Conditions for establishing a travel company in 2023 in Vietnam

What is a travel company

• Travel business means business activities of travel products and services. Travel business is also in the system of service businesses.
• When customers want to travel and come to travel companies, company will bring customers service experiences and enjoyment during the trip. Products and services are not tangible, it is in the form of unique and new experiences.
• Usually, when it comes to travel companies, most people think of travel companies as travel service companies. But in fact, the travel business is a multi-business company. The industries a travel company can choose to do business are: Travel services; Tourist transport; Tourist accommodation, restaurants, eateries and other tourist services. Each travel service industry has its own conditions specified in the Law on Travel 2017.

Conditions for establishing a travel company in Vietnam

Conditions for establishment of a travel service company

Travel services include two forms

• Domestic travel business services;
• International travel business services.

Conditions for provision of domestic tours

• Being an enterprise established in accordance with the law on enterprises;
• Deposit for provision of domestic travel services at banks;
• The person in charge of provision of travel services must have graduated from an intermediate level or higher majoring in travel; In case of graduating from intermediate level or higher in another major, a certificate of domestic travel operation must be obtained.

Conditions for provision of international tours

• Being an enterprise established in accordance with the law on enterprises;
• Deposit for provision of international travel services at banks;
• The person in charge of provision of travel services must have graduated from a college or higher majoring in travel; In case of graduating from a college or higher in another major, a certificate of international travel operation must be obtained.

Conditions on persons in charge of provision of travel services

A person in charge of provision of travel services is a person who holds one of the following titles: Chairman of the Board of Directors; Chairman of the Members’ Council; company president; private business owners; general manager; director or deputy director; Head of Travel Service Business Department.

The travel major specified at Point c, Clause 1 and Point c, Clause 2, Article 31 of the Law on Travel shall be shown on a diploma of one of the following industries, trades and majors:

• Management of travel and travel services;
• Travel Management;
• Tour operators;
• Travel marketing;
• Travel;
• Travel travel;
• Travel management and business;
• MICE Travel Management;
• Travel agent;
• Travel guide;
• Industries, trades and majors showing one of the phrases “travel”, “travel”, “tour guiding” trained and granted diplomas by educational institutions in Vietnam before the effective date of Circular 13/2019/TTBVHTTDL;
• Industries, trades and majors may show one of the phrases “travel”, “travel”, “tour guiding” trained and granted diplomas by foreign training institutions.
• In case the diploma does not show the majors, trades and majors specified at Points l and m, Clause 2, Article 3 of Circular No. 13/2019/TTBVHTTDL, the graduation transcript or diploma appendix showing the major, profession or major, including one of the phrases “travel”, “travel”, “travel guide”.

Diplomas granted by foreign training institutions must be recognized according to regulations of the Ministry of Education and Training and the Ministry of Labor, War Invalids and Social Affairs.

Conditions for establishing a tourist transport business company

Tourist transport business means the provision of transport services by air, sea, inland waterway, railway and road specializing in serving tourists under tour programs, at tourist resorts and tourist spots.

Organizations and individuals doing tourist transport business must satisfy the following conditions:

• Satisfy the conditions for transportation business as prescribed by law;
• Conditions on technical regulations and environmental protection of means of transport;
• Conditions of drivers of means of transport, service personnel, equipment and service quality on each type of means of transport shall comply with the provisions of law.

Conditions for provision of tourist accommodation services

Types of tourist accommodation establishments

• Tourist villas.
• Tourist apartments.
• Tourist accommodation ships.
• Tourist lodges.
• The dwelling has rooms for tourists to rent.
• Tourist campsites.
• Other tourist accommodation establishments.

Conditions for provision of tourist accommodation services

• Having business registration in accordance with the provisions of law;
• Satisfy conditions on security, order and safety on fire prevention and fighting, environmental protection and food safety as prescribed by law;
• Meet the minimum conditions on material and technical foundations and services for tourists.

Minimum conditions on material and technical facilities and services for hotels

• Have a minimum of 10 sleeping rooms; There is a reception, shared restrooms.
• Guest parking is available for resort hotels and roadside hotels.
• There are kitchens, dining rooms and catering services for resort hotels, floating hotels, roadside hotels.
• There are beds, mattresses, blankets, pillows, face towels, towels; Change upholstery, blanket cover, pillow cover, face towel, towel when there are new guests.
• Staff are available 24 hours a day.

Minimum conditions on material and technical foundations and services for tourist villas

• There are beds, mattresses, blankets, pillows, face towels, towels; Change upholstery, blanket cover, pillow cover, face towel, towel when there are new guests.
• Staffed 24 hours a day
• There is a seating area, bedroom, kitchen and bathroom, toilet.

Minimum conditions on material and technical foundations and services for tourist apartments

• There are beds, mattresses, blankets, pillows, face towels, towels; Change upholstery, blanket cover, pillow cover, face towel, towel when there are new guests.
• There is a seating area, bedroom, kitchen and bathroom, toilet.

Minimum conditions on material and technical foundations and services applicable to tourist accommodation ships

• There is a reception area, bedroom (cabin), bathroom, restroom, kitchen, dining room and catering service.
• There are beds, mattresses, blankets, pillows, face towels, towels; Change upholstery, blanket cover, pillow cover, face towel, towel when there are new guests.

Minimum conditions on material and technical foundations and services for tourist guesthouses

• There is a reception area and bedroom; There’s a bathroom, a restroom.”
• There are beds, mattresses, blankets, pillows, face towels, towels; Change upholstery, blanket cover, pillow cover, face towel, towel when there are new guests.
• Staff are available 24 hours a day.

Minimum conditions on material and technical foundations and services for houses with rooms for rent to tourists

• There is an accommodation area for guests; There are kitchens, bathrooms, restrooms.”
• There are beds, cushions or mats; there are blankets, pillows, curtains, face towels, towels; change of upholstery or mats; Change blanket covers, pillow covers, face towels, towels when there are new guests.

Minimum conditions on material and technical foundations and services for tourist campsites

• There is a reception area, tent area, camp, bathroom, shared toilet.
• There is a first aid medicine cabinet.
• There are security guards on duty when there are guests.

The State encourages organizations and individuals to carry out activities to develop other travel services.

Organizations and individuals providing other travel services may voluntarily apply for recognition of other travel service providers qualified for provision of services to competent authorities.

A dossier of application for accreditation in Vietnam includes:

• An application form prescribed by the Minister of Culture, Sports and Travel;
• The explanation meets the standards of serving tourists.

Organizations or individuals providing other travel services shall submit 01 application to the travel authority of the province where the business establishment is located.

Within 20 days from the date of receipt of a valid dossier, the travel authority of the province shall appraise and recognize; in case of non-recognition, a written response clearly stating the reasons therefor must be given.

Conditions for foreign investors to access the Vietnamese market in Vietnam

• According to the provisions of the Schedule of WTO commitments, the percentage that foreign investors can own capital is unlimited, registered under the code CPC 7471 Travel business and tour operator services in the Investment Certificate.
• Foreign investors may only contribute capital or buy back the contributed capital of travel companies organizing inbound travel. This is an international travel business specializing in organizing for foreigners to travel in Vietnam.
• Foreign-invested travel companies are not allowed to organize outbound to bring Vietnamese abroad, and foreigners traveling from Vietnam to abroad.
• Tour guides working for foreign-invested travel companies must be Vietnamese.
• Vietnam travel company sells contributed capital to foreign investors who have been registered with international travel business code, operating tour 7912
• Vietnam travel company has obtained an inbound international travel business license.

If you want to establish a travel business company, grant a travel business license, please contact Viet An Law Firm for the most professional advice and support!