Can travel service providers do travel services without a deposit in Vietnam?

Can travel service providers do travel services without a deposit in Vietnam?

Pursuant to Article 31 of the 2017 Tourism Law, conditions for provision of travel services are as follows:

1. A domestic travel service provider must satisfy the following conditions:

a) The enterprise is established as prescribed by the law on enterprises;

b) The enterprise must make has paid a deposit to a bank;

c) The person in charge of provision of travel services holds an associate degree or higher in travel; in case he/she holds an associate degree or higher in another major, a certificate of training in domestic tour operation is required

2. An international travel service provider must satisfy the following conditions:

a) The enterprise is established as prescribed by the law on enterprises;

b) The enterprise has paid a deposit to a bank;

c) The person in charge of provision of travel services holds a college degree or higher in travel; in case he/she holds a college degree or higher in another major, a certificate of training in international tour operation is required.

3. The enterprise satisfying the conditions set forth in Clause 1 and Clause 2 of this Article shall be issued with a license for provision of domestic tours and a license for provision of international tours respectively.

The fees for assessment and licensing of provision of international tours and domestic tours shall be governed by the law on fees and charges.

4. The Government shall elaborate the payment of deposit as prescribed in Point b, Clause 1 and Point b, Clause 2 of this Article.

5. The Minister of Culture, Sports and Tourism shall elaborate the person in charge of provision of travel services; training program, organization of examinations and issuance of certificates of training in international and domestic tour operation.

In Article 14 of Decree 168/2017/ND-CP as amended by Article 1 of Decree 94/2021/ND-CP stipulating deposit and deposit methods as follows:

1. The domestic travel service deposit is VND 100,000,000 (one hundred million dong).

2. International travel service deposit:

a) Provision of travel services for inbound tourists: VND 250,000,000 (two hundred and fifty million dong);

b) Provision of travel services for outbound tourists: VND 500,000,000 (five hundred million dong);

c) Provision of travel services for inbound and outbound tourists: VND 500,000,000 (five hundred million dong).

3. The travel service provider shall pay the deposit in Vietnamese dong to a commercial bank, cooperative bank or branch of a foreign bank established and operating in Vietnam and be entitled to enjoy interest under the agreement between the provider and the depository bank in accordance with regulations of law. The deposit must be maintained during the period over which a provider provides travel services.

Thus, there is no case that an enterprise that fails to make a deposit is allowed to conduct business in travel services. Depositing at a bank is one of the conditions for doing travel services in accordance with the law in Vietnam. Currently, the deposit level for travel service is regulated as above.

When does the depository bank freeze the travel service providers' deposit in Vietnam? 

According to Article 15 of Decree 168/2017/ND-CP stipulating payment of deposit and issuance of certificate of deposit as follows:

1. When a travel service provider wishes to pay a deposit to its account at a bank, the depository bank and the travel service provider shall enter into a deposit agreement. Under the deposit agreement, the depository bank shall freeze the provider’s deposit at the bank.

2. A deposit agreement shall consist of names, addresses, representatives of the provider and the depositary bank; reasons for deposit payment; deposit; deposit interest rate; payment of the deposit interest; use of the deposit; withdrawal of the deposit; refund of the deposit; responsibilities of relevant parties and other agreements in accordance with regulations of law and regulations of this Decree.

3. After freezing the deposit, the depository bank shall issue a certificate of deposit for the travel service provider using the Form 01 in the Appendix hereof.

According to this Article, after the depository bank and the provider enter into the deposit contract, the depository bank shall freeze the provider’s deposit at the bank in Vietnam.

Best Regards!