Table Of Contents

1. Eligibility

Vietnam's captivating landscapes, historical sites, and vibrant culture present a compelling opportunity for aspiring entrepreneurs in the international travel industry. However, before embarking on this exciting journey, it's crucial to understand the fundamental eligibility requirements for obtaining an International Travel Business License (ITBL). This article delves into the essential criteria you and your business must fulfill to navigate the licensing process successfully.

1.1. Established Enterprise: Building a Legal Foundation

The cornerstone of eligibility lies in possessing a legally established enterprise in Vietnam. This entails:

  • Business Registration: Your business must be officially registered with the relevant Vietnamese authorities, adhering to the regulations outlined in the Law on Enterprises. This process involves submitting necessary documents like the memorandum of association, articles of association, and details of shareholders and directors.
  • Compliance with Regulations: Ensuring your business adheres to all applicable Vietnamese laws and regulations is crucial. This includes regulations on taxation, labor practices, and environmental protection. Failure to comply can lead to delays or even rejection of your license application.

1.2. Industry Registration: Aligning Your Business Scope

Beyond registering your business as an entity, you must ensure it's registered with the correct industry code reflecting your intended business activities. The specific code for international travel businesses is 7912, signifying "Tour operator: Domestic and international travel business."

This registration process helps relevant authorities understand the nature of your business and ensures your operations align with the designated industry category. Including the correct code demonstrates the clarity and legitimacy of your business goals to the licensing body.

1.3. Qualified Personnel: Leading with Expertise

The expertise of the individual responsible for managing your travel services plays a vital role in the licensing process. They must possess one of the following qualifications:

  • Higher Education: A college degree or higher majoring in a travel-related field. This could encompass fields like Tourism Management, Travel Management, Hospitality Management, or International Business with a focus on tourism.
  • Professional Certification: If their degree is in another field, they must hold a professional certificate in international tourism operations. This demonstrates their acquired knowledge and skills specific to the travel industry, deemed crucial for managing international travel services effectively.

The rationale behind this requirement is to ensure that the person responsible possesses the necessary knowledge and expertise to manage the complex logistics and intricacies of international travel operations. This includes understanding tourism regulations, destination management, customer service, and risk management, all of which are critical for ensuring the smooth and safe operation of your business.

1.4. Navigating Exceptions: Addressing Alternative Qualifications

While a degree in a travel-related field is generally the preferred qualification, there are some exceptions for existing businesses established before February 1, 2018:

  • Diplomas from Vietnamese Institutions: Individuals who hold diplomas awarded by Vietnamese educational institutions before February 1, 2018, in fields demonstrating relevant knowledge like "du lịch" (tourism), "lữ hành" (travel), or "hướng dẫn du lịch" (travel guide) can qualify.
  • Diplomas from Foreign Institutions: Individuals possessing diplomas from foreign institutions in similar travel-related fields, recognized by the Vietnamese Ministry of Education and Training and the Ministry of Labor, War Invalids, and Social Affairs, can also be considered.

In cases where the diploma does not explicitly mention the required majors, the individual may need to supplement their documentation with a graduation transcript or appendix explicitly stating the relevant major, profession, or specialty.

1.5. Demonstrating Relevant Experience (Optional):

While not an official requirement, demonstrating relevant experience in the travel industry can strengthen your application and showcase your commitment and understanding of the sector. Consider providing details of previous employment in travel agencies, tour operations, or related tourism-oriented businesses.

1.6. Maintaining Qualifications:

Remember that fulfilling the initial eligibility criteria is only the first step. To maintain your ITBL and operate legally, ensure the responsible individual continues to develop their skills and knowledge. Attending relevant training courses, workshops, or conferences can demonstrate ongoing professional development and commitment to staying updated with industry trends and regulations.

 

2. Licensing Process

Obtaining an International Travel Business License (ITBL) in Vietnam opens the door to operating your international travel business within the country's captivating tourism landscape. However, securing this license involves a specific process requiring careful preparation, documentation gathering, and adherence to established procedures. This section guides you through the key steps involved in navigating the licensing process effectively.

2.1. Prepare the Licensing Documents:

The first crucial step is assembling a complete set of documents for your license application. Remember to prepare two sets: one for submission to the Vietnam National Tourism Administration (VNAT) and another for your records. The required documents include:

  • Application Form: Fill out the official application form designated for an ITBL (Form No. 04, Appendix II, issued with Circular 06/2017/TT-BVHTTDL). Ensure you provide accurate and complete information in all sections, including details about your business, the scope of your activities, and the designated person responsible for travel services within your company.
  • Business Registration Certificate: Submit a certified copy of your business registration certificate or investment registration certificate. This document verifies the legal establishment of your business and its compliance with Vietnamese business regulations.
  • Deposit Certificate: Obtain and submit a certificate of deposit for international travel services from a Vietnamese bank. The required deposit amount varies depending on the scope of your business activities:
    • Serving international tourists coming to Vietnam: 250,000,000 VND (Two hundred and fifty million VND)
    • Serving outbound tourists: 500,000,000 VND (Five hundred million VND)
    • Serving both incoming and outbound tourists: 500,000,000 VND (Five hundred million VND)

This deposit serves as a financial guarantee to ensure your business can fulfill its obligations and handle potential liabilities related to your travel services.

  • Qualification Documentation: Provide certified copies of the following:
    • The person in charge's college diploma or higher in a travel-related field (or proof of alternative qualifications as discussed in the eligibility section). This document verifies their educational background and relevant knowledge for managing international travel services.
    • The appointment decision or labor contract formally appointing the individual responsible for managing travel services within your company. This document demonstrates the individual's designated role and authority within your business structure.

