Proactively unblocking capital sources for the private economic sector - Part I: Private economy - Development driving force

In fact, private enterprises in the area have been making important contributions to the development of the province, especially in economic , social and technological innovation aspects...

The leaders of the Provincial People's Committee always pay attention to private enterprises to grasp difficulties, promptly remove them, and create development motivation to help private enterprises continuously grow.

Creating growth momentum

Vinh Phuc is emerging as a bright spot in the economic growth of the Northern region with significant contributions from the private economic sector. The province currently has more than 17,000 registered enterprises for production and business, of which the private economic sector accounts for the majority of enterprises and contributes about 55% to the province's GRDP. This shows the increasingly important role of the private economic sector in promoting growth, creating jobs and improving competitiveness in the market.

In recent years, to support the private economic sector to develop rapidly and sustainably, the province has focused on directing functional sectors to implement many support mechanisms and policies specific to Vinh Phuc. Accordingly, it focuses on reforming administrative procedures to reduce time and costs for businesses; creating an open investment environment; encouraging businesses to promote the application of technology in production and business through preferential investment policies and capital support; supporting businesses to access domestic and foreign markets; regularly listening to promptly grasp and resolve difficulties and problems for businesses.

According to statistics, the province's GRDP growth rate in the first quarter of 2025 is estimated at 7.4 - 8%. This is the highest increase compared to the same period in the 2022 - 2025 period. Of which, the industrial - construction sector increased by 11.5 - 12%; the service sector increased by 5 - 6%; the agriculture, forestry and fishery sector increased by 1 - 2% over the same period. The automobile manufacturing industry alone increased by 22.42%.

In the first quarter of 2025, the implementation of investment projects in industrial parks (IPs) in the province also recorded many positive results, with estimated capital for FDI projects reaching more than 115 million USD; capital for domestic projects reaching about 650 billion VND, up 48% over the same period and reaching 43% of the annual plan.

Thanks to the contributions of the private economic sector, the province's economy has been constantly developing, while creating favorable conditions for integration with the global economy. However, a major problem that is hindering the development of the private economic sector is the difficulty in accessing capital. Although the province has many policies to support businesses, mobilizing capital from banks and financial institutions is still a big challenge, especially for small and medium-sized enterprises (SMEs). Many private enterprises have reported that they have encountered obstacles in borrowing capital, causing their production expansion plans to stagnate.

Phung Gia Mushroom Company Limited (Binh Xuyen) is one of the private enterprises in the agricultural sector that has grown rapidly in recent years, creating stable jobs for many local workers. Photo: Chu Kieu

There are still barriers

Although the province has had important solutions to support businesses, in reality, businesses still have many shortcomings in accessing capital. In fact, most of the capital flows are still concentrated in large enterprises or public investment projects, while SMEs still have difficulty accessing capital to expand production.

According to the leaders of banks in the province, the reason why private enterprises have difficulty accessing capital comes from the enterprises themselves, because they must have collateral, clear financial reports and feasible business plans, leading to many enterprises not being eligible for loans. Although the banking industry has "tried" to offer preferential interest rates, not creating financial pressure, many enterprises still do not meet the conditions according to regulations.

Viet Anh Production and Trading Company Limited, Sao Dai Viet Commune (Vinh Tuong) is a typical example of difficulties in accessing bank capital. This company operates in the field of supporting industrial production, but has encountered obstacles when borrowing capital to expand the factory due to high collateral requirements and not really favorable interest rates.

In order to access large capital sources for investment in production and business, banks require businesses to have large enough collateral to be approved for loans, which causes difficulties for companies that want to expand production but do not have assets of sufficient value.

Along with that, businesses need to demonstrate stable cash flow and a clear business plan. If the company does not have a strong enough financial report or does not meet the requirements of the bank, borrowing capital will be difficult.

Despite some provincial support programs, small businesses still have to pay interest rates that are not really preferential, leading to a reluctance to borrow capital to expand production and business activities. In addition, the loan approval process from banks can be lengthy, requiring a lot of paperwork and financial verification, putting pressure on businesses in preparing documents...

Currently, many private enterprises in the area hope that the province will continue to implement more practical support solutions to help them access bank capital more easily. Thereby helping enterprises maintain operations and create leverage to promote production expansion and increase competitiveness in the market.

The Provincial People's Committee has issued Plan No. 84/KH-UBND to implement Resolution No. 45 of the Government on private economic development with the goal that by 2025, Vinh Phuc will have about 17,500 registered enterprises, and by 2030, about 25,000 registered enterprises. Along with that, striving to increase the contribution of the private economic sector to GRDP to about 55% of GRDP by 2025; by 2030, it will reach about 60 - 65% of the province's GRDP. Striving to increase labor productivity by 5%/year; annually about 30 - 40% of private enterprises have innovation activities; narrowing the gap in technology level, human resource quality and competitiveness of private enterprises.

Thanh Nam

Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/126383/Chu-dong-khoi-thong-nguon-von-cho-khu-vuc-kinh-te-tu-nhan---Ky-I--Kinh-te-tu-nhan---Dong-luc-phat-trien