ESTABLISHMENT OF A FOREIGN-INVESTED ENTERPRISE IN VIETNAM: ESTABLISHING A FOREIGN-INVESTED TRAVEL COMPANY IN VIETNAM
In recent years, Vietnam's tourism industry has witnessed strong growth, particularly in international tour operating activities. Partnering with foreign entities to attract and bring international tourists into Vietnam (the Inbound market) not only promotes the country's image but also generates immense commercial value and profitability. Consequently, the demand to establish foreign-invested enterprise travel companies in Vietnam continues to rise.
However, travel and tour operation services constitute a conditional business line under Vietnamese law and international commitments. To execute a tourism investment project legally, safely, and efficiently, foreign investors must thoroughly understand market access conditions, scope of operations, bank deposit requirements, and relevant legal licensing roadmaps.
In the article below, Dai Quang Minh Consulting will analyze in detail market access conditions and legal procedures for establishing a foreign-invested travel company in Vietnam under current regulations..
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat:(+84) 337926405 (ID: _pouniverse)/(+84) 869672216 (ID:DQM_Verna)
- Telegram: (+84) 337926405/ (+84)869672216
I. Establishment of a Foreign-Invested Enterprise in Vietnam: Market access conditions
- Investment Forms under WTO Commitments: According to Vietnam's Schedule of Specific Commitments in Services to the WTO, travel agency and tour operator services fall under sub-sector CPC 7471. Foreign investors are permitted to access the Vietnamese market through Commercial Presence under the following forms: Vietnam has not yet committed to opening market access for 100% foreign-owned enterprises in travel and tour operation services. Therefore, foreign service providers are permitted to establish a commercial presence in the form of a joint venture with a Vietnamese partner. There is no limitation on foreign capital contribution in the joint venture enterprise;
- Scope of Operations under the Law on Tourism: Pursuant to current Law on Tourism, foreign-invested enterprises are only permitted to provide international travel services serving international tourists coming to Vietnam (Inbound tourism) and offer domestic travel services for these inbound tourists as part of their inbound package tours. FDI enterprises are not allowed to provide outbound travel services (taking tourists from Vietnam abroad), unless otherwise specified by international treaties to which Vietnam is a signatory.
- Tour Guide Nationality Requirement: All tour guides working for foreign-invested travel companies must strictly be Vietnamese citizens.
II. Establishment of a Foreign-Invested Enterprise in Vietnam: Conditions for issuance of an International Tour Operator License
To legally operate, a foreign-invested travel company must apply for an International Tour Operator License and satisfy the following conditions:
- Bank Escrow Deposit Requirement: The enterprise must make an escrow deposit for international travel services at a commercial bank, cooperative bank, or foreign bank branch established and operating lawfully in Vietnam.
+ Deposit level for serving inbound tourists (Inbound): VND 250,000,000 (Two hundred fifty million Vietnamese Dong).
- Personnel Requirements: The person in charge of travel service operations must hold a managerial/executive position in the enterprise and meet degree/certificate requirements:
+ Hold a college degree or higher in travel management (Tourism and Travel Service Management, Tour Operation, etc.);
+ If holding a college degree or higher in another discipline: Must possess an International Tour Operation Certificate in accordance with regulations.
Why choose Dai Quang Minh Company?
With years of practical experience in legal consulting, Dai Quang Minh Company is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Company:
Human Resources: Gather a team of corporate legal experts and project legal experts with a long working history at domestic private economic groups; large foreign-invested enterprises operating in Vietnam.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Company.
Professionalism and Experience: Dai Quang Minh Company has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Company 's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Company ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Company has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Company is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Company provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Company is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
III. Establishment of a Foreign-Invested Enterprise in Vietnam: Legal procedure for establishing a foreign-invested travel company in Vietnam
Since current regulations do not allow the direct establishment of a 100% foreign-owned company in travel services, the optimal and fully compliant legal roadmap is to first establish a local Vietnamese company, obtain the International Tour Operator License, and subsequently allow the foreign investor to contribute capital or acquire shares in the enterprise:
- Step 1: Apply for the Investment Registration Certificate (IRC): Foreign investors forming a new enterprise must execute investment project registration procedures to obtain an Investment Registration Certificate (IRC).
- Step 2: Apply for the Enterprise Registration Certificate (ERC): Upon receiving the IRC, the investor submits an enterprise registration dossier to the Department of Finance to obtain the Enterprise Registration Certificate (ERC). Common corporate forms include Limited Liability Company (LLC - Single or Multi-member) or Joint Stock Company (JSC).
- Step 3: Apply for the International Tour Operator License at the Vietnam National Authority of Tourism: Fulfill the mandatory bank escrow deposit of VND 250,000,000, appoint a qualified person in charge of travel operations, and submit an application dossier to the Vietnam National Authority of Tourism (Ministry of Culture, Sports and Tourism) to obtain the specialized operating license before launching inbound tour services.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
During the course of operations, should you have any questions or require any assistance, please contact Dai Quang Minh Company. We are always ready to provide support and accompany you throughout the process of construction, operation, and development.
We wish you sustainable development and breakthrough success.
Sincerely thank you./.
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