Legal regulations on business activities in the field of Sports and Physical Training

Pursuant to Decision No. 3564/QD-BVHTTDL dated November 21, 2024 of the Minister of Culture, Sports and Tourism, the Legal Department has compiled documents providing legal information and industry policies related to business activities in the fields of culture, sports and tourism. The Ministry of Culture, Sports and Tourism's Electronic Information Portal posts questions and answers on legal regulations on business activities in the field of Physical Education and Sports.

REGULATIONS OF LAW ON BUSINESS ACTIVITIES IN THE FIELD OF SPORTS

Question 1: When doing business in the field of physical education and sports, what prohibited behaviors in physical education and sports activities should organizations and individuals pay attention to?

Reply: According to Article 10 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, prohibited acts in physical training and sports activities include:

1. Taking advantage of physical education and sports activities to infringe upon national and ethnic interests, the legitimate rights and interests of organizations and individuals; causing damage to the health, life, honor, dignity and reputation of people. Physical education and sports activities are contrary to social ethics, customs and national cultural identity.

2. Use of stimulants and prohibited methods in sports training and competition.

3. Cheating in sports activities.

4. Violence in sports activities.

5. Obstructing legitimate physical education and sports activities of organizations and individuals.

6. Abusing position and power to distort sports competition results.

7. Organizing illegal sports betting; illegal sports betting.

Question 2: When doing business in the sports sector, it is necessary to know the regulations related to land policies for physical education and sports. So what are the regulations of this policy?

Answer: According to the provisions of Article 65 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, land for physical training and sports is regulated as follows:

1 In planning, projects to build schools, urban areas, residential areas, industrial parks, high-tech parks, and barracks of people's armed forces units must reserve land for the construction of sports facilities according to Government regulations.

2. Land for the construction of sports facilities must be located in convenient places for people to participate in physical education and sports activities.

3. Organizations and individuals investing in the construction of sports facilities are assigned land and leased land according to the provisions of law.

4. When planning land use, competent state agencies must allocate land for physical education and sports in accordance with the planning of the network of cultural and sports facilities.

5. In case of changing the purpose of land use for physical training and sports facilities, the competent authority must arrange corresponding land fund for replacement.

Question 3: Doing business in the sports sector is closely linked to the development of professional sports. So, what are the legal regulations on professional sports?

Answer: According to Article 44 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, professional sports are defined and the state's policy on professional sports development is specifically as follows:

1. Professional sports are sports activities in which coaches and athletes take coaching, performing, and competing in sports as their profession.

2. The State encourages organizations and individuals to establish professional sports clubs, train athletes and coaches, and organize professional sports competitions.

3. Professional sports clubs enjoy preferential policies according to the provisions of law to serve professional sports activities.

Question 4: According to the law, in the field of physical education and sports, there are business activities of professional sports clubs. So, what is a professional sports club?

Reply: Article 49 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, stipulates professional sports clubs as follows:

1. A professional sports club is an enterprise that trains and coaches athletes and organizes professional sports competitions.

2. A professional sports club is a member of a national sports federation.

3. Professional sports clubs must comply with the regulations of national sports federations and international sports federations when participating in professional sports competitions organized by national sports federations or international sports federations.

Question 5: What are the duties and powers of a professional sports club?

Answer : According to the provisions of Article 52 of the Law on Physical Training and Sports 2007, amended and supplemented in 2018, professional sports clubs have the following specific duties and powers:

1. Participate in professional sports competitions organized by national sports federations and international sports federations.

2. Training and coaching professional athletes.

3. Discover, select and nurture sports talents.

4. Sign labor contracts with professional athletes and professional coaches.

5. Ensure facilities and equipment for sports training and competition.

6. Ensure financial resources for club operations.

7. Production, business and service are allowed according to the provisions of law.

8. Enjoy preferential policies in using facilities and equipment managed by the State.

9. The State creates conditions to increase legal revenue.

10. Receive and use funding and support from domestic and foreign organizations and individuals.

Question 6: According to the law, what are the business conditions of a professional sports club?

