In an effort to overcome the Covid-19 pandemic, Vietnam is one of the Asian countries that is fully open to international tourists. According to the Global Tourism Development Capability Index 2021 report of the World Economic Forum (WEF), Vietnam’s tourism ranked 52nd out of 117 economies, up 8 places compared to 2019. This shows that Vietnam is gradually becoming an attractive destination for international tourists, leading to the interest of foreign investors in this field. This article will provide general conditions for foreign investors to do business in travel services in Vietnam.
According to WTO commitments, Vietnam does not limit the capital contribution of foreign service providers in joint ventures for travel agency and tour operator services (CPC 7471), this is also committed similar to the Free Trade Agreement between the European Union and Vietnam (EVFTA).
With this commitment of Vietnam, investors are required to:
Business travel service in Vietnam is divided into the following activities:
Enterprises providing international travel services are entitled to provide international travel services and domestic travel services. However, foreign-invested enterprises are only allowed to provide international travel services to serve international tourists to Vietnam.
Accordingly, with each different type of travel service business, investors will have to meet the corresponding business conditions.
Travel services are regulated as a conditional business (196), according to which:
Domestic travel service requires the following conditions:
International travel service requires to meet the following conditions:
In addition, a tour operator providing travel services for international tourists to Vietnam and tourists going abroad must pay a deposit of VND 100,000,000 (one hundred million).
The establishment of a travel service company is usually done through the following steps
Step 1: Apply for an investment registration certificate
Step 2: Apply for an enterprise registration certificate
Step 3: Apply for a license for the provision of tourism
The article is based on applicable law at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable law has changed and the specific case that the reader wishes to apply. Therefore, the article is only for reference.