A reader with email address kimanhx @ xx asked: I intend to open a company providing international travel services, what is the margin and what is the deposit procedure?

Lawyer Do Thi Hoa, YouMe Law Firm answers:

Point c, Clause 2 and Clause 3 Article 14 of Decree 168/2017 / ND-CP detailing several articles of the Law on Tourism (Decree 168/2017 / ND-CP) regulating deposit rates and methods of signing Funds are as follows:

2. The deposit rate for international travel services: c) Providing travel services for international tourists to Vietnam and overseas tourists: VND 500,000,000 (five hundred million).

3. Enterprises making deposits in Vietnam dong at commercial banks, cooperative banks, or foreign bank branches established and operating in Vietnam and enjoying interest rates as agreed between the enterprise and Deposit receiving bank under the law. A deposit is required to be maintained throughout the life of the travel business.

Article 15 of Decree 168/2017 / ND-CP provides the procedures for deposit payment and issuance of Certificate of deposit as follows:

1. When the enterprise requests to deposit money into an account at the bank, the deposit receiving bank and the enterprise shall enter into a contract of deposit. Based on the contract of escrow, the bank receiving the deposit shall blockade the amount of money deposited by the enterprise at the bank.

2. An escrow contract has the following main contents: Name, address, representative of the enterprise; name, address, representative of the bank; reason for deposit payment; deposit amount; margin interest rate; pay interest on margin deposits; use of deposit money; deposit withdrawal; deposit refund; Responsibilities of related parties and other agreements are under the law and not contrary to this Decree.

3. After the escrow amount is frozen, the receiving bank shall issue the Certificate of deposit for the business of travel services to the enterprise using Form No. 01 specified in the Appendix to this Decree.

Thus, the international travel service business must deposit VND 500,000,000. The escrow procedure will be carried out under the rules cited above.