Unleashing resources to promote private economy in the South Central region

Removing barriers

One of the biggest difficulties for private enterprises is the lack of premises for production and business, while land lease procedures are still very complicated. Currently, many private enterprises have been and are having to lease land, but it is not stable, they can only rent for a few years and then have to be reclaimed and have to move elsewhere.

Mr. Nguyen Van Dung, director of a construction company in Quy Nhon City (Binh Dinh), shared that investment licensing procedures, especially for projects using land, still have many problems. Some applications have to wait up to a year to be processed, causing businesses to miss out on market opportunities.

Another difficulty is the incomplete legal system. For example, in Binh Dinh, the lengthy and complicated process of applying for a business license has discouraged many people. Many households choose to maintain a small scale to avoid administrative procedures. “We want to legalize production to expand our scale, but every time we submit an application, new requirements arise. Sometimes it takes a whole month to receive a license...”, said Mr. Tran Van Minh, a horse hat maker in Phu Gia.

In addition, many businesses in the South Central region reported difficulties in accessing loan packages due to lack of collateral and business plans that do not meet the conditions of banks. At the same time, capital mobilization forms such as investment cooperation or financial association are still new and have not been widely applied. These difficulties make it difficult for private businesses to expand their production scale. In fact, although there are some preferential policies for the private economic sector, they are not strong enough. Meanwhile, many preferential policies and support policies of the Government are not easy to access for the private economic sector...

In recent times, localities in the South Central region have focused on reforming administrative procedures; implementing many solutions to encourage and create favorable conditions for all economic sectors...

However, the issue that private enterprises are currently concerned about is equality in production and business with other economic sectors; being guided, assisted, and advised by the State on laws and economic information; being given favorable conditions in business registration, land lease, direct import and export, access to domestic and foreign markets, access to investment support capital sources, preferential credit, credit guarantees; being equal in bidding and contractor appointment; having the rights of business people protected and participating in emulation and reward forms organized by the province... And the most important thing is still a very specific policy system.

Create a favorable environment to support business innovation

A clear mark of the Vietnamese economy in recent years is the emergence of many large economic projects, including contributions from private economic groups such as Truong Hai Group Joint Stock Company ( THACO ) in Quang Nam province, VinGroup in Khanh Hoa province...

Mr. Nguyen Tien Dung, General Director of Phong Phu - Phu Yen International Investment Joint Stock Company, said that in order for businesses to develop and stand firm in the current context, the State needs to create a more favorable business and investment environment.

Specifically, the State needs to support compensation and site clearance; facilitate investment policies and tax policies. Regarding the textile industry, Mr. Dung suggested that the State should have labor policies, such as reducing the age for female workers; creating an equal environment for all social insurance contributors for workers in the private and state-owned enterprises.

According to the People's Committee of Phu Yen province, the province will publicize and make transparent plans, industry development projects, land use plans, and construction plans so that investors and businesses can clearly understand information and make appropriate investment orientations; create a favorable environment to support innovative businesses; effectively carry out business start-up activities, limit "movement" activities; ensure business rights, equal access to resources and business opportunities for businesses.

In the coming time, the provinces in the South Central region will continue to improve private investment mechanisms and policies; mobilize non-social capital to invest more deeply in infrastructure and public services; promote investment in urban technical infrastructure and housing development projects to meet the needs of urbanization and improve people's lives; increase mobilization and diversify investment resources through public-private partnership models, socialized capital, foreign support capital, etc.

“To promote sustainable development of the private economic sector, ministries, branches and the Central Government need to continue to simplify and make transparent administrative procedures, especially in the fields of tax, land and investment. At the same time, implement policies and resources to support businesses in improving their competitiveness, reducing costs for businesses, increasing access to preferential loans and support resources from the State; credit capital from financial institutions; promptly and fully apply policies to reduce and exempt taxes for businesses, and promote digital transformation,” Nguyen Anh Nam, Deputy Director of the Department of Finance of Quang Ngai province, suggested.

Resolution No. 68-NQ/TW on private economic development has proposed specific solutions to ensure that private enterprises have fair access to development resources, including synchronizing the legal system and administrative procedures related to investment, construction, land, and environment. The guiding views in the resolution are clear. The remaining issue is to soon build a common legal corridor, creating favorable conditions for the private economic sector to have a transparent ecosystem for development.

Lesson 1: Promoting private economy in the South Central region

Source: https://nhandan.vn/khoi-thong-nguon-luc-thuc-day-kinh-te-tu-nhan-khu-vuc-nam-trung-bo-post883335.html