Many businesses but not strong

(Baonghean) - Nghe An currently has the 7th largest number of enterprises in the country and the largest in the North Central region. Enterprises and entrepreneurs have made great contributions to the development of the province. However, the majority of enterprises in the province are mainly small and medium-sized, even micro-sized, with weak competitiveness.

The above situation was pointed out by Nghe An Provincial Party Committee after 5 years of implementing Resolution No. 09 - NQ/TW of the Politburo on "Building and promoting the role of Vietnamese entrepreneurs in the period of accelerating industrialization, modernization and international integration".

The engine of growth

Although Quy Hop is a mountainous district, it has a relatively large number of enterprises and is very active. The total number of enterprises in the district by the end of 2015 was 362, of which 253 private enterprises are operating and paying taxes, accounting for 70% of the total number of enterprises.

The production value of enterprises accounts for 43% of the total production value of the district and 89% of the total industrial production value - basic construction; creating jobs for about 6,300 workers.

Produced at the mechanical workshop of Yabashi Vietnam Limestone Mining Company located in Quy Hop district.

Head of the Quy Hop District Party Committee's Mass Mobilization Committee - Ngan Thi Hong said: "The Party Committee and the government have created conditions for private enterprises to always be equal to state-owned enterprises in accessing the district's development resources, as well as in handling administrative procedures. In particular, we have well implemented the dialogue mechanism of 2 meetings/year between the Party Committee, the government and enterprises and entrepreneurs in the district.

Thereby, the opinions and proposals of businessmen are explained by competent authorities and promptly recommended to superiors to remove difficulties and obstacles in capital sources, taxes, mine registration procedures... creating a favorable environment for enterprises to develop production and business.

Dien Chau is also a locality with a very vibrant number of businesses and entrepreneurs. Up to now, this locality has 429 established and operating businesses.

Of which, in the first 9 months of the year, 52 enterprises were newly established. It is noteworthy that the activities of enterprises contribute about 70% of the total budget revenue ranging from 130 - 150 billion VND annually of Dien Chau.

Dang Thai Than Street, Vinh City is a bustling fashion business center. Photo courtesy of Nghe An Newspaper

Implementing Resolution 09, the Standing Committee of Nghe An Provincial Party Committee issued an Action Program and many implementation projects; at the same time, assigned the Provincial Party Committee's Mass Mobilization Committee to monitor, regularly grasp the situation, promptly guide, inspect and urge the implementation.

Thereby, Nghe An has had many solutions to raise awareness for Party committees at all levels, authorities, cadres, Party members, and people about the role of the business community; build, perfect, and promulgate mechanisms and policies to create a favorable environment for businesses and businesspeople to operate, including publicizing and making transparent the overall socio-economic development plan of the province, districts, and cities until 2020.

“In particular, once a month, the leaders of the Provincial People's Committee have a dialogue with business associations; the Provincial Party Secretary and Chairman of the Provincial People's Committee organize a dialogue with businesses across the province once a year,” said Mr. Nguyen Manh Khoi - Deputy Head of the Provincial Party Committee's Mass Mobilization Commission.

With these policies, the number of entrepreneurs and enterprises in the province is growing stronger and stronger. Overall, Nghe An has a total of nearly 15,300 registered enterprises, ranking first in the North Central region and seventh in the country.

Enterprises in Nghe An are diversified, with the largest proportion in the fields of trade, services, construction, mining and processing industries. Enterprises contribute to creating jobs for 177,000 workers. In 2015, enterprises contributed more than 7,400 billion VND to the budget, accounting for 60% of the province's total budget revenue.

Many but not strong

The results achieved after 5 years of implementing Resolution 09 have contributed positively to the development of the province. However, looking at the overall picture, Nghe An enterprises and entrepreneurs still have weaknesses and limitations that need to be resolved to have a team of entrepreneurs and the number of enterprises to develop both in breadth and strength in potential. In fact, according to tax authorities, the whole province currently has only 9,500 operating enterprises, accounting for 62% of the total number of registered enterprises.

Most of the enterprises are small and medium-sized, with weak competitiveness, products that have not met international standards, and unprofessional service quality; they are still outside the supply chain and have not become an important element in the development of the province's supporting industries. There are few enterprises investing in the agricultural, forestry and fishery sectors. Many enterprises lack highly skilled workers...

Mr. Phan Thanh Mien - Chairman of Nghe An Small and Medium Enterprises Association analyzed: The above situation comes from subjective and objective causes. In which, on the business side, there is still a lack of sustainability because when established, many business leaders were not equipped with proper knowledge.

On the other hand, businesses still face difficulties, especially small and medium enterprises, in accessing land to expand production and capital from banks; skills and working style in many localities are still low and not industrial.

Workers work in Nghe An Wood Processing Factory located in Nghia Dan district.

Deputy Head of the Provincial Party Committee's Mass Mobilization Commission Nguyen Manh Khoi added: Through inspection of the implementation of Resolution 09, some localities do not have programs or plans, or have them but do not have specific tasks to implement.

Therefore, in the near future, the province will require districts, cities and towns to supplement action programs and plans for continued implementation, emphasizing that each locality chooses a few specific tasks to create conditions to help businesses and entrepreneurs in the area.

In October 2016, the Provincial Party Committee's Mass Mobilization Commission will advise the Party Committee to propose to include this resolution in the program, inspection and supervision of the Provincial Party Committee Standing Committee in 2017. In addition, continue to review and urge the implementation of programs and projects in Action Program No. 15 of the Provincial Party Committee Standing Committee on the implementation of Resolution 09... ”.

Article and photos:Nhat Le