Reply: Article 50 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, Articles 9, 10, 11, 12 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports, stipulates the business conditions of professional sports clubs specifically as follows:

- Conditions for professional coaches: must meet one of the following conditions:

+. Have a university degree in physical education and sports with a major relevant to professional sports activities and have completed a professional coach training program of a national sports federation.

+ Have a professional coaching certificate issued by a continental or world sports federation of a professional sport.

+ Have a foreign professional coaching certificate recognized by a continental or world sports federation of a professional sport.

: Medical staff on duty during professional sports training and competitions or medical staff of medical facilities with which professional sports clubs have signed contracts to provide first aid and emergency care to participants in professional sports activities in cases where necessary must have a professional qualification of college level or higher in medicine. According to the provisions of the Investment Law 2020, the sports business of enterprises is a business activity in a conditional business line (line No. 197, Appendix V of the Investment Law). Conditions for enterprises to conduct sports business activities are specifically stipulated in Article 55 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, Articles 13 and 14 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports as follows: According to the provisions of the 2020 Investment Law, doing business in adventure sports is a business activity in a conditional business line (line No. 197, Appendix V of the Investment Law). Conditions for doing business in adventure sports activities are specifically stipulated in Article 56 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, Article 16 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports as follows: According to the provisions of the 2020 Investment Law, doing business in sports activities requiring a training instructor is a business activity in a conditional business line (line No. 197, Appendix V of the Investment Law). The conditions for doing business in sports activities requiring a training instructor are specifically stipulated in Article 56 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, Article 15 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports as follows: According to the provisions of the 2020 Investment Law, doing business in water sports activities is a business activity in a conditional business line (line No. 197, Appendix V of the Investment Law). Conditions for conducting business in water sports activities are specifically stipulated in Article 56 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, Article 17 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports as follows: Procedures for granting a Certificate According to the provisions of Decree No. 31/2021/ND-CP dated March 26, 2021 of the Government detailing and guiding the implementation of the Investment Law, advertising service business activities are activities that restrict market access for foreign investors. The restriction on market access for foreign investors in the sports sector is recorded in the WTO Agreement's commitment, which is directly applied in Vietnam: foreign investors investing in the sports sector in Vietnam must establish a joint venture with domestic investors.

+ Have a labor contract with a professional sports club.

+ Recognized by the national sports federation as a professional athlete. In case the athlete is a foreigner participating in professional sports competitions in Vietnam, he/she must have an international transfer certificate and a work permit according to the provisions of the labor law.

Facilities and equipment for professional sports training and competition must ensure national technical standards, Vietnamese standards or international standards and comply with regulations of international professional sports organizations.

Question 7: What does the law stipulate about the procedures for business registration, temporary suspension of business, division, separation, consolidation, merger, conversion, dissolution, and bankruptcy of professional sports clubs?

Reply: Article 51 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, stipulates the procedures for business registration, temporary suspension of business, division, separation, consolidation, merger, conversion, dissolution, and bankruptcy of professional sports clubs as follows:

1. The procedures for business registration, temporary suspension of business, division, separation, consolidation, merger, conversion and dissolution of professional sports clubs shall be carried out in accordance with the provisions of the Law on Enterprises; the bankruptcy of professional sports clubs shall be carried out in accordance with the provisions of the Law on Bankruptcy.

2. The business registration authority shall issue a Certificate of Business Registration to a professional sports club in accordance with the provisions of the law on enterprises.

3. Professional sports clubs are only allowed to conduct sports business when they have been granted a certificate of eligibility to conduct sports business by a specialized agency of physical education and sports under the People's Committee of the province according to the provisions of the Law on Physical Education and Sports 2007, amended and supplemented in 2017.

4. Procedures for granting a certificate of eligibility for sports business activities include:

a) Application for certificate of eligibility to conduct sports business;

b) Copy of Business Registration Certificate;

c) Summary of the preparation of business conditions as prescribed in Article 50 of the Law on Physical Training and Sports 2007, amended and supplemented in 2017.

Within seven working days from the date of receipt of a complete and valid dossier, the specialized agency for physical training and sports under the provincial People's Committee must inspect the business conditions for sports activities of the professional sports club according to the provisions of Article 50 of the Law on Physical Training and Sports 2007, amended and supplemented in 2017, and issue a certificate of eligibility for business in sports activities; in case of refusal, a written notice must be given stating the reasons.

