In an unexpected move, the local tax authority overseeing Bamboo Airways has requested the Immigration Department of the Ministry of Public Security to impose a temporary travel ban on Bamboo Airways CEO Luong Hoai Nam.

This restriction stems from the airline's failure to meet its tax obligations, with the travel ban remaining in place until the company settles its tax debts.

While the news may surprise some, travel bans on business leaders for tax issues have become more frequent.

Many executives from publicly traded or state-owned companies have faced similar restrictions in recent years, often linked to financial difficulties that extend beyond taxes, including unpaid debts to suppliers, employees, and banks.

Delayed tax payments typically reflect financial strain rather than deliberate tax evasion. However, for CEOs like Nam, such bans can damage their reputation, restrict their ability to negotiate business deals, and limit expansion efforts - factors critical to helping companies recover from financial challenges.

Nam, appointed to help restructure Bamboo Airways after its severe financial losses, may now find his efforts hampered. The inability to travel could slow down his work, particularly in restoring the airline’s financial health.

Moreover, travel bans on high-profile executives can negatively affect a company’s stock value, influencing the broader market and investor confidence.

Some industry experts suggest that administrative penalties might be a more balanced response than restricting travel, which can exacerbate financial challenges.

Tu Giang