The Vietnam National Administration of Tourism (VNAT) has won the central bank’s approval to allow tourism firms to net the highest deposit rates based on negotiations with local banks instead of non-term rates like now.

Pham Le Thao, deputy head of the travel department under VNAT, reported the central bank had given its official agreement, pending approval from the Prime Minister to issue a new decree to amend the Government’s Decree 92/2007/ND-CP issued on June 1 in 2007.

“We have finished all preparatory steps and have been given the consensus of related agencies on some content in the prevailing decree to be revised. The Ministry of Culture, Sports and Tourism later his month will submit the draft version to the Prime Minister for consideration,” Thao said.

To help members overcome the current financial constraints, the HCMC Tourism Association has repeatedly sent petitions to relevant authorities, proposing tour operators be entitled to a maximum rate from their compulsory deposits at local banks.

At present, the Tourism Law only specifies a deposit level of VND250 million for outbound and inbound travel agencies. Meanwhile, the deposit in the new draft decree is divided into two categories, VND250 million for inbound tour operators and VND500 million for outbound firms or those involved in both activities.

Local lenders are entitled to keep deposits handed in by tourism businesses during their operation period and the amount will be used to compensate customers when necessary.

Regarding the complaint about the high deposits, Thao explained that management authorities had decided on such high deposits to ensure a sound competitive environment among industry players. On the other hand, she noted, the new deposit level doesn’t increase considerably compared to the regulation in 2005.

Thao stressed that deposits will minimize wrongdoings of tour operators and protect the benefits of clients as well.

According to Thao, tourism management authorities in the future will continue asking the upper level to pass some regulations relating to insurance for visitors.

“The Tourism Law requests tour service providers to buy travel insurance for tourists but it fails to clarify premium levels. That is the reason why we need more detailed regulations to raise the insurance levels for the insured,” Thao added.

SGT