Tourism is one of the fastest-growing industries in Vietnam. The travel industry in the country has been greatly elevated by an increasing number of foreign visitors coming every year. In 2019 alone Vietnam’s tourism industry hit an all-time high with over 18 million tourists entering the country (1). The open policy and the government’s effort to boost tourism are expected to make the industry flourish even more. If you are thinking of starting a business in Vietnam, the tourism business offers a variety of options such as travel agencies, hotels, restaurants, car hires, tour operators, etc.
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So, this is an excellent time for you to start a travel agency business as the travel industry is loaded with attractive profits. However, starting a travel agency may be one of the biggest decisions that you make as an entrepreneur. This is because there is more to starting a travel agency than just registering it with the Vietnamese authority.
Establishing a travel agency in Vietnam has become more accessible to foreigner entrepreneurs but there are some requirements that you must strictly follow. In this guide, Cekindo will tell you how you can be legally compliant when it comes to starting a travel agency in Vietnam.
Starting a Travel Agency in Vietnam by Foreigners
There are not any restrictions for travel agency offering accommodation services. However, when transportation services are also included under the business, certain restrictions apply to foreign travel agency in Vietnam.
The restrictions are detailed below:
- The foreigner must register the tourism companies under his/her name
- The foreigner’s local partner is required to have tourism company registered as well
- The registered Vietnamese company must be in the tourism sector
- The registered Vietnamese company must have a license allowed to offer foreign tourism services
- The local company and the foreign company must form a joint venture
How to Register a Travel Agency in Vietnam
Upon meeting the criteria, the foreign and the local company can register their joint venture in Vietnam with as a tour operator with the Trade Register. The joint venture is subject to the following requirements upon its establishment:
- Apply for the foreign tourism license. The license shall be based on the tourism services business plan
- Submit a foreign visitor’s tourism schedule along with the business plan
- Meet the share capital requirements according to local regulations
- Conform to the employment and management conditions so that the joint venture can start its operation
Starting a Travel Agency in Vietnam: Other Conditions
Apart from the mentioned requirements and restrictions, foreign investors must carry their responsibility in order to fulfill several other conditions set by the Vietnamese government in order to set up a travel agency in Vietnam:
- For the joint venture tour operator offering inbound tourism service, it must have a US$ 12,500 (VND 250,000,000) minimum share capital
- If the joint venture offers outbound tourism services, then it must have US$50,000 (VND 500,000,000) minimum share capital
- The joint venture tour operator must hire a manager with a minimum experience of 4 years in the tourism sector
- The joint venture tour operator must have a minimum of three (3) certified travel agents. These certified travel agents shall possess foreign tour guide license.
How Cekindo can Help with Business Establishment in Vietnam
At Cekindo, we handle all the filing and legwork for your business establishment in Vietnam. Our registered consultants will advise you on choosing the right entity type, conduct a legal name search, and inform you right away once your business is officially incorporated in Vietnam.
After incorporation, we can also help you ensure your business stays in compliance with Vietnam Law by meeting those critical requirements and time-sensitive deadlines. Starting a new business in Vietnam would be hassle-free with Cekindo. Fill in the form below.