Profile
Vietnamese
Foreign company providing travel agency and tour operator services
In recent years, Vietnam’s tourism industry has witnessed strong growth and is always in the group of countries with the fastest tourist growth in the world. This attracts foreign investors to participate in the tourism industry in Vietnam. However, along with that, many legal questions are raised. Can foreign investors operate travel agencies and tour operator services? Are there any conditions, requirements, or procedures for establishing this service business company? Let’s find out with Siglaw in this article!
Legal basis for foreign companies to conduct travel agency and tour operation services in Vietnam
- Vietnam’s commitments in international treaties;
- Law No. 61/2020/QH14, Investment Law;
- Law No. 09/2017/QH14, Law on Tourism;
- Law No. 59/2020/QH14, Law on Enterprises;
- Decree 31/2021/ND-CP detailing and guiding the implementation of several articles of the Investment Law;
- Decree 01/2021/ND-CP on business registration;
Conditions for foreign companies to operate travel agency and tour operator services in Vietnam
Investment conditions: (Based on regulations at the National Investment Information Portal)
According to WTO, FTAs, AFAS: No restrictions, except
- Investment form: joint venture
- Capital contribution ratio: No limit on foreign investors’ capital contribution;
- Scope of operation: foreign-invested economic organizations are only allowed to provide services to bring international tourists into Vietnam (inbound) and domestic travel for tourists traveling to Vietnam as part of tourism; not allowed to provide services to bring tourists from Vietnam abroad (outbound);
- Tour guides in foreign-invested economic organizations must be Vietnamese citizens.
According to Vietnamese Law
In addition to the provisions in the WTO’s Schedule of Service Commitments, investors must meet the conditions prescribed by Vietnamese law. Specifically, according to the provisions of the Tourism Law, foreign investors who want to operate travel agencies and tour operator services must meet the following conditions:
- An enterprise established according to the provisions of law on enterprises;
- Deposit money for international travel services business at the bank;
- The person who operates the travel service business must have graduated from intermediate level or higher with a major in travel; in case of graduating from intermediate level or higher in another major, a certificate of international tourism operations must be obtained.
Form of investment
According to the provisions of Clause 1, Article 38 of the Law on Tourism, foreign investors are allowed to contribute capital with Vietnamese partners to establish travel service enterprises following Vietnamese law and international treaties to which the Socialist Republic of Vietnam has entered into. Vietnam Socialist Association is a member. Thus, foreign investors can choose one of the following two investment forms to establish a tourism joint venture company in Vietnam:
- Investing in establishing new economic organizations
- Investing in capital contribution, buying shares, purchasing capital contributions
Order and procedures for foreign companies to conduct travel agency and tour operation services in Vietnam
Step 1: Apply for Investment Registration Certificate (IRC)
Dossier to request issuance of Investment Registration Certificate:
- A written request to implement an investment project for travel agency and tour operator services, including a commitment to bear all costs and risks if the project is not approved;
- Documents on the legal status of foreign investors: ID card, passport, identification card for individual investors; Copy of Certificat of Establishment or other equivalent document certifying legal status for investors who are organizations with consular confirmation
- Documents proving the financial capacity of the foreign investor include at least one of the following documents: the most recent 02 years of financial statements of the foreign investor; commitment to financial support from the holdinng company; commitment to financial support from financial institutions; guarantee of the investor’s financial capacity; and other documents proving the financial capacity of the foreign investor;
- Proposed investment project for travel agency and tour operator services including the following main contents: investor or form of investor selection, investment objectives, investment scale, investment capital and capital mobilization plan, location, deadline, implementation progress, information on current land use status at the project location and proposed land use needs (if any), labor demand, proposal for investment incentives, socio-economic impact and efficiency of the project, preliminary assessment of environmental impact (if any) according to the provisions of law on environmental protection.
In cases where the law on construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal;
- In case the investment project for travel agency and tour operator services does not require the State to allocate land, lease land, or allow a change of land use purpose then submit a copy of the documents on use rights land or other documents determining the right to use the location to carry out an investment project;
- Explanatory content about the technology used in investment projects for travel agency and tour operator services for projects subject to appraisal and consultation on technology according to the provisions of the law on technology transfer;
- Other documents related to the investment project, conditions and capacity requirements of the investor according to the provisions of law (if any).
Number of documents: 01 set
Processing time: The investment registration agency issues the Investment
Registration Certificate to the foreign investor within 15 days from the date of receiving valid documents.
Authority: Provincial Department of Planning and Investment where the company plans to establish headquarters
Step 2: Apply for Enterprise Registration Certificate (ERC)
After being granted an Investment Registration Certificate, investors carry out procedures to apply for a certificate of Business Registration for travel agency and tour operator services by one of the following three methods:
- Register your business directly at the Business Registration Office;
- Register your business via postal service;
- Register your business via an electronic information network.
The dossier includes the following documents:
- Application for establishment of FDI enterprise providing travel agency and tour operator services;
- Company rules;
- List of members or shareholders of the company if it is a limited liability company with two or more members or a joint stock company respectively;
- Copies of legal documents of members, shareholders, and representatives (For individual investors: Copy of ID card, passport or other legal personal identification of founding members or shareholders; for investors who are economic organizations: Copy of the company establishment decision, Business registration certificate or other equivalent documents of the organization; copy of the company’s establishment decision, Business registration certificate or other equivalent documents of the organization; ID card or valid passport of the legal representative of the organization);
- Investment registration certificate
- Other necessary documents (if any);
Processing time: within 03 working days from the date of receiving the application, the Business Registration Authority is responsible for reviewing the validity of the business registration application and issuing the business registration. In case the dossier is not valid, the Business Registration Authority must notify in writing the content that needs to be amended or supplemented to the business founder. In case of refusal to register a business, it must be notified in writing to the business founder and clearly state the reason.
Authority:
+) At the provincial level: Business Registration Office under the Department of Planning and Investment
The Business Registration Office can organize points to receive documents and return results under the Business Registration Office at different locations in the province;
+) At district level: Finance – Planning Department under district People’s Committee
Step 3: Apply for an international travel service business license
According to the provisions of the Law on Tourism, establishments providing travel agency services and tour operators must have a Certificate of satisfaction of security and order conditions.
The dossier to apply for an international travel service business license includes:
- Application for an international travel service business license according to the form prescribed by the Minister of Culture, Sports and Tourism;
- A certified copy of the Business Registration Certificate or Investment Registration Certificate issued by a competent state agency;
- Certificate of deposit for travel service business;
- Certified copies of diplomas and certificates of the person in charge of the travel service business specified in Point c, Clause 2, Article 31 of Tourism Law;
- Certified copy of the appointment decision or labor contract between the travel service enterprise and the person in charge of the travel service business.
Number of documents: 1 set
Place of application: General Department of Tourism
The time limit for completing the issuance of a sub-license for international travel services business: within 10 days from the date of receiving valid documents, the Vietnam National Administration of Tourism will appraise and issue the license to conduct international travel services for businesses and notify the specialized tourism agency at the provincial level where the business is headquartered. In case of refusal, it must be notified in writing and clearly state the reason.
Siglaw is always ready to give advice and support customers with necessary information while carrying out procedures to change the investor’s address. Please contact Siglaw law firm for specific advice
Phone: (+84) 961 366 238
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