Struggling tourism businesses in HCM City are in dire need of credit to recover but are finding it very difficult to access the subsidised loans under the Government’s Decree 31 that took effect in May, according to the city's Department of Tourism.

Bui Thi Ngoc Hieu, its deputy director, said implementation of the decree, which involves a 2 per cent interest subsidy, would keep businesses hit by the COVID-19 crisis afloat.

The tourism industry, which accounts for more than 10 per cent of the city’s economy, desperately want the subsidised loans to recover, she told a conference on Thursday.

But their access is blocked due to their non-performing loans or failure to meet requirements, she said.

Travel firms have no assets to mortgage for the loan, she said.

The conference was organised by the department and the State Bank of Vietnam to link travel firms with banks and resolve the issues that are preventing the former from borrowing, she said.

Flexible policies are needed to make it easier for businesses to get the low-interest loans, she added.

Nguyen Duc Lenh, deputy director of the central bank’s HCM City branch, said the banking industry would have more support packages for businesses in the second half of this year and coming years.

The State Bank would work closely with the tourism department to remove obstacles faced by travel businesses and support their recovery and growth in line with the city’s socio-economic recovery and development programme, Lenh said.

At the conference, eight banks and travel businesses signed agreements for loans.

In the first seven months of this year the city received 13.3 million domestic and more than 765,000 foreign visitors.

Tourism revenues were worth VND60.3 trillion (US$2.59 billion), up 57.8 per cent year-on-year. —VNS