Department director Le Thi Huynh Mai made the proposal as part of increasing the government’s financial support for enterprises.

She also wanted to cut land fees for tourism enterprises, fees for assessment and licensing of travel companies, and the fee for tour guide licenses.

She asked the State Bank of Vietnam to seek the government’s permission for a 80 percent decrease in tourism companies’ deposits for two years so that the firms can maintain operations and increase their working capital. Under the Tourism Law, travel companies have to make deposits for permission to operate domestic, inbound and outbound tours. The deposit is to be used to ensure customers’ rights.

Chu Tien Dung, chairman of HCMC Union of Business Associations, said the government needs to have a support package specialized for businesses that have stopped operating due to the pandemic such as those in the tourism and service sectors.

Over 6,400 firms in HCMC resumed operations in the first five months of 2021, according to the city’s Department of Planning and Investment. However, nearly 2,500 enterprises were dissolved during the period, while 9,800 businesses temporarily suspended operations.

The pandemic has severely impacted many businesses, causing production material shortages, difficulties in reaching out to customers, disrupting supply chains and reducing the number of orders, while cost of Covid-19 prevention has risen. Many workers are also affected, having to accept reduced working hours.

The city had recorded 590 Covid-19 cases as of Friday morning since fourth Covid-19 wave began on April 27.