HANOI DEPARTMENT OF JUSTICE
TLK LAW FIRM

CAN FDI COMPANIES PROVIDE INTERNATIONAL TRAVEL SERVICES?

QUESTION

Dear TLK Law Firm, I currently have a question and hope to hear from you as follows: My company is a foreign-invested company. Currently, my company wants to provide international travel services. So let me ask, can FDI companies provide international travel services? Looking forward to your company's answer. Thank you!

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Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:

LEGAL BASIS

1. Tourism Law No. 09/2017/QH14 passed by the National Assembly on January 1, 2018;

2. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;

3. Decree No. 168/2017/ND-CP issued by the Government on December 31, 2017 detailing a number of articles of the Law on Tourism;

4. Circular No. 13/2019/TT-BVHTTDL issued by the Ministry of Culture, Sports and Tourism on December 15, 2017 detailing a number of articles of the Law on Tourism;

5. Other legal documents providing relevant guidance.

CONSULTATION CONTENT

Currently, providing international travel services is an attractive and profitable industry. However, this is a conditional business for both domestic and foreign investors. Therefore, not all businesses are qualified to operate international travel services. So can FDI companies provide international travel services? This is the question that most customers send to TLK Law Firm.

Therefore, through this article, we - TLK Law Firm will answer your questions about whether FDI companies can provide international travel services?

 can-fdi-companies-provide-international-travel-services

Photo 1. Can FDI companies provide international travel services?_Hotline: 0972118764

I. SOME IMPORTANT LEGAL ISSUES RELATED TO PROVIDING INTERNATIONAL TRAVEL SERVICES OF FDI COMPANIES 

1. What is an FDI company?

FDI is the acronym for Foreign Direct Investment, which means direct investment from abroad. Currently, this activity is commonly used in international economic activities, but Vietnam still does not have any specific regulations for this type of activity.

Pursuant to the Investment Law 2020, an economic organization with foreign investment capital is an economic organization with foreign investors as members or shareholders. Therefore, based on the provisions of the Investment Law 2020, FDI enterprises are considered economic organizations with foreign investment capital.

2. Can FDI companies provide international travel services?

According to the Investment Law 2020, FDI enterprises are not allowed to conduct business in the following industries:

(1) Trading in narcotics;

(2) Trading in chemicals and minerals;

(3) Trading in specimens of wild plants and animals originating from natural sources; Specimens of endangered, precious, and rare forest plants, animals, and aquatic species of Group I originating from natural exploitation;

(3) Prostitution business;

(4) Buying and selling humans, tissues, corpses, body parts, and human fetuses;

(5) Business activities related to human cloning;

(6) Trading in firecrackers;

(7) Debt collection service business.

Thus, international travel service business is not on the list of industries that FDI companies are not allowed to do business in.

In addition, the 2017 Law on Tourism regulates the scope of travel service business as follows:

(1) Domestic travel service business to serve domestic tourists;

(2) International travel service business serving international tourists coming to Vietnam and tourists going abroad;

(3) Enterprises providing international travel services are allowed to conduct international travel services and domestic travel services, except for the cases specified in section (4);

(4) Foreign-invested enterprises are only allowed to conduct international travel services to serve international tourists coming to Vietnam, except in the case of international treaties to which the Socialist Republic of Vietnam is a member have different regulations.

Thus, FDI companies are allowed to conduct international travel services to serve international tourists coming to Vietnam (unless an international treaty to which Vietnam is a member has other provisions).

3. Conditions for international travel service business?

According to the 2017 Tourism Law, conditions for international travel service business include:

First: Is an enterprise established according to the provisions of law on enterprises.

Second: Deposit money for international travel services business at the bank. As follows:

(1) Travel service business for international tourists to Vietnam: 250,000,000 VND (Two hundred and fifty million VND);

(2) Travel service business for tourists going abroad: 500,000,000 VND (Five hundred million VND);

(3) Travel service business for international tourists coming to Vietnam and tourists going abroad: 500,000,000 VND (Five hundred million VND);

(4) The person in charge of the travel service business must have graduated from a major in travel with a college degree or higher. In case of graduating from college or higher with another major, you must have a certificate of international tourism operations.

Note: The travel majors mentioned above include: travel and tourism service management, travel management, tour operations, tourism marketing, tourism, travel tourism, tourism management and business, MICE tourism management, travel agency, tour guide and other industries, professions and specialties that represent one of the phrases "travel", "travel", "guide". tour guide" in accordance with the law.

Third: The person in charge of travel service business must have graduated from intermediate school or higher with a major in travel; In case of graduating from intermediate school or higher in another major, a certificate of domestic tourism operations must be obtained.

Thus, businesses that meet the above conditions will be granted a license to conduct international travel services.

=> See more: What are the sanctions for doing international travel services without a license?

 can-fdi-companies-provide-international-travel-services

Photo 2. Can FDI companies provide international travel services?_Hotline: 0972118764

II. SUMMARY OF ANSWER SECTION: CAN FDI COMPANIES PROVIDE INTERNATIONAL TRAVEL SERVICES?

Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:

FDI companies are allowed to provide international travel services to serve international tourists coming to Vietnam.

III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?

An organization providing quality and reputable legal services should have the following criteria:

First: Must be an official legal organization with a legal operating license;

Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;

Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;

Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;

Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;

Sixth: Reasonable and competitive service prices;

Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;

Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...

Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time while the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.

A suggestion for you: Although our TLK Law Firm does not dare to claim to be the best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.

=> See more: When is it necessary to apply for an international travel service business license? How long will it take?

IV. SOME QUESTIONS RELATED TO PROVIDING INTERNATIONAL TRAVEL SERVICES OF FDI COMPANIES

Question 1: If an FDI company operates a travel service business without a travel service business license, how will it be punished?

Reply:

According to Decree No. 45/2019/ND-CP, businesses will be fined from 90,000,000 VND to 100,000,000 VND for the act of “Travel service business activities without a travel service business license”. In addition, the business will also have its right to use the travel service business license revoked from 18 months to 24 months for the above acts according to the provisions of law.

Question 2: In what cases is an FDI company granted a travel service business license?

Reply:

Pursuant to the 2017 Tourism Law, FDI companies request to renew their travel service business license in the following cases:

(1) Change the Business Registration Certificate or Investment Registration Certificate;

(2) Changing the scope of international travel service business.

Therefore, if the enterprise falls into the above cases, it is recommended to renew its travel service business license.

Question 3: How long does it take to reissue a travel service business license?

Reply:

Pursuant to the 2017 Law on Tourism, businesses request to re-issue their travel service business license in case the travel service business license is lost or damaged. Within 05 working days from the date of receiving the enterprise's application, the state agency with licensing authority is responsible for re-issuing the travel service business license to the enterprise; In case of refusal, it must be notified in writing and clearly state the reason.

=> See more: Can the international travel service business license be reissued?

Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).

Thank you very much!

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