Establishment of a foreign-invested travel service company in Vietnam

Legal basis:

• International treaties: WTO, FTAs, AFAS;
• Law on Tourism 2017;
• Law on Investment 2020.

Conditions and forms of investment:

• Foreign investors are allowed to provide travel services in the form of joint ventures with Vietnamese partners without any restrictions on foreign capital contributions.
• Investment forms:
  • Establishing an economic organization with foreign investment capital;
  • Investing in capital contribution, purchasing shares, purchasing capital contributions in Vietnamese companies.
• Other conditions:
  • Only allowed to provide services to bring international tourists into Vietnam (inbound) and domestic travel for tourists entering Vietnam as part of tourism to bring tourists to Vietnam; not allowed to do business in services to bring tourists from Vietnam to foreign countries (outbound);
  • Tour guides must be Vietnamese citizens.
  • Must apply for an International Travel Service Business License before starting operations, conditions: Deposit VND 250,000,000 in a Bank account; The personnel in charge of the travel service business must have a college degree or higher in tourism; in case of a college degree or higher in another major, must have a certificate of international tourism operations.

Procedures:

Foreign investors can establish a travel service company in Vietnam through two options:

• Establish a foreign-invested travel service company in Vietnam;
• Contribute capital, purchase shares, and capital contributions to a Vietnamese company.

Option 1: Establish a foreign-invested travel service company in Vietnam, including the following main steps:

Step 1: Foreign investors apply for an Investment Registration Certificate;

Step 2: Establish a foreign-invested travel service company in Vietnam;

Step 3: Apply for an International Travel Service Business License.

Option 2: Contribute capital, purchase shares, and capital contributions to a Vietnamese company, including the following main steps:

Step 1: Foreign investors register to contribute capital, purchase shares, and capital contributions to a Vietnamese company;

Step 2: Carry out procedures to change members, shareholders, and add travel service business lines (if not yet registered) in the Vietnamese company;

Step 3: Apply for an International Travel Service Business License (if the Vietnamese company has not been granted this license).