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Small businesses struggle to find a place of production

Land prices are increasingly high while financial resources are limited, the business community, especially small and medium enterprises, is facing many difficulties.



Lack of production space has slowed down opportunities for factory expansion and business development strategy. In spite of solutions to support and remove difficulties over the past time, the effectiveness is still not high.

a22.jpgProduction in progress in a mechanical engineering enterprise in Bien Hoa

Difficulties in manufacturing premises 

 For over the years, Nguyen Duy Hung, Director of Hung Thinh Phat Company Limited (Bien Hoa), majoring in logistics, is aware of having a large space to serve the needs of business expansion and container parking. The company has also set up a profile to apply for and get approval of the investment location in the planning of Thanh Phu - Thien Tan Industrial Complex. However, due to problems from land procedures, so far, the unit has not been able to implement the project.

Similarly, another enterprise in the field of supporting industrial goods in Trang Dai Ward is currently developing quite well with many new production orders signed, but when it comes to expanding the scale of the factory, it is really discouraging. The existing area of several thousand square meters has now become cramped. Moreover, when the factory was built, the population in the area was still sparse; after a few years it has become crowded, making the factory of the enterprise become a production place in the residential area, but the search for a larger premise is not possible in the present.

That is the common situation of enterprises, especially small and medium ones, which are not "affordable" enough to rent land in zones, even industrial clusters because of high rental rates.

Striving for solutions to remove difficulties

In fact, in Dong Nai, industrial land is also increasingly scarce, even for large enterprises and foreign invested enterprises. Therefore, the province has planned to increase thousands of hectares of land with newly built industrial zones. The trend of moving industrial zones to local areas is also expected to partly cool down the rise in land rental rates.

Particularly for small and medium enterprises, Dong Nai has also made efforts to build industrial clusters for rearranging production facilities and craft villages, and building specialized industrial clusters, but in practice, so far the efficiency is still not high yet. Only a few clusters have been invested in synchronous infrastructure while there are tens of thousands of small and medium enterprises in operation. This leads to the fact that despite of many plans, the land fund eligible for businesses to rent is still very limited and the land rental price here is not "comfortable".

In that context, Dong Nai is flexible in developing supporting policies for small and medium enterprises, especially businesses in priority sectors such as supporting industries. Projects to support small and medium enterprises up to 2025 as well as a number of supporting schemes and programs have been implemented and built, including solutions to support infrastructure costs and land lease in industrial clusters. Eligible businesses can be supported up to 100% within 5 years with an area of ​​5 to 8 thousand square meter.

However, each year only a few businesses is entitled to support with very strict criteria. The business community also wants the issued policies to be more practical to the needs of the majority. In addition to policy support, businesses need information about international economic integration. This is a difficult matter for small and medium enterprises, especially information about production and economic orientation of the State.

Vi Quan


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