Can foreign-invested enterprises be granted a license to operate international travel services?

International travel services are increasingly popular these days; consequently, operating an international travel business has become a growing trend. Foreign-invested enterprises often wish to understand the requirements for obtaining an International Travel Service Business License. In this article, HTC Vietnam Law Co., Ltd. outlines the fundamental aspects of this matter.

1. What are foreign-invested enterprises and international travel services?

Clause 9, Article 3 of the 2017 Tourism Law stipulates that the business of travel services is the development, sale, and organization of the implementation of part or all of a tour program for tourists.

Clause 2, Article 30 of the 2017 Tourism Law stipulates that international travel services are provided to international tourists visiting Vietnam and Vietnamese tourists traveling abroad.

Clause 22, Article 3 of the 2020 Investment Law stipulates that an economic organization with foreign investment capital is an economic organization in which foreign investors are members or shareholders.

According to Clause 1, Article 38 of the 2017 Tourism Law, foreign investors may contribute capital with Vietnamese partners to establish travel service businesses in accordance with Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a signatory.

Therefore, foreign investors cannot establish travel service companies on their own but must contribute capital with Vietnamese individuals or organizations and businesses in Vietnam to establish travel service companies.

2. Scope of international travel services business

Currently, businesses providing international travel services are permitted to operate both international and domestic travel services. However, according to Article 31 of the 2017 Tourism Law, foreign-invested enterprises are only allowed to provide international travel services to international tourists visiting Vietnam, except in cases where an international treaty to which the Socialist Republic of Vietnam is a party stipulates otherwise.

3. Conditions for conducting international travel services

Businesses providing international travel services must meet certain conditions to be granted an International Travel Service Business License by the competent authority.

Clause 2, Article 31 of the 2017 Tourism Law, Decree 168/2017/ND-CP, and Circular 13/2019/TT-BVHTTDL stipulate the conditions for conducting international travel services, including:

(1) Is an enterprise established in accordance with the law on enterprises ;

(2) Investment registration certificate for travel service business investment project

(3) Foreign investors contribute capital with Vietnamese partners to establish travel service businesses in accordance with Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a member.

(4) Deposit for international travel service business at commercial banks, cooperative banks or branches of foreign banks established and operating in Vietnam: Travel service business for international tourists coming to Vietnam: 250,000,000 VND (Two hundred and fifty million dong);

(5) The person in charge of travel service business must have a college degree or higher in travel; in case of a college degree or higher in another major, they must have a certificate of international tourism operation.

The person in charge of the travel services business is someone holding one of the following positions: chairman of the board of directors; chairman of the board of members; chairman of the company; owner of a private enterprise; general director; director or deputy director; head of the travel services business department.

(6) Tour guides in foreign-invested economic organizations must be Vietnamese citizens.

Businesses that meet the above conditions and submit a valid application to the National Tourism Administration – Ministry of Culture, Sports and Tourism will be granted a license to operate international travel services.

The above is our complete advice to help you better understand whether foreign-invested enterprises are eligible for an International Travel Service Business License. We hope that through this article, our company has been able to answer some of your questions and concerns and help you grasp the basic content of this issue.

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Best regards!

(Author: Phan Thi Thanh An; Translator: Nguyen Phuong Anh; Date: August 22, 2024)

For detailed advice, please contact:

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