8-11-2023 (HANOI) Vietnamese tax authorities have taken action against Bamboo Airways, a troubled airline, by freezing the company’s accounts at three domestic banks. The move comes in response to the airline’s alleged failure to settle a debt of 102 billion dong (equivalent to US$4.2 million) that has been outstanding for 90 days, as reported by state media on Wednesday (Nov 8).
The tax department of Binh Dinh, a central province in Vietnam, has issued an order to lenders BIDV, MBB, and Techombank to transfer Bamboo Airways’ funds to the tax department, as stated by the Ho Chi Minh City Law newspaper.
Bamboo Airways, which has been grappling with a series of management changes and aggressive restructuring efforts since the arrest of its former chairman in March 2022 on charges of stock market manipulation, has announced its intention to settle the outstanding tax debt this month.
In a statement released on Wednesday, the airline stated, “Bamboo Airways plans to complete the tax payment in November. The recent payment delays were because we had been focusing on prioritising our customers.”
The provincial tax department has refrained from making any comments when reached earlier by Reuters via telephone.
Reports from September indicated that some of the airline’s pilots had left the company this year due to delayed salary payments.
Bamboo Airways, headquartered in Binh Dinh province, disclosed in September that it was undergoing a restructuring process and was in the process of raising capital from strategic shareholders.
Pham Xuan Vinh, an official from the tax department, stated in the report, “When the taxpayer fulfills its obligations, the Tax Department of Binh Dinh province will request the banks to lift the account freeze.”
