Travel agency in Vietnam is thriving as the tourism and hospitality sector rapidly expands, driven by the country’s strategic geographic advantages and rich cultural heritage. Since the COVID-19 pandemic, Vietnam has seen a notable resurgence in tourism, attracting foreign visitors eager to explore its unique landscapes and vibrant traditions. Over the past four years, travel agencies have steadily recovered from pandemic setbacks, benefiting from the rise in tourist numbers.
By September 2024, Vietnam welcomed over 12.7 million tourists, a remarkable 43% increase compared to the same period in 2023. According to the Vietnam General Statistics Office, this trend is expected to continue, with annual visitor numbers projected to reach pre-pandemic levels of 18 million by year-end—a return to the high volumes last recorded in 2019.
This resurgence is fueled by supportive government policies, which have made Vietnam a prime destination for foreign businesses. As a result, the tourism sector now offers numerous lucrative business avenues, from resorts and hotels to restaurants, cafes, and travel agencies. In this article, we provide a comprehensive guide on establishing a travel agency in Vietnam, along with key distinctions between a travel agency and a tour operator, to help you tap into this dynamic market.
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Set up a Vietnam Travel Agency by Foreigners
For foreign investors trying to understand how to set up a travel agency in Vietnam, consultancies like InCorp Vietnam are a good solution to tackle regulatory issues. Foreign travel agencies have a limited scope of offering transportation services, but they can provide accommodation services.
To be the best travel agency in Vietnam, foreign enterprises should find their way around the following restrictions:
- Ensure that the tourism company is registered in your name.
- Get a local Vietnam travel agency as a partner and make sure that the company is registered
- Ensure that your local partner travel company is from the tourism industry
- Make sure that the Vietnamese company is licensed to offer foreign tourism services.
- Your company should form a joint venture with the local company.
Once you have these sorted, your business can offer several tour plans to foreign tourists, like historical and cultural tours across Hanoi, Ho Chi Minh City, Danang etc. You can also offer water sports, luxurious vacations, and adventure tours in various pristine sea and beach areas in Vietnam, including islands.
Read Related: Why You Should Invest in Hospitality and Tourism Industry in Vietnam?
Tour Operator vs Travel Agency
Before you set up a foreign travel agency in Vietnam, you must know the types of tourism businesses in the country. In 2017, the Vietnamese government introduced a tourism law that differentiates between tour operators and travel agencies.
While tour operators have the flexibility of offering various services like guiding tours and creating itineraries for tourists, travel agencies are barred from creating and conducting tours. A Vietnam travel agency can only act as an intermediary between local tour operators and consumers. This is true for both foreign and domestic travel agencies. However, tour operators have to go through demanding regulations for tourist benefits.
If you are wondering how to set up a travel agency in Vietnam, then be assured that you only need agency agreements with tour operators. Just ensure that your travel agency follows the basic standards of arranging the accommodation, activities, and transportation of the tourists and has knowledge of the local weather conditions and customs. Remember that most foreign tourists use a travel agency to enhance their local tourism experience with ample sightseeing, entertainment, and enjoyable activities while saving money.
How to Set Up a Travel Agency in Vietnam?
Merely fulfilling the criteria of setting up a joint venture with a local partner is not enough; you have to register with a tour operator. The Trade Register approves the joint venture only when the following conditions are met:
- Ensure that you have submitted a tourism schedule with the business plan
- Get a foreign tourism license based on your tourism services business plan
- Abide by the share capital requirements set by the local authorities
- Ensure that all management and employment conditions are in place to start operations.
Additionally, foreign tour agencies must remember that they are only allowed to bring visitors to the country. Another aspect of knowing how to set up a travel agency in Vietnam is ensuring that all guides employed by the company are Vietnamese. If your travel agency serves other countries, then you can carry out inbound tourism and operations.
There are no restrictions on capital requirements in the joint venture. Foreign companies can set up a 100% FDI-owned Vietnam travel agency. Once established as tour operators, you can provide tourism services if the following conditions are met:
- The venture is set up as per the Law on Enterprises
- The business had paid the deposit to the bank. This will act as a backup for compensating customers if disputes arise.
- The person in charge of conducting the tours has a diploma or higher degree in tourism. In the case of degrees in other subjects, the individual needs to be certified for international travel management by relevant authorities.
