With around 75 million social media users in the country, Vietnam’s rapidly growing digital economy creates unique opportunities for brands and agencies within the marketing industry. In this guide, we’ll break down the key licenses, regulations, and compliance requirements for starting a marketing agency in Vietnam.
Overview of the Vietnamese Marketing Industry
Before setting up your marketing agency, you must decide on your business plans and marketing services. It is also important to determine which type of agency you’re interested in setting up – one that caters to the local Vietnamese market or an outsourced services team for your international customer base.
Marketing agencies catering to the local Vietnamese market typically offer services that include creating culturally relevant campaigns with a mix of digital and traditional physical marketing. Local advertising laws apply to all in-market activities.
In contrast, an outsourced service for international markets generally relies on lower-cost and highly skilled local professionals and must balance Vietnamese labor and corporate laws, with ensuring compliance with advertising laws in the foreign market.
In general, the most common marketing services that you can offer as an agency include:
- Digital Marketing Services: This includes search engine marketing (SEM), social media marketing, content marketing, and search engine optimization (SEO)
- Creative Advertising Services: This includes creative campaigns, brand development, and influencer marketing
- Media Buying and Planning: Purchasing advertising spaces across various media channels and analyzing audience behaviors to optimize ad placements
- Public Relations (PR): Managing brand reputations through strategic communication efforts, including press releases, media relations, event management, and crisis communication strategies
- Performance Marketing: Coming up with performance marketing strategies focused on measurable results, including pay-per-click (PPC) advertising, and affiliate marketing programs
How to Set Up A Marketing or Advertising Agency in Vietnam
Choosing The Right Legal Entity For Offering Marketing Services in Vietnam
To register a legal marketing agency in Vietnam, you must set up a joint venture with a local partner that holds at least 1% of ownership within the agency, due to laws restricting foreign investments within the advertising industry. A local partner is also mandatory for assisting with administrative processes like business registration and obtaining licenses.
Your partner must be 100% Vietnamese-owned with a valid advertising license and a proven record of advertising activities. A local partner can also be beneficial as they can provide valuable insights into the local market and consumer behaviour which helps you tailor your marketing strategies. Furthermore, as a joint venture, financial risks are significantly reduced since you share investment costs and resources.
Emerhub can assist you in finding and selecting a local company to partner with. We’ll advise you on the process and help you set up your joint venture with the proper documentation and licenses.
Mandatory Licenses for Starting A Marketing Agency in Vietnam
To successfully set up a foreign-owned marketing agency in Vietnam, you need to secure mandatory licenses. Based on your business activities and operations, you may also require additional marketing and media-related licenses. Failure to obtain the necessary licenses may result in severe penalties and operational disruptions for your agency:
- Enterprise Registration Certificate (ERC): For companies to legally conduct business in Vietnam. Obtainable from the Business Registration Authority at the Department of Planning and Investment.
- Investment Registration Certificate (IRC): Authorizes foreign investors to conduct business activities in Vietnam in compliance with the law and records the details of your foreign direct investment (FDI) project.
- Advertising License: Mandatory for businesses advertising products that may impact public health or safety. Ensures that advertising content complies with local laws and regulations, protecting consumers from harmful misinformation.
- Licenses for Provision of Paid Radio and Television Services: Companies involved in radio, television, or subscription-based broadcasting services such as over the top (OTT) or video on demand (VOD) must obtain a Broadcasting License from the Ministry of Information and Communication (MIC). This includes the Pay TV License category, which specifically applies to providers of subscription-based content and ensures compliance with relevant broadcasting standards.
- Film Rating License: Each film must be granted their own Film Rating License. It is required for the distribution of films in cinemas, public screening venues, on the internet (in certain cases), and at diplomatic or foreign cultural facilities.
- Confirmation Letter: Those engaging in publication distribution activities must register their operations and obtain a Confirmation Letter (certificate) from the relevant state management agencies before commencing business.
Furthermore, all film and news program content must receive approval from censorship authorities before being published or broadcast. In addition to these licenses, you might want to consider trademarking your products and brand as well to ensure an efficient launch of your foreign brand and protection for your intellectual property.
Ensuring compliance for your Marketing Agency in Vietnam
Key Regulatory Frameworks Encompassing Marketing Agencies in Vietnam
The marketing industry in Vietnam is mainly regulated by two regulatory frameworks enforced by the Ministry of Information and Communications (MIC) and local authorities:
- Law on Advertising: Regulates advertising activities and protects consumers from harmful advertisements. It lists products that are prohibited from advertising like cigarettes, prescription drugs, and alcoholic beverages with over 15% alcohol. The law outlines prohibited advertising acts such as:
- Using misleading or false information
- Disrespecting Vietnamese culture or ethics
- Diminishing the dignity of national symbols
- Violating national security or sovereignty
- Decree No. 70/2021/ND-CP: Regulates cross-border and digital advertising services focusing on preventing illegal content and unethical practices. Cross-border advertising service providers (CASPs) are based on activities conducted by foreign organizations or individuals with websites hosted outside of Vietnam that provide advertising services targeting Vietnamese consumers and generating revenue.
How to Ensure Compliance For Your Marketing Agencies in Vietnam
Failure to abide by local legislation can result in operational disruptions or heavy penalties from the local governing authorities. You must therefore ensure ongoing compliance with key advertising laws in Vietnam:
- Advertising Approval: Before publishing any advertisement in public spaces, you must obtain approval from the relevant authorities that oversee the industry relating to the advertised product (ex: the Department of Health for health products).
- Notification Obligations: CASPs must inform the MIC at least 15 days before starting their business operations in Vietnam and comply with the local laws and regulations.
- Content Removal: Agencies will have to remove content and block or remove illegal advertisements within 24 hours upon request by the MIC.
- Language Requirements: Advertisement content must be expressed in Vietnamese except for brand names and trademarks that cannot be translated.
- Taxation Compliances: As a business, you have to pay corporate income tax, value-added tax (VAT) for your goods or services, and mandatory employee social contributions.
- Reporting Requirements: Local agencies partnering with foreign companies must submit annual reports to the MIC on their advertising activities. Local regulatory bodies may request additional reporting.
Emerhub has local experts who can identify potential regulations and provide advice to ensure your marketing agency remains compliant. If you are interested in starting a marketing agency in Vietnam, get in touch with our team by filling out the form below.
