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| International cruise passengers arrive at Ha Long International Cruise Port__Photo: VNA |
I am a foreign national. Am I allowed to run a travel service business in Vietnam?
According to Government Decree 31/2021/ND-CP dated March 26, 2021, the guiding text of the 2020 Investment Law, travel services are classified as a business line with market access restrictions for foreign investors. Therefore, foreign investors must contribute capital with Vietnamese partners to establish travel service enterprises in accordance with Vietnam’s law and relevant treaties to which Vietnam is a signatory as stipulated in Article 38 of the 2017 Tourism Law.
Furthermore, Article 30 of the Tourism Law stipulates that foreign-invested enterprises are only permitted to provide international travel services for inbound foreign tourists visiting Vietnam—unless otherwise provided by treaties to which Vietnam is a contracting party.
Hence if you want to do business in the tourism sector in Vietnam, you must contribute capital with a Vietnamese partner to form a foreign-invested travel firm exclusively targeted at foreign tourists visiting Vietnam.
Foreign-invested enterprises providing international travel services enjoy the same rights and obligations as domestic businesses in this field. As specified in Article 37.2 of the Tourism Law, these include the right to:
· Design, promote, sell, and provide tourism services or organize tours for tourists as licensed;
· Notify the licensing agency of the replacement of the person in charge of travel services and submit the new personnel’s dossier within 15 days after the replacement;
· Provide tourists with information on the tours, services, and destinations;
· Purchase travel insurance for tourists, unless they have equivalent coverage;
· Employ licensed tour guides to accompany tourists under travel contracts and bear responsibility for the guides’ activities during the tour;
· Ensure that tourists comply with laws and regulations, encourage respectful conduct, and coordinate with authorities to handle any violations;
· Fulfill reporting, accounting, and recordkeeping obligations as required by law;
· Implement safety measures to protect the health, life, and property of tourists, promptly report any accidents or incidents to authorities, and take appropriate remedial actions;
· Manage tourists in accordance with the agreed-upon itinerary; and,
· Assist tourists with immigration, customs, and transit procedures.
What legal conditions must the company established by me and my Vietnamese partner meet to be granted an international tour operator license?
According to Articles 31 and 33 of the Tourism Law, the company set up by you and your Vietnamese partner must meet the same legal conditions and follow the same application procedures as domestic enterprises. Please note that as a foreign-invested enterprise, your company may only apply for an international tour operator license. To qualify for the license, your company must satisfy the following conditions:
- Be legally established under the Law on Enterprises;
- Maintain a deposit at a commercial bank for the provision of international travel services; and,
- Have a person in charge of travel operations who holds a college or higher degree in tourism or possesses a valid certificate in international tour operation, if holding degrees in another discipline.
How much is my company required to deposit, and how will we make the deposit?
Under Article 14.2 of Decree 168/2017/ND-CP detailing the Tourism Law, your company is required to place a security deposit of VND 250 million to operate international travel services.
The deposit must be made in Vietnam dong at a commercial bank, cooperative bank, or a foreign bank branch that is legally operating in Vietnam. The deposit must be maintained throughout the entire period your company is engaged in international travel services. Your company may earn interest on this deposit, subject to agreement with the bank and in accordance with Vietnam’s law.
To make the deposit, your company must enter into a deposit contract with the bank. Based on this contract, the bank will block the deposit amount and then issue a certificate of deposit, using Form 01 provided in the Appendix to Decree 168/2017/ND-CP.
The deposit contract must include the following details: names and addresses of your company and the bank; legal representatives; purpose and amount of the deposit; interest rate and payment terms; conditions for use, withdrawal, and refund of the deposit; responsibilities of each party; and other legal agreements which, however, must not run contrary to Vietnam’s law.
After my company has made the required deposit, what procedures must we follow to obtain the license?
Once the deposit has been made, your company must submit an application dossier to the Vietnam National Authority of Tourism to request issuance of an international tour operator license.
The application dossier must include:
- An application for an international tour operator license, made according to the form provided by the Minister of Culture, Sports and Tourism;
- A certified copy of your company’s enterprise registration certificate or investment registration certificate granted by a competent state agency;
- A certificate of deposit payment for international travel services;
- Certified copies of academic degrees and professional certificates of the person in charge of travel operation; and,
- A certified copy of the decision on appointment or labor contract between your company and the person in charge of travel operation.
As specified in Article 33 of the Tourism Law, within 10 days after receiving a valid and complete dossier, the Vietnam National Authority of Tourism will appraise the dossier. If the dossier is approved, a license will be issued, and the provincial-level tourism authority of the locality where your company is headquartered will be notified. If the application is rejected, your company will receive a written explanation outlining the reasons.- (VLLF)
