Creating a new wind in business startups

(Baonghean) - Implementing Resolution No. 35/NQ-CP of the Government on supporting and developing enterprises until 2020 (Resolution 35), Nghe An has issued an Action Program to implement from July 2016. Nghe An Newspaper had a dialogue with comrade Nguyen Van Do - Member of the Provincial Party Committee, Director of the Department of Planning and Investment on this issue.

PV:Implementing Resolution No. 35 of the Government, by the end of the first quarter of 2017, Nghe An had more than 16,000 registered enterprises. What does this number reflect, sir?

Comrade Nguyen Van Do:The number of enterprises in our province has grown rapidly. In addition to the objective factor of the economic recovery in the past 2 years, Resolution 35 of the Government issued in May 2016 has really created a new wind, demonstrating the strong determination of the Government, ministries, branches, and localities, including Nghe An, to create a favorable investment and business environment for enterprises to develop and become the driving force of the economy.

In our province, the Department of Planning and Investment coordinated with departments and branches to advise the Provincial People's Committee to issue Decision 3171 on the Action Program to implement Resolution 35, effective from July 1, 2016 with 35 programs revolving around 4 major pillars: administrative reform, creating a favorable environment for start-up businesses, technological innovation; ensuring business rights, equal access to resources, business opportunities, reducing costs for businesses; protecting the legitimate rights and interests of businesses and finally the responsibility of businesses.

Packaging production line of Tan Khanh An factory. Photo by Thanh Le

The implementation of the action program to implement Resolution 35 has truly brought about a strong “fire” of reform, created favorable conditions and confidence for businesses and breathed a breath of fresh air into business start-ups among the people. According to initial assessments, Nghe An has many outstanding points when implementing Resolution 35.

First of all, it is to reduce procedures for businesses by implementing administrative reforms. Previously, businesses had to go to the Department of Planning and Investment to register and then go to banks, tax, and insurance to continue with related procedures. But now, we have "pulled" banks, insurance, and taxes to work at the Department of Planning and Investment's One-Stop Center. For example, we have worked with bank directors to arrange a "stock" of available accounts at the One-Stop Center, so businesses coming to register only need to choose an account from the available "stock" without having to go to the bank to do it like before.

Along with that, we have brought public services at the Department of Planning and Investment to level 4, which means providing online registration forms, from which businesses can register documents and procedures online and receive results by post; there are months when the number of businesses registering online accounts for up to 80% of the number of newly established businesses.

A unique feature of Nghe An that has been implemented in the past and continues to be maintained effectively is that the provincial leaders have monthly meetings with business associations and investors to listen to and promptly resolve difficulties. With these movements, the number of newly registered businesses has increased rapidly. In the first quarter of 2017 alone, our province had 342 businesses established, an average of nearly 4 new businesses established each day; thereby bringing the total number of businesses in the province to 16,349.

PV:The rapid increase in the number of large enterprises and newly established enterprises reflects a positive signal for the investment and business environment in Nghe An. However, the reality is that most enterprises in the area are small, even micro-small; there are too few large-scale enterprises that play a leading role in the economy. How do you assess this situation? And what is the solution for us to have many large-scale enterprises carrying the Nghe An brand?

Comrade Nguyen Van Do:Except for Ho Chi Minh City and Hanoi, Nghe An is in the same situation as other localities in the country, with a very large proportion of small and micro enterprises, about 98%. This shows that the competitiveness of Nghe An's economy is not high and is still fragmented.

However, if you want to have a big business, you have to start from a small business; therefore, the province always creates the best conditions for the establishment and start-up of businesses, regardless of scale. The province's goal is to have 20,000 businesses by 2020. If we calculate the speed of new business registration, we can absolutely achieve this number.

However, as mentioned above, the problem is not only increasing the quantity but also how to improve the quality of enterprises? To achieve the above “dual goal”, the province focuses on specific solutions, first of all, reforming administrative procedures, this is the top priority.

In the process of working with enterprises, State agencies must have real innovation; must guide, sponsor, and support enterprises; train skills for enterprises and entrepreneurs; exchange and update mechanisms, policies, and orientations on production development for newly established enterprises.

In addition, continue to enhance the bridging role of business associations because businesses, especially newly established businesses, are still confused about many issues, so the supporting role of business associations is very much needed. This is both a bridge between Party and State agencies on policies for businesses; at the same time, receiving opinions from businesses reflecting and exchanging in the process of building mechanisms and policies.

Along with that, the province is orienting and having policies to exploit potential advantages; thereby forming and developing more and more large enterprises, creating a brand for Nghe An. Doing this well will also create a catalyst to improve the operational efficiency of small enterprises, because according to the general trend, behind large enterprises are always satellite enterprises linked in the production chain.

Nurturing seedlings at Nafoods Passion Fruit Joint Stock Company, Tri Le Commune (Que Phong). Photo: Thanh Duy

PV:Currently, the start-up and business start-up movement is being encouraged by the Party and the State. So, as the head of the agency considered as the “chief architect” of the provincial economy, can you tell us which areas the province is encouraging start-up businesses in?

Comrade Nguyen Van Do:In the spirit of encouraging startups and business start-ups, the province respects and encourages investment in production and business in any field not prohibited by law.

However, it should be noted that Nghe An has great potential for agricultural development, especially in the Western region, but the rate of enterprises investing in production and business in this sector is still low, mainly in industry, trade and services. The Government has issued Decree 210/2013 on policies to encourage enterprises to invest in agriculture and rural areas. Our province has decided to issue preferential policies for enterprises investing in the Western region.

However, the policies do not seem to be attractive enough for businesses to invest in production and business to awaken the potential in this field. The Government has also recognized this and is currently preparing to revise Decree 210/2013 to have stronger incentive policies for businesses to invest in agriculture, in order to build production value chains, contribute to restructuring the agricultural sector, and create a foundation for successfully building new rural areas.

Based on potential and policy foundation, Nghe An province highly encourages businesses to invest in agriculture, especially agriculture in the Western region.

Along with that is the service sector, especially tourism services, which have a lot of potential and advantages but have not developed to their full potential. Developing in the supporting industry for Nghi Son Economic Zone in Thanh Hoa and Vung Ang Economic Zone in Ha Tinh is also an effective direction for businesses.

Finally, training services, providing human resources, especially high-quality human resources, specialized trained human resources to provide for Economic Zones in two neighboring provinces and for industrial parks that have been and are being invested in and built in the province such as VSIP Nghe An, Hemaraj.

PV:Thanks comrade!

Thanh Duy

(Perform)