How to Establish a Travel Agency in Vietnam: Key Steps and Insights for Asian Entrepreneurs

The travel agency sector in Vietnam is thriving as the country’s tourism and hospitality industry experiences rapid growth, driven by its strategic geographic location and rich cultural heritage. Since the post-pandemic recovery, Vietnam has seen an impressive resurgence in tourism, attracting foreign visitors eager to explore its unique landscapes and vibrant traditions. In 2024, the country welcomed over 12.7 million tourists, marking a significant 43% increase compared to the previous year, with projections aiming for 18 million visitors by year-end—a return to pre-pandemic levels.

This boom in tourism is fueled by favorable government policies and has positioned Vietnam as a prime destination for foreign investors. This offers a variety of business opportunities in resorts, hotels, restaurants, cafes, and, notably, travel agencies. In this article, we offer a comprehensive guide on how to establish a successful travel agency in Vietnam, highlighting key distinctions between travel agencies and tour operators, and offering valuable insights to tap into this growing market.

Setting Up a Travel Agency in Vietnam for Foreign Investors

For foreign investors looking to set up a travel agency in Vietnam, seeking consultancy services like InCorp Vietnam is an effective way to navigate local regulations. Foreign travel agencies have a restricted ability to provide transportation services but can offer accommodation and other travel-related services. To succeed as a top-tier travel agency, foreign businesses must consider the following steps:

1. Register the Tourism Company in Your Name
   It’s essential to partner with a local Vietnamese travel agency. Ensure your local partner is registered and licensed to provide foreign tourism services. Forming a joint venture with a trusted Vietnamese partner allows foreign businesses to operate legally and profitably within the country’s tourism sector.

2. Types of Services to Offer
   Once your business is established, you can offer a range of services to foreign tourists, including cultural and historical tours in cities like Hanoi, Ho Chi Minh City, and Da Nang. Additionally, you can provide luxury vacations, adventure tours, and water sports in Vietnam’s pristine beach and island destinations.

Tour Operator vs. Travel Agency: Understanding the Differences

It’s crucial for investors to understand the difference between a travel agency and a tour operator in Vietnam, as defined by the country’s tourism laws. The key distinction is:

• Tour Operators: These businesses have the flexibility to create itineraries, organize tours, and act as guides.
• Travel Agencies: These agencies serve as intermediaries between tour operators and tourists. Travel agencies cannot conduct tours or create itineraries but focus on booking services like accommodation, transportation, and activities.

Foreign travel agencies can operate under these rules by partnering with licensed tour operators. The primary role of the agency is to facilitate travel arrangements while enhancing the tourist experience through various services, including sightseeing, entertainment, and local activities.

How to Set Up a Travel Agency in Vietnam: Step-by-Step

Setting up a travel agency in Vietnam requires more than just forming a joint venture with a local partner. Your business must meet certain regulatory conditions:

1. Submit a Business Plan: You must provide a detailed tourism business plan outlining your proposed services, including a tourism schedule.

2. Obtain Foreign Tourism Licenses: To operate legally, foreign agencies must secure a foreign tourism license based on their business plan. This requires meeting specific capital and management conditions.

3. Fulfill Capital Requirements:

   • For inbound tourism services, the joint venture must have a minimum capital of VND 250,000,000 (approximately US$12,500).
   • For outbound tourism services, the required capital is VND 500,000,000 (approximately US$50,000).

4. Hire Certified Staff: Your agency must hire Vietnamese tour guides with certified international travel management qualifications to comply with local laws.

5. Register with Local Authorities: To legally operate as a travel agency in Vietnam, submit the necessary documents—including the Enterprise Registration Certificate (ERC), business plan, and proof of your bank deposit—for review to the Ministry of Culture, Sports, and Tourism.

Key Documentation for Starting a Travel Agency:

1. Enterprise Registration Certificate (ERC)
2. Business Plan
3. Application for International Travel Business License
4. Evidence of International Travel Business Experience
5. Bank Deposit Proof
6. Certified International Tour Guide Cards
7. Tour Schedule

Once all documentation is submitted, the Vietnam National Authority of Tourism (VNAT) will review your application and issue the license within 10 days.

Best Practices and Examples from Leading Travel Agencies in Vietnam

Learning from successful travel agencies in Vietnam can provide insights into effective operations. Some of the leading agencies include:

• Vietravel Tourism and Transportation Joint Stock Company: A leading travel agency with 27 years of experience, known for its excellent customer service and extensive tour offerings.

• Ben Thanh Tourist Travel Company: With 30 years in business, this agency is known for its commitment to customer satisfaction and managing large-scale tourism operations.

• Euro Travel Agency: Specializing in international tours, Euro Travel is a key player in the market, offering high-quality tours across Europe, Australia, and the Americas.

• Khat Vong Viet Travel Company: Focused on North Vietnam, this agency offers a wide variety of tours catering to diverse travel preferences.

• Smile Travel Company: Based in Hanoi, Smile Travel has become a well-known brand since 2015, offering trendy and updated tour packages, along with visa and event services.

How InCorp Vietnam Can Support Your Travel Agency Establishment

InCorp Vietnam offers comprehensive assistance to foreign businesses looking to establish travel agencies in Vietnam. Our services cover the entire setup process, from obtaining the necessary licenses to ensuring compliance with local regulations. We handle:

• Regulatory Navigation: Helping you understand Vietnam’s tourism laws and obtain the required tourism licenses.
• Business Incorporation: Assisting with joint venture formation, capital requirements, and legal documentation.
• Ongoing Compliance Support: Offering ongoing assistance in tax, labor compliance, and regulatory filings, ensuring that your agency remains fully operational in Vietnam’s dynamic tourism sector.

With InCorp Vietnam’s expertise, you can focus on delivering exceptional travel experiences while we manage the legal and operational aspects of your business in one of Asia’s fastest-growing tourism markets.

Conclusion

The rapid growth of Vietnam’s tourism sector presents exciting opportunities for foreign investors looking to establish a travel agency in the country. With its rich cultural heritage, diverse landscapes, and strategic location, Vietnam has become a prime destination for international travelers. The resurgence of tourism post-pandemic, supported by favorable government policies, offers a dynamic market for travel agencies to thrive.

However, understanding the regulatory landscape and differentiating between the roles of travel agencies and tour operators is essential for success. By forming joint ventures with local partners and adhering to the country’s legal and capital requirements, foreign businesses can tap into the booming tourism industry.