Conditions for Travel Agency Business in Vietnam

In the context of the increasingly robust development of the tourism industry, travel agencies play a significant role in connecting customers with tourism services, including providing information, consulting, and organizing package tours. To ensure lawful and effective business operations, travel agencies must satisfy specific conditions and requirements as prescribed by law. However, not everyone is aware of these conditions and requirements. In the article below, Viet An Law provides legal insights into the conditions for travel agency business in Vietnam.

The distinction between the travel agency business and the tour operator business

• Under Clause 9, Article 3 of the Law on Tourism 2017, tour operation service business refers to the act of designing, selling, and organizing the implementation of part or the entirety of a travel program for tourists.
• In contrast, the travel agency business involves entities selling pre-designed tour packages.
• A travel agency assists customers in choosing tour packages that suit their preferences, while a tour operator plans the trip, arranges accommodation, transportation, and manages every logistical detail.
• In summary, the travel agency business is only a component of the broader tour operation business.

Legal conditions for the travel agency business

Pursuant to Articles 40, 42, and 43 of the Law on Tourism 2017, the following conditions must be met to operate a travel agency business:

• Register the business with the competent state authority;
• Enter into an agency agreement with a licensed tour operator;
• Notify the provincial-level tourism authority of the commencement of business operations, business location, and information on the contracting tour operator;
• Sell travel programs strictly by the contents and prices stated in the agency agreement; agencies are not permitted to independently organize tours.
• For tourists purchasing tours through a travel agency, the travel contract shall be concluded between the tourist and the contracting tour operator. The contract must clearly state the name and address of the travel agency.
• Maintain and retain records of travel programs sold to customers by legal provisions;
• Display a visible sign indicating “Travel Agency” at the agency’s headquarters.

Thus, the law does not impose specific eligibility requirements on individuals or organizations wishing to operate as travel agencies. To operate legally, a travel agency only needs to obtain a business registration certificate and execute an agency agreement with a tour operator. It is not required to obtain a domestic or international tour operator license.

Contract signed with the travel agency’s business partner

According to Article 41 of the Law on Tourism 2017, an agency contract must be executed as follows:

• The travel agency contract shall be made in writing between a principal, being a tour provider, and a travel agent, being an individual or organization doing travel agency business.
• A travelagency contract shall contain the following details:
• Names and addresses of the principal and the agent;
• Tour programs, sales prices, agent commissions, and payment schedule;
• Rights and obligations of both parties;
• Validity period of the contract.

Types of travel agency businesses in Vietnam

Currently, there are two primary types of tourism service businesses, including domestic tour operator businesses and international tour operator businesses, each subject to specific legal requirements:

Domestic tour operator business:

• Must be established by the Law on Enterprises;
• Required to deposit domestic tour operations at a bank;
• The person in charge of tour operations must have at least an intermediate-level degree in tourism. If holding a degree in another field, a certificate in domestic tour operation is required.

International tour operator business:

• Must be established by the Law on Enterprises;
• Required to deposit international tour operations at a bank;
• The person in charge of tour operations must have at least a college-level degree in tourism. If holding a degree in another field, a certificate in international tour operation is required.

Relevant business lines for enterprises operating as travel agencies

• Code 7911: Travel agency services

Details: This business line encompasses activities involving the sale of tourism products, tour packages, accommodation arrangements for tourists, and transportation services, among others.

In addition, the following related business lines may also apply to travel agency operations:

• Code 7912: Tour operator services;
• Organizing and facilitating activities for tours already sold through travel agencies or directly by tour operators.
• Tours may include, in whole or in part, the following components: transportation, accommodation services, meals, visits to tourist attractions such as museums, historical sites, cultural heritage sites, theatres, musical performances, or sporting events.
• Code 7900: Reservation services and related support services for the promotion and organization of tour programs.
• Provision of reservation services related to tourism activities, including timeshare accommodation services;
• Ticketing services for theatrical performances, sports events, and other recreational and entertainment events;
• Provision of tourist support services, including tourist information services and tour guiding activities;
• Tourism promotion activities.

Application dossier and procedures for establishing a travel agency

Step 1: Prepare application documents

The business must prepare one set of documents, including:

• Application form for company registration;
• Company charter;
• List of members (for multi-member LLC) or list of shareholders (for JSC);
• Copy of the establishment decision/business registration certificate of any organizational shareholders or members;
• Authorization document for the legal representative;
• Power of attorney for the applicant;
• Copies of ID cards/passports of relevant individuals.

Step 2: Submit the application

Submission methods:

• Submit directly or by post to the Business Registration Office – Department of Finance of the province/city where the agency is headquartered;
• Submit online via the National Business Registration Portal.

Step 3: Application review

The competent authority will review and process the application within 3 working days:

• If the application is valid, an Enterprise Registration Certificate will be issued.
• If the application is invalid, a written notice will be issued with instructions for amendment and resubmission.

Step 4: Receive the certificate

The enterprise will receive the Enterprise Registration Certificate.

The above constitutes the legal advice of Viet An Law regarding the conditions for travel agency business in Vietnam. Should you have any related inquiries or require legal consultation concerning enterprise matters, please do not hesitate to contact Viet An Law for the best possible support.