Ministry proposes reduction in insurance deposits for travel firms

13/07/2021, 14:25

The Ministry of Culture, Sports and Tourism wants to reduce the value of insurance deposits by 80 per cent to help travel companies that are struggling because of COVID-19.

Trang An Tourism Complex in Ninh Binh Province. In the first six months,

revenue from travel activities and tourism reached VND4.5 trillion

(US$195.6 million). Photo nhandan.vn

Since the pandemic began, the amount of international tourists rapidly declined as borders were closed to prevent the spread of the coronavirus. 

Although domestic travel continued, revenue dropped as social distancing regulations were implemented nationwide.

This caused financial heartache for many tour companies, forcing some to drastically reduce their staffing levels or even close for good.

Now plans are in place to ease their burden, by reducing the mandatory fees travel firms must pay each year. 

Under government Decree 168, a company must provide an escrow deposit of VND 500 million to operate an international travel service, or VND 100 million for domestic operations.

This amount, paid through commercial banks, acts as an insurance policy if a company is liable for third-party payments as a result of guests suffering injuries or death during a trip.  

In the first six months, revenue from travel activities and tourism reached VND 4.5 trillion (US$195.6 million), 51.8 per cent lower than the same period of last year.

The ministry has carried out a survey on difficulties faced by the tourism industry due to the pandemic. As a result, 30 per cent of travel companies have stopped operations. The remaining enterprises are operating in moderation.

With COVID-19 still present in more than two-thirds of the total localities nationwide, the strict measures on preventing the pandemic means many tourism firms must seriously reduce planned activities.

With those difficulties, the ministry is collecting comments for the draft of new decree amending and supplementing a number of articles of the Decree No 168/2017/ND-CP detailing some articles of the Law on Tourism, including the proposal on reducing the deposit rates for all kinds of travel service business.

The reduction of deposit value is not only a supportive measure to remove the difficulties companies are facing, but also to create favourable conditions for new businesses in the tourism industry.

Regarding this proposal, a representative of the Vietnam Chamber of Commerce and Industry (VCCI) said that the drafting team should consider adding regulations if an enterprise has to stop their travel service business or temporarily suspend operations.

They include regulations on withdrawing the deposit when the enterprises suspend their operation in the difficult period but not want to revoke their licenses.

This is to ensure the requirements of State management and also create favourable conditions for the enterprises.

The draft should also stipulate the order and procedures for the enterprises suspending temporarily their business. Specifically, the enterprises send a notice to the licensing agency about business suspension, and the licensing agency will issue a confirmation of the business suspension.

This is the basis for the businesses to withdraw deposits at commercial banks. The information on business suspension will be published on the website of the licensing agency and the enterprises.

When the business suspension period ends, the enterprises will have to pay the deposit according to existing regulations to resume business operation.

Those regulations on business suspension not only allow the enterprises to withdraw their deposits during the period of inactivity, but also do not have to implement the procedure of re-applying for a license when they resume operation.

Meanwhile, the State management agencies can also control the activities of the enterprises.

For businesses still operating in the travel service business, lowering the deposit will partly support businesses in financial matters, said Dau Anh Tuan, head of VCCI Legal Department.

However, the new draft only stipulates the new margin level but does not have specific regulations relating to this issue, being able to create difficulties in implementation of the new draft.

Therefore, the draft needs to supplement regulations on the order, procedures and grounds for businesses to withdraw deposits at banks, because the Decree 168/2017/ND-CP does not have regulations for this special case.

According to Tuan, the draft on amending the Decree 168 needs clear regulations to ensure convenience in the implementation for the businesses and also for State management agencies.

