Issue International Travel Business License in Vietnam
Realizing that there will be more and more international travel service enterprises established, in order to create conditions for companies operating in the field of travel, on October 28th 2021, the Government issued Decree 94/2021/ND-CP amending Decree 168/2017/ND-CP detailing a number of articles of the Law on Tourism on changing the deposit level for travel business International Executive. With more than 15 years of experience, Viet An Law Firm is proud to be a prestigious and leading law firm in the field of applying for an International Travel Business License as well as advising on legal procedures arising in the course of business activities of thousands of travel businesses across the provinces and cities of the country. We regularly update relevant legal regulations and procedures to support businesses in the process of licensing, operating and doing travel business.
Conditions for international travel enterprises in Vietnam
Conditions on Operation License
After being granted the Business Registration Certificate, an enterprise wishing to carry out international travel business activities must carry out procedures for issuance of an International Travel Business License. Only when an enterprise is granted an international travel business license by the Vietnam National Administration of Tourism, can it legally conduct international travel business.
International travel business licenses are only issued to enterprises established under current laws and registered for business in: Tour operator: International travel business.
Conditions on the industry of the enterprise when carrying out the procedures for the International Travel Business License
An enterprise carrying out procedures for issuance of an international travel business license in the Certificate of Business Registration (or industry registration data on the National Business Registration Portal must have the following industries:
Business line 7912: Tour operator: Domestic and international travel business.
In case an enterprise does not have business line 7912 in the Enterprise Registration Certificate, it is necessary to add this industry to carry out the procedures for issuance of an International Travel Business License.
Dossier of application for an international travel business license in Vietnam
An application for a license for provision of international tours;
A certified copy of the enterprise registration certificate or investment registration certificate issued by a competent state agency;
Certificate of deposit for provision of tours;
A certified copy of the diploma or certificate of the person in charge of provision of travel services;
A certified copy of the decision on appointment or labor contract between the travel service provider and the person in charge of provision of travel services.
Scope of international travel business
When a company with Vietnamese capital is granted an international travel business license, it shall:
Providing international travel services to serve international tourists to Vietnam and outbound tourists.
International travel service enterprises may provide international and domestic tours.
About the scope of tourism business activities under each license
When an enterprise is allowed to conduct only domestic travel business, it is not allowed to do international travel business under any circumstances.
Foreign-invested enterprises may only provide international tours for international tourists coming to Vietnam, unless otherwise provided for in treaties to which the Socialist Republic of Vietnam is a contracting party.
Conditions for international travel business in Vietnam
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 college or higher in another major, they must study and take the exam for the certificate of international tourism management. There is currently no Decree detailing the Law on Tourism. However, according to Circular 06/2017 dated December 15, 12, 2017 of the Ministry of Culture, Sports and Tourism, the following training qualifications are considered specialized in travel:
Management of tourism and travel services;
Tourism management and business.
MICE Tourism Management
Industries, trades and majors may show one of the phrases “tourism”, “travel”, “tour guiding” trained and granted diplomas by educational institutions in Vietnam before the effective date of this Circular.
Industries, trades and majors may show one of the phrases “tourism”, “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 of this Clause, the graduation transcript or diploma appendix showing the major, profession or specialty shall be supplemented, including one of the phrases “tourism”, “travel”, “tour guiding”.
In case the person in charge of provision of international travel services does not study the above-mentioned majors, he/she must attend training courses in international tourism administration, including the following training contents:
Industry background knowledge: Vietnam’s political system; legal documents related to tourism; travel overview; tourism marketing; tourist psychology and the art of communication; international cultural exchange;
Specialized knowledge and professional skills of tourism management: overview of travel service enterprises; tourism market and tourism products; product design and travel program pricing; tourist resorts and tourist spots in Vietnam; tourism operation operations; sales and customer care; marketing and communication; currency and international payments in tourism; immigration operations; domestic and international air transport procedures; application of information technology in enterprise management and development;
Practice international tourism operations.
Deposit level for issuance of a Travel Business License
(Valid from October 28th 2021 to December 31st 2023)
Deposit level for international travel business: According to the provisions of Decree 94/2021/ND – CP detailing the Law on Tourism 2017 stipulates as follows:
Margin level for provision of international tours:
Provision of travel services for international tourists to Vietnam: VND 50,000,000 (fifty million);
Provision of travel services for outbound tourists: VND 100,000,000 (one hundred million);
Provision of travel services for international tourists to Vietnam and outbound tourists: VND 100,000,000 (one hundred million)”
Margin level for provision of domestic tours:
20,000,000 (twenty million) copper.
Enterprises making deposits in Vietnamese dong at commercial banks, cooperative banks or branches of foreign banks established and operating in Vietnam and entitled to interest rates as agreed between enterprises and depositing banks in accordance with the provisions of law. The deposit must be maintained throughout the duration of the travel service enterprise.
Deposit and issuance of Deposit Certificates
When an enterprise requests to deposit money into an account at a bank, the bank receives the deposit and the enterprise enters into an escrow contract. On the basis of the escrow contract, the depositing bank shall freeze the enterprise’s deposit amount deposited at the bank.
