Tour Operator License in Vietnam: How to Check a Company

A tour operator license is the paper that shows a Vietnamese travel company may legally sell tours to foreign visitors or to Vietnamese people travelling abroad. Companies that sell only trips inside Vietnam need no such license. Before you pay a deposit, ask which kind of company you are dealing with, and ask to see the proof.

Which tour operator license does a company need?

Vietnam's Law on Tourism (No. 44/2005/QH11) has been in force since January 1, 2006. It splits travel companies into two groups: domestic and international.

A domestic travel company sells tours for travellers inside Vietnam. It must be registered with the business registry and have a plan and tour programs for domestic guests. The law does not call this a license. Its owners also need at least three years of experience in travel work.

An international travel company needs a real license. It is granted by the central state tourism agency, which is the Vietnam National Administration of Tourism. A company with this license may also run domestic tours. A domestic company may not run international tours.

Sources: Law on Tourism No. 44/2005/QH11, Articles 43, 44 and 46 (English translation, LuatVietnam).

What an international license must say

The license is granted for a set scope. The law lists three:

• Tours for inbound tourists, meaning visitors coming into Vietnam.
• Tours for outbound tourists, meaning people leaving Vietnam on a trip.
• Both inbound and outbound tours.

A company must work inside its scope. If a firm holds an inbound license only, it should not be selling you an outbound package. The law also requires every travel business to run its trade as written on its registration certificate or license.

Sources: Law on Tourism No. 44/2005/QH11, Articles 40 and 47 (LuatVietnam).

What a firm must prove to get one

The law sets the bar for an international license. A firm must have:

• A plan for its travel business and tour programs for international guests.
• Operators with at least four years of experience in travel work.
• At least three tourist guides accredited to guide international tourists.
• Capital on deposit, in the amount set by the Government.

The firm applies to the provincial tourism agency where it is based. That office has 10 working days to review the file and pass it up. The central agency then has another 10 working days to grant the license or refuse it in writing. A firm that was penalized for illegal travel business in the past 12 months cannot get a license. The same is true for a firm whose license was withdrawn in that period.

Sources: Law on Tourism No. 44/2005/QH11, Articles 46, 47 and 48 (LuatVietnam).

How to check a company before you pay

Use this short checklist:

1. Ask for a copy of the international travel business license. It should show the company's legal name, the scope and the issuing agency.
2. Match the legal name on the license to the name on your contract and your receipt. A different trading name is a warning sign.
3. Check that the scope fits your trip. Inbound, outbound or both.
4. Ask the company for its license number and issue date, and check them against the paper. In early 2015 the national tourism administration's website posted notices for international travel companies and yearly counts of them, but no list you could search by name that we could find.
5. Pay by bank transfer to the company account, not to a person. Keep the receipt.

If a company will not show its license, or the paper does not match what it sells, walk away. A friendly tone is not proof of a license.

Sources: Vietnam National Administration of Tourism website, pages on international travel business statistics and notices (Internet Archive captures of February 2015).

Why older licenses are being exchanged

Some licenses you may see were issued years ago. On January 14, 2015, the Administration sent a letter (No. 49/TCDL-LH) to international travel companies about exchanging their licenses. The notice was posted on its site the next day. If a company shows an old paper, ask whether it has been exchanged, and ask for the current one.

The Administration also issued guidance on managing the deposits of international travel companies in December 2014. Ask a firm how it holds your money and what happens to a deposit if a trip is cancelled.

Sources: Vietnam National Administration of Tourism website, notice of January 15, 2015 and the December 2, 2014 listing (Internet Archive captures of February 2015).

Sources

Law on Tourism No. 44/2005/QH11, English translation: english.luatvietnam.vn. Vietnam National Administration of Tourism: vietnamtourism.gov.vn, Internet Archive captures of February 2015. This note is general information, not legal advice.