Ho Chi Minh City proposes 0 per cent unsecured loans for 5,000 tourism businesses

Ho Chi Minh City has 5,002 tourism businesses operating with about 31,500 employees

Accordingly, the proposal aims to support tourism businesses that are facing difficulties due to the impact of the COVID-19 pandemic, to pay wages to employees. The expected amount is more than VND208.8 trillion ($9.1 billion) to pay salaries for employees for three months.

Ho Chi Minh City has 5,002 tourism businesses in operation, with about 31,500 employees including 552 travel businesses with 12,000 employees and 4,450 tourist accommodation establishments with 19,500 employees.

Furthermore, Ho Chi Minh City Department of Tourism also proposed the city to spend more than VND21.7 billion ($943,480) supporting tourist attractions and museums of relics as public non-business units for five months.

Specifically, there would be free entry to five attractions, including the War Remnants Museum, the City History Museum, the City Museum, the city’s Fine Arts Museum and Historic Relics and the Cu Chi Tunnel complex in the year-end tourist season from August to the end of 2021. Plus, the salaries of employees would be also supported.

Ho Chi Minh City Department of Tourism also proposed considering training human resources for tourism this year, with 20 classes expected with a total amount of about VND1.2 billion ($52,170). 80 per cent of this expenditure comes from the city budget. The participants are managers, tour guides, and workers who directly work at tourist resorts, restaurants, and accommodation.

In addition, the department also proposed extending the period of suspension of payment of retirement and survivorship life insurance, delaying the time of payment of the union’s fund for business and those affected by the pandemic without interest and penalties for late payment.

At the same time, the regulations on unemployment benefits in 2021 are proposed to adjust in the direction of reducing the minimum working time from 12 to three months, increasing the unemployment benefit from 60 to 80 per cent of the average monthly salary paid for voluntary insurance.

Along with that is the proposal to the Ministry of Finance (MoF) to consider reducing the value-added tax from 10 to 5 per cent, prolonging the policy of 15 per cent land rent reduction, extending the reduction of fees for appraisal of travel business licenses and tourist guide cards until the end of this year.

Furthermore, the MoF is proposed to coordinate with the State Bank to study and propose the government to allow travel businesses to reduce their deposit by 80 per cent within two years.