Focus on removing difficulties for businesses and paying off debts for basic construction investment
(Baonghean) -Nghe An Newspaper interviewed comrade Nguyen Van Do - Director of Department of Planning and Investment on the occasion of New Year 2013.
Reporter: Could you please tell us about the impact of Prime Minister's Directive No. 1792 on Nghe An? What is the situation of investment capital settlement for debt repayment projects in 2011 and projects completed in 2012 in Nghe An?
Construction of the Western traffic system passing through Que Phong district. Photo: Huu Nghia.
Mr. Nguyen Van Do:Implementing Conclusion No. 10 - KL/T.Ư, dated October 18, 2011 of the Party Central Committee, term XI, at the 3rd Conference of the Party Central Committee (term XI), implementing investment restructuring solutions, focusing on restructuring public investment, Directive No. 1792/CT-TTg dated October 15, 2011 of the Prime Minister, the Department of Planning and Investment promptly advised the Provincial People's Committee to issue Official Dispatch No. 6668/UBND-TM dated November 4, 2011 on the implementation of Directive No. 1792/CT-TTg. Right in the process of developing the 2012 plan, the Department of Planning and Investment organized the dissemination and implementation of the directive's contents to all levels and sectors. In organizing the implementation of the 2012 plan, the Department of Planning and Investment has directly worked with and guided the sectors, districts, and investors to adjust the investment scale to meet the requirements of Directive 1792/CT-TTg. At the same time, the Department of Planning and Investment has developed a project to improve the efficiency of management and use of State budget capital and Government bonds in the spirit of Directive 1792/CT-TTg of the Prime Minister. In June 2012, the Provincial People's Committee submitted it to the Provincial Party Committee Standing Committee.
Initial results achieved are:
- The number of proposals and issuances of investment policies has decreased compared to previous years, contributing to reducing investment pressure in the coming years. Sectors and levels have fundamentally changed their implementation awareness, gradually overcoming the ideology of group interests and local interests of their sectors and localities. Competent authorities only decide on investment when they have clearly identified the capital source and the ability to balance capital at each budget level.
- The 2012 investment plan and plan has had many positive changes. Determining the principle of allocating the 2012 plan in accordance with Directive 1792/CT-TTg, the allocation of capital for the 2012 plan is more focused than in previous years, mainly arranging debt repayment projects, transitional projects expected to be completed within the year, only starting new important and urgent projects and projects implementing policies such as markets, craft village infrastructure, Program 160... In 2012, the number of debt repayment projects and projects expected to be completed was 184 with a capital of 402 billion VND (in 2011 there were 77 projects with a capital of 56 billion VND and the plan for 2010 was 41 projects with a capital of 45 billion VND). The number of newly started projects in 2012 was 91 with a capital of 175 billion VND, a sharp decrease compared to previous years (the 2011 plan started 221 projects with a capital of 463 billion VND and the 2010 plan was 183 projects with a capital of 363 billion VND). Thus, the basic construction projects have been settled, the provincial budget capital owed from 2011 and earlier has been basically resolved in the 2012 plan according to the determined progress of the project.
- The 2012 plan management process also had many changes. According to Directive 1792/CT-TTg, all projects that have been decided to invest using the State budget and Government bonds, only implemented in the planning year with the corresponding value according to the assigned planned capital level did not create additional outstanding debt for the entire province's basic construction, limiting the situation of long-term debt due to paying off old debt and then incurring new debt. The adjustment and addition of investment scale has been limited, mainly only adjusting the total investment for projects with changes due to prices, state policies, and investment priorities according to the initial scale of the project that has been determined. Therefore, the need for investment has been limited.
- To prepare the 2013 plan, the Department of Planning and Investment advised the Provincial People's Committee to issue Directive No. 25/CT-TTg dated October 25, 2012 to review and classify basic construction debt. At the same time, review the investment needs in the province, from there classify and arrange the projects to have appropriate solutions, clarify the investment needs from the provincial budget including the contents of completed volume with settlement, implemented volume not yet settled, projects with capital still lacking compared to the total investment of the project, total investment of projects that have not yet started. Some new contents in the 2013 plan are identified as: Projects with settlement must repay debt according to the progress determined in the annual plan and the capital source capacity belonging to the expenditure task of the provincial budget, in which priority is given to repaying the volume according to the total investment approved initially and the additional part due to price adjustment according to regulations.
In 2013, the capital source for debt repayment is 2 times higher than in 2012; transitional projects are prioritized to arrange for payment of the completed volume from December 31, 2011 onwards of the projects. For the volume of implementation exceeding the capital plan assigned from 2012 onwards, the investor will be responsible for mobilizing capital sources for payment according to the provisions of Directive 25/CT-TTg. For projects that have determined technical stopping points, the investor is required to have a plan to select the technical stopping point and submit it to specialized agencies for appraisal before announcing the capital to implement the 2013 plan; For other unfinished projects that are not yet able to balance capital, there must be appropriate solutions (converting the investment form or firmly suspending the project); Minimize the commencement of new projects, stop the commencement of new headquarters projects. Focus local budget capital on eliminating communes with no healthcare facilities and building technical sewers for intra-field traffic.
