Saturday, December 13, 2014

The establishment of travel representative office in Vietnam

At the present, the tourism activities in general and the operation activities of the foreign travel company’s representative office (RO) are regulated by the Law on Tourism No. 44/2005/QH11 dated 14 June 2005 and its’ implementing regulations. Those legal documents are the main basis for the tourism industry in Vietnam.
Even the Decree No. 72/2006/ND-CP regulates the operation activities in Vietnam of the branch, representative office of foreign businesses, the law on tourism is the specialized legal document and will be applied first when there is the inconsistence between this Decree and the laws on tourism. The regulations on travel-related RO is a separate regimes applied for the foreign businesses in the tourism industry.
Basically, the parent company must be lawfully established and currently in operation of tourism business for at least 01 year and the application dossier must include the form, the notarized copy of enterprise registration certificate, operation charter or a paper of equivalent legal validity and the audited financial statement or paper of equivalent legal validity on the operation of the foreign tourism enterprise in the fiscal year prior.
There is no requirement on the RO Head relating to the working experience or special qualification.
In case that a foreign company wants to establish an RO in Vietnam to oversee quality control of Vietnamese travel companies handling foreign tourists, this activity can be considered as: Monitor and speed up the implementation of signed contract of foreign company who it represents with the Vietnamese partners or relating to Vietnam market.
This activity is regulated under the laws on tourism, in details: Circular No. 3206/VBHN-BVHTTDL of the Ministry of Culture, Sport and Tourism dated 03 September 2013 Guiding the implementation of Decree No.92/2007/ND-CP of the Government dated 01 June 2007 regarding tour operation, Vietnam based branch and operation office of foreign tour enterprise, tour guiding and tourism promotion. The No. 3206/VBHN-BVHTTDL is consolidated from the Circular No. 89/2008/TT-BVHTTDL dated 30 December 2008 and Circular No. 07/2011/TT-BVHTTDL dated 07 June 2011 of the Ministry of Culture, Sport and Tourism.