Source: VNS


Related articles

(0) Comments
Focus
Unbelievable Victory
BTO - The 2025 UEFA Champions League final featured a clash between France's Paris Saint-Germain (PSG) and Italy's Inter Milan. It was the first time the two sides had ever met in an official Champions League fixture. What unfolded was an enthralling match, albeit a one-sided one. PSG pulled off a *stunning* 5-0 victory over Inter Milan in what many are calling an "unbelievable" triumph.
Do not miss
  • FA Cup Miracle: Crystal Palace Stun Man City at Wembley
    18 yesterday Sports
    BTO-On the morning of May 18, 2025, the most anticipated clash of the English football weekend unfolded at Wembley: the FA Cup Final — the oldest football competition in the world — between Crystal Palace and Manchester City. Despite...
  • The Return of a Legend
    29 yesterday Sports
    BTO-More than ten years since his departure, Xabi Alonso is set to return to the Santiago Bernabéu—this time as the head coach of the Royal Club. A former standout in Real Madrid’s illustrious history, Alonso now has the opportunity...
  • Vesak 2025 Grand Celebration: Spreading the Noble Values of Buddhism
    29 yesterday Culture
    As summer returns and lotuses bloom under the full moon of the fourth lunar month, Buddhists around the world joyfully celebrate the birth of Prince Siddhartha Gautama. In Bình Thuận and across Vietnam, temples, monasteries, and lay...
  • When the Guns Went Silent: Arsenal Stumbles vs. PSG
    one month ago Sports
    BTO-Arsenal and PSG, both chasing their first-ever Champions League title, were set for a historic breakthrough this season. But Arsenal’s hopes took a major hit with a 0-1 home loss to PSG in the first leg of the semifinals, leaving...
  • "El Pulga" Alone Can’t Secure Glory
    one month ago Sports
    Lionel Messi is currently playing for Inter Miami in Major League Soccer (MLS). With his exceptional talent, "El Pulga" has played a vital role in turning the young club into a rising power. However, Messi alone cannot carry an Inter...
  • Falling at the "Gates of Heaven
    one month ago Sports
    BTO-Carlos Alcaraz displayed remarkable form and composure throughout the 2025 Barcelona Open. The Spanish star made his way to the final without dropping a single set. However, at the final hurdle, the "Mini Nadal" stumbled at the...
  • Colorful Áo Dài and Folk Dance Showcase Marks 50 Years of Liberation
    one month ago Culture
    BTO – On the morning of April 26, the Bình Thuận Provincial Women's Union organized a mass Áo Dài and folk dance performance at Nguyễn Tất Thành Square in Phan Thiết City, featuring the participation of 600 female officials, members,...
  • Farewell to the “Bavarian Giants”
    one month ago Sports
    BTO-After a courageous 2-1 victory in the first leg of the Champions League quarterfinals, Inter Milan returned home to host Bayern Munich in the second leg. Though a one-goal lead was far from secure, the Italian side left no room...
  • No Miracle at Signal Iduna Park
    one month ago Sports
    BTO-Barcelona has a reputation for collapsing under pressure, having twice squandered significant first-leg advantages in the Champions League knockout stages. That gave Dortmund hope for a dramatic comeback at Signal Iduna Park in...
  • Phan Thiết – The 50-Year Journey: From Liberation to a Dynamic, Modern Coastal City
    one month ago Business
    April 19, 1975 – April 19, 2025: A proud 50-year milestone since the liberation of Phan Thiết. Half a century may not be long in the grand flow of history, but for Phan Thiết—a land once scarred by war—it marks a powerful transformation....
  • Red Devils Hold Off Blue Tide in Manchester Derby Stalemate
    one month ago Sports
    BTO-On the night of April 6, a classic Manchester derby unfolded at Old Trafford in Matchweek 31 of the Premier League, where Manchester United and Manchester City clashed in a high-stakes encounter. Despite having little left to fight...
  • Nou Camp Nightmare: Dortmund Swept Aside by Ruthless Barca
    one month ago Sports
    BTO-Barcelona put on a dominant display in the UEFA Champions League quarterfinal first leg, thrashing Borussia Dortmund 4-0 in a one-sided encounter at the Nou Camp. The Catalan giants delighted their home crowd with a goal-fest, featuring...
  • Liverpool Bounces Back with Vital Victory Over Everton, Keeping Arsenal at Bay
    2 month ago Sports
    BTO-After consecutive failures in the FA Cup, Champions League, and League Cup, the morale of Arne Slot's squad has been declining. Facing pressure following Arsenal's victory in the early match the day before, Liverpool was compelled...
  • The Beauty of Hòn Cau Island
    2 month ago LANDSCAPES
    March signals the perfect time for a visit to Hòn Cau Island (Phước Thể, Tuy Phong) as the weather transitions and the golden sunlight bathes the island. Located about 110 km from Phan Thiết, Cù Lao Câu is a pristine, uninhabited island...
  • The Final Goal
    2 month ago Sports
    BTO-Manchester City now only has one goal left: winning the FA Cup to salvage what has been a “disastrous” season. As a result, Coach Pep Guardiola and his players have put all their energy into the world’s oldest football tournament....
  • Regaining the Top Spot
    2 month ago Sports
    Playing a day before their arch-rivals Barcelona, Real Madrid took full advantage of the opportunity to reclaim the top spot in La Liga with a comfortable 2-1 victory over Villarreal, thanks to a brace from Mbappe.
  • A Hard-Fought Victory
    2 month ago Sports
    BTO-On the evening of March 19, the Vietnam national team played their first international match since winning the AFF Cup 2024, hosting Cambodia in a friendly at Gò Đậu Stadium (Bình Dương). Given their superior standing, a victory...
  • Farewell to the "King of Cups"
    2 month ago Sports
    BTO-After suffering a 1-0 home defeat in the first leg of the Champions League Round of 16, the French football powerhouse PSG was under immense pressure to win the return leg away at Liverpool. And they did just that, securing a place...
  • Surrendering the Title
    2 month ago Sports
    BTO- The highlight of Premier League Matchweek 28 was the showdown between Manchester United and Arsenal at Old Trafford. Arsenal desperately needed a victory to keep up with Liverpool, but they could only manage a draw, while the league...
  • Even Djokovic Can’t Defy Time
    2 month ago Sports
    BTO-Novak Djokovic has just suffered a defeat against Botic Van De Zandschulp in the second round of  Indian Wells 2025, marking the first time in seven years that he has lost three consecutive matches. At 37 years old, Djokovic is...
POWERED BY ONECMS - A PRODUCT OF NEKO
Ministry proposes reduction in insurance deposits for travel firms