return icon Vietnamnet.vn

To recover tourism, policies must be consistent

Travel firms are concerned about the inconsistency of policies. The unpredictability makes it impossible to plan their business, they say.

{keywords}

 

Dao Manh Luong, Head of the Ha Long Cruise Ship Association, at a forum on sustainable tourism recovery held recently, once again mentioned the serious problems that fleets of 500 ships of 245 member companies are facing.

“Ship owners are all getting financially exhausted. In order to exist, many of them have to borrow money from usurers. They have to spend VND200 million a month at least on ship maintenance and protection, which means VND1 billion for six months,” he said.

Since March 2020, Luong has spent VND4 billion to maintain eight cruise ships. He decided to sell some ships to maintain the remaining ones.

Quang Ninh is one of the first five localities open to tourists. However, it mostly receives guests in the province, while now is not the tourism season.

Many businesses still dare not reopen for fear for risks, lack of workers and lack of capital. In order to make the ships operational again, they will have to spend big money to repair them. Meanwhile, they have to satisfy strict requirements to receive guests.

Businesses also find it very difficult to access support packages because of complicated administrative procedures, and if they can access the packages, the support is not enough to help them overcome difficulties.

Luong said businesses can satisfy the requirements to borrow money from the packages to resume business, but don’t have reports confirming final settlements of taxation bodies. Nearly 100 percent of ship owners don’t have this document, because they don’t have clients and don’t have revenue.

As for the package which provides loans to pay workers, less than six percent of ship owners are eligible for these because they don’t have documents certifying that business owners have paid social insurance premiums until the time of borrowing.

Of the 245 members of his association, only 14 businesses can satisfy the requirement, which means only 174 out of 4,000 workers could get support.

“If businesses had money to pay social insurance premiums for workers, they would not have had to ask for help,” he complained.

Nguyen Quy Phuong, Director of the Travel Department, said many policies on supporting businesses in the tourism industry have been launched, including the extension of VAT (value added tax), PIT (personal income tax) and CIT (corporate income tax) payment deadline as well as the land rent payment. They also offered a 15 percent land rent reduction in 2020 and 30 percent reduction in 2021. Also, the firms can enjoy VAT reduction and electricity bill reductions.

However, it’s still very difficult for businesses to resume operation.

Phuong said the Vietnam National Administration of Tourism (VNAT) has asked the Ministry of Planning and Investment (MPI), which is drafting a new aid package for businesses hit by the pandemic, to design additional support to businesses and workers in the tourism industry. The support could be an extension of the tax and fee remission period and loosening of requirements for businesses to receive support.

 

Travel firms are concerned about the inconsistency of policies. The unpredictability makes it impossible to plan their business.

 

VNAT has also proposed a 50 percent Personal Income Tax reduction for transportation, accommodations, eatery services and tourist agents, and a preferential interest rate of 3 percent for 30 unsecured month-month loans. Also, VNAT wants an excursion fee exemption at attractions to help stimulate travel demand.

Changing policies

Vu The Binh, Deputy Chair of the Vietnam Tourism Association (VTA), commented that Vietnam’s tourism entered a new state after Resolution 128 was released, which stated that Vietnam needs to ‘live together with Covid’.

The most important factor is consistency in policies applied by all localities, to make it clear to domestic and foreign travelers that Vietnam pursues a single principle of ensuring safety, he said. The administrative procedures applied by different localities, from border gates to tourism sites, need to be consistent.

However, some provinces want to open their doors immediately to tourists, while others want to keep the doors closed to better prevent the coronavirus spread.

In principle, localities need to follow the central government in taking actions, and the policies must be stable.

A CEO of a travel firm said the biggest fear is the change of policies, i.e. travel firms are told to open today and asked to close their door tomorrow.

Vietravel Holdings President Nguyen Quoc Ky said Resolution 128 provides necessary conditions, but the tourism sector needs sufficient conditions as well. Four levels of on/off business have been set, but there have been no associated plans, which may lead to a lack of synchronization between localities, thus affecting travel business.

Ky said that while the central government is persistent with the ‘living together with Covid’ principle, some localities still follow ‘zero Covid’ strategies and have set technical barriers.

He stressed that policies need to be stable for a long period and be consistent to make it possible for enterprises to draw up their business plans. 

Ngoc Ha

Vietnam to receive first Thai tourists in December

Vietnam to receive first Thai tourists in December

The first Thai travelers may arrive in Vietnam in December and Vietnamese would be able to travel abroad as part of an official tourism bubble established between the countries.

First foreign tourists return to Vietnam after two years

First foreign tourists return to Vietnam after two years

Vietnam has welcomed hundreds of foreign tourists after two years of closure due to the Covid-19 pandemic.

MORE NEWS

Carbon market to help achieve net zero emissions

Greenhouse gas emissions in Vietnam increased rapidly over the past three decades in direct proportion to the economy’s growth.

VIETNAM NEWS HEADLINES SEPTEMBER 29

Buckwheat Flower Festival returns to Ha Giang in November

Vietnam welcomes 1.87 million foreign visitors in nine months

Vietnam welcomed about 1.87 million international arrivals in the first nine months of this year, 16.4 times higher than the same period last year but much lower than that in the same time in 2019 before COVID-19 broke out.

Close to 123,000 sea turtles released back to sea

The Con Dao National Park in the southern province of Ba Ria-Vung Tau released 122,867 baby turtles into the ocean between January and September.

Vietnamese, Danish friendship blossoms over the years

Many foreigners have enjoyed diverse landscapes, authentic local food, endless love, eternal friendship, and a favourable investment environment in Vietnam.

China imports less glutinous rice from Vietnam

The proportion of glutinous rice in total rice exports to China has fallen from 74 percent to 48 percent.

Vietnamese artists to appear in Norwegian play

Several talented local artists from the Vietnam Youth Theater have been invited to perform in 'Hedda Gabler', a classic play which is considered to be one of the outstanding works of Norwegian writer Henrik Ibsen.

Minor improvements seen in the transparency of provincial budgets

The average ranking of budget transparency for localities in 2021 was 69.53 points out of 100, a rise of just 0.44 points compared to 2020.

Pianist Nguyen Dang Quang returns home for concert of classical music

Piano player Nguyen Dang Quang, son of composer Quoc Trung and renowned artist Thanh Lam, is a fresh and promising presence at the event.

VN central bank acts to tighten the Vietnamese dong liquidity

A recent money market report of Saigon Securities Incorporation (SSI) showed the SBV last week net withdrew a total of VND34.6 trillion through the OMO channel.

Vietnam needs to improve human resources in digital age: World Bank

To reach the goal of becoming a high-income country by 2045, Vietnam needs to quickly improve the quality and quantity of its human resources.

Vietnam’s GDP rises by 13.67% in third quarter: statistics office

Vietnam’s gross domestic product (GDP) grew by 13.67% in the third quarter, according to the General Statistics Office (GSO).

Ministry of Culture demands strict supervision of beauty contests

Culture, Sports, and Tourism Minister Nguyen Van Hung has signed a directive strengthening state supervision of a variety of cultural and artistic activities, including beauty pageants and modelling contests.

VIETNAM BUSINESS NEWS SEPTEMBER 29

Vietnam to become “new Asian tiger”: Italian journal

Vietnam to become the worlds chip production center

In the first eight months of this year, phones and electronic components have the most prominent export turnover in our country, reaching nearly 40 billion USD.
back_to_top