HCM City businesses expect a support package of VND 4,000 billion

A hotel that located at Thi Sach street (district 1) is closed due to Covid-19 pandemic. Photo: T.D

That information was reported by Chairman of the People's Committee of HCM City Nguyen Thanh Phong at a meeting of the People's Council of HCM City, term IX on December 7-9. It is expected that this credit package will be supported by HCM City to businesses facing difficulties in service sectors such as accommodation, catering, tourism, and transportation; industries such as textiles, footwear, clothing, wood processing, food processing - food, construction and firms with a large decline in their revenue.

Chu Tien Dung, Chairman of HCM City Business Association, said the amount contributed by enterprises to the State budget in November increased from two months ago, proving production has recovered. However, in fact, many other businesses are in the direction of depletion and facing great difficulties. It is forecasted that from now until the Lunar New Year 2021, the number of firms that suspend operations will increase.

Specifically, in textile and garment, the representative of HCM City Textile and Garment - Embroidery Association said in the fourth quarter, the textile and garment enterprises only had about 50% of normal orders. While processing prices are dropping by an average of 10%, orders are down by up to 15%. From now until the end of the year, textile enterprises still have to rest 20-50% of them.

Likewise, the disruption of tourism activity due to the pandemic has had a far-reaching impact on industries and social life, such as the aviation, accommodation and catering industries.

Accordingly, if HCM City deploys a support package of VND 4,000 billion VND, it will help businesses access the 0% interest rate finance to invest in production and business.

Nguyen Thi Anh Hoa, Director of the HCM City Department of Tourism, said that for the tourism sector, adding this preferential credit package not only supports tourism businesses, but also public non-business units in tourism, such as museums, will receive support for paying the wages of workers. Part of the support from this credit package will be used to help museums in the city give free of charge for the people when visiting, contributing to promoting the tourism stimulus package of HCM City.