However, the mass media has lately reported many cases of unlicensed foreign tourism service operators or foreigners practicing as tour guide without a licence.

To address the problem while gradually liberalising foreign participation in the tourism sector, the Prime Minister issued Decree No 92/2007/ND-CP on June 1, 2007, detailing implementation of the Law on Tourism, passed in 2005. Decree No 92 replaces previous regulations on tourism, including Decree No 45/2000/ND-CP of September 6, 2000, governing branches and representative offices of foreign tourist enterprises.

Pursuant to Decree No 45, a foreign tourist enterprise was entitled to establish one or more representative offices but only one branch in Vietnam. The new Decree No 92, in comparison, does not impose any restriction on the number of representative offices or branches of foreign tourist enterprises in Vietnam.

Decree No 92 leaves unchanged requirements for a foreign tourist enterprise wishing to open a branch or representative office. The enterprise must be recognised under the laws of its home country and have operated in the field of tourism at least five years prior to opening a Vietnam branch. The new decree adds that it should have operating experience of one year or more prior to opening a representative office.

The new provisions on the paperwork required to establish a branch or representative office are more detailed and specific. An application must be accompanied by copies of the business registration certificate and company charter legalised by the competent authorities in their home country, as well as audited financial statements for the previous year.

The licence for a branch or representative office will be issued with a validity of five years, renewable for successive five-year periods. Amendments to the licence, such as a change of address or change of an authorised representative, would require resubmission of the entire application dossier.

Where Decree No 45 forbid foreign tourist enterprises in Vietnam from offering any tourism services not specifically mentioned in a list attached to the decree, Decree No 92 permits foreign tourist enterprises to provide all tourism services including tourist accommodation and transportation, development of resorts and tourist destinations, and any other tourism services except travel agency businesses.

Decree No 92 also eliminates Decree No 45’s unreasonable restriction on the power of an authorised representative of a foreign tourism enterprise to sign contracts with Vietnamese merchants and tourism enterprises.

Source: Viet Nam News