New deposit for international travel service in 2024

Decree 94/2021/ND-CP stipulates an 80% reduction in deposits for travel service businesses, effective at the end of 2023. Therfore, in 2024, regulations on deposits for international travel businesses will return. according to the provisions of Decree 168/2017/ND-CP. So what are the points that travel businesses need to pay attention to in the new regulations applied in 2024? In the following article, Viet An Law will summarize the relevant legal regulations of new deposits  for international travel service in 2024.

Legal basis

• Law on Tourism 2017;
• Decree 168/2017/ND-CP guiding the Law on Tourism, as amended and supplemented by Decree 142/2018/ND-CP;
• Decree 94/2021/ND-CP amending Article 14 of Decree 168/2017/ND-CP guiding the Law on Tourism on deposit levels for travel service business.

What is international travel service?

International travel service business is the sale and organization of part or all of the travel program for international tourists coming to Vietnam and tourists going abroad.

Travel business in general and international travel in particular are becoming more and more popular, helping to attract tourists and promote the development of Vietnam’s tourism industry. This is a conditional business, so when investing in this field, you need to ensure that you comply with certain conditions prescribed by Vietnamese law, including deposit conditions when establishing. and activity.

Deposit regulations before 2024

Aiming to restore the tourism industry after the Covid pandemic, Decree 94/2021/ND-CP was issued, amending and supplementing Article 14 of Decree 168/2017/ND-CP dated December 31, 2017 of the Government. The Government regulates in detail a number of articles of the Law on Tourism on the deposit level for travel service business with content related to reducing the deposit level for international travel service business with the executive time from October 28, 2019. 2021 until December 31, 2023. Accordingly, Decree 94/2021/ND-CP stipulates an 80% reduction in deposits for travel service businesses. Specifically, according to this Decree, the deposit level is regulated as follows:

• Travel service business for inbound tourists: 50,000,000 (two hundred fifty million) VND;
• Travel service business for outbound tourists: 100,000,000 (five hundred million) VND;
• Travel service business for inbound and outbound tourists: 100,000,000 (five hundred million) VND.

New regulations on new deposit for international travel service in 2024

From January 1, 2024, enterprises depositing travel service business according to the provisions of this Decree must change the Certificate of deposit for travel service business according to the deposit level specified in Clause 1 and Clause 2 Article 14 of Decree No. 168/2017/ND-CP dated December 31, 2017 and sent to the agency competent to issue travel service business licenses within 30 days from the date of change.

Thus, businesses need to make an additional deposit and send it to the Department of Tourism. The deposit level for international travel services business in 2024 will return to the regulations applied under Decree 168/2017/ND-CP as follows:

Guide to international travel business deposits in 2024

Enterprises make deposits in Vietnamese Dong at commercial banks, cooperative banks or foreign bank branches established and operating in Vietnam and receive interest rates according to the agreement between the enterprise and the bank in accordance with the provisions of law. The deposit must be maintained throughout the time the business operates travel services.

Regulations on management and use of deposits

• In case a tourist dies, has an accident, mishap, or has his or her life harmed and needs to be brought back to his/her place of residence or for emergency treatment and the business is unable to arrange funds to resolve it promptly, enterprises sends a request for temporary release of the deposit to the travel service licensing agency. Within 48 hours from the time of receiving the enterprise’s request, the travel service licensing agency shall review and request the bank to allow the enterprise to deduct a deposit account for use or refuse.

Refund the deposit to the bank in the following cases:

• There is a written notice from the travel service 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 revocation of the travel service business license.

Therefore, to ensure international travel business operations, travel businesses that are granted a License according to the provisions of Decree 94/2021/ND-CP need to make an additional deposit and return the additional deposit certificate to the Tourism Department (no need to renew travel service license).

Some questions related to international travel service in Vietnam

Do foreigners need to meet any special conditions when doing international travel business in Vietnam?

In addition to the conditions for granting an international travel service business license before conducting business similar to Vietnamese investors, foreign investors also need to meet market access conditions as prescribed in Vietnam’s WTO Commitment Schedule and other international commitments such as CPTPP, specifically:

In the WTO commitment schedule, in the field of travel service business, Vietnam only allows foreign investors to enter into joint ventures with Vietnamese investors to do international travel service for inbound tourist in Vietnam, but has not yet aloow market access to outbound toursists. Although there is no capital restriction, foreign investors need to meet the following additional conditions:

• Tour guides in foreign-invested enterprises must be Vietnamese citizens.
• Foreign-invested service providers are only allowed to provide services to inbound tourists to Vietnam.
• Meets international travel business conditions similar to domestic businesses.

What is the conditions for granting an international travel service license?

Deposit is one of the conditions for granting an international travel service license. In addition to deposit, according to the provisions of the Law on Tourism 2017 and its guiding documents, international travel service businesses to be eligible for a License also need to meet the following conditions:

• Being an enterprise established according to the provisions of law on enterprises with tourism business lines. The industry is shown in the Enterprise Registration Certificate issued by a competent authority according to the provisions of law;
• The person in charge of the travel service business must have graduated from intermediate school or higher with a major in travel; In case of graduating from intermediate school or higher in another major, a certificate of international tourism operations must be obtained.

Consulting services for granting international travel service licenses of Viet An Law Firm

• Consulting on conditions for applying for an International Travel Service License;
• Consulting on preparing documents and information to complete documents and procedures for granting international travel service licenses;
• Drafting documents and business plans to apply for an international travel service license;
• On behalf of the enterprise, carry out procedures for applying for an international travel service license;
• Exchange and provide information to customers in the process of granting an International Travel Service License;

Above are some regulations on new deposit for international travel service in 2024. Clients need advice on establishing an international travel business, supplementing deposits according to regulations, please contact Viet An Law for the best support!