2.2. Choosing Your Submission Method:

Once you have prepared all the necessary documents, you can submit your application package to the VNAT in three ways:

  • Direct Submission: Deliver the documents in person to the VNAT headquarters located in Hanoi. While this method allows for immediate confirmation of receipt, consider traveling distances and potential logistics before opting for this approach.
  • Online Submission: Submit the application electronically through the Public Service Portal of the Ministry of Culture, Sports and Tourism. This method offers convenience and allows you to track the application status online. Ensure you have scanned and uploaded clear copies of all required documents in the designated formats.
  • Submission by Mail: Send the application package via registered mail to the VNAT. While this option may be suitable for those located outside Hanoi, it's crucial to factor in potential delivery times and ensure proper tracking mechanisms are in place.

2.3. Processing and Evaluation:

Upon receiving your complete application package, the VNAT will thoroughly review all submitted documents and assess your eligibility based on the established criteria. This evaluation process typically takes 10 working days from the date of receiving a valid application.

2.4. Possible Outcomes:

Following the evaluation, you can expect one of the following outcomes:

  • License Granted: If your application meets all the requirements and there are no discrepancies, the VNAT will grant you the ITBL. You will receive a formal notification and the official license document. Additionally, the VNAT will inform the relevant local tourism authority of your licensing status.
  • Request for Additional Information: In some cases, the VNAT may require further information or clarification on specific aspects of your application. They will typically contact you with details about the additional information needed and provide a timeframe for submitting it. Ensure you respond promptly and comprehensively to avoid delays in the processing of your application.
  • License Refusal: If your application doesn't meet the eligibility criteria or contains inaccurate information, the VNAT may refuse to grant the license. You will receive a written notification outlining the reasons for the refusal, allowing you to address any shortcomings and potentially re-apply later.

 

3. Additional Considerations

While securing the necessary documents and navigating the application process are crucial steps, obtaining an International Travel Business License (ITBL) in Vietnam requires additional considerations to ensure a smooth and successful journey.

3.1. Deposit Requirements and Management:

  • Deposit Verification: Before submitting your application, ensure the deposited funds remain readily available in the designated bank account throughout the validity period of your ITBL. This is crucial, as the deposit serves as a financial guarantee to fulfill your obligations and handle potential liabilities related to your travel services.
  • Interest Rate Agreements: Discuss and agree on the interest rate applicable to your travel deposit with the chosen bank. While regulations allow banks to set their own rates, some may offer competitive rates specifically for travel businesses.

3.2. License Renewal and Maintenance:

  • Timely Renewal: Remember that your ITBL is valid for 3 years from the date of issuance. Make sure to initiate the renewal process well before the expiry date to avoid any disruptions in your business operations. The renewal process typically involves submitting a renewal application and paying the associated fee.
  • Maintaining Compliance: Throughout the duration of your license, ensure your business adheres to all relevant Vietnamese laws and regulations pertaining to the travel industry. This includes regulations concerning:
    • Consumer protection
    • Tax obligations
    • Labor practices
    • Environmental sustainability

Failure to comply with regulations can lead to penalties, including license suspension or revocation.

3.3. Seeking Professional Guidance:

The licensing process can involve complexities and nuances, particularly for businesses unfamiliar with Vietnamese regulations. Consider seeking guidance from the following resources:

  • Legal Professionals: Consulting with a lawyer specializing in business law or tourism law in Vietnam can provide valuable insights and legal counsel throughout the application and licensing process.
  • Business Consultants: Business consultants specializing in the tourism sector can offer practical advice and support navigating industry-specific regulations and best practices.

3.4. Staying Updated with Changes:

Regulations and requirements can evolve over time. As a responsible business owner, it's crucial to stay updated on any changes or amendments to the ITBL application process or relevant regulations governing the travel industry in Vietnam. Reliable sources of information include:

  • Official Government Websites: Websites of the Vietnam National Administration of Tourism (VNAT) and the Ministry of Culture, Sports and Tourism (MCST) often publish updates and announcements related to licensing procedures and industry regulations.
  • Industry Associations: Joining relevant travel and tourism industry associations in Vietnam can provide access to updates, resources, and networking opportunities, keeping you informed about evolving regulations and industry trends.

By understanding and addressing these additional considerations, you can enhance your preparedness and navigate the process of obtaining an ITBL in Vietnam with greater confidence, paving the way for a successful and rewarding venture in the country's vibrant travel industry.

 

4. Conclusion

Obtaining an International Travel Business License (ITBL) in Vietnam unlocks the potential to establish yourself within the country's flourishing tourism sector. While the process requires careful planning, thorough preparation, and adherence to specific regulations, it is achievable by following the outlined steps, gathering the necessary documentation, and demonstrating compliance with eligibility requirements.

Remember, this journey involves more than just obtaining a license. Building a strong foundation through legal establishment, acquiring relevant expertise, and keeping yourself updated with changing regulations are equally important for operating your business ethically and responsibly within the Vietnamese travel industry.

By embracing continuous learning, adhering to legal and ethical standards, and prioritizing customer satisfaction, you can not only ensure your business thrives but also contribute to the positive growth and reputation of Vietnam's travel landscape. If you need further explanation on this subject, please don't hesitate to contact us through email at lienhe@luatminhkhue.vn or phone at: +84986 386 648. Lawyer To Thi Phuong Dzung