Vietnam officially joined a member of the World Trade Organization (WTO) on January 11, 2007. After Vietnam became an official member of the WTO, this is a valuable opportunity for international integration and has opened up many opportunities for foreign investors to invest in plenty of fields in Vietnam that cover the tourism business. The global travel business is one of the conditional business lines under the Investment Law 2020. Accordingly, domestic and foreign tourism business investors must meet the conditions under Vietnam laws and regulations. WTO rules when investors from a country that is a member of the WTO. Here are all method things that a foreign investor who wants to invest in a business in the field of international travel needs to meet.
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Foreign investors purchase the contributed capital from Vietnam international travel companies
According to articles of the WTO Schedule of Commitments, the percentage that foreign investors can own capital is up to 99%.
Foreign investors are only allowed to contribute capital or repurchase the capital contribution of travel companies organizing inbound tourism. This type of company is an international travel company specializing in organizing for foreigners to travel in Vietnam.
Foreign-invested travel companies are not allowed to organize outbound who organizes domestic & foreign travelers touring Vietnam to travel abroad.
Tour guides working for foreign-invested travel companies must be Vietnamese citizens.
A Vietnamese travel company that sells contributed capital to foreign investors has registered the tourism business line code 7912.
A Vietnamese travel company registered the inbound international travel business license.
To set up a foreign travel company
First step: Establishing a tourism company with Vietnamese capital.
Second step: Application for an international travel business license for inbound guests.
Third step: Purchase of capital contribution of Vietnam travel company.
List of members, list of shareholders (If it is a limited liability company with two or more members or a joint stock company)
To provide the notarized and authenticated valid passports of individuals, members or shareholders, and legal representatives, representatives of capital contributions to investors by the company.
To include Enterprise Registration Certificate for the organization that is the investor to establish a travel company.
After preparing the dossier, the dossier registration with Authority for planning and investment where the company’s location is based. The Business Registration Authority will review and issue the Business Registration Certificate within 3-6 working days.
Step 2: Application for an international travel business license and an application file apply for an international travel business license include
The written document applies for the international travel business license.
Copy of Enterprise Registration Certificate with notarization.
Global travel business plan.
Tour program for international visitors.
A copy of a university or college degree related to tourism or a university or college degree for those who do not belong to a major in tourism who have a trained in tourism certificate.
Certificate of deposit for inbound international travel business.
Copy of the appointment decision in the notarized or the labor contract between the tour operator and the person in charge of the inbound international travel agency.
Step 3: Foreign investors buy capital contributions from Vietnamese international travel agencies:
A written registration for the purchase of contributed capital as prescribed at Point a, Clause 2, Article 26 of the Law on Investment 2020, according to the form of Official Letter 4226/BKHDT- DTNN.
A copy of the identity card, identity card, or passport for the investor being an individual; a copy of the Certificate of Establishment or other equivalent document certifying the legal status of the investor being an organization;
Authority: Application to buy the capital contribution at Authority for planning and investment where the company head office’s located.
Processing time: 15-25 working days starting from the date of receipt of the valid dossier.
Results of administrative procedures: Written notice
According to the provisions of Article 5 of Circular 131/2010/TT-BTC, the condition for foreign investors (organizations and individuals) when participating in capital contribution or buying shares in Vietnamese enterprises is having an investment account capital opened at commercial banks in Vietnam. All activities of buying and selling shares, transferring contributed capital, collecting and using dividends, distributing profits, remitting money abroad, and other activities related to investment in Vietnamese enterprises are through financial accounts.
Step 4: To open an investment account at a bank in Vietnam
Direct investment account: Foreign investors own 51% of the company’s charter capital. If a foreign investor owns 51% of the contributed capital from an international travel company, the international travel company with Vietnamese capital will open a capital account for foreign investors’ capital contribution and transfer the money and profits generated from investment activities in the field of tourism.
Indirect investment account: If a foreign investor scarcely purchases a capital contribution of less than 51%, he will open an indirect investment account and transfer the capital to the investor’s account in Vietnam. From this account, the investor will transfer the money to a Vietnamese travel company or transfer money to redeem the capital contribution from the Vietnamese investor.
Customers wishing to establish a foreign-invested travel company, please contact Viet An Law Firm for detailed support!
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