Circular No. 04-TMDL-DL/TT guiding the implementation of the tourism business management regulations issued together with Decree No. 37-HĐBT dated January 28, 1992 of the Council of Ministers.

 

CIRCULAR

OF THE MINISTRY OF TRADE AND TOURISM

GUIDELINES FOR IMPLEMENTING THE REGULATIONS ON TOURISM BUSINESS MANAGEMENT ISSUED

TOGETHER WITH DECREE 37/HĐBT DATED DECEMBER 28, 1992 OF THE STATE COUNCIL

The State Council has issued Decree No. 37/HĐBT dated January 28, 1992 on the regulations for managing tourism business operations. The Ministry of Trade and Tourism hereby provides detailed guidelines for implementing these regulations as follows:

I. OBJECTS AND SCOPE OF APPLICATION OF THESE REGULATIONS:

1- A tourism enterprise is a business entity established with the primary purpose of generating profit through tourism service provision.

2- Economic organizations of all economic sectors having legal personality and Vietnamese citizens aged eighteen years or older who are permitted to establish tourism enterprises under the regulations of the State Council shall comply with the conditions and standards stipulated in Decree No. 388/HĐBT of the State Council regarding state-owned enterprises, Decree Nos. 221/HĐBT and 222/HĐBT concerning private enterprises and joint-stock companies and limited liability companies.

Administrative agencies, public services institutions, mass organizations, people's associations, and other organizations that have established tourism enterprises pursuant to Decision No. 268/CT dated July 30, 1990 will now be reorganized according to their business capital, nature, and management style as either state-owned enterprises, private enterprises, or joint-stock companies based on Decrees No. 388/HĐBT, 221/HĐBT, and 222/HĐBT of the State Council.

3- Joint ventures and cooperative investment projects with foreign entities and foreign investments in Vietnam for tourism and hotel businesses shall be carried out in accordance with the Law on Foreign Investment in Vietnam.

4- Tourism services specified in Point 3, Article 2 of these regulations are reflected as basic professions in tourism service business operations as follows:

4.1- Tour operation services: developing, selling travel programs or organizing tours according to customer requirements or acting as agents for selling travel programs; organizing and executing tours according to sold programs.

4.2- Tour guiding services.

4.3- Tourism advertising and information services.

4.4- Accommodation and food service; in hotels, motels, tourist villages, villas, bungalows, camping sites, guesthouses, inns, lodges, restaurants, etc.

4.5- Cargo transportation services: using various means of land, river, sea, and air transport.

4.6- Other types of services: serving tourists such as retail sales, medical treatment, hosting conferences, seminars, etc.

5- Strictly prohibited are tourism service business activities harmful to national political security, economic interests, social order, and safety, such as prostitution, smuggling, disseminating obscene cultural products, filming or photographing in restricted areas, etc.

II. ISSUANCE OF LICENSES FOR ESTABLISHING TOURISM ENTERPRISES:

1- Conditions and criteria for establishing a tourism enterprise:

1.1- Clear objectives and tourism business professions through the charter of operations and business plans according to the basic professions at Point 4, Section 1 of this circular.

1.2- Regarding material and technical facilities: in accordance with the minimum requirements for material and technical facilities and service standards set forth in Decision No. 338/TMDL-DL dated April 23, 1992 of the Minister of Trade and Tourism.

1.3- Regarding capital: in compliance with the provisions of Decree Nos. 221/HDBT and 222/HDBT dated July 23, 1991 of the State Council for private enterprises, joint-stock companies, and limited liability companies. For state-owned enterprises, the minimum capital must not be lower than the statutory capital of a limited liability company in the same industry and profession according to Circular No. 34/CT dated January 28, 1992 of the State Council on the implementation of Decree No. 388/HDBT dated November 20, 1991. Specifically:

1.4- Regarding the cadre and workforce:

- Those directly managing business operations: the director or deputy director or the person delegated by the director to manage business operations must hold a valid certificate or diploma in their professional field; they should know or be studying a foreign language.

- Direct service staff must have a balanced appearance, no physical disabilities, and no infectious diseases; they must hold a valid certificate or diploma in their professional field and know a commonly used foreign language according to their assigned tasks.

2- Procedures for applying for a license to establish a tourism enterprise:

Organizations and individuals wishing to establish a tourism enterprise must submit an application package in accordance with the following regulations to the authority specified in Point 3, Part II of this circular.

