Khanh Hoa Province Department of Information and Communications requests the province's press agencies and the Center for Culture - Information and Sports in localities to propagate and warn about some risks that may arise related to resort service business activities.
The recommendation of the authorities was made after the Ministry of Industry and Trade reported to the Prime Minister regarding the content of reflections and complaints related to resort service business in Khanh Hoa province.
According to the Ministry of Industry and Trade, recently, the resort service business in Vietnam has encountered a number of complex issues related to long-term resort services.
The service appearing under the name of "vacation ownership contract" that many people have reported and complained about related to Thien Duong Bay Tourist Area Company Limited is identified by Khanh Hoa Provincial People's Committee as "Accommodation room rental", identified by the Ministry of Public Security as a conditional business type, managed according to the provisions of the 2017 Tourism Law.
In Khanh Hoa alone, in the period 2020-2023, the authorities received over 1,000 applications from customers purchasing "Holiday Ownership Contracts" at the Alma Project of Thien Duong Bay Tourist Area Company Limited.
Similarly, long-term resort service business contracts are also established by some other businesses in the market under other names such as "resort contract", "happy vacation service contract", "family vacation contract", "travel card purchase and sale contract"...
Some businesses that are currently providing the above services include Oh Vacation Company Limited, Mandala Tourism and Hotel Joint Stock Company, Crystal Holidays Tourism Joint Stock Company, Resorts International Viet Nam Company Limited, Vacation Paradise Joint Stock Company, Vietnam Vacation Club Joint Stock Company, and Holidays Vietnam Company Limited.
There are three types of long-term vacations in Vietnam, including fixed vacation weeks; flexible vacation weeks and vacation cards or cumulative point cards. Vacation businesses may or may not own the resort.
In the case of resort ownership, vacation ownership can be sold as “future formation” as a form of capital raising for the owner to use the proceeds to build the resort.
Resort projects providing long-term resort service models in Vietnam today include The Manna in Cam Ranh Bay - Khanh Hoa, Ho Tram Sanctuary, Furama resort, The Nam Hai, Tan Vien resort - Hanoi, FLC Holiday, Thien Duong Bay tourist area...
Recognizing that disputes arising between individuals are civil relations, departments and branches in Khanh Hoa have issued documents instructing petitioners to contact the competent Court for resolution.
Regarding petitions related to excessively high annual fee increases causing damage to customers, showing signs of imposing unfavorable conditions on customers, violating the Competition Law 2018, Khanh Hoa Provincial People's Committee has directed the Department of Industry and Trade to transfer all of the above petitions to the Alma project, to the National Competition Committee - Ministry of Industry and Trade for consideration and resolution.
The Ministry of Industry and Trade has identified a number of risks that may occur to people, such as sellers designing sophisticated and methodical sales strategies to attract and entice buyers to enter into transactions hastily; sellers designing transaction content that poses high risks to buyers; sellers who do not own the resort but still provide long-term resort services and collect the entire contract value from buyers before providing the services.