Question 8: In the activities of professional sports clubs, there are athlete transfers. So how are athlete transfers regulated?

Answer : Articles 47 and 48 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, stipulate the transfer of professional athletes as follows:

- The transfer of professional athletes between two domestic professional sports clubs is carried out by contract while the professional athlete's labor contract is still in effect.

+ Contracts for the transfer of professional athletes must comply with Vietnamese law, international treaties to which the Socialist Republic of Vietnam is a member and international practices.

+ The contract for the transfer of professional athletes is agreed upon in writing by the parties and includes the following contents:

a) Transfer object;

b) Parties involved in the transfer;

c) Form and scope of transfer;

d) Transfer time;

d) Transfer price and payment method;

e) Rights and obligations of the parties to the contract;

g) Responsibilities and compensation levels of each party in case of breach of contract;

h) Dispute resolution agency;

i) Other contents agreed by the parties.

- The transfer of professional athletes between Vietnamese professional sports clubs and foreign professional sports clubs must comply with the provisions of this Law and the transfer regulations of international sports federations.

- The order and procedures for transferring professional athletes are prescribed by the national sports federation in accordance with Vietnamese law and the regulations of the international sports federation of which it is a member.

Question 9: What does the law stipulate about ownership rights for high-performance sports tournaments and professional sports tournaments?

Answer: According to the provisions of Article 53 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018, ownership rights to high-performance sports tournaments and professional sports tournaments are stipulated as follows:

- Protection of ownership rights for high-performance sports tournaments and professional sports tournaments is carried out in accordance with civil law and intellectual property law.

- National sports federations, professional sports clubs and other organizations and individuals that organize high-performance sports tournaments and professional sports tournaments are the owners of the high-performance sports tournaments and professional sports tournaments they organize.

- Owner of high performance sports tournaments and   Professional sports tournaments are assigned ownership of sports tournaments to organizations and individuals according to contracts agreed upon by the parties.

Question 10: Is the sports business of an enterprise a conditional business line? What are the conditions for the business of sports activities of an enterprise?

Reply:

Have a team of professional staff suitable for the content of the activities;

Professional staff of sports business enterprises include:

- Sports instructors must meet one of the following conditions:

+ Be a coach or athlete with a level 2 or higher or equivalent suitable for the registered sports business;

+ Have a degree in physical education and sports from intermediate level or higher suitable for the registered sports business activities;

+ Receive professional sports training according to regulations of the Minister of Culture, Sports and Tourism.

- Lifeguard.

- Healthcare staff.

(2) Have facilities and equipment that meet the requirements of sports activities: meeting national technical standards issued by the Minister of Culture, Sports and Tourism.

Question 11: Is adventure sports business a conditional business? What are the conditions for adventure sports business?

Reply:

(1) Must establish a business to operate a sport in the List of adventure sports issued by the Minister of Culture, Sports and Tourism;

(2) Have enough professional staff, including:

- Sports instructors must meet one of the following conditions:

+ Be a coach or athlete with a level 2 or higher or equivalent suitable for the registered sports business;

+ Have a degree in physical education and sports from intermediate level or higher suitable for the registered sports business activities;

+ Receive professional sports training according to regulations of the Minister of Culture, Sports and Tourism.

- Lifeguard.

- On-duty medical staff or written agreement with the nearest medical facility on medical staff to provide first aid and emergency care to participants in adventure sports activities if necessary.

(3) Have sports facilities and equipment that meet national technical standards issued by the Minister of Culture, Sports and Tourism.

Question 12: Is it a conditional business to conduct sports activities that require a training instructor? What are the conditions for conducting adventure sports activities?

Reply:

(1) Must establish a business, provide sports training instruction services or conduct sports in the List of mandatory training instructors issued by the Minister of Culture, Sports and Tourism;

(2) Having a sports instructor must meet one of the following conditions:

+ Be a coach or athlete with a level 2 or higher or equivalent suitable for the registered sports business;

+ Have a degree in physical education and sports from intermediate level or higher suitable for the registered sports business activities;

+ Receive professional sports training according to regulations of the Minister of Culture, Sports and Tourism.

