Head of VCCI Legal Department: Nghe An needs a strategy to develop private enterprises

PV:How do you evaluate the efforts in institutional improvement and administrative reform in Nghe An in recent years?

Mr. Dau Anh Tuan:In recent years, Nghe An province has made quite strong movements in its efforts to improve the business environment and reform administrative procedures. Nghe An's Provincial Competitiveness Index (PCI) has steadily improved over the past 4 years and for the first time entered the group of 20 highest provinces and cities in the country. In my opinion, this is due to the province's methodical and open-minded approach.

Transaction at the one-stop department of the Provincial Investment Promotion Center. Photo: PV

Nghe An is a locality with an ambitious and systematic program of reforming the business environment and improving PCI, which is included in the Resolution of the Provincial Party Committee and is demonstrated through many specific and practical programs of the Government. For example, in investment promotion, Nghe An has regularly and persistently maintained an influential and resounding Investment Promotion Conference for many years.

A few years ago, Nghe An also established the Investment Promotion and Support Center under the People's Committee. This is also a new approach to investment promotion and is reflected in its name. Investment promotion but the investment support function is emphasized on par with the promotion goal. Promotion comes with support or in other words, supporting investors is the most important way of promotion.

In 2018, Nghe An ranked 19th out of 63 provinces and cities on the Provincial Competitiveness Index (PCI). Along with that, the Public Administration Reform Index (PAR index) ranked 29th out of 63 provinces and cities; In the Provincial Governance and Public Administration Performance Index (PAPI), Nghe An ranked 4th out of 63 provinces and cities.

PV:In terms of PCI index, although Nghe An has entered the top 20 of the country; however, from the perspective of the component indexes and through observing the practical situation of the province, in your opinion, what does Nghe An need to improve?

Mr. Dau Anh Tuan:Going deeper into the survey results, with Nghe An, businesses and investors are somewhat satisfied with the initial procedures when businesses enter the market such as investment registration procedures or business registration, land access. In the PCI index system, these are the indexes in which Nghe An ranks among the top in the country, in or close to the top 20 provinces and cities. In particular, the business support service index of Nghe An last year ranked 2nd in the country.

Producing corrugated iron at a private enterprise in the province. Photo: Hoang Vinh

However, it is worth noting that for the group of procedures after registration, entering business activities in the province such as time costs, informal costs... Nghe An has been in the latter group for many years. In PCI 2018, Nghe An's time cost and informal cost indexes are among the lowest in the country.

Thus, Nghe An has been quite successful in promoting investment and reforming procedures for investors to invest and enter the market. However, it is necessary to pay more attention to the group of post-investment procedures. The important solution in the coming time, I suggest that Nghe An province, in addition to promoting investment very effectively, must also take care of investors, following the slogan "following every step of investors". This way will demonstrate a change in thinking from asking for and giving to thinking and acting like investors themselves. The approach must be from licensing and allowing to thinking of serving and taking care of investors and businesses.

Paying attention to each project after licensing plays a very important role in attracting investment, and is an effective way to attract professional businesses. Promoting the image and investment environment will become most practical when taking the effectiveness of supporting and taking care of businesses after investment as a measure of the investment environment. On the business side, the actual experience of the investment environment and the success of previous businesses will be more convincing evidence than advertising, propaganda or any other investment promotion program.

PV:According to you, what policies does Nghe An need to promote to support and develop businesses when they are a very important force for the province's development?

Mr. Dau Anh Tuan:Nghe An has been relatively successful in promoting the development of a number of large projects, especially investing in industrial park infrastructure, and has initially had many important projects.

A complex invested by a private enterprise in VSIP Nghe An Industrial Park. Photo: Thanh Duy

In addition to large investment projects, I would like to emphasize that the very important driving force for the province's development in the coming time is private enterprises, from business households to enterprises that are officially operating under the Enterprise Law. Investing in agriculture, developing private enterprises and upgrading tourism services is probably the sustainable development direction of Nghe An. Although the industrial value and budget revenue of Nghe An are not "magnificent" compared to neighboring provinces, this development method will certainly bring benefits to the majority of people, create more jobs, protect the environment, and follow the direction of inclusive development where no one is left behind.

According to this orientation, Nghe An, in addition to inviting “leading cranes”, must also have a strategy for developing private enterprises. Currently, the average enterprise rate per capita is still quite modest, in the second half of the country. That is not to mention that most of Nghe An’s private enterprises are small and medium-sized, many are micro-enterprises. Nghe An also does not have many outstanding products and brands nationwide and regionally.

Having more newly established businesses, besides attracting many foreign projects is an important problem for Nghe An. Because this is to ensure enough jobs for workers. Nghe An is a populous province, with a large number of young workers entering the market every year, the number of workers shifting from the agricultural sector is high, so where will jobs be created if not mainly in private enterprises, both formal and informal?!

The specific and practical activities that Nghe An should carry out are: Reviewing and recommending the removal of barriers and difficulties that investors encounter; assessing the effectiveness of the implementation of issued policies, including assessing the implementation level of relevant departments and branches; promoting dialogue between the government and businesses; exploring new initiatives to improve the business environment... These are very important and meaningful activities.

The destination here is not only investment projects with specific investment capital and short-term achievements, but also a favorable, safe and sustainable investment environment that any investor, whether in the province or outside the province, domestic or foreign, large or small, all can benefit from.

PV:Thank you!