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Monday, June 27, 2022

Over 700,000 F&B firms suspend operations, says travel firm leader

The Saigon Times

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HCMC – More than 700,000 small and micro enterprises in the food and beverage sector have suspended their operations, said Nguyen Quoc Ky, chairman of Vietravel and the Vietnam Culinary Culture Association. Ky did not say how or where he obtained the figure.

At the seminar, “Vietnam’s tourism-recovery and development”, jointly held by the National Assembly’s (NA) Committee for Culture and Education, the Ministry of Culture, Sports and Tourism, and the Nghe An government on December 25, Ky said the tourism sector could not recover if catering services were not resumed, Phap Luat newspaper reported.

Support policies for these enterprises and tourism firms have not been clear. Therefore, he proposed more effective policies to help these firms resume their operations.

Specifically, the NA has agreed to cut 30% of the value-added tax in the last two months of this year. Ky suggested applying the policy in 2022 and 2023 as well.

The tourism sector was very dependent on the Government’s policies. If solutions are not worked out quickly, the sector may go into a tailspin and take time to recover, Ky added.

Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consultants’ Association, shared Ky’s view, saying that the reduction of the value-added tax for tourism enterprises should be extended for two more years.

In addition, the deadlines to pay taxes should be delayed for the next several years, instead of just for 2020 and 2021.

Deputy Minister of Culture, Sports and Tourism Doan Van Viet said in 2020, 338 of over 2,500 outbound tour operators applied for dissolution and 90% of travel firms shut down.

This year, the number of travel companies that had their business licenses revoked has accounted for over 35% of the total travel firms.

After prolonged Covid waves, tourism enterprises have faced multiple difficulties, Viet said, adding that solutions to support and facilitate them to recover in the new situation were needed.

Therefore, the Ministry of Culture, Sports and Tourism proposed focusing on conducting the tourism recovery and development program, part of the socioeconomic recovery and development in 2022-2023, and supporting enterprises and laborers in the tourism sector to overcome difficulties.

HCMC Vice Chairwoman Phan Thi Thang said the city proposed the NA and the Government direct the Ministry of Finance and other relevant agencies to cut lending rates and requirements for tourism enterprises.

Moreover, land rentals should be reduced to a greater extent than the current 30% and the reduction should be applied in 2022 and 2023 as well.

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