Vietnam’s Bamboo Airways Faces Fund Freeze Over $4.2 Million Tax Debt

Bamboo Airways (QH), based in Hanoi Noi Bai International, is under financial strain as its bank accounts are frozen due to a tax debt of VND102.5 billion dong (USD4.2 million) that the airline failed to settle within the 90-day grace period, as reported by a tax official on November 8.

Nguyen Dau, Director of the Tax Department of Bình Định Province, where Bamboo Airways is headquartered, stated that the agency had issued a decision to seize the outstanding debt from the accounts of Tre Việt Aviation Joint Stock Company, the legal entity behind Bamboo Airways. The frozen accounts are held at three different banks: the Quy Nhon branch of the Bank for Investment and Development of Vietnam, the Bình Định branch of the Military Commercial Joint Stock Bank (MB Bank), and the Vietnam Technological and Commercial Joint-Stock Bank.

The tax administration has directed these banks to extract funds from Bamboo’s accounts and transfer them to the tax authority. Dau clarified that if the funds in the accounts fall short of the debt amount, the banks are still obligated to deduct the remaining sum after maintaining a minimum balance. This process will continue throughout the effective period of the decision until Bamboo Airways settles its tax debt.

Bamboo Airways has been facing challenges, including management changes and fleet restructuring, following the arrest of its ex-chairman in March 2022 for alleged stock market manipulation. Despite ongoing financial difficulties, the airline reassured stakeholders in a statement on November 8 that it has a plan to meet its payment obligations with the province in November. The delay in fulfilling tax obligations, according to Bamboo Airways, was attributed to the airline prioritizing customer-focused activities.

This report sheds light on Bamboo Airways’ financial struggles, emphasizing the tax-related challenges and the measures being taken to address the situation, including the freezing of bank accounts and the airline’s commitment to meeting its payment obligations.