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Vietnamese
FOREIGN INVESTORS CONTRIBUTE CAPITAL TO TOURISM COMPANIES
Tourism services are one of the industries that many countries are aiming to develop. Traveling is a form of entertainment that many people prefer. In the current time, the world is gradually reopening after the pandemic, and the demand for travel, entertainment, and relaxation is increasing. Establishing a tourism service business company is a form of business that brings a lot of potential to investors.
Why should you invest capital in a travel company in Vietnam?
Because of many incentives in terms of geographical location, climate, and natural conditions, Vietnam has great potential for tourism development. With a long coastline with many beautiful beaches, many historical sites, and natural, and cultural heritages recognized by UNESCO, Vietnam has attracted millions of domestic and overseas tourists every year. After a prolonged epidemic period, the tourism industry is showing strong signs of recovery, reaching 100 million domestic visitors and 3.6 million international visitors in 2022. In 2023, Vietnam invests in tourism and aims for higher development with revenue expected to increase by 30%.
Conditions for foreign investors to contribute capital to travel companies
- Capital contribution ratio: foreign investors contributing capital to travel companies are licensed to operate travel agency services and tour operators provided that they enter into joint ventures with Vietnamese partners (without limiting capital contributions from foreign sides). Therefore, foreign investors cannot establish a 100% foreign-invested travel company.
- Forms of investment capital contribution, scope of operation, Vietnamese partners participating in investment activities and other conditions prescribed by treaties to which Vietnam is a contracting party:
+ Regarding forms of investment in travel companies: capital contribution, share purchase, capital contribution purchase of travel companies in Vietnam;
+ Scope of operation: Foreign-invested travel companies may only organize bringing foreign tourists into Vietnam (inbound), and at the same time are allowed to provide domestic travel services as part of the service of bringing tourists from abroad into Vietnam. Foreign-invested tourism companies are not allowed to organize overseas tour programs for Vietnamese tourists (outbound);
+ Tour guides in foreign-invested enterprises must be Vietnamese citizens.
Procedures for foreign investors to contribute capital to travel companies
Process 1: Apply for an investment registration certificate
Documents include:
- A written request for implementation of an investment project (according to Form A.I.1 issued together with Circular 03/2021/TT-BKHDT);
- Certified personal identification documents (identity card or passport) for individual investors; certificated copy of enterprise registration certification for organization investors;
- A certified copy of one of the documents related to the investor (financial statements of the last 02 years of the investor; Document/commitment of financial support of the parent company; Financial institution decision/commitment; …);
- An investment project proposal includes the following contents: investors implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment progress, labor demand, proposal for investment incentives, impact assessment, socio-economic efficiency of the project;
- Written explanation of the technology used in the project;
- Site lease contract or other document confirming that the investor has the right to use the site to implement the investment project at;
- BCC contract for investment projects in the form of the BCC contract.
Submit an application for an investment registration certificate at the investment registration office at the Department of Foreign Economic Affairs – Department of Planning and Investment of the province where the office is located.
Within 15 working days from the date of receipt of the dossier, the Investment Registration Office – Department of Planning and Investment of the province shall consider and issue the investment registration certificate; In case of refusal to grant a license, it must be made in writing and clearly state the reasons.
Process 2: Investors shall carry out procedures for registration of capital contribution, purchase of shares, and contributed capital to travel companies.
Documents include:
- Documents on registration of capital contribution/share purchase/capital contribution of foreign investors
- Certificated copies of legal papers of individuals and organizations contributing capital, buying shares, purchasing contributed capital, and economic organizations with foreign investors contributing capital, buying shares, buying contributed capital
- Written agreement on capital contribution, share purchase, purchase of contributed capital between foreign investors and economic organizations receiving capital contribution, purchase of shares and contributed capital;
- A certificated copy of the land use right certificate of the economic organization receiving the contributed capital, and shares of the foreign investor.
Apply for approval to purchase shares at the investment registration agency under the Department of Planning and Investment of the province where the head office is located.
Within 15 working days from the date of receipt of a valid dossier, the Department of Planning and Investment of the province shall consider and issue a notice of approval for the purchase of shares and contributed capital; In case of refusal to grant a license, it must be made in writing and clearly state the reasons.
Process 3: Apply for an enterprise registration certificate.
Documents include:
- Application for enterprise registration (According to the form in Circular 02/2019/ TT-BKHDT);
- The company’s charter;
- List of members (for limited liability companies) or list of shareholders (for joint stock companies);
- A valid copy of one of the following documents: Personal identification documents: identity card, Passport or other lawful personal identification of founding shareholders and individual shareholders being foreign investors; Establishment decision of the foreign legal entity, Enterprise Registration Certificate or other equivalent document of the organization and written authorization; Personal identification documents of the authorized representative of founding shareholders and shareholders being foreign investors being organizations;
- An investment registration certificate has been issued.
Apply for an enterprise registration certificate to:
- Enterprise Registration Office – Department of Planning and Investment.
- Apply online at the National Enterprise Registration Portal (dangkykinhdoanh.gov.vn).
After receiving the dossier, the Enterprise Registration Office shall issue a receipt of the application to the applicant.
Within 03 working days from the date of receipt of the application, the Enterprise Registration Office – Department of Planning and Investment will issue an enterprise registration certificate. In case of refusal to grant a license, a written notice clearly stating the reason therefor must be given.
Process 4: Apply for a license for tourism service business
Documents include:
- Application form for a license for provision of domestic and/or international tours
- Certified copy of the enterprise registration certificate, and investment registration certificate;
- Certificate of deposit for provision of tours;
- A certified copy of the decision on appointment or labor contract between the travel service provider and the person in charge of the provision of tours;
- Certified copy of diplomas and certificates of the person in charge of provision of tour services.
Apply for a license for the provision of tours to the Vietnam National Administration of Tourism;
- Address: 80 Quan Su Ward, Cua Nam, Hoan Kiem, Hanoi.
- Phone number: 02439423760
Within 10 days from the date of receipt of a valid dossier, the Vietnam National Administration of Tourism shall appraise and grant the license for the provision of international tours to the enterprise and notify the tourism authority of the province where the enterprise is located; in case of refusal, a written notice clearly stating the reasons therefor must be given.
Consultancy services for foreign investors contributing capital to tourism companies.
| Consulting support. |
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| Instructions for preparing documents. |
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| Carry out procedures on behalf of customers at competent state agencies. |
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| Experience. | > 10 years. |
Siglaw is always ready to exchange and support customers with necessary information during customer procedures. Please contact Siglaw Law Firm for specific advice.
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