OPENING A TRAVEL AGENCY IN VIETNAM: A LEGAL GUIDE FOR FOREIGN INVESTORS

Vietnam has become one of the most attractive tourism destinations in Asia, known for its natural landscapes, cultural heritage, coastal cities, historical sites, and increasingly diverse travel experiences. With the continued recovery and growth of the tourism industry, many foreign investors are interested in establishing travel agencies in Vietnam to provide inbound tour services, destination management, travel packages, hotel and transportation coordination, tour guide arrangements, and other tourism-related services.

However, opening a travel agency in Vietnam is not simply a matter of setting up an office, designing tour packages, and selling them to tourists. Travel services are a conditional business sector. Foreign investors must carefully review market access restrictions, investment structure, enterprise registration, deposit requirements, licensing procedures, qualified personnel, travel contracts, tourist protection obligations, tour guide arrangements, insurance, tax compliance, and ongoing reporting duties.

Under the Law on Tourism 2017, travel services include the development, sale, and organization of part or all of a tour program for tourists. The law distinguishes between domestic travel services and international travel services. For foreign-invested enterprises, Vietnam’s tourism law generally limits their scope to international travel services serving inbound tourists visiting Vietnam, unless otherwise provided by treaties to which Vietnam is a signatory.

Prospective clients seeking assistance with procedures for establishing a travel agency in Vietnam are kindly invited to contact Dai Quang Minh Law Firm 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 Law Firm 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. UNDERSTANDING THE LEGAL MODEL OF A TRAVEL AGENCY IN VIETNAM

The first step is to identify the actual travel service model that the investor intends to operate. Not all tourism-related activities are regulated in the same way. A company that provides inbound tour packages, destination management services, hotel booking support, transportation coordination, tour guide arrangements, and travel consulting may have a different legal profile from a company providing outbound tours, domestic tours, tourist accommodation, tourist transport, online travel platform services, or aviation ticketing services.

Under the Law on Tourism 2017, travel services cover the development, sale, and organization of part or all of a tour program for tourists. Travel service business is generally divided into domestic travel services and international travel services. International travel services may include inbound tours for foreign tourists visiting Vietnam and outbound tours for tourists traveling from Vietnam to other countries.

This distinction is particularly important for foreign investors. Although foreign investors may participate in Vietnam’s travel service market, foreign-invested travel service providers are generally limited to international travel services serving inbound tourists to Vietnam, unless an applicable treaty provides otherwise. In other words, a foreign-invested travel agency should not assume that it can freely provide domestic tours for Vietnamese tourists or outbound tours for Vietnamese residents without reviewing the applicable restrictions.

Therefore, the investor should define the business model carefully from the beginning. For example, an inbound travel agency serving tourists from Europe, Korea, Japan, China, Australia, or the United States may follow a different compliance pathway from a domestic tour operator, outbound tour operator, hotel booking platform, or general tourism consulting company.

II. SETTING UP A COMPANY TO OPERATE A TRAVEL AGENCY IN VIETNAM

As with most foreign-invested businesses in Vietnam, the investor must first establish a lawful business vehicle. For travel services, foreign investors should pay special attention to both investment law and tourism law.

In practice, the investor may consider one of the following structures: establishing a new joint venture with a Vietnamese partner, contributing capital to an existing Vietnamese travel company, or acquiring shares or contributed capital in a company that is legally eligible to conduct travel services. Each structure has different implications for licensing, timing, control, tax, liabilities, and due diligence.

For a new foreign-invested travel agency, the investor may need to obtain an Investment Registration Certificate and an Enterprise Registration Certificate before applying for the relevant travel service business license. The business lines should be consistent with the permitted scope of international travel services, inbound tour operation, and related tourism support services.

Foreign investors should also review market access conditions before committing to a structure. Travel services are not the same as ordinary consulting or general service businesses. Because the tourism sector is subject to specific legal conditions, the investment structure, Vietnamese partner arrangement, business scope, and licensing roadmap should be reviewed before incorporation.

If the investor contributes capital to an existing travel company, legal due diligence is essential. The investor should review the company’s enterprise registration certificate, charter, ownership structure, license status, deposit certificate, person in charge of travel services, tour guide arrangements, tax filings, existing contracts, liabilities, disputes, and whether the company has previously provided services outside its licensed scope.

