Foreign investor could only set-up joint venture with Vietnam travel agency to set up travel services business in Vietnam because transport of passenger belongs to investment areas with conditions applied to foreign investor in Vietnam.
No one could deny that information technology has tremendously changed the way travel services business operates.
The use of booking reservation system application on smartphone and internet are widespread that make travel has never been easier. Foreign investor would be interested to explore the travel services market and set up travel services business in Vietnam.
However, 100% foreign owned company is not allowed to set up travel services business in Vietnam. As this investment area is conditional, it is advised that a law firm in Vietnam should be consulted to ensure compliance with local regulations. Or is your business model considered travel services in Vietnam that you need to understand?
Legal Procedures to Set up Travel Services Business in Vietnam
The application process and documents requirements are briefly as following:
I. Required Documents to Set up Travel Services Business in Vietnam
1.Application for the International Travel Business License (form);
2.Certificate of business registration (copy – certified)
3.Business plan for the international travel agency;
4.Tour schedule
5.Proof of at least 4 years of experience in international travel business operations
6.Certified copies of the tourist guides’ cards whereby at least 3 international tourist guides are required
7.Confirmation of bank deposit (as per regulations);
8.Proof of office premises or legally registered place of business
II. Business License Application Procedure to Set up Travel Services Business in Vietnam:
1.Submission of the required documents to the correct authority (Department of Culture, Sports and Tourism of the province/city where the business is headquartered).
2.The Department of Tourism of the province/city completes the records of appraisal and submits a written request with the agency’s records to the Ministry of Culture, Sports and Tourism in Vietnam within ten working days from the date of receipt of a valid application. When cases are not eligible for the proposed permit to the state agencies, the provincial tourism department shall cite the specific reasons for refusal.
3.The state management agency of tourism (VNAT – Ministry of Culture, Sports and Tourism) is responsible for reviewing and licensing the international travel business within ten working days from the date of both receipt of the file and written request of the state agency of tourism in the province. In case of refusal, the ministry shall state the specific reasons to the state and provincial tourism authorities
III. Where to Submit Documents to Set up Travel Services Business in Vietnam?
–Submission to the Department of Culture, Sports and Tourism.
How Vietnam Attorney Could Help Investors Set up Travel Services Business in Vietnam?
Vietnam attorneys play a crucial role in assisting investors to set up travel services business in Vietnam. Here’s an exploration of how these legal professionals can provide valuable support to investors:
1. Legal Structure and Registration
Advice on Business Structures
Vietnam attorneys can guide investors on selecting the most suitable legal structure to set up travel services business in Vietnam, considering factors such as ownership ratio, liability, taxation, and regulatory requirements.
Company Registration
Assisting with the registration process, ensuring compliance with Vietnamese laws and regulations governing business entities in the travel sector.
2. Regulatory Compliance:
Licensing Requirements
Providing clarity on the licensing requirements to set up travel services business in Vietnam, ensuring that investors obtain the necessary permits and approvals from relevant authorities.
Compliance with Tourism Laws
Ensuring adherence to specific laws and regulations governing the tourism industry, including those related to tour operations, travel agencies, and hospitality services.
3. Contractual Agreements
Drafting Contracts
Vietnam attorneys can draft and review various contracts critical to the travel services sector, such as service agreements, partnership contracts, and agreements with accommodation providers and transport services.
Negotiation Support
Assisting in negotiations with business partners, suppliers, and service providers to secure favorable terms and conditions for the travel business.
4. Intellectual Property Protection
Trademark Registration
Helping investors protect their brand through trademark registration, ensuring that the intellectual property associated with the travel services business is safeguarded.
Contractual IP Protection
Including clauses in contracts that protect intellectual property rights and prevent unauthorized use of trademarks, logos, or other proprietary information.
5. Risk Mitigation
Legal Due Diligence
Conducting legal due diligence to identify and mitigate potential risks associated with the travel services business, including regulatory compliance, contractual obligations, and liabilities.
Insurance Compliance
Advising on insurance requirements and ensuring that investors have adequate coverage to protect against potential risks such as accidents, cancellations, or other unforeseen events.
6. Dispute Resolution
Mediation and Arbitration
In the event of disputes, attorneys can provide guidance on alternative dispute resolution mechanisms such as mediation or arbitration in Vietnam, helping to resolve conflicts efficiently and cost-effectively.
Litigation Support
If litigation becomes necessary, attorneys can represent investors in legal proceedings in Vietnam, ensuring their interests are protected in the Vietnamese legal system.
7. Employment Law Compliance
Labor Contracts
Assisting in drafting employment contracts that comply with Vietnamese labor laws, ensuring that the travel services business operates in accordance with employment regulations.
Work Permit Assistance
Providing guidance on obtaining work permits for foreign employees, ensuring compliance with immigration and labor regulations.
8. Market Entry Strategies
Market Research
Assisting investors in understanding the competitive landscape, consumer preferences, and market trends in the Vietnamese travel services industry.
Entry and Expansion Planning
Providing legal advice on market entry strategies and expansion plans, considering factors such as geographic reach, target customer segments, and regulatory implications.
9. Compliance with E-commerce Laws
Online Operations
Aspects related to online bookings, payment processing, and data protection, ensuring compliance with Vietnamese e-commerce laws.
Consumer Protection
Advising on and implementing measures to comply with consumer protection laws, ensuring transparency and fairness in business practices.
10. Government Relations
Advocacy and Representation
Representing investors’ interests before government authorities, industry associations, and other relevant bodies to address regulatory issues and advocate for favorable policies.
Policy Monitoring
Keeping investors informed about changes in regulations and policies affecting the travel services sector and providing proactive advice on compliance.
Vietnam attorneys specializing in business and tourism law are integral partners for investors entering the travel services industry to set up travel services business in Vietnam. Their expertise helps navigate the legal landscape, mitigate risks, and establish a solid foundation for a successful and compliant business venture in Vietnam’s vibrant tourism sector.
About ANT Lawyers, a law firm in Vietnam
We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
How ANT Lawyers Could Help Your Business?
You could learn more about ANT Lawyers Foreign Investment Practice or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529