Can Foreigners Establish a Tourism Company in Vietnam?

With its many beautiful scenic spots, Vietnam is an attractive destination for both domestic and international tourists. The revenue from the tourism industry has continuously grown at a high rate, significantly contributing to the country's GDP growth. As a result, many foreign investors are interested in and wish to establish tourism companies (travel companies) in Vietnam. To learn more about this service industry for foreigners, let’s refer to this article.

Can Foreign Investors Establish a Tourism Company in Vietnam?

A tourism company provides services related to tourism, including one or multiple services such as tourist transportation, accommodation, dining, sightseeing, tour guiding, entertainment, and more. 
Tourism service business is one of the conditional business lines. A tourism service business must be a legal entity.
According to Article 38 of the Law on Tourism 2017, foreign investors are allowed to contribute capital with partners in Vietnam to establish a tourism service business in accordance with Vietnamese law and international treaties to which Vietnam is a member.
➨ Therefore, foreigners cannot independently establish a tourism service business but must contribute capital with Vietnamese individuals or organizations to form a tourism service business.

Scope of Tourism Services for Foreign Investors

According to Appendix I issued with Decree No. 31/2021/ND-CP, tourism services are among the conditional market access sectors for foreign investors in Vietnam.
Accordingly, foreign investors are only allowed to engage in international tourism services and are not permitted to engage in domestic tourism. Specifically:

• They can only organize domestic tours for foreigners coming to Vietnam.
• They are not allowed to take Vietnamese tourists abroad.

Conditions for Foreign Investors in International Tourism Services

To provide international tourism services for international tourists visiting Vietnam, foreign investors need to meet the following conditions:

• Contribute capital with a Vietnamese partner to establish a company and register for international tourism services.
• Deposit a guarantee at a bank with a deposit amount of 250,000,000 VND (effective from January 1, 2024).
• Obtain an international travel business license.
• The person responsible for the international tourism business in the enterprise must have at least a college degree in tourism. If they have a college degree in another field, they must have a certificate in international travel business management.

Notes:

• Before applying for an international travel business license, the foreign-invested enterprise must open a bank account and make the required deposit to receive a deposit certificate.
• The bank accepting the deposit can be a commercial bank or a branch of a foreign bank in Vietnam where the enterprise has its headquarters.​​​​​​​​​​​​​​

Procedures for Establishing a Foreign-Invested Tourism Company

The process for establishing a foreign-invested company (FDI) to operate in international tourism services through capital contribution with Vietnamese individuals or organizations involves the following steps:

Step 1: Finding a Vietnamese Partner to Establish a Vietnamese Company

• The Vietnamese partner can be an individual, organization, or enterprise with legal entity status.
• If the partner is an individual, they must be at least 18 years old, have full civil capacity, and not be prohibited from managing or establishing an enterprise under Vietnamese law.

Step 2: Obtaining Tourism License
Basic Documentation Includes:

• Application for a License to Operate Travel Services 
• Certified copy of the Enterprise Registration Certificate
• Proof of deposit at bank for travel service business
• Labor contract between the travel service business enterprise and the person in charge of the travel service business.
• Certified copy of the Degrees in the field of tourism for the person in charge of the travel service business; 

Approver:
Department of Culture, Sports, and Tourism, Department of Tourism
Step 3: Having the foreigner to buy the shares from the Vietnamese partner
Step 4:Complete Post-Establishment Procedures for the Company

• Make the company seal and the seal for the director/general director.
• Create and display a signboard at the headquarters.
• Purchase a digital signature and electronic invoices.
• Register to use electronic invoices with the tax authority.
• Submit initial tax declarations and the business license tax declaration.
• Open a bank account for capital contribution.

With the above information, we hope to address your queries on whether foreigners can establish a tourism company in Vietnam and the necessary procedures to establish a foreign-invested tourism company.