Strengthening support activities for businesses.

Việt Nam•10/07/2024

In the first six months of 2024, the regional growth rate (GRDP) is estimated at 9.02%, ranking 4th in the Red River Delta region and 8th nationwide (national GDP growth for the first six months was 6.42%); attracting foreign direct investment (FDI) reached US$1.55 billion, approximately 52% of the annual plan, an increase of 118% compared to the same period in 2023, ranking 3rd nationwide. However, alongside these outstanding results, there are still some limitations that need to be addressed and overcome, including the need to continue focusing on solutions to support business development.

Production activities at TonLy Vietnam Electronics Co., Ltd. (Dong Mai Industrial Park).

According to the Department of Planning and Investment, in the first six months of 2024, the province saw the establishment of 983 new businesses (the highest number ever), reaching 49.15% of the assigned plan, an increase of 12.09% compared to the same period in 2023, double the national average (6.07%), ranking fourth in the Red River Delta region. 455 businesses registered to resume operations, an increase of 5.1%. However, 116 businesses dissolved, an increase of 21.3%; and 1,150 businesses registered for temporary suspension, an increase of 16.1% compared to the same period. Although Quang Ninh 's rate of business dissolution and temporary suspension is lower than the national average and the average for the Red River Delta region, the fact that the number of newly established businesses is less than the number of businesses that dissolved or temporarily suspended operations in the first six months of the year risks affecting the target of developing an additional 2,000 businesses in 2024, as well as achieving the target of establishing 10,000 new businesses in the entire 2021-2025 period.

The reasons stem from the impact of the economic recession, rising energy and input material prices affecting the production and business activities of enterprises. In addition, there are internal difficulties faced by businesses in accessing markets, capital, and human resources; and the support for businesses varies unevenly across localities within the province.

The Ha Long City Public Administration Center is one of the centers with the best quality in handling administrative procedures and supporting businesses today.

Mr. Do Phuc Quyet, General Director of Happy Land Group Real Estate Investment Company, said: "In the first half of 2024, the province's investment and business environment remained stable. Specifically, businesses in the tourism service sector experienced vibrant growth, showing a revival of Quang Ninh tourism to pre-Covid-19 levels. For our company, operating in the real estate and finance sectors, we also had many revenue-generating activities that brought profits. However, during the investment process, I noticed that the handling of administrative procedures at the public administrative centers in major cities and centers is very good and fast, with highly qualified and enthusiastic staff providing business support. But the same procedures still take a long time for businesses at some public administrative centers in other districts and towns. The province needs solutions to standardize the quality of administrative procedures across localities to better support businesses."

Provincial leaders participated in the Businessmen's Coffee program to discuss policies and resolve obstacles for businesses in May 2024.

With 11,590 active businesses in the province, to achieve the goal of developing businesses both qualitatively and quantitatively in 2024 and subsequent years, the province has determined that supporting and promptly resolving difficulties and obstacles affecting the investment, production, and business activities of enterprises will remain the most important factor.

Currently, the Department of Planning and Investment is drafting and advising the Provincial People's Committee to issue a Plan to support the sustainable business of private sector enterprises in Quang Ninh province until 2025 and a Plan to support the development of collective economy and cooperatives until 2025. Once issued and implemented, these plans will contribute to the sustainable development of private sector enterprises, collective economy, and cooperatives in the province, ensuring a close, rational, and harmonious combination of economic efficiency and social responsibility, contributing to the achievement of Quang Ninh province's sustainable development goals by 2030.

To increase the number of businesses, the Department of Planning and Investment and the Provincial Tax Department are also implementing strong tax measures, especially reviewing 2,036 business households that have been operating under the declaration form, in order to encourage business households in the province to convert to the enterprise form.

To encourage the development of startup businesses, the province has also inaugurated the Innovation and Digital Transformation Support Center, which provides space, facilities, and resources to support community activities, businesses in general, and startups in particular. The center contributes to increasing the number and quality of innovative and science-technology businesses; promoting local economic growth in depth based on increased contributions from science and technology; and strengthening public-private partnerships and promoting the tripartite linkage in line with the province's development orientation.

With its relentless efforts in administrative reform and improving the investment and business environment, Quang Ninh has consistently received high praise from the business community and investors for its collaborative and supportive approach. This is clearly demonstrated by the province's consecutive leading positions in reform rankings such as PCI, PAR Index, and SIPAS for many years. This has further strengthened the confidence of businesses and investors in the province, encouraging them to continue working alongside the province in achieving its socio-economic development goals.

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