Approximately 60% of tourism businesses based in Ho Chi Minh City have reopened following their temporary shutdown to combat the novel coronavirus (COVID-19) epidemic, with most firms in need of financial support in order to maintain future operations.

The number of tourists to Ho Chi Minh City endures a sharp fall as a result of
the negative impact caused by the novel coronavirus (COVID-19) pandemic

Information on the rejuvenation of enterprises in the southern city’s tourism sector was released by Nguyen Thi Anh Hoa, Deputy Director of the Ho Chi Minh City Department of Tourism, during recent talks with a Voice of Vietnam (VOV) reporter.

According to Hoa, firms which returned to work will now mainly focus on the domestic tourism market, while suspended tourism businesses are set to primarily concentrate on inbound and outbound market segments.

The fourth quarter of the year will see a number of travel operators reopen as they wait on developments around the world regarding COVID-19 control efforts, as well as waiting for an official announcement from the State with regard to welcoming international visitors.

At present, the Ho Chi Minh City Department of Tourism is implementing a range of policies to extend the payment of tax and rent, in addition to offering electricity price support, credits for businesses, while serving as a bridge that connects firms with competent agencies in order to facilitate the implementation of incentive policies.

The majority of enterprises are currently in need of financial support in order to realise capital rotation, pay staff salaries, and pay necessary expenses as a means of maintaining operations. 

The Department has so far received requests from about 50 firms who wish to receive credit support packages. This list of businesses has been transferred to the State Bank branch in Ho Chi Minh City from which commercial banks are ready to take steps in order to provide timely support for enterprises that operate in the tourism industry.

Due to the impact of the COVID-19 epidemic, tourism businesses are at risk as they are mostly small and medium-sized firms which lack close linkages in order to be fully capable of coping with the fallout from the epidemic, Hoa said.

“This time is essential for businesses to restructure, rebuild alliances, links, and single out which product segments are their strengths. Simultaneously, they need to restructure human resources and the tourism market so as to gain a reputation and a competitive brand on the domestic and international tourism market,” she added.