Deposit for international travel business in Vietnam

In the context of globalization and the strong development of the tourism industry, international travel business activities are becoming vibrant and diverse. An international travel deposit is when an enterprise operating in the field of international tourism business deposits an amount of money following the law. Deposit is considered a form of financial security, aiming to compensate customers in case the travel business encounters difficulties or violates the contract. Through the article below, Viet An Law will clarify for you the deposit level for international travel business in Vietnam according to the current Vietnam Tourism Law.

Conditions for international travel services business

Conditions for international travel service business are specified in Clause 2, Article 31 of Law on Tourism 2017 as follows:

• Being an enterprise established following the provisions of the law on enterprises;
• Having deposits for international travel service business at a bank;
• The person in charge of the travel service business must have graduated from college or higher with a major in travel; In case of graduation from college or higher in another major, they must have a professional certificate in international tourism operations.

Therefore, travel businesses must deposit to be able to conduct actual business. Enterprises must complete deposit procedures before applying for a travel business license.

Notes for foreign-invested travel businesses

Pursuant to Clause 4, Article 30 of Law on Tourism 2017, foreign-invested enterprises are only allowed to conduct international travel services to serve international tourists coming to Vietnam, except in cases where international treaties to which the Socialist Republic of Vietnam is a member have other provisions.

Deposit level for international travel business in Vietnam

Pursuant to Clause 2, Article 14 of Decree 168/2017/ND-CP, travel service enterprises must make a deposit in VND with the deposit level for international travel service business in 2024 as follows :

• For international tourists to Vietnam (Inbound): 250,000,000 VND ;
• For outbound tourists: 500,000,000 VND;
• For international tourists to Vietnam and tourists going abroad (Inbound and Outbound): 500,000,000 VND.

Thus, the service of bringing foreign guests into Vietnam has a deposit level that is less than half that of bringing guests from Vietnam abroad. The nature of this difference comes from the need to use deposit money in case of emergency risks occurring to tourists. Meanwhile, when sending guests abroad, this cost will often be many times higher than handling domestically.

After the period of implementing an 80% reduction in travel service deposits to support businesses facing difficulties due to the impact of COVID-19 according to Decree 94/2021/ND-CP, from January 1, 2024, the deposit level for travel service businesses shall comply with the provisions of Article 14 of Decree 168/2017/ND-CP.

Is a deposit considered charter capital?

The deposit of a travel business is different from the charter capital. The charter capital of a travel enterprise is registered with the Business Registration Office – Department of Planning and Investment and contributed within 90 days from the date of issuance of the Enterprise Registration Certificate.

Meanwhile, the deposit is paid into the enterprise’s deposit account at the Bank to serve the issuance of a travel business license after the enterprise has obtained an Enterprise Registration Certificate.

Travel business deposit term

Pursuant to Clause 3, Article 14 of Decree 168/2017/ND-CP, as amended by Article 1 of Decree 94/2021/ND-CP regulating deposit levels and deposit methods, enterprises make deposits in VND at commercial banks, cooperative banks, or foreign bank branches established and operating in Vietnam and enjoy interest rates according to the agreement between the enterprise and the deposit receiving bank in accordance with the provisions of law. The deposit must be maintained throughout the time the business operates travel services.

Accordingly, the deposit is maintained for a period equivalent to the operating term of that travel service enterprise.

Deposit procedures at banks for international travel businesses in Vietnam

• Pursuant to Article 15 of Decree 168/2017/ND-CP, enterprises that need to deposit will send a deposit request to the bank and the two parties will enter into a deposit contract. Based on the signed contract, the bank fund receives money and blocks the deposit amount the business has deposited at the bank.
• After blocking the deposit amount, the deposit-receiving bank issues a Certificate of deposit for the travel service business to the enterprise according to regulations.

The deposit procedure will include the following steps:

Which bank to deposit money for travel business?

Businesses can make deposits for international travel services at commercial banks, cooperative banks, or foreign bank branches established and operating in Vietnam.

Some reputable travel deposit banks in Vietnam:

• Vietcombank
• Techcombank
• BIDV
• MB
• Sacombank
• Viettinbank
• LPBank
• SHB
• MSB

Content of Deposit Contract

The deposit contract needs to have all the basic contents including:

• Name, address, representative of the enterprise;
• Name, address, representative of the bank;
• Reason for paying a deposit;
• Deposit amount;
• Margin deposit interest rate;
• Pay interest on deposit;
• Use of margin;
• Withdrawal of deposit;
• Refund of deposit;
• Responsibilities of related parties and other agreements in accordance with the provisions of law and not contrary to the provisions of this Decree.

Cases of using deposit money for international travel business

According to Article 16 of Decree 168/2017/ND-CP regulating the use of deposits, travel service businesses are allowed to use deposits in cases where tourists die, have accidents, risk of life being harmed, and require a return to residence or emergency treatment that the business cannot allocate funds to resolve promptly.

In this case, the travel service enterprise will have to send a request for temporary release of the deposit to the travel service business license granting agency for consideration of deducting the deposit account for the enterprise to use or refusing.

In addition, difficult economic is not considered as a condition to withdraw deposits according to the law.

Deposit withdrawal procedure

Note: Within 30 days from the date money is withdrawn from the deposit account, the travel service enterprise is responsible for supplementing the used deposit amount to ensure the deposit level as prescribed in Article 14 of Decree 168/ND-CP. In case the enterprise does not comply, the bank will send a written notice to the licensing agency for remedial measures by the provisions of law.

The enterprise requests a refund of the deposit

Enterprises send a written request for a deposit refund to the bank in the following cases:

• There is a written notice from the travel service business licensing agency that the enterprise is not granted a travel service business license or changes the deposit receiving bank;
• There is a document from the travel service business licensing agency regarding the refund of the deposit after the revocation of the travel service business license.

Thus, the deposit has a term that lasts with the travel service business license. If the license no longer exists, the new business is required to return the deposit at the Bank.

Above is Viet An Law’s advice on deposit level for international travel business in Vietnam. For information in travel business in Vietnam such as update license fee, apply or renew license, Please contact Viet An Law for more specific and detailed advice. Best regards!