WHY CHOOSE DAI QUANG MINH LAWFIRM

With years of practical experience in legal consulting, Dai Quang Minh Law Firm 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 Law Office:

Human Resources: Established in September 2009, with over 15 years of practical experience, Dai Quang Minh Law Firm brings together a team of lawyers and legal experts with long-standing expertise in private economic groups nationwide.

Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Law Firm.

Professionalism and Experience: Dai Quang Minh Law Firm has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.

Time-Saving: Using Dai Quang Minh Law Firm's services helps you save precious time as we handle the entire process and related procedures.

Legal Insight: Dai Quang Minh Law Firm 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 Law Firm has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.

Confidentiality Assurance: Dai Quang Minh Law Firm is committed to the absolute protection of your personal and business information.

Detailed Support: Dai Quang Minh Law Firm 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 Law Firm 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. CORE LICENSES AND APPROVALS COMMONLY REQUIRED FOR A TRAVEL AGENCY

After the legal model is determined, the investor should identify the main licenses and compliance requirements for lawful operation. A foreign-invested travel agency may need several legal steps rather than one simple business registration.

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3.1. Investment registration

For many foreign-invested travel service projects, investment registration is an important initial stage. The investor should prepare information on the investor’s legal status, proposed project, capital contribution, Vietnamese partner, business scope, office address, implementation plan, and financial capacity.

At this stage, the competent authority may review whether the proposed travel services are permitted for foreign investors, whether the ownership and joint venture structure comply with market access rules, and whether the project is consistent with Vietnam’s tourism regulations.

The investor should not treat the travel agency as an ordinary service company. Because tourism services are restricted for foreign investors, the investment registration stage should be carefully prepared to avoid delays caused by unclear scope of services, unsuitable partner structure, incomplete investor documents, or inaccurate business lines.

3.2. Enterprise registration

After the investment structure is approved, the investor must establish the company and obtain the Enterprise Registration Certificate. The registration information should include the company name, head office address, charter capital, legal representative, members or shareholders, and registered business lines.

The company’s business lines should be drafted carefully. They should be broad enough to cover the intended inbound international travel services and related support activities, but not so broad that they include activities that the foreign-invested company is not permitted to provide.

The registered office should also be legally usable. A travel agency may not need a large customer-facing office in every case, but the office address should still be valid for company registration, tax registration, communication with authorities, recordkeeping, and client or partner correspondence.

3.3. Deposit for travel services

A travel service deposit is one of the key legal conditions for obtaining a travel service business license. Under Decree 168/2017/ND-CP, the domestic travel service deposit is VND 100,000,000. For international travel services, the deposit is VND 250,000,000 for inbound tourists, VND 500,000,000 for outbound tourists, and VND 500,000,000 for both inbound and outbound tourists. The deposit must be made in Vietnamese dong at a commercial bank, cooperative bank, or foreign bank branch lawfully operating in Vietnam and must be maintained during the period in which the enterprise provides travel services.

For a foreign-invested travel agency that is only permitted to serve inbound tourists, the relevant deposit will usually be the deposit for international travel services for inbound tourists. However, the exact deposit requirement should be reviewed based on the licensed scope and applicable regulations at the time of filing.

The travel service deposit should not be confused with charter capital. Charter capital is the capital registered with the business registration authority and contributed by the investors. The travel service deposit is a separate licensing condition and must generally be maintained at the bank while the company operates travel services.

3.4. Person in charge of travel services

The person in charge of travel services is another important licensing condition. Under the Law on Tourism 2017, an international travel service provider must have a person in charge of travel services who holds a college degree or higher in travel. If the person holds a college degree or higher in another major, a certificate of training in international tour operation is required.

This requirement should be reviewed early. In practice, many investors focus on the company structure and deposit but overlook the personnel condition. If the proposed person in charge does not meet the required qualifications, the license application may be delayed or rejected.

The employment contract or appointment decision for this person should be properly prepared and consistent with the licensing dossier. If the company later replaces the person in charge of travel services, it may need to notify the licensing authority and submit the new personnel dossier within the prescribed timeline.

3.5. International Travel Service Business License

The International Travel Service Business License is the core operating license for a foreign-invested travel agency providing inbound international travel services in Vietnam. Without this license, the company should not organize, sell, or operate international tour programs.

The application dossier for an international travel service license generally includes an application form, a certified copy of the business registration certificate or investment registration certificate, a certificate of deposit payment, and documents relating to the person in charge of travel services. The competent authority will assess whether the enterprise satisfies the legal conditions before issuing the license.

