Policies to support Small and Medium-sized Enterprises
- Friday - 10/07/2020 09:47
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Dong Nai currently has over 38,000 enterprises, of which small and medium-sized enterprises account for over 86%. During the COVID-19 pandemic, all businesses in general, small and medium-sized enterprises in particular, were inherently more difficult and challenges. To promote the development of the business community, the provincial People's Committee is working on a scheme to support small and medium-sized enterprises by 2025. The project is currently under process of receiving comments for completion before submitting to the provincial People's Council for review and approval in the upcoming meeting.
Understanding demand of businesses
The specific objective of said project is that the number of small and medium-sized enterprises newly established in the 2021-2025 period will grow at an annual rate of 9%, the total number of newly established enterprises in 5 years is over 30.6 thousand enterprises. The newly established enterprises from the project’s approval date may create about 300,000 new jobs for laborers in the province.
In order for policy incentives to be implemented in a spirit of supporting businesses and more accessible, in the context of limited resources, businesses have proposed that the province leaders should focus on the three main areas that are currently most in trouble: production premises, credit capital and training of corporate governance officers. The community of small and medium-sized enterprises has grown very fast in the last time; However, the biggest difficulty is that the resources of enterprises are too small, it is difficult to compete with foreign enterprises in the same field if they are not supported. Therefore, the project of special assistance is needed in the current period and needs to be implemented early, especially in terms of finance, production premises, and support for businesses to recover after the Covid-19 pandemic in 2020.
Enterprises also proposed that in order for the project to come into effect, the province leaders should establish a focal agency with full functions and authority to provide information; And receiving and handling difficulties and obstacles simultaneously, during the process of production and business of enterprises. In addition, Dong Nai should have an industrial cluster for supporting industrial enterprises so that small and medium-sized enterprises may gather. Thereby when coming here to work, foreign partners will easily visualize the chain of links and the real capacity of Vietnamese enterprises is also shown.
Many specific support content
It is expected that the total budget for policy implementation for 2020 and period of 2021-2025 of this project is VND 13.6 billion from the budget and socialization. The total expenditure mentioned above does not include the funding for production site support under Resolution No. 200 of 2019 of the Provincial People's Council; funding for legal support; funding to support small and medium-sized businesses start-up innovation and funding to help businesses join clusters of industries, value chains, etc. These are large budget packages, are calculated separately and distributed annually.
Accordingly, the Project refers to 9 groups of issues with a lot of content. In particular, the general support policy group includes: credit guarantee support for small and medium enterprises; support for production and business premises for supporting industry enterprises; support for human resource development, corporate governance, and labor quality improvement; support for the use of consulting services; free enterprise registration; guidance on tax procedures and support on legal issues, and so on.
Also, the key support policies for small and medium-sized enterprises include: support for businesses to transform from individual business households; support for small and medium-sized businesses to start up innovation; support for businesses to join industry linkages and production value chains, etc.
Nam Vu