Enterprises suggest reopening hotels, golf courses in Hanoi

Chairwoman of BRG Group Nguyen Thi Nga has suggested the government allow reopening of hotels and golf courses on the condition of meeting safety regulations, saying the move would help mitigate losses for enterprises.

Overview of the meeting.

Since the outbreak of the pandemic, BRG has suffered huge losses in its core businesses of tourism, hotel, golf course and trade, Nga said at a dialogue between the business community and Hanoi’s leaders on April 16.

Nga said in case golf courses are allowed to reopen, a team of players would not exceed eight persons, and each player keeps a distance of at least two meters from others. She stressed companies are struggling with operational expenses and have no revenue.

“Thousands of our workers have become unemployed. BRG's losses are estimated at VND1 trillion (US$442.43 million) and its nearly 3,700 tons of rice are waiting for being exported,” Nga added.

Additionally, Nga proposed the government reduce 50% of corporate tax and waive land rental fees in 2020.

The city should consider establishing funds promoting tourism at major markets once the pandemic is contained, Nga added.

For his part, General Director of flag carrier Vietnam Airlines Duong Tri Thanh said during the two weeks of social distancing, the airline only operated at 2 – 5% of its capacity.

Thanh said as profit is nearly zero, Vietnam Airlines is looking at plans to recover in the post-pandemic period. With a fleet of nearly 100 airplanes, it would take at least five years for the airline to cover current losses.

Chairman of the Hanoi Association of Small and Medium Enterprises (Hanoisme) Do Quang Hien said the city should extend supporting programs by waiving and reducing taxes beyond the pandemic period, while facilitating the construction progress of industrial parks for SMEs.

At the dialogue, CEO of Vingroup Nguyen Viet Quang said the group’s production of cars, motorcycles and smart phones has been disrupted due to a shortage of parts and accessories, causing losses of over VND10 trillion (US$424.2 million).

The representative added the suspension of entertainment and hospitality services has also led to losses of VND3 trillion (US$127.28 million). In addition to suggestions from other corporations, Vingroup recommended the government extend tax payment deadline to one year and accelerate approval process of investment projects.

A representative of Hoa Phat Group said the government could allow foreign experts to enter Vietnam under condition that they undergo quarantine and other safety regulations, so that sophisticated projects, especially information technology ones, could be implemented as scheduled.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung said the city has been accelerating administrative reforms and has so far made 1,818 public services online.

Chung tipped the city would form task forces with the participation of directors of departments and units to receive recommendations and concerns of enterprises.

According to Chung, Hanoi has put into operation the Hanoi SmartCity application which serves as a platform for enterprises to submit their issues.

Chung stressed despite the negative impacts of the pandemic, the ongoing crisis is an opportunity for enterprises to restructure their operations and the city to continue its reform effort for the benefits of the people and enterprises.