Tiếng Việt
Entering Vietnam’s Booming Tourism Industry
Vietnam is one of Asia’s most popular tourist destinations. Every year, millions of international and domestic travelers rely on travel agencies to book tours, tickets, and travel packages. For foreign investors, setting up a travel agency in Vietnam is a lucrative opportunity, provided you navigate the specific legal scope and market access conditions correctly.
I. Market Access: The Joint Venture Model
According to Vietnam’s WTO commitments, foreign investors cannot wholly own a travel agency. To enter the market, you must form a joint venture with a Vietnamese partner.
- Equity Structure: The local partner may hold as little as 1% of the equity, while the foreign investor can own up to 99%, granting you significant control over the business operations.
- Service Scope: It is important to note that travel agencies with foreign investment act as intermediaries. They sell services provided by licensed international tour operators rather than designing or operating tours independently.
II. Investment and Enterprise Registration
To officially start your journey, you must obtain the mandatory licenses through the Department of Finance:
1. Investment Registration Certificate (IRC): This document confirms your right to invest in Vietnam’s tourism sector.
2. Enterprise Registration Certificate (ERC): This formally incorporates your company and records your business lines under the VSIC codes for “travel agency services.”
For more information on the initial steps of setting up a business, see our guide on Company Registration in Vietnam
III. Capital and Financial Requirements
Unlike international tour operators, travel agencies do not have a statutory minimum capital requirement under the Law on Tourism.
- Charter Capital: You must declare sufficient charter capital to demonstrate your financial capacity to the authorities. This capital is separate from the security deposits required for tour operations.
- Practical Figures: In practice, most foreign-invested travel agencies declare between $30,000 and $100,000 USD, depending on their intended scale of operations.
IV. Office and Staffing Compliance
To maintain a legal standing, your agency must meet specific operational standards:
- Head Office: You must register a legal head office with a valid lease contract. The location must also align with local tourism planning.
- Human Resources: While you aren’t required to employ certified tour operator managers, you must hire staff with expertise in tourism, ticketing, and customer service to ensure high-quality delivery.
V. Operational Limitations and Compliance
Foreign-owned travel agencies must operate within a restricted scope to remain compliant with Vietnamese law:
- Invoicing: Agencies cannot issue invoices for tours under their own name. All contracts and invoices must clearly state the licensed tour operator responsible for organizing the trip.
- Advertising: You must comply with strict rules on truthful advertising and consumer protection. Misrepresentation or selling unlicensed tours can lead to heavy fines or license suspension.
Refer to the official Law on Tourism for detailed compliance standards
VI. Comprehensive Support from LTS LAW
At LTS LAW FIRM, we specialize in helping foreign investors bridge the gap between their business goals and Vietnam’s complex legal landscape. Our bilingual team provides end-to-end support for:
- Preparing joint venture agreements that protect your interests.
- Obtaining the IRC and ERC efficiently.
- Drafting professional contracts with licensed tour operators.
- Ensuring all marketing and advertising materials are fully compliant.
Don’t let legal restrictions block your entry into the market. Contact LTS LAW today for a free consultation.
Contact LTS LAW FIRM
Tell: (+84) 902 798 066 / +84 965 000 524
Email: contact@lts.com.vn
Address: Floor 6, 520 Cach Mang Thang Tam, Nhieu Loc Ward, Ho Chi Minh City, Vietnam
Website: https://lts.com.vn/