Reporter: The province and the Department of Planning and Investment have recently paid much attention to supporting and developing businesses. Could you tell us about the effectiveness of this work?
Mr. Nguyen Van Do:Up to now, the whole province has 10,724 enterprises and 608 cooperatives established. The activities of enterprises have contributed nearly 46% of the province's annual production value; creating jobs for about 19,000-20,000 workers each year. The contribution to the provincial budget revenue from enterprises has continuously increased over the years, accounting for a large proportion of the total revenue in the area. In 2011, 6,603 enterprises contributed nearly 4,000 billion VND to the budget, accounting for more than 50% of the total revenue in the area. In the first 10 months of 2012, enterprises in our province paid 3,070 billion VND to the provincial budget, accounting for 77.8% of the total revenue in the area.
Since 2011, affected by economic recession, natural disasters, inflation, epidemics and facing economic potential, modern technology, and competitive experience of domestic and foreign enterprises, Nghe An enterprises have encountered many difficulties. Up to now, 4,635 enterprises have been dissolved and closed their tax codes (accounting for 40.9% of established enterprises) and 998 enterprises have temporarily suspended business. Of the 6,697 operating enterprises, 714 have tax declarations of 0.
Faced with common difficulties, the Department of Planning and Investment has reported on the assessment of the business situation, advised the Provincial People's Committee to promptly direct the sectors to synchronously implement solutions to remove difficulties and support business development, such as: Adjusting land rental prices for businesses, exempting and extending some State budget revenues according to Resolution 13/NQ-CP dated May 10, 2012 of the Government, resulting in exemption and reduction of 264,215 million VND; Supporting businesses in accessing capital.
The Department of Planning and Investment has also strongly reformed regulations on market entry to support businesses: In the past, businesses needed 15 working days and 7-8 trips to complete business registration procedures. Now it has been reduced to 5 days and 1-2 trips, but still strictly follows the procedures and regulations.
Support businesses to improve their competitiveness and implement preferential policies in the following directions: Support for science, technology and engineering: The Provincial People's Committee issues mechanisms to encourage and support organizations and individuals to invest in technological innovation, research, and application of scientific and technological advances to improve the competitiveness of products in Nghe An; establish a Fund to encourage the development of science and technology.
The Provincial People's Committee approved the Project "Developing Nghe An Enterprises in the period 2011-2015" to guide the development of enterprises. Every year, the provincial budget allocates 400 million VND for training and fostering the team of entrepreneurs and vocational training for workers.
- Support for market expansion promotion: The Provincial People's Committee has approved the Nghe An Trade Development Plan to 2020, orienting export development in Nghe An province in the period 2011-2015. Every year, the Provincial People's Committee organizes an investment promotion conference to meet with domestic and foreign enterprises and investors; the provincial budget allocates from 150 to 300 million VND for trade promotion activities. In 2012, the province organized a working session with the Taipei Trade Office delegation, which is preparing for an investment promotion conference in Japan.
- Creating conditions for enterprises to access production and business premises: The Provincial People's Committee has directed the planning and investment in the construction of economic zones (EZs), industrial parks (IPs), and industrial clusters (ICs). Up to now, the whole province has 41 ICs with a total area of 899.59 hectares, of which 8 IPs have a total area of 2,800 hectares; the Southeast Economic Zone has an area of 18,826 hectares. Essential infrastructure for roads, electricity, water supply and drainage has been and is being invested in and built. The IPs and ICs have attracted 210 investment projects. Of which, the province's IPs have granted Investment Certificates to 97 projects, of which 42 projects have come into operation.
- Support access to information: Through many forms such as organizing training, propaganda on media, broadcasting columns on radio and television, printing leaflets and documents. The Council coordinates the dissemination of legal education, all levels and sectors in the province to disseminate the law to businesses and related civil servants.
Thanks to that, many businesses have had their difficulties resolved, continued to develop, and created jobs for many workers.
In the coming time, the Department of Planning and Investment will continue to advise the Provincial People's Committee to continue directing the implementation of Resolution No. 13/NQ-CP on implementing a number of solutions to remove difficulties for production and business, and support the market. Direct departments and branches to advise the Provincial People's Committee to review, amend and supplement mechanisms and policies with the goal of removing unreasonable investment barriers, creating all favorable conditions in terms of infrastructure, premises, human resources, administrative procedures, etc. to remove difficulties for production and business, encourage investment of economic sectors; Prioritize the allocation of State budget capital to invest in infrastructure projects to remove difficulties in production premises to support enterprises investing in industrial parks and clusters; Continue to propagate and disseminate laws to civil servants managing enterprises and to entrepreneurs. Consolidate and improve the operational efficiency of business support centers; Strengthen state management of enterprises.
PV: Thank you!
Chau Lan (Performed)
