return icon Vietnamnet.vn

Foreign investors are interested in opening up VN theatre businesses

 VietNamNet Bridge – Foreign investors are entitled to operate a theatre business in Viet Nam. The regulations on the type of business entity, conditions or the State’s incentives should be taken into consideration when investing in this sector.

VietNamNet Bridge – Foreign investors are entitled to operate a theatre business in Viet Nam. The regulations on the type of business entity, conditions or the State’s incentives should be taken into consideration when investing in this sector.

Theatre business is a form of disseminating movies as prescribed in the current Cinematography Law.

 

{keywords}

Illustrative image -- File photo

 

 

Types of business entity for foreign investors investing in theatre business

The Cinematography Law of 2006 allowed foreign investors to establish a wholly foreign-owned enterprise to operate a theatre business in Viet Nam. However, this provision was amended by the current Cinematography Law of 2009. Accordingly, for the services of production, distribution and broadcasting, foreign investors are only allowed to operate via two forms – one, through a business co-operation contract (BCC) or two, by establishing a joint venture with Vietnamese partners who are licensed to provide such services in Viet Nam.

In a BCC, foreign investors can enter into a contract with Vietnamese partners to operate a theatre business without establishing any economic organisations.

For a joint venture, foreign investors will co-operate with a Vietnamese enterprise to set up a joint venture to operate a theatre business. The capital contribution of foreign investors cannot exceed 51 per cent of the legal capital of the joint venture in accordance with Viet Nam’s commitments to WTO.

Please also note that those who partner with Viet Nam in both aforementioned co-operation forms must not be a house of culture, cinema broadcasting spots, clubs, public associations of movie broadcasting and mobile projection team of movies.

Conditions for implementation of theatre business for foreign investors

The enterprises are entitled to import movies for dissemination. The imported movies must have legal copyright and must not violate prohibited acts in the field of cinematographic activities, such as containing content that distorts history and violates the cultural customs.

Vietnamese movies produced by film production studios, imported movies and the movies produced via co-operation and provision of manufacturing services and joint ventures with foreign organisations and individuals can only be released in theatres after obtaining the license for movie dissemination granted by the competent authority on cinematography.

Movies produced and imported by a television or radio station can be broadcast without a license for movie dissemination. More importantly, the license for movie dissemination will be based on the opinion of the film evaluation board.

Since January 1, 2015, movie theatres which are newly built or renovated must apply the national technical regulations stipulated in Circular 16/2013 /TT-BVHTTDL. These regulations specify the technical and management requirements for movie theatres, including the engine room, the auditorium and the lobby area. These are the standard regulations for the quality of images, audio, seats, exits, etc.

Incentives from the State of Viet Nam

Enterprises constructing theatres for the movie dissemination business or for other cinematographic activities are entitled to be allocated and leased land by the State in accordance with the law and also entitled to exemption of the registration fee when registering the land use rights and house ownership as prescribed by law.

Investment in the theatre business is an incentivised investment sector. Enterprises that broadcast at least 60 movies per year and ensure the technical standards of movie theatres as prescribed in Circular 16/2013 TT-BVHTTDL are maintained will be able to avail tax rate incentives. Accordingly, the income tax rate for the enterprises is 10 per cent during operations.

 
related news

The movie industry faces censorship barriers    

Authorities seek to control broadcast of 18+ sitcom on YouTube

Korean Lotte group expands investment in Vietnam

Update on mega foreign invested projects in Vietnam

PLF Law Firm

MORE NEWS

Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.

VIETNAM BUSINESS NEWS OCTOBER 4

Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.

VIETNAM NEWS HEADLINES OCTOBER 4

Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.
back_to_top