2.1- Application for permission to establish a tourism enterprise (according to Form No. 1A, 1B, 1C attached to this circular).

2.2- Charter of organization and operation of the enterprise approved by the Ministry, Province, or City (if it is a state-owned enterprise) or business plan (for other enterprises).

2.3- Bank confirmation of capital in Vietnamese currency, foreign currency, and gold; notarized confirmation of fixed capital. If it is a state-owned enterprise, a certification from the financial authority regarding the source of capital and the statutory capital granted.

2.4- List of key cadres and direct service staff. Copies of certificates or diplomas in their professional fields and foreign languages of those listed.

2.5- Inventory of material and technical facilities (Appendix No. 3 attached to the circular).

2.6- Confirmation from the local district or county government regarding the main office address of the enterprise.

3- Authority receiving applications and issuing licenses for establishing tourism enterprises.

3.1- The Ministry of Trade and Tourism receives applications and issues licenses for establishing state-owned tourism enterprises under its jurisdiction.

3.2. The Provincial People's Committee shall accept applications and issue licenses for the establishment of travel businesses for private enterprises and companies under the Enterprise Law after exchanging opinions in writing with the Ministry of Trade and Tourism.

4. A travel agency referred to in Article 11 of this regulation is an economic organization or individual (referred to as a travel agency entity) used by travel businesses to perform one, several, or all tourism services and is paid commission.

4.1. Conditions for becoming a travel agency

- Must have a fixed business location or necessary technical facilities as prescribed.

- Must have a corresponding deposit capital commensurate with the scale of service operations and specifically reflected in the contract.

- Must have professional expertise in business operations or have engaged in one or several tourism service activities.

4.2. Travel businesses and travel agency entities must agree on the content and duration of the travel agency's operations, deposit capital, payment methods, commission rates, reward and penalty systems. All these terms must be reflected in the contract signed between the travel business and the travel agency entity and must comply with state laws.

4.3. Travel agencies must register their business and submit the agency contract to the District or County People's Committee where the business premises are located and fulfill tax obligations according to the law.

Travel businesses and travel agencies must jointly bear responsibility before competent state authorities regarding compliance with regulations governing tourism business management.

5. Travel businesses and travel agencies are responsible for:

5.1. Operating in accordance with the contents specified in the issued license and the signed agency contract.

5.2. Adhering to and guiding tourists to comply with state regulations on political security, social order and safety, ecological environment, natural resources, cultural heritage.

5.3. New construction, renovation, or expansion of technical facilities must be consistent with central and local tourism development planning projects.

5.4. Adhering to accounting-statistical decrees, paying taxes, and strictly fulfilling all obligations.

5.5. Ensuring the safety of tourists' lives and property through security, order maintenance, fire prevention and extinguishing measures, and insurance; bearing responsibility for managing tourists from the time they are received until the end of their tour.

5.6. Business premises such as headquarters, hotels, restaurants, transportation means... of travel businesses and travel agencies must display signs. Staff members must wear badges as stipulated in Directive No. 361/CT dated November 5, 1991, of the Chairman of the Council of Ministers.

5.7. Ensuring material and spiritual benefits for employees in accordance with the law.

III. INTERNATIONAL TOURISM BUSINESS

1. Travel businesses permitted to conduct international tourism business have the right to transact and sign contracts with foreign business organizations to:

1.1. Receive foreign tourists and overseas Vietnamese citizens to visit Vietnam.

1.2. Send Vietnamese citizens and foreign citizens residing in Vietnam to travel abroad.

2. Travel businesses established according to the provisions of Point 1, Part II of this circular, if they wish to engage in international tourism business, must meet the following additional conditions:

2.1. Have a stable international tourism market: Represented or acted as agents for international tourism businesses for at least one year; or had relations with foreign travel agencies capable of bringing tourists to Vietnam, ensuring attracting at least 2,000 tourist visits annually.

2.2. Must be travel businesses permitted to operate in key areas designated by the Ministry of Trade and Tourism during each period.

2.3. Must deposit a guarantee fund equivalent to 25,000 USD in Vietnamese currency or foreign currency at a Vietnamese bank in the form of a mandatory deposit and enjoy interest as prescribed.

2.4. Regarding the staff team:

a. The person directly managing business operations, such as the director, deputy director, or someone entrusted by the director to manage business operations, must hold a valid certificate from domestic or foreign tourism training institutions or have at least three years of experience in the tourism industry; and know a commonly used foreign language.

b. The staff team directly involved in transactions, signing contracts, and working with customers must:

- Possess specialized knowledge

- Be proficient in speaking and writing one foreign language (as assigned to the market)

- Hold a valid certificate from domestic or foreign tourism training courses.

