang, you will be catering to digital nomads, and domestic tourists from the south. Da Nang’s F&B scene mostly caters to the area’s coffee and cafe culture. It also has a lively craft beer scene with rooftop venues that overlook the Dragon Bridge. 

Furthermore, Da Nang serves as a primary hub for East Asian fusion. Due to the massive influx of Korean and Japanese expatriates and tourists, there is a market for high-end Korean BBQ and refined Japanese izakayas. These businesses often offer a “home away from home” experience with a Vietnamese twist. 

Key areas in Da Nang:

• My Khe Beach (Son Tra/Ngu Hanh Son): Heavily tourist-focused. Great for seafood, bars, and casual western food.
• Hai Chau (City Center): Where the locals eat. If you want a restaurant that survives the “off-season,” this is where you want to be.

3. Hoi An

Located just a short drive from Da Nang, Hoi An is a UNESCO World Heritage site that operates as a high-yield boutique market. Hoi An attracts “slow travelers” where the dining environment is as important as the food itself. Hoi An’s culinary identity features a fusion of Chinese, Japanese, and Portuguese influences that you won’t find anywhere else in Vietnam.

Popular F&B concepts in Hoi An are “Farm-to-Table” dining and Heritage Courtyard concepts. Many successful establishments source their herbs and vegetables directly from the nearby Tra Que Vegetable Village. Others have transformed preserved ancient houses. 

Regulations in the Ancient Town are strict. You cannot simply change the facade of a building or put up neon signs. Your restaurant needs to blend into the historical aesthetic. However, the “Hoi An brand” allows for significantly higher price points if the quality and atmosphere are consistently delivered.

4. Mui Ne & Phan Thiet

Phan Thiet, and specifically Mui Ne, has seen a massive boost in accessibility thanks to the new expressway from Ho Chi Minh City. What used to be a 5-hour drive is now just over 2 hours. The area primarily plays host to weekend travelers from Saigon, kite-surfers, and Russian/European long-stay tourists. 

Seafood is the primary commodity in Phan Thiet/Mui Ne. “Bờ Kè” Seafood Centers are iconic, open-air seafood plazas along the coastline. While traditionally casual, there is a significant move toward “Modern Bờ Kè” concepts: restaurants that maintain the theatre of live seafood tanks but offer better hygiene and seating. There are even Seafood Centers with  a professional wine list to cater to the new weekend crowd.

Legal Framework for Starting an F&B Business as a Foreigner

As part of Vietnam’s commitment to the World Trade Organization (WTO) in 2007, foreigners are allowed to own 100% equity of their business in the country. This includes Sector 9.C: Food and Beverages Services which allows foreigners to own restaurants and catering businesses. 

If you want to start an F&B company as a foreigner, you are not legally required to have a local Vietnamese partner. There are two key paths to gain market access in Vietnam:

• The Wholly Foreign-Owned Enterprise (WFOE): This is the most common path for professional investors. You establish a new 100% foreign-owned LLC.
• Capital Contribution/Share Purchase: You can also buy shares in an existing Vietnamese restaurant. If the foreign ownership exceeds 50%, you will still need to go through a “Foreign Investor Approval” process before the transfer is finalized.

Defining Your Investment Capital

Unlike local startups, foreign-invested F&B businesses are scrutinized on their “Charter Capital” (the amount you commit to the project). While there is no statutory minimum for a restaurant, the Department of Planning and Investment (DPI) expects your capital to be “feasible” based on your business plan.

For a mid-sized restaurant in a hot spot like Da Nang or Hanoi, an investment capital of USD $50,000 to $100,000 is generally seen as the threshold for approval. You must prove you have these funds via a personal or corporate bank statement before you can begin.

Securing the Enterprise Registration Certificate (ERC)

To fast-track foreign investment in Vietnam, foreign entrepreneurs are no longer required to obtain an Investment Registration Certificate (IRC) from the DPI. Under the Investment Law 2025 (Law No. 143/2025/QH15), you can instantly obtain an ERC to officially incorporate your business. 

To obtain an ERC, you typically need the following:

• Application Form for Business Registration: Following the standard template provided by the Ministry of Planning and Investment.
• Company Charter: This is your company’s “constitution,” outlining its rules, internal governance, and shareholder rights.
• List of Members/Shareholders: Specifying the ownership structure of the entity.
• Legal Documents of the Owners:
  • For Individuals: Notarized and legalized copy of your passport.
  • For Corporate Entities: Notarized and legalized copies of the Business License/Certificate of Incorporation, along with the passport of the authorized representative.
• Power of Attorney: If you are using a professional service like Emerhub to handle the filing on your behalf.

Required Sub-licenses for Establishing a Restaurant

While the new Investment Law in Vietnam states that foreign inventors are exempt from sub-licenses, restaurants remain a conditional sector.  The law streamlines FDI entry and approvals but does not eliminate sector-specific operational permits, especially when it comes to sectors concerning public health and safety. Furthermore, the new Investment Law is primarily focused on projects or businesses located in High-tech Zones or Free Trade Zones (FTZs). 

To run an F&B business in Vietnam, you are required to obtain the following sub-licenses:

• Food Safety Certificate (Certificate of Eligibility for Food Safety): This is non-negotiable and usually the most time-consuming to obtain. Authorities will inspect your kitchen layout, food storage systems, and staff health certificates to ensure you meet Vietnam’s strict hygiene standards.
• Fire Safety & Prevention: Depending on the size, capacity, and location of your restaurant, you may need a fire safety certificate or a simple commitment to fire prevention. This is particularly strict for restaurants located in malls, high-rise buildings, or the historic wooden structures of Hoi An.
• Liquor License: If you plan to serve alcohol, you need a specific license for retail distribution. If you only serve beer and wine, the process is simpler than if you serve hard spirits, but you must ensure your alcohol is sourced from licensed distributors.
• Environmental Protection Plan: You must demonstrate how you will manage waste, noise levels, and specifically your grease trap systems to prevent clogging the public drainage system.

We can make sure your food business in key locations in Vietnam are 100% legally compliant with the Department of Planning and Industry (DPI). From business name registration to obtaining sub-licenses for your restaurant, we will handle all the administrative requirements on your behalf. 

As part of our end-to-end incorporation service, Emerhub can help you obtain these sub-licenses to establish your restaurant in Vietnam.