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Efforts to support small and medium enterprises

In June 2017, the Law on Supporting Small and Medium Enterprises (SMEs) was passed and applied with the goal of removing difficulties and obstacles, helping the business community to develop. But up to now, after 5 years of implementation, many bottlenecks still exist for enterprises such as: difficulty in accessing credit capital, land, difficulty in accessing support programs.


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Produced at a start-up enterprise in Bien Hoa City
 

Businesses still lack information

According to a survey by the Vietnam Chamber of Commerce and Industry (VCCI), the small and medium-sized enterprises sector currently accounts for about 98% of the total number of enterprises operating in Vietnam, contributing up to 45% to GDP, 31% to the total budget collection, and attracting more than 5 million employees. Although the Law on Supporting Small and Medium Enterprises has been implemented for 5 years, through the recently announced Provincial Competitiveness Index (PCI) survey of VCCI, about 51.3% of enterprises answered that they do not know the Law on Supporting Small and Medium Enterprises. Among enterprises who know this law, only 36.8% of enterprises have benefited from at least one support program.

“We do not have enough money to move the factory into the Industrial Zone because of the strict regulations and criteria. Manufacturing factories have long been rented or businesses have managed to buy space, but they are also very small. In the current situation, even though we have enough technical capacity, production space is still one of the factors hindering the development of small businesses” – Mr. Ngo Thanh Binh, Director of Product Trading Service Co., Ltd. Quyet Thang, Bien Hoa City worries.

Also from the lack of information, the level of difficulty in complying with the procedures to receive benefits may be higher than it actually is. This shows that the propaganda is still limited. Therefore, it is necessary to make appropriate adjustments in the implementation of the Law on Supporting Small and Medium Enterprises, especially in the context that the business community is in need of more timely support to recover after more than 2 years of suffering from the impact of the Covid-19 pandemic.

In Dong Nai, up to now, about 40,000 enterprises have registered information on the national portal on business registration. As one of the localities with a large number of businesses, attention and support is very important. In particular, focus on promoting administrative reform to cut costs, create favorable conditions for businesses in handling administrative procedures, and enhance business support services.

However, local businesses still face many difficulties. The opportunity for development and potential is great, but most businesses still lack many factors to "grow up".

Mr. Ngo Thanh Binh, Director of Quyet Thang Trading Service Production Company Limited, Bien Hoa City, passionate about supporting industry, automation. His business was established 7 years ago, but still on a small scale. The biggest problem today, in addition to the problem of capital, the production space is also a concern for a long time. Over the past 5 years, there have been several times that Mr. Binh and his associates moved their factory from Bien Hoa City to Vinh Cuu District, but for various reasons, production has not yet been stabilized.

Efforts to implement policies

Together with the whole country, in order to concretize support policies, from June 2021, the Provincial People's Committee has issued a project to support Dong Nai small and medium enterprises in the period of 2021-2025. With solutions to support and remove difficulties, Dong Nai strives to build 65.5 thousand small and medium enterprises by 2025, creating jobs for over 265,000 workers. In addition to this policy, Dong Nai has had programs that have been implemented before, according to specific industries, localities and enterprises.

As a start-up enterprise, Ms. Le Thi Cam Van, Director of Vfarm Trading Service Co., Ltd, Bien Hoa City said that the production unit's products are based on natural raw materials, contributing to creating jobs for laborers in the countryside. Like most other small and medium enterprises, difficulties about capital, machinery, production techniques and market are factors that enterprises always face in the development process. "We wish the government to support closely, especially in accessing loans as well as solutions for trade and market promotion," - Ms. Van expected.

In order to implement more practical support policies, the Ministry of Planning and Investment has just issued Circular 06 guiding a number of articles of the Government's Decree No. 80/2021 detailing and guiding the implementation of a number of articles of Law on Supporting Small and Medium Enterprises, effective from June 25. Accordingly, the content of support includes: consulting; human resource development; support small and medium enterprises to have the start-up of innovation; supporting small and medium enterprises to join industry clusters and value chains; content of managing activities to support small and medium enterprises. For innovative enterprises, they will have the opportunity to send students to participate in training, in-depth training at home and abroad.

Phan Anh

 

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