3. Travel businesses wishing to engage in international tourism business must submit the following documents to the Ministry of Trade and Tourism:

3.1. Application for permission to conduct international tourism business (Appendix No. 4).

3.2. Contracts or memorandums proving the ability to attract customers and the expected number of visitors in the year.

4. After receiving complete and valid documents, the Ministry of Trade and Tourism will coordinate with relevant agencies to issue an international tourism business license to the applicant. For travel businesses within the scope regulated by the Private Enterprise Law and the Company Law, the decision is made by the Chairman of the Council of Ministers as prescribed by law.

The international tourism business license specifies: The scope of market operation; the method and target of business operations of the travel business. Within three years, if there are changes in the market, targets, or methods of operation, the business must reapply for permission.

5. Upon receipt of the international tourism business license, travel businesses must notify the Ministry of Home Affairs to handle procedures for receiving (sending) tourists, the Ministry of Foreign Affairs to contact the representative offices abroad, and register with the provincial or municipal tourism administrative authority for supervision and assistance during the business process.

6. Any changes in the legal status of a business leading to partial or full modifications in the content of the application for permission to operate international tourism services must be reported to the Ministry of Trade and Tourism within no later than thirty days from the date of such change.

IV. REGARDING REPORTS ON INSPECTIONS AND HANDLING OF VIOLATIONS

1. Every three months, all travel businesses, including joint ventures with foreign partners, must submit reports to the Ministry of Trade and Tourism and the People's Committee of the province or city where the business is headquartered.

2. The contents, scope, and responsibilities for inspection and handling of violations as stipulated in Article 19 of this Regulation are detailed as follows:

a. Functional agencies responsible for specialized management (finance, taxation, internal affairs, etc.) shall inspect the implementation of regulations within their jurisdiction in accordance with the law without causing undue inconvenience or hindrance to the normal business operations of enterprises.

b. The Ministry of Trade and Tourism and the People's Committees of provinces and cities shall conduct comprehensive inspections on the implementation of the management regulations for tourism operations, tourism industry standards, and hotel standards of all types of tourism enterprises under various economic sectors and levels of management within their territorial jurisdictions.

3. Organizations and individuals violating this Regulation will be subject to revocation of their tourism business licenses, administrative fines, or criminal prosecution depending on the severity of the violation and its consequences. Specifically, if an international tourism business does not achieve fifty percent of the anticipated number of international tourists in a year, it will have its international tourism business license revoked (except in special circumstances).

V. IMPLEMENTATION OF THE REGULATION

To effectively implement this Regulation and Circular, the Ministry of Trade and Tourism requests:

1. In centrally governed provinces and cities, the task of managing tourism business activities should be assigned to a specialized unit within the Department of Trade and Tourism or the Department of Foreign Economic Relations to assist the Chairman of the People's Committee in fulfilling state management functions over tourism business activities within their territorial jurisdiction.

Initially, this unit shall assist the People's Committee of the province or city in performing the following tasks:

1.1. Reviewing all tourism business establishments currently operating within the territory.

1.2. Disseminating and guiding the content of this Regulation and Circular so that all organizations and individuals understand and comply with them.

1.3. Receiving, examining applications, and recommending to the Chairman of the People's Committee for approval of business establishment permits for each entity within the Committee’s authority. Confirming and recommending to the Ministry of Trade and Tourism for approval of business establishment permits for local entities under the Ministry’s authority.

1.4. Cooperating with relevant departments at the local level to monitor and inspect business operations according to the content recorded in the permits of tourism enterprises within the territory.

1.5. Reporting every three months on the overall situation of tourism business activities in the locality to the People's Committee of the province or city and the Ministry of Trade and Tourism.

2. Procedures and processes for issuing business establishment permits for tourism enterprises or changing issued permits are as follows:

2.1. Acceptance of applications, which must be prepared according to a unified form by the Ministry of Trade and Tourism. Upon receiving a complete and valid application, the tourism management agency must issue a receipt indicating the response time. Within sixty days from the date of receiving a complete and valid application, the tourism management agency must complete all necessary procedures to respond to the applicant regarding the issuance or denial of the permit.

