Reference situation:

A company would like to do travel services. In particular, the company will organize tours for Vietnamese people to visit famous destinations in Vietnam. However, when the company researches on its domestic travel service, the company is aware that it must provide an escrow deposit with a bank to guarantee their service. The company would like to consult lawyers about the rate, the use, and the conditions for returning such deposit.

Legal grounds:

1. Law on tourism 2017;
2. Decree No.168/2017/ND-CP;
3. Circular No. 06/2017/TT-BVHTTDL;

Our legal advice:

1. Rate of escrow deposit 

Under clause 1 article 14 of Decree No. 168/2017/ND-CP, a company specialising in domestic travel must provide an escrow deposit of VND 100 million with a bank.

2. Use of escrow deposit

Under article 16 Decree 168/2017/ND-CP, the escrow deposit will be used in the following case:

• If a tourist is dead, has an accident, or has a life-threatening injury, and (in this situation) it is necessary to take him/her to his/her place of residence or he/she needs a urgent treatment but the company cannot manage its budget promptly, the company must request the licensing authority in travel business to release its escrow deposit temporarily. Within 48 hours from the time of the company’s request, the licensing authority must consider and request the escrow bank to release its deposit to handle this case, or refuse to do so. Within 30 days from the date of releasing its deposit, the company is responsible for make additional payments for its deposit to ensure the deposit of VND 100 million.

Maybe you are interested in: List of business license in Vietnam

3. Return of escrow deposit 

Under clause 3 article 16 of Decree No. 168/2017/ND-CP, the company can return its escrow deposit if it

• Paid enough for the escrow deposit but the application documents are not eligible for the issuance of the license for domestic travel business.
• Changes its escrow bank; or
• Has its business license for domestic travel revoked; or
• Has not operated in the domestic travel business and is applying for the re-issuance of the license for domestic travel business.

Please click here to explore the detailed procedures for the issuance of a business license for domestic travel.