The deposit for tour operators is VND 250 million or US$10,500, which was 80% subsidized in 2022–2023 as post-COVID support. This reduced the deposit to VND 50 million. However, the subsidy was only valid until the end of December 2023. It is back to the normal rate from 2024.
Read More: Vietnam Hospitality Industry: How to Start a Hotel with Effective Cost Control?
A Vietnam travel agency needs to submit the following documents to start operations:
- Enterprise Registration Certificate (ERC)
- Business plan
- International Travel Business License application form
- International travel business experience evidence
- Proof of bank deposit
- Certified international tour guide cards
- Proof of domicile office
- Tour Schedule
To obtain a business license, foreign travel agencies should submit all the documents to the local office of the Ministry of Culture, Sports, and Tourism where the company is located. Agencies need to submit appraisal records and a written request within 10 days of applying for the license. The Viet Nam National Authority of Tourism (VNAT) takes 10 days to review the application and issue an international travel business license. The authorities will provide the reasons for rejections in case the license is not approved.
Set up a Travel Agency in Vietnam: Other Conditions
There are certain other conditions foreign companies must consider while learning how to set up a travel agency in Vietnam. This includes:
- The joint venture tour operator should have at least VND 250,000,000 (US$12,500) in share capital to offer inbound tourism services
- In the case of outbound tourism services, the joint venture must have at least VND 500,000,000 (US$50,000) in share capital.
- The manager hired to coordinate the tours should have at least 4 years of experience in the tourism industry.
- The travel agency must hire at least 3 certified travel agents with foreign tour guide licenses to conduct tours.
Some of the Best Travel Agencies in Vietnam
Foreign companies can learn about how to set up a travel agency in Vietnam by studying the following businesses: These are some of the best travel agencies in Vietnam that have made their mark by consistently offering a range of services.
- Vietravel Tourism and Transportation Joint Stock Company
This Vietnam travel agency has been serving tourists in the country for 27 years with its impeccable customer experience, professionalism, and the value of trips offered to consumers. The Ho Chi Minh City-based company employs experienced and well-trained tour guides who uplift the experience of the travelers.
- Ben Thanh Tourist Travel Company
This travel agency has been providing the best services to foreign tourists at an affordable price for 30 years. They have built a reputation in the domestic and international markets by putting customer experience first. They are widely known for efficiently handling a large-scale tourism business system and having substantial investment capital.
- European travel company Euro travel agency
This 2018-established company has become a leading player in the Vietnamese market as it offers high-quality tours across the world, including Europe, Australia, the US, Canada, and New Zealand.
- Khat Vong Viet Travel Company
This 2011-established travel agency with a “To New Horizons” slogan is the go-to tourism company for tourists traveling to North Vietnam. They have diversified their tours with a range of services which attract different types of travelers. Their unique and attractive tours have something for everyone rather than having everything for some.
- Smile Travel Company
The Hanoi-based Smile Travel company has become a force to reckon with since it started operating in 2015. They have established a brand name in the tourism sector by offering trendy updated tours and creating products with core values. Along with inbound and outbound tourism services, they also offer visa and event services. Ha Long Bay Cruise Services, hotels, restaurants, cars, motorbikes and tourist vehicle rental services offered by the company also make them a formidable brand.
Read Related: Guide to Vietnam Visas: Application Procedures and Cost for Foreigners
How can InCorp Vietnam Help with Travel Agency Establishments in Vietnam?
InCorp Vietnam offers comprehensive support for establishing a travel agency, guiding you through each phase of the setup process with tailored expertise. Our services begin with helping you navigate the regulatory landscape, from securing necessary licenses to registering your agency according to Vietnam’s industry-specific requirements. But our assistance doesn’t stop at incorporation.
Once your agency is operational, InCorp Vietnam provides ongoing support to ensure regulatory compliance. Our team handles regular filings, compliance checks, and keeps you updated on evolving regulations specific to the tourism industry. This includes obtaining tourism licenses, preparing necessary documentation, and managing tax and labor compliance, so that you’re always operating within legal parameters.
With our experienced consultants, you’ll have peace of mind knowing that your agency is set up for long-term success in one of Asia’s fastest-growing tourism markets. Let us simplify the complexities so you can focus on delivering exceptional travel experiences.
We made the most detailed step-by-step guide for Company Incorporation in Vietnam for investors, now available as an interactive checklist:
About Us
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