Nghe An needs to change mechanisms to improve the business environment.

(Baonghean.vn) - Sharing at the meeting to honor typical investors and businesses of Nghe An province, Mr.Mr. Vo Tan Thanh,The Vice President of VCCI said that the unofficial costs of enterprises in Nghe An are quite large. Therefore, Nghe An province should soon change and reform the mechanism to improve the business environment.

Commenting on the recent economic development situation, Mr. Vo Tan Thanh said that despite the difficulties, Nghe An has made quite good progress. In 2015, the province's GDP increased by 7.43%, higher than the national average, the highest in the past 3 years. The provincial budget collected 8,700 billion VND, exceeding the estimate by 6.5%, with 4,300 new businesses established.

In the first 6 months of the year, businesses in Nghe An contributed up to 60% to the provincial budget. Although certain achievements have been made, the current difficulties from natural and human factors can be barriers to the development of businesses as well as the investment environment.

Overview of the conference. Photo: Canh Nam

Mr. Thanh believes that Nghe An province's target of 20,000 businesses by 2020 needs to be raised. With the average target of countries being one business for every 92 people in 2020, Nghe An should set a target of about 33,700 businesses. To achieve this target, one of the solutions is to support the development of individual businesses, helping them grow large enough to become businesses.

In fact, the whole country has up to 4 million individual business households, however many households do not want to expand into enterprises because of concerns about tax policies, being inspected more closely or having to manage accounting books more systematically.

Mr. Vo Tan Thanh, Vice President of VCCI, analyzed the investment environment and improved business competitiveness. Photo: Canh Nam

Mr. Vo Tan Thanh also said that businesses need to be more proactive in the current integration trend. In the context of our country participating in many cooperation agreements and trade agreements with many countries in the region and in the world, domestic businesses are mostly small and medium-sized, weak in capital, and management needs to be better prepared when large businesses and corporations enter the market.

In addition, businesses need to have a sustainable, long-term development mindset. Many businesses think short-term, do not understand the law or take advantage of legal loopholes to develop. Furthermore, businesses must conduct business responsibly towards society and the environment. In countries around the world, businesses must spend 30% of their costs on environmental protection during the production process, however, some domestic businesses cut this cost to turn it into benefits...

Nghe An has strengths in terms of people, human resources, and a large, high-quality workforce. However, Nghe An's problem is the investment environment with the need to create an effective, transparent mechanism. This is the least costly form of investment but brings the highest efficiency. Once there is an effective mechanism, businesses will have favorable conditions to develop, increase profits, and contribute back to the government through the budget.

In fact, in 2015, Nghe An’s provincial competitiveness index (CPI) dropped 4 places compared to the previous year due to the fact that businesses had to pay unofficial costs during their operations. Therefore, Nghe An province should pay attention to reforming mechanisms to improve the business environment.

Phan Hoang Vu