(3) Have sports facilities and equipment that meet national technical standards issued by the Minister of Culture, Sports and Tourism.

Question 13: Is the water sports business a conditional business? What are the conditions for doing adventure sports business?

Reply:

(1) There are lifeguards.

(2) Have sports facilities and equipment that meet national technical standards issued by the Minister of Culture, Sports and Tourism.

(3) For sports activities on rivers, at sea, on lakes or large streams, there must be a lifeboat.

Question 14: When conducting sports business, enterprises need to be granted a Certificate of eligibility to conduct business. What are the specific procedures for granting a Certificate of eligibility to conduct sports business for enterprises as prescribed by law?

Reply:

Pursuant to Article 55 of the 2007 Law on Physical Training and Sports, amended and supplemented in 2018; Articles 18, 19 and 20 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports, amended and supplemented by Decree No. 31/2024/ND-CP, the order and procedures for granting a Certificate of eligibility to conduct sports business activities of enterprises are specifically as follows:

- Application for Certificate:

+ Application for Certificate of Eligibility (according to Form)

+ Summary of the preparation of conditions for sports business activities (according to the Form) (with a copy of the Business Registration Certificate; copies of diplomas, certificates, and certifications of professional staff if the sports business enterprise has conditions on certificates for professional staff).

+ Enterprises send 01 set of application documents by post or electronically or submit directly to the specialized agency on physical education and sports under the People's Committee of the province where the sports business location is registered or where the enterprise has its head office in case the enterprise has many sports business locations.

+ The specialized agency for physical education and sports under the provincial People's Committee (hereinafter referred to as the agency issuing the Certificate of Eligibility) shall issue a receipt of the application to the enterprise. In case the application needs to be revised or supplemented, the agency issuing the Certificate of Eligibility shall directly or in writing notify the enterprise of the contents that need to be revised or supplemented within 03 working days from the date of receipt of the application.

+ Within seven working days from the date of receipt of a complete and valid dossier, the specialized agency for physical education and sports under the provincial People's Committee must inspect the business conditions for sports activities of the enterprise according to regulations and issue a certificate of eligibility for business in sports activities; in case of refusal, a written notice must be given stating the reason.

+ Receiving documents and returning results are done directly or by post or electronically.

+ The certificate of eligibility for sports business activities of an enterprise (hereinafter referred to as the Certificate of eligibility) is made according to the Form, including the following contents:

a) Name and head office address of the enterprise;

b) Full name of legal representative;

c) Location of sports business;

d) List of business sports activities;

d) Number, date, month, year of issue; authority issuing the Certificate of Eligibility.

+ Enterprises are only allowed to conduct sports business activities after being granted a Certificate of eligibility to conduct sports business activities by a competent authority.

Question 15: What are the specific procedures for re-issuing a Certificate of eligibility to conduct sports business activities of an enterprise as prescribed by law?

Reply:

Pursuant to Articles 21 and 22 of Decree No. 36/2019/ND-CP dated April 29, 2019 of the Government detailing a number of articles of the Law amending and supplementing a number of articles of the Law on Physical Training and Sports amended and supplemented by Decree No. 31/2024/ND-CP, the order and procedures for re-issuing the Certificate of eligibility for sports business activities of enterprises are specifically as follows:

- In case of re-issuance:

a) Change one of the contents of the Certificate of Business Eligibility;

b) Certificate of eligibility is lost or damaged.

- Application for re-issuance of Certificate:

+ In case of changing one of the contents of the Certificate, the dossier includes:

a) Application for re-issuance according to the Form;

b) Certificate of eligibility has been issued;

c) Documents proving changes in the contents of the Certificate of Eligibility.

+ In case of loss or damage, the file includes:

a) Application for re-issuance according to the Form;

b) The certificate of eligibility is damaged in case of damage.

- Procedure:

+ The enterprise shall send 01 set of application documents by post or electronically or submit directly to the authority issuing the Certificate of Eligibility at the place where the sports business location is registered or where the enterprise has its head office in case the enterprise has many sports business locations.

+ The authority issuing the Certificate of Eligibility shall issue a receipt of the application to the enterprise. In case the application needs to be revised or supplemented, the authority issuing the Certificate of Eligibility shall directly or in writing notify the enterprise of the contents that need to be revised or supplemented within 03 working days from the date of receipt of the application.

