Establish an International Travel Company in Vietnam

Tourism is a key economic sector, a “smokeless” industry of Vietnam, therefore, the international travel service business serving foreign tourists to Vietnam and tourists going abroad is encouraged by the Government and the State with many policies for this business activity. However, international travel business is a conditional business line to ensure the requirements for serving tourists, accordingly, to establish an international travel company, it must meet the mandatory conditions prescribed by law. With nearly 20 years of experience, Viet An Law Firm is proud to be a prestigious and leading law firm in corporate, legal consulting, and support for travel businesses, hotel services, restaurants… We regularly update legal regulations and related legal procedures to support enterprises in the procedures as well as provide services to establish an international travel company in Vietnam.

Legal basis

• Law on Tourism 2017;
• Decree 168/2017/ND-CP on guidelines for the Law on Tourism;
• Circular No. 06/2017/TT-BVHTTDL detailing several articles of the Law on Tourism;
• Circular 13/2019/TT-BVHTTDL amends and supplements several articles of Circular 06/2017/TT-BVHTTDL regulating the Law on Tourism;
• Circular 13/2021/TT-BVHTTDL amends Circular 06/2017/TT-BVHTTDL regulating the Law on Tourism;
• Circular 04/2024/TT-BVHTTDL amending Circular 06/2017/TT-BVHTTDL guiding the Law on Tourism and Circular 13/2019/TT-BVHTTDL amending Circular 06/2017/TT-BVHTTDL guiding the Law on Tourism issued by the Minister of Culture, Sports and Tourism;
• Enterprise Law 2020;
• Decree 01/2021/ND-CP on business registration.

Conditions for international travel business in Vietnam

International travel business is a conditional business. Clause 2, Article 31 of the Law on Tourism 2017 details the conditions for individuals and organizations to conduct international travel business, including:

Regarding legal entity conditions

A travel business trader is an enterprise established under Enterprise Law. Therefore, only enterprises (types of enterprises, companies under the Enterprise Law) are qualified to be allowed to operate and licensed to conduct international travel business. Individual business households are not entities that can be licensed and conduct international travel business.

Regarding deposit conditions to ensure business operations

Deposit for international travel service business at the bank: Deposit level is regulated as follows:

• Deposit level for international travel service business for travel service business for foreign tourists coming to Vietnam: 250,000,000 VND
• Deposit level for international travel service business for tourists going abroad: 500,000,000 VND
• Deposit level for international travel service business for travel service business for foreign tourists coming to Vietnam and tourists going abroad: 500,000,000 VND.

Regarding human resources and professional qualifications

• The person in charge of the travel service business must have a college degree or higher in the field of travel; in case of a college degree or higher in another field, a certificate of international tourism operation must be obtained (detailed in Clause 2, Article 3 of Circular 06/2017/TT-BVHTTDL, amended and supplemented by Article 1 of Circular 13/2019/TT-BVHTTDL). Specifically: A notarized copy of the college degree or higher in the field of travel of the person in charge of the travel service business. Including the following majors:

• Tourism and travel services management;
• Travel Management;
• Tour operator;
• Tourism Marketing;
• Tourism;
• Travel;
• Tourism management and business;
• MICE tourism management;
• Travel agent;
• Travel guide;
• Industries, professions, and majors that include one of the phrases “tourism”, “travel”, or “tour guide” and are trained and granted graduation certificates by educational institutions in Vietnam before the effective date of this Circular;
• Industries, professions, and majors that include the phrases “tourism”, “travel”, and “tour guide” are trained by foreign training institutions and granted graduation certificates.

In case the bachelor’s degree does not show the majors, occupations, and specialties specified in Points l and m of this Clause, the graduation transcript or diploma appendix must show the majors, occupations, and specialties, including one of the phrases “tourism”, “travel”, “tour guide”. Compared with the provisions of the old Law on Tourism, the conditions for the international travel business have some differences, some conditions have been removed, and some conditions have been changed.

