COPYRIGHT ROYALTIES FOR BUSINESSES USING MUSIC TO INCREASE BY 8.12%

Effective 1 July 2026, where the parties have not agreed otherwise, the statutory royalty payable for the use of sound recordings and video recordings in commercial activities will increase by 8.12%. This adjustment will not only affect the operating costs of a wide range of businesses that use music but also requires enterprises to proactively review their compliance with Vietnam’s copyright regulations.

1. Adjustment Mechanism and Scope of Application

The increase is driven by Decree No. 161/2026/ND-CP, which raises the statutory base salary from VND 2,340,000 to VND 2,530,000 per month. Pursuant to the framework established under Decree No. 17/2023/ND-CP and maintained under Decree No. 134/2026/ND-CP, royalties for the commercial use of sound recordings and video recordings continue to be calculated based on the formula: Base Salary × Applicable Adjustment Coefficient. As a result, the increase in the statutory base salary automatically leads to a corresponding 8.12% increase in royalty payments.

The revised royalty rates apply to a broad range of businesses that use music as part of their commercial operations, including cafés, restaurants, karaoke establishments, hotels, shopping malls, supermarkets, sports clubs, and public transportation services. The applicable royalty, however, varies depending on the location of the business. Establishments in Hanoi and Ho Chi Minh City are subject to 100% of the prescribed tariff, while businesses located in Class I, II, and III urban areas are subject to reduced rates of 80%, 50%, and 20%, respectively. A 10% rate applies to businesses operating in remote, mountainous, or exceptionally disadvantaged areas. Although businesses are not required to obtain prior authorization before using sound recordings or video recordings in circumstances permitted by law, they remain legally obligated to pay royalties to the relevant copyright owners or collective management organizations upon such use.

2. Legal Risks and Compliance Recommendations

Businesses should be aware that if royalty payments are not made within 90 days from the date the sound recordings or video recordings are first used, they are required to cease using those works. Any continued use without fulfilling the payment obligation may expose the business to legal consequences, including administrative penalties, civil liability for damages, mandatory remedial measures, and, in serious cases, other legal liabilities in accordance with applicable law.


In light of these changes, businesses should promptly review how music is used across their operations, determine the applicable royalty category based on their business model, location, and operational scale, and calculate the updated royalty payable under the new regulations. Enterprises should also engage with the relevant collective management organizations or rights holders at an early stage to ensure timely payment and avoid unnecessary legal disputes. Proactive compliance not only minimizes legal and financial risks but also demonstrates respect for intellectual property rights, enhances corporate credibility, and contributes to a transparent and sustainable business environment.