+ Within 05 working days from the date of receiving a complete application as prescribed, the authority issuing the Certificate of Eligibility shall appraise the application and reissue the Certificate of Eligibility. In case of refusal to reissue, the authority issuing the Certificate of Eligibility shall respond in writing and state the reasons.

+ Receiving documents and returning results are done directly or by post or electronically.

Question 16: What are the specific procedures for revoking a business's Certificate of Eligibility for Sports Business Activities as prescribed by law?

Reply:

According to Article 23 of the Government's Decree No. 36/2019/ND-CP of April 29, 2019, detailing the number of articles of the Law amending and supplementing a number of articles of the Law on Physical Education and Sports is amended and supplemented by Decree No. 31/2024/ND-CP, the order and procedures for recovering the certificate of sufficient business conditions

- In case of recovery:

a) Provide false information in the application for a certificate of eligibility;

b) Termination of sports activities.

- The order to revoke the certificate of eligibility

+ Certificate recovery sequence for the case of providing false information in the application for certification as follows:

Agency granting a certificate of eligibility for issuing a decision to revoke the certificate of eligibility; Notice of recovery decision to relevant agencies to coordinate implementation.

Enterprises must return the certificate of eligibility for the granted conditions, and stop the entire sports business right after the recovery decision takes effect.

+ Certificate recovery sequence for cases of termination of sports business as follows:

Within 03 working days, from the time of termination of sports activities, the enterprise is responsible for returning the certificate of eligibility for the agency to grant the certificate of eligibility.

Within 03 working days from the time of receiving the certificate of eligibility for the enterprise, the agency granted a certificate of eligibility for the issuance of the recovery decision; Notice of recovery decision to relevant agencies to coordinate implementation.

Question 17: How does the law stipulate for business households and other business organizations?

Reply:

According to Article 56 of the 2007 Physical Education and Sports Law, which is amended and supplemented in 2018, stipulating business households and other organizations and business activities as follows:

1. Business households and other business organizations operate sports activities comply with this Law and the law on enterprises.

2. Business households and other organizations that want to do business and sports activities and compulsory sports activities, there are instructors who have to register to register their businesses and meet the conditions of adventurous sports operations and compulsory sports activities, there are instructors in accordance with the Government's regulations.

Question 18: How is the 2007 Physical Education and Sports Law amended and supplemented in 2018 regulating the sports bet like?

Reply:

- The Law amending and supplementing a number of articles of the Law on Physical Training and Sports in 2018 supplemented Article 67a providing for sports bet as follows:

1. Sports bets are a form of reward entertainment that the participants make predictions about the results that may occur in sports events used for bet business.

2. Sports bet business must ensure the following principles:

a) Sports betting business is a conditional business activity, strictly controlled by competent state agencies;

b) Sports business businesses can only operate business only when they have been granted certificates of eligibility for sports bets by competent state agencies;

c) Sports betting business must be transparent, objective, honest, ensuring the legitimate rights and interests of the participants;

d) The currency used for sports bets, rewards in sports bets are Vietnamese dong.

3. The Government decides a list of sports activities allowed to be sports bets, detailed regulations on sports bets.

- Before the Law amending and supplementing a number of articles of the Law on Physical Education and Sports were enacted, the Government issued Decree No. 06/2017/ND-CP dated January 24, 2017 stipulating the business of horse racing, dog racing and international football. Thus, up to now, the sports bet business is still being implemented in accordance with this Decree with the above sports.

Question 19: How does the law regulate foreign investors business in the field of sports?

Reply:

According to the Government's Decree No. 31/2021/ND-CP of March 26, 2021, detailing and guiding the implementation of the Investment Law, advertising service business activities are activities to limit market access to foreign investors. Restricting market access to foreign investors in the field of sports recorded in the WTO Agreement's commitment, applied directly in Vietnam: Foreign investors invest in sports in Vietnam must set up a joint venture business with domestic investors.

Source: https://bvhttdl.gov.vn/quy-dinh-cua-phap-luat-ve-hat-dong-kinh-doanh-trong-linh-vuc-the-duc-