Vietnam's Regulatory Shift on Short-Term Rentals: Investment Implications

As part of our ongoing commitment to provide you with timely insights on emerging investment trends across Asia, we are highlighting a significant regulatory development in Vietnam's real estate market that presents both challenges and opportunities for investors.

REGULATORY LANDSCAPE

Vietnam has recently intensified enforcement of existing housing regulations that categorize rentals under 30 days as "tourist accommodations," requiring specific licenses and compliance with safety standards. This marks a decisive shift in a previously under-regulated sector that had allowed platforms like Airbnb to flourish without rigorous oversight.Key requirements now being enforced include:

• Tourism Permits: Properties must meet hotel-level safety standards, including fire safety inspections and guest registration systems
• Building Management Approval: Hosts must secure explicit consent from their building's management to operate short-term rentals
• Tax Compliance: Mandatory declaration of rental income, VAT payments, and fulfillment of other tax obligations

MARKET IMPLICATIONS

For Investors