2.2. Examination of applications: After receiving a complete application, the local tourism management agency must review the content and legality of the application. If any invalid documents are found, the applicant must be notified to resubmit or supplement additional information. In cases of suspected forgery in the application, the agency must work with related agencies or investigative bodies to examine and conclude.

During the examination process, comparisons must be made with national conditions, standards, and legal documents, and coordination with other agencies must be conducted to make recommendations to the competent authority for decision-making.

2.3. Issuance of business establishment permits for tourism enterprises: After examination, if the conditions and standards are met and approved by the competent authority, the tourism management agency will proceed as follows:

- Recording the business content in the tourism enterprise establishment book (record book)

- Communicating with the Ministry of Trade and Tourism as stipulated in Article 7 of this Regulation. If there is no reply from the Ministry within thirty days from the date of sending the document, the provincial or municipal People's Committee should issue the permit to the applicant and notify relevant agencies to coordinate monitoring and inspection.

2.4. In cases where a business establishment permit for a tourism enterprise is denied, the issuing agency must clearly state the reasons. If the applicant believes the denial is unjustified, they may appeal to the Ministry of Trade and Tourism and other government agencies.

3. All organizations and individuals operating tourism services before the issuance of this Regulation accompanying Decree No. 37/HĐBT of the Council of Ministers must reregister according to the provisions of this Regulation and Circular. The registration period starts from May 2, 1992, and ends on June 30, 1992.

4. Fees: Based on Joint Circular No. 01/TT-LB dated February 13, 1992, issued by the State Planning Commission and the Ministry of Finance, when obtaining a business establishment permit for a tourism enterprise and an international tourism operation permit, organizations and individuals must pay fees as follows:

- Enterprises with a statutory capital below twenty billion dong pay a fee of six hundred thousand dong.

- Enterprises with a statutory capital above twenty billion dong pay a fee of one million dong (one million dong).

- International tourism operation fees are paid in foreign currency or equivalent to one hundred US dollars in Vietnamese dong.

5. The registration and issuance of business establishment permits for tourism enterprises is a complex task. It is requested that all Ministries, Departments, and Provincial and Municipal People's Committees promptly direct the implementation to ensure completion by June 30, 1992, in accordance with the directive of the Chairman of the Council of Ministers. During the implementation process, any difficulties encountered should be immediately reported to the Ministry of Trade and Tourism for timely guidance.

 

 

 

ANNEX 1B

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

Prepared by Accountant Director

APPLICATION FOR ESTABLISHMENT LICENSE

Company...

Respected Provincial People's Committee,

After considering our production capacity and business needs, as well as implementing the Law on Enterprises and the regulations on tourism management issued by the Council of Ministers, we hereby submit this application requesting permission to establish a company ... for tourism with the following characteristics:

1. Full name and age of the founder

-

-

2. Permanent address of the founder

-

-

3. Company name

4. Proposed headquarters of the company

5. Main business sector (code number)

6. Tourism-related business activities

7. Registered capital of ... million dong

8. Method of capital contribution

9. Measures to protect the ecological environment, political security, and social order and safety.

We hereby take full responsibility for the contents of this application as the founders of the enterprise. If granted permission to establish the enterprise, we will complete all necessary procedures for registration and operation according to the law.

/Signed by the founders
(Signature)

Note to Appendix 1b:

Enclosed with this application are:

1. Initial business plan (2 copies)

2. Draft charter of the company (2 copies)

3. List of key management staff (or founding members) and direct service personnel, accompanied by copies of certificates or diplomas regarding their professional qualifications and foreign languages (according to Appendix 2).

4. Inventory of technical facilities serving tourism (Appendix 3).

 

APPENDIX 1C

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

Prepared by Accountant Director

APPLICATION FOR ESTABLISHING A PRIVATE TOURISM BUSINESS

Respected Provincial People's Committee,

After considering our business capabilities and needs, as well as implementing the Law on Private Enterprises and the regulations on tourism management issued by the Council of Ministers.

My name is ... Date of birth

Permanent residence address:

Requesting permission to establish a private tourism business with the following characteristics:

1. Proposed headquarters of the business:

2. Main business sector (code number):

3. Tourism-related business activities:

4. Initial investment capital:

Includes:

- Capital in Vietnamese Dong ... million dong

- Capital in foreign currency

- Capital in gold

- Capital in physical assets ... million dong

5. Measures to protect the environment, political security, and social order and safety. I hereby take full responsibility for the contents of this application as the owner of the business. If granted permission to establish the business, it will complete all necessary procedures for registration and operation according to the law.