Service process to establish an international travel company in Vietnam

For individuals and organizations to establish an international travel company and put it into actual operation, they must carry out the following procedures:

Step 1: Viet An Law exchanges information, and consults on conditions and procedures for establishing an international travel company.

Step 2: Customers prepare information and conditions as required, Viet An supports completing the application.

Step 3: Enterprise registration

As stated above, the mandatory condition for individuals and organizations wishing to conduct international travel business is that they must be enterprises established following the provisions of the law on enterprises.

Therefore, the first step in this process must be to register an enterprise’s establishment under the law’s provisions on enterprises.

Pursuant to the Enterprise Law 2020, individuals and organizations wishing to establish an enterprise must submit 01 set of enterprise registration dossiers to the Business Registration Office under the Department of Planning and Investment where the company is headquartered. The dossier includes the following:

• Enterprise registration application;
• Draft Company Charter;
• List of members or shareholders of the company (if it is a multiple-member LLC or a joint stock company);
• Copies of documents: copies of citizen identification cards, identity cards, passports or other legal personal identification of founding members or shareholders; copies of the Decision to establish the company, enterprise registration certificate or other equivalent documents of the organization; copies of valid identity cards or passports of the legal representative of the organization;
• Power of attorney for Viet An Law Firm.

Note: Viet An Law Firm will advise on the necessary documents in the file for each specific company case and draft a complete file when you use Viet An Law Firm’s services.

Within 03 – 05 working days, if the application is valid and complete, the Department of Planning and Investment will issue an Enterprise Registration Certificate.

After receiving the Enterprise Registration Certificate, the Company must publish the business registration content on the National Business Registration Information Portal.

Viet An Law Firm’s full-package company establishment service is performed within 05-08 working days. Viet An Law Firm will represent clients in drafting and carrying out administrative procedures with the competent licensing authority.

Step 4: Complete enterprise establishment procedures

After establishment, the company must carry out the following procedures to actually operate the business.

Step 5: Company seal and post-establishment procedures

• Enterprise Registration Certificate and the company tax code, Viet An Law will proceed to engrave the seal for the business. Implementation time: 01 day.
• According to the provisions of the Enterprise Law 2020, enterprises carve their seals and are responsible for the use of their corporate seals. Therefore, companies do not have to publish a notice publishing the seal sample as before.
• Open a bank account for the company
• Register for digital signature to pay taxes electronically and report taxes via the Internet
• Register for electronic tax payment from a bank where the business has registered to open an account
• Declare and pay licensing tax

Step 6: Deposit at the bank

• It is a mandatory condition when individuals and organizations want to do international travel business. Individuals and organizations choose a bank and deposit at the deposit level according to the law.
• The deposit is used to compensate tourists in case the business breaches the contract with the tourist; and to resolve risks for tourists in case they do not purchase travel insurance.

Step 7: Apply for an International Travel Business License

The company submits 01 application for an International Travel Business License to the Vietnam National Administration of Tourism. The application includes:

• Application for International Travel Service Business License according to the form prescribed by the Minister of Culture, Sports and Tourism;
• Certified copy of Enterprise Registration Certificate or Investment Registration Certificate issued by a competent state agency;
• Original certificate of deposit for travel service business;
• Certified copy of diploma, certificate of the person in charge of travel service business;
• Certified copy of appointment decision or labor contract between the travel service business enterprise and the person in charge of the travel service business.

Within 10 days from the date of receiving valid documents, the Vietnam National Administration of Tourism shall appraise and grant an international travel business license to the enterprise and notify the provincial tourism authority where the enterprise is headquartered; in case of refusal, a written notice must be given stating the reasons.

Step 8: Carry out travel business activities and periodically report travel activities according to regulations.

The above is the advice of Viet An Law Firm to help clients establish an international travel company in Vietnam according to current law. Clients who need to use the service of establishing an international travel company in Vietnam, please contact Viet An Law directly for detailed advice and best support.

Update: 9/2024