For a foreign-invested travel agency, the International Travel Service Business License is generally the key operating license after the company has completed investment registration, enterprise registration, and the required travel service deposit.

The applicable state fee for issuance, replacement, or re-issuance of the international travel service business license should be checked at the time of filing, as fee schedules may be updated by the Ministry of Finance from time to time.

3.6. Travel contracts, tour guides, insurance and tourist safety

After licensing, a travel agency must operate in accordance with its licensed scope and comply with obligations toward tourists. These obligations may include providing accurate information about tours, services and destinations, arranging licensed tour guides where required, purchasing travel insurance for tourists unless equivalent coverage already exists, managing tourists according to the agreed itinerary, assisting with immigration and customs matters, and implementing safety measures to protect tourists’ health, life and property.

Travel contracts should be prepared carefully. They should clearly state the itinerary, services included, price, payment terms, cancellation policy, insurance, responsibilities of the parties, force majeure, tourist obligations, complaint handling, and dispute resolution. This is especially important for inbound travel agencies working with overseas agents, hotels, transport providers, tour guides, and local service suppliers.

If the company uses freelance guides, transport partners, hotels, restaurants, boats, local tour operators, or experience providers, the relationship should be documented in proper contracts. The company should also ensure that partners hold the required licenses and meet quality and safety standards.

3.7. Tax, accounting, foreign labor and online marketing

In addition to tourism licensing, a travel agency must comply with general business obligations, including tax registration, accounting records, e-invoices, service contracts, labor contracts, social insurance where applicable, foreign worker documentation, and advertising rules.

Many foreign-invested travel agencies employ foreign managers, sales representatives, destination experts, or marketing personnel. If foreign employees work in Vietnam, work permit or work permit exemption requirements should be reviewed before they begin working.

Online marketing is also important for travel agencies. The company should ensure that website content, tour descriptions, pricing, promotional claims, customer data collection, privacy policies, and online booking terms are consistent with the licensed scope and consumer protection requirements.

IV. PRACTICAL LEGAL CONSIDERATIONS BEFORE OPENING A TRAVEL AGENCY

Before opening a travel agency in Vietnam, foreign investors should review several practical legal issues.

First, the investor should confirm the permitted scope of services. A foreign-invested travel agency is generally limited to providing international travel services for inbound tourists visiting Vietnam, unless an applicable treaty provides otherwise. This should be reflected clearly in the company’s business plan, registration documents, marketing materials, and service contracts.

Second, the investor should choose the Vietnamese partner carefully. Because foreign investors generally need to cooperate with a Vietnamese partner in travel services, the partner’s reputation, contribution capability, role in management, licensing cooperation, and dispute-resolution mechanism should be carefully documented.

Third, the investor should prepare the deposit early. The company cannot treat the travel service deposit as a mere formality. The deposit must be made at a qualified bank and maintained during operation. It is also separate from charter capital and should be planned in the financial model.

Fourth, the person in charge of travel services should be identified before the license application. This person must satisfy the required professional qualification condition. If not, the company may need to arrange an international tour operation certificate or appoint another qualified person.

Fifth, travel contracts should be professionally drafted. Since travel services involve tourists’ safety, accommodation, transport, guides, itinerary changes, cancellations, refunds, and third-party suppliers, unclear contracts can easily lead to disputes.

Sixth, the company should verify supplier compliance. Hotels, transport companies, tour guides, restaurants, boats, local tour providers, and experience providers should have appropriate legal capacity and safety standards, especially where the tour involves transportation, adventure tourism, water activities, remote areas, or large tourist groups.

Seventh, the company should prepare an online compliance strategy. Inbound travel agencies often rely on websites, social media, online booking forms, email marketing, and overseas agents. The company should ensure that its advertising content, privacy policy, booking terms, refund policy, and customer data handling practices are legally appropriate.

Overall, opening a travel agency in Vietnam is legally feasible and commercially promising for foreign investors, especially in the inbound tourism market. However, travel services remain a conditional and restricted sector. A clear legal roadmap can help investors avoid licensing delays, ensure compliance with tourism regulations, protect tourists’ interests, and launch operations more smoothly.

Prospective clients seeking assistance with procedures for open a travel agency in Vietnam are kindly invited to contact Dai Quang Minh Law Firm 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 Law Firm 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.