Can travel businesses temporarily withdraw deposits for domestic and international travel services?

What is the current deposit level of travel businesses?

According to Clause 1 and Clause 2, Article 14 of Decree 168/2017/ND-CP and Article 1 of the Decree 94/2021/ND-CP, the deposit level of travel businesses is regulated as follows:

“Article 14. Deposit level and deposit method

1. Deposit level for domestic travel service business: 20,000,000 (twenty million) VND.

2. Business deposit level International travel service business:

a) Travel service business for international tourists to Vietnam: 50,000,000 (fifty million) VND;

b) Travel service business for tourists going abroad: 100,000,000 (one hundred million) VND;

c) Travel service business for international tourists to Vietnam and tourists going abroad: 100,000,000 (one hundred million) VND”

The Government’s goal of supporting businesses in the context of Covid-19?

According to Section II of Resolution 105/NQ-CP of the year 2021, the Government sets goals to solve “difficult” problems for businesses, specifically as follows:

– Focus on restoring and developing production and business activities of enterprises, cooperatives, and business households associated with ensuring safety and prevention of COVID-19 epidemic.

– Support and promptly remove difficulties, obstacles, and bottlenecks that hinder production and business activities, minimizing the number of enterprises, cooperatives, and business households that temporarily suspend operations, dissolve, and go bankrupt due to the impact of the COVID-19 epidemic.

– By the end of 2021, strive to achieve the following specific goals and targets:

+ Accumulated at least 01 million customers who are businesses, cooperatives, and business households enjoy credit policies to support epidemic response.

+ The vast majority of businesses, cooperatives, and business households that temporarily suspended business have returned to operation.

+ Fully and promptly implement tax payment extension policies; exemption or reduction of taxes, fees, and land rent; support for reducing electricity, water, telecommunications fees, policies to support employees, employers, labor training,… for businesses, cooperatives, and business households facing difficulties due to the impact of the COVID-19 epidemic.

Can travel businesses temporarily withdraw deposits for domestic and international travel services?

Based on the above objectives and the practical situation stated in the above Resolution, the Government decides on 04 groups of tasks and solutions, of which for travel businesses:

The Ministry of Culture, Sports and Tourism presides and coordinates with the Ministry of Justice and relevant ministries and agencies to soon allow travel service businesses to receive 80% deposit reduction travel service business until the end of 2023, reducing the time to refund deposits for travel service business from 60 days to to 30 days.

Thus, travel businesses are not allowed to temporarily withdraw deposits but can only reduce deposits by 80% during the Covid-19 period (according to Article 1 of Decree 94/2021/ND-CP amending and supplementing Article 14 of Decree 168/2017/ND-CP above, it has already been reduced because the law implements the spirit of the Resolution).

However, according to Article 16 of Decree 168/2017/ND-CP the following:

“Article 16: Management and use of deposits

1. 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 not able to arrange funds to handle the matter promptly, the business 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.

2. Within 30 days from the date the money is withdrawn from the deposit account, the travel service business is responsible for supplementing the used deposit amount to ensure the deposit level as prescribed in Article 14 of this Decree. In case the enterprise does not comply, the bank sends a written notice to the licensing agency to take remedial measures according to the provisions of law.

3. The enterprise sends a written request for refund of the deposit to the bank in the following cases:

a) There is a written notice from the agency granting the travel service business license that the enterprise is not granted a travel service business license or changes the bank receiving the deposit;

b) There is a document from the travel service business licensing agency regarding the refund of the deposit after collection revoke the license to operate travel services.”

Accordingly, if in case a tourist dies, has an accident, mishap, or has his or her life harmed, he or she needs to be brought back to his/her place of residence or for emergency treatment and the business is not able to arrange funds to handle the matter promptly, then the deposit can be temporarily withdrawn.