The beauty industry in Vietnam is one of the most dynamic and rapidly growing markets, leading the South-East Asia region (per reference information from press sources). Particularly, the hair care and beauty sector is attracting significant attention due to its lucrative profit potential. As a result, numerous hair salons and beauty shops have been popping up on streets everywhere. However, to achieve sustainable and successful business in this field, compliance with legal regulations is an indispensable factor.
In this article, BLawyers Vietnam presents 03 legal updates affecting hair beauty centers (“Hair Salons”).
1. Requirements for business registration of Hair Salons
Under the Law on Enterprises 2020, businesses have the right to freely engage in industries and trades that are not prohibited by law and to choose their business model. Additionally, businesses are obligated to fully and promptly fulfill business registration requirements.
According to Decree No. 39/2007/ND-CP, individuals providing hair-cutting services, with or without a fixed location, are considered individual commercial operators and are not required to register their business under business registration laws. They are also not classified as “merchant” under the Law on Commerce.
However, Hair Salons do not merely offer basic hair-cutting services but also provide specialized services such as styling, perming, coloring, and straightening, etc. Thus, when offering these services, Hair Salons must register their business as a household business or enterprise under the Law on Enterprises 2020 and Decree No. 01/2021/ND-CP.
2. Regulations on occupational safety and hygiene for Hair Salons
Occupational safety and hygiene are critical for Hair Salons because the services provided carry risks to the health of customers, employees, and the reputation of the establishment. Therefore, the law regulates and sets out requirements and standards which Hair Salons must comply with. Specifically, Hair Salons must adhere to the following regulations:
- Occupational safety and hygiene requirements for workers under the Law on Occupational Safety and Hygiene, Decree No. 44/2016/ND-CP and Circular No. 19/2016/TT-BYT;
- Social and health insurance requirements for service establishments, including Hair Salons, to participate in social and health insurance for their employees to ensure their rights in case of workplace accidents or health issues, as stipulated by Law on Social Insurance and Law on Health Insurance; and
- Hygiene and safety standards in the workplace, including requirements to maintain hygiene when using tools and workspaces in Hair Salons, as outlined in the Law on Occupational Safety and Hygiene, Decree No. 44/2016/ND-CP and Circular No. 19/2016/TT-BYT.
3. Regulations on service pricing and promotional programs
3.1. Service pricing for Hair Salons
Under the Law on Consumer Protection 2023, Hair Salons must publicly and transparently display prices for all services offered to customers. Additionally, Hair Salons must ensure the safety and quality of services provided, aligning with the content they have registered, announced, advertised, or committed.
If the services provided do not match the advertised, announced, or committed content at the time of service delivery, Hair Salons are responsible for negotiating with customers to implement one or more of the following remedies:
- Re-providing the service;
- Continuing to provide the service without charge or at a reduced price for the portion already delivered;
- Terminating the service and refunding the customer; or
- Other mutually agreed-upon measures.
Furthermore, customers have the right to claim compensation if the service provided causes them damage.
3.2. Promotional Programs for Hair Salons
Under the Law on Commerce 2005 and Decree No. 81/2018/ND-CP, Hair Salons must comply with regulations related to promotional programs, including:
- Promotional programs must be conducted legally, honestly, transparently, and must protect the legitimate rights and interests of consumers, merchants, organizations, or other individuals;
- For discount promotions, the discount rate must not exceed 50% of the service price before the promotion;
- For loyalty programs, Hair Salons must inform customers of relevant details and ensure timely and accurate confirmation of customer participation; and
Of note, if the total value of prizes or gifts in a promotion is under VND100 million, the Hair Salon must notify the Department of Industry and Trade.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.
Date: 15 April 2025
Writers: Thao Luu & Chau Dang
