The tourism industry continues to experience significant growth, leading to an increasing demand for establishing travel service businesses. However, travel services are classified as a conditional business sector in Vietnam. Therefore, enterprises are only permitted to operate after fully satisfying the statutory requirements and obtaining a Travel Service Business License from the competent state authority.
A thorough understanding of the licensing conditions, required documents, and application procedures can help enterprises save time and costs while minimizing legal risks during their operations.
What is a Travel Service Business License?
According to the Law on Tourism 2017, travel service business refers to the development, sale, and organization of all or part of a travel program for tourists. Depending on the scope of operation, an enterprise may apply for either a Domestic Travel Service Business License or an International Travel Service Business License.
Currently, Vietnamese law recognizes the following two types of travel service business licenses:
– Domestic Travel Service Business License
A Domestic Travel Service Business License allows an enterprise to organize, develop, and operate travel programs for tourists within the territory of Vietnam. This type of license is suitable for businesses providing domestic tour services, sightseeing programs, resort tours, and other travel activities for Vietnamese citizens and foreigners lawfully residing in Vietnam. Enterprises holding a Domestic Travel Service Business License are only permitted to operate within Vietnam and may not organize outbound tours for Vietnamese tourists or inbound tours for international tourists visiting Vietnam.
– International Travel Service Business License
An International Travel Service Business License allows an enterprise to organize and provide travel services involving international tourism activities, including inbound tourism services for foreign visitors traveling to Vietnam, outbound tourism services for Vietnamese tourists traveling abroad, or both.
Compared to domestic travel services, international travel service operations require enterprises to satisfy stricter conditions regarding security deposits, professional qualifications of the person in charge of travel service operations, and other industry-specific regulatory requirements under the Law on Tourism. This license is essential for businesses engaged in international tourism activities or planning to expand their operations into foreign markets.
Conditions for Obtaining a Travel Service Business License
Article 31 of the Law on Tourism 2017 provides the statutory conditions for travel service business activities.
Conditions for Domestic Travel Service Business
An enterprise shall be granted a Domestic Travel Service Business License if it satisfies the following conditions:
First, the enterprise must be duly established in accordance with the laws on enterprises. Specifically, it must possess a valid Enterprise Registration Certificate and have registered business lines suitable for travel service operations.
Second, the enterprise must maintain a security deposit for domestic travel service business at a bank. Pursuant to Decree No. 168/2017/ND-CP, the required security deposit for domestic travel services is VND 100 million.
Third, the enterprise must appoint a person in charge of travel service operations who meets the required professional qualifications. Such individual must hold at least an intermediate-level qualification in travel services. In cases where the individual graduated in a different field, he or she must possess a Domestic Tourism Operations Certificate as prescribed by law.
Conditions for International Travel Service Business
An enterprise engaging in international travel service business must satisfy the following conditions:
First, the enterprise must be legally established in accordance with Vietnamese law.
Second, the enterprise must maintain a security deposit for international travel service business at a bank. The current security deposit requirements are as follows:
- VND 250 million for inbound travel services serving international tourists visiting Vietnam;
- VND 500 million for outbound travel services serving Vietnamese tourists traveling abroad;
- VND 500 million for enterprises conducting both inbound and outbound travel services.
Third, the enterprise must appoint a person in charge of travel service operations who satisfies the required professional qualifications. The responsible person must hold at least a college degree in travel services. If the degree is in another discipline, the individual must possess an International Tourism Operations Certificate in accordance with applicable regulations.
Dossier for Applying for a Travel Service Business License
Pursuant to Articles 32 and 33 of the Law on Tourism 2017, the application dossier includes:
- An application form for a Domestic Travel Service Business License for domestic travel services, or an application form for an International Travel Service Business License for international travel services;
- A copy of the Enterprise Registration Certificate;
- A certificate of security deposit for travel service business;
- A certified copy of the appointment decision or labor contract between the enterprise and the person in charge of travel service operations;
- A certified copy of the diploma, degree, or professional certificate of the person in charge of travel service operations.
Procedures for Obtaining a Travel Service Business License
Step 1: Establish the Enterprise
The investor shall complete enterprise establishment procedures in accordance with the Law on Enterprises and register business lines appropriate for travel service activities.
Step 2: Make the Required Security Deposit
The enterprise shall open a security deposit account at a commercial bank, cooperative bank, or foreign bank branch lawfully operating in Vietnam.
Upon completion of the deposit, the bank will issue a Certificate of Security Deposit for Travel Service Business, which will form part of the licensing dossier.
Step 3: Prepare the Application Dossier
The enterprise shall prepare all required documents corresponding to the type of travel service business license being sought.
Step 4: Submit the Application
For a Domestic Travel Service Business License, the application dossier must be submitted to the provincial tourism authority where the enterprise’s head office is located.
For an International Travel Service Business License, the application dossier must be submitted to the Vietnam National Authority of Tourism.
Step 5: Appraisal and Issuance of the License
Within ten (10) days from the date of receipt of a valid application dossier, the competent authority shall review the application and issue the Travel Service Business License.
In the event of refusal, the authority must provide a written response specifying the reasons for such refusal.
In practice, many licensing applications are delayed due to common issues such as the person in charge of travel service operations failing to meet professional qualification requirements, professional certificates being inconsistent with the registered travel service type, or security deposit documents not complying with the prescribed form… Accordingly, enterprises should carefully review their application dossiers before submission or seek professional legal assistance to ensure that the licensing process is conducted efficiently and in compliance with applicable regulations.
Siglaw Law Firm provides comprehensive consulting and licensing services for obtaining Travel Service Business Licenses for both domestic enterprises and foreign-invested enterprises. With a team of experienced lawyers and legal specialists in investment and corporate matters, Siglaw is committed to assisting clients in completing licensing procedures efficiently, saving time, and ensuring full compliance with Vietnamese law.
Contact us today for an initial free consultation with Siglaw’s experienced legal professionals.
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