The escrow contract has the main contents including: Name, address, representative of the enterprise; name, address, representative of the bank; reasons for deposit; deposit amount; interest rate on margin deposits; payment of interest on margin deposits; use of margin; deposit withdrawal; refund of deposits; responsibilities of related parties and other agreements in accordance with the provisions of law and not contrary to the provisions of law.
After freezing the deposited amount, the deposited bank shall issue a Certificate of deposit for provision of tour to the enterprise according to Form No. 01 specified in the Appendix enclosed with this Decree.
Management and use of deposits
In case a tourist dies, suffers an accident, risks or suffers a loss of life that needs to be returned to their place of residence or emergency treatment but the enterprise is unable to allocate funds for timely settlement, the enterprise shall send a request for temporary release of the deposit to the agency issuing the license for provision of tours. Within 48 hours from the time of receiving the enterprise’s request, the agency issuing the license for provision of tour shall consider and request the bank to deduct the deposit account for use or refuse.
Within 30 days from the date the money is withdrawn from the deposit account, the travel service provider shall replenish the used deposit amount to ensure the deposit level as prescribed in Article 14 of Decree 94/2021. In case the enterprise fails to comply, the bank shall send a written notice to the licensing authority for handling measures in accordance with the provisions of law.
The enterprise shall send a written request for refund of the deposit to the bank in the following cases:
There is a written notice from the agency issuing the license for provision of tour that the enterprise is not granted a license for provision of tour or changes the bank receiving deposit;
There is a written statement from the agency issuing the license for provision of tour on the refund of the deposit after revocation of the license for provision of tour.
Deposit Interest Rate Agreement with the Bank
Regarding the agreement on the interest rate of travel deposit: According to our current update, banks that receive deposits from international travel enterprises often apply annual interest rate agreements with this deposit of enterprises. Banks with relatively professional international travel business deposits are the Bank for Foreign Trade of Vietnam (Vietcombank); Asia Commercial Joint Stock Bank (ACB), An Binh Bank,…
Change in international travel business margin level:
For enterprises that have been granted an International Travel Business License before October 20, 2021, re-make the deposit, withdraw the excess deposit and notify the new deposit dossier to the Vietnam National Administration of Tourism.
Procedures for issuance of international travel business licenses in Vietnam
To issue an International Travel Business License, an enterprise shall take the following steps:
Step 1: Prepare your licensing documents
Enterprises prepare 02 sets of dossiers (of which 01 set is stored at the enterprise) according to the above list of instructions with corresponding conditions.
Step 2: Submit the license application at the Vietnam National Administration of Tourism
The enterprise submits 01 application to the General Department of Tourism;
Step 3: General Department of Tourism grants permission
Within 10 days from the date of receipt of a valid dossier, the General Department of Tourism shall appraise and grant the license for provision of international tours to the enterprise and notify the tourism authority of the province where the enterprise is located; in case of refusal, a written notice clearly stating the reasons therefor must be given.
Revocation of the International Travel Business License in Vietnam
An enterprise shall have its license for provision of tour revoked in the following cases:
Termination of travel service business, dissolution or bankruptcy;
In case of revocation of the following international travel business license, the procedures for application for an international travel business license may only be resubmitted after 06 months from the effective date of the revocation decision. Namely:
Failing to satisfy one of the prescribed conditions for provision of tours;
Without renewing the license for provision of tours, according to specific regulations, enterprises that have been granted an International Travel Business License before 01/01/2018, no later than 31/12/2018 must carry out procedures for changing the International Travel License in accordance with the Law on Tourism 2017.
In case of revocation of the following international travel business license, the procedures for application for an international travel business license may only be resubmitted after 12 months from the effective date of the revocation decision. Namely:
Prejudice national sovereignty, interests, national defense and security;
Taking advantage of tourism activities to bring people from Vietnam abroad or from abroad into Vietnam illegally;
Allow other organizations and individuals to use the enterprise’s license for provision of tour to conduct business;
Failure to fulfill obligations: Apply measures to ensure the safety of tourists’ lives, health and property; promptly notify competent state agencies of accidents and risks of consequences causing serious damage to tourists’ lives, health and property;
Forging dossiers of application for issuance, replacement or re-issuance of a license for provision of tours.
Consulting services for issuance of international travel business licenses of Viet An Law Firm
Advising on conditions for registration for an International Travel Business License;
Consultancy on preparation of dossiers and information to complete dossiers and procedures for issuance of international travel business licenses;
Drafting dossiers and business plans for application for an International Travel Business License;
Carry out procedures for applying for an international travel business license on behalf of the enterprise;
Exchanging and providing information to customers in the process of issuance of international travel business licenses;
Receive and hand over to customers the International Travel Business License;
Advising on changing international travel business licenses;
Advising on re-registration of the scope of business of international travel permits;
Establishment of branches and representative offices of overseas Vietnamese tourism enterprises
Establishment of branches and representative offices of foreign tourism enterprises in Vietnam;
Advising on legal procedures after being granted an International Travel Business License;
Advising on legal issues arising related to international travel business activities of enterprises.