Business enterprise owner
* Individuals need confirmation from local authorities

Note to Appendix 1c

Enclosed with this application are:

1. Initial business plan (2 copies)

2. Certificate from the bank where the business has an account regarding the amount of Vietnamese Dong, foreign currency, and gold held in the bank account (2 copies).

3. Certificate from the notary office regarding the value of assets owned by the business owner (2 copies).

5. List of managers and direct service personnel, accompanied by copies of certificates or diplomas regarding their profession and foreign languages (Appendix 2).

6. Identity card and permanent residence book of the business.

 

ANNEX 2

INVENTORY OF STAFF LIST
(According to Point 2, Section 4 of the Circular Guidelines)

Date Month Year 199...

Accompanied by copies of certificates or diplomas regarding their profession and foreign languages of each person listed.

 

ANNEX 3

INVENTORY OF TECHNICAL FACILITIES

I. Main headquarters of the unit:

Fax:

Telephone: Telex Fax

II. Business premises (hotels, restaurants, shops, branches, etc.)

III. Classification and grade of premises: (Domestic, international, etc.)

IV. Types of passenger transport vehicles:

V. Other technical equipment:

Prepared by Accountant Director
Reporter's signature

 

ANNEX 4

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

Hanoi, day month year 1992

APPLICATION FOR INTERNATIONAL TOURISM BUSINESS

Respected Ministry of Trade and Tourism,

After considering our business capabilities and needs, as well as implementing the regulations on tourism management issued by the Council of Ministers.

We hereby submit this application requesting permission to conduct international tourism business with the following characteristics:

1. Enterprise name:

Foreign trade name

Abbreviation

2. Main headquarters located at

Telephone

Telex

Fax

3. Branches located at:

Telephone

Telex

Fax

4. Vietnamese Dong account number: At Bank

Foreign currency account number: At Bank

5. Statutory capital, including:

- Fixed capital million dong

- Fixed capital million dong

- Foreign currency capital USD

6. Enterprise establishment license number

date month year of

(Attached copy)

7. Director:

Deputy director in charge of tourism (or person delegated by the director).

Tourism professionals:

-

-

-

8. Request for permission to conduct international tourism business:

8.1. Bringing foreign tourists to visit:

a) Market:

-

-

-

b) Expected number of tourists

c) Pure tourism service revenue.

We hereby take full responsibility for the contents of this application. If granted permission to conduct business, we will strictly comply with the state regulations on international tourism business.

Head of the unit
(Signature and seal)

Confirm that the above content is true. We request the Ministry of Trade and Tourism to consider issuing a permit for international tourism business (Minister, Head Department, or Chairman of the Provincial People's Committee).

Enclosed with this application:

1. International tourism business plan

2. Contracts or memorandums of understanding signed with foreign tourism organizations.

 

APPENDIX NUMBER 5:

KEY CONTENTS OF THE TOURISM BUSINESS PLAN

Name of the enterprise:

TELEPHONE NUMBER:

Founding body:

I. ECONOMIC AND TECHNICAL JUSTIFICATION FOR ESTABLISHING THE ENTERPRISE:

1. Objectives and necessity of establishing the enterprise.

1.1. Analysis of relevant domestic and international tourism market demand.

1.2. Objectives, tasks, and scale of the enterprise.

2. Conditions prepared for establishing the enterprise

2.1. For newly established enterprises.

- Copy of the decision approving the economic and technical justification.

- Capital conditions (statutory capital and additional raised capital).

2.2. For operating enterprises requiring re-registration.

- Formation process of the enterprise:

+ Initial and current investment capital

+ Initial and current technical facilities (headquarters, business premises, equipment, etc.)

- Recent three years' tourism business situation:

+ Profit

+ State subsidies

+ Debts: budget debt, bank debt, domestic private debt, foreign debt directly borrowed by the enterprise, and foreign debt managed by the government and transferred to the enterprise.

+ Tourism business situation

- Direction for consolidating and developing the enterprise over the next five years.

II. BUSINESS ORGANIZATION PLAN OF THE ENTERPRISE:

1. Form of organization:

- Company or Corporation

- Establishing a Board of Directors or not establishing a Board of Directors

- Organizing agents, branches, representatives both domestically and internationally

- Joint venture and cooperation relationships with other domestic and foreign tourism enterprises.

2. Business plan for 1992 and projected plans for 1993-1995.