Resolution No. 68-NQ/TW of the Politburo on private economic development Part 2: Solving the 'thirst' for capital and expanding land funds for private enterprises

The “key” that opens closed “doors”...

Capital is extremely important for businesses, especially start-ups. Especially since the Covid-19 pandemic, the impact of the economic recession ... has made many businesses that were already struggling even more difficult.

Sharing the difficulties of the business community, Mr. Tran Van Minh - Vice President and General Secretary of the Hanoi Young Business Association (HANOIBA) said: Through many contacts, in-depth and close monitoring of the business situation, I realized that they almost have no collateral to borrow capital for business. Currently, the majority of small and medium-sized enterprises (SMEs) rely on capital from banks. Banks themselves also want to lend capital to businesses, but they still have to comply with the law, have to preserve finances and have profits, so businesses should diversify their capital sources.

“In the context of accessing capital to boost production and business activities, reducing lending conditions for SMEs by credit, debt repayment plans, feasible business plans, commitments, transaction history with banks... as proposed by Resolution 68 will support optimal capital for enterprises - this is a very meaningful work, contributing to solving the capital problem that enterprises have been struggling with for a long time”, said Mr. Minh.

On the business side, Ms. Nguyen Thi Khuyen - CEO of NASAKI Vietnam Co., Ltd. shared: “For us, land fund and capital have been “two bottlenecks” for many years. The fact that Resolution 68 opens up the direction to remove barriers in accessing land, credit and tax policies is a very encouraging signal, especially when we want to expand the factory, increase the scale of exports and invest in green technology. These new regulations are not only a driving force but also a “golden opportunity” for businesses to upgrade their operating model, access larger resources, thereby enhancing their competitiveness.”

Ms. Tran Thi Thu Trang - Chairwoman of the Board of Directors and General Director of Hanel PT Electronics Company also said: “In Resolution 68, I especially appreciate the mechanisms on priority land funds for science and technology enterprises that we are planning to implement such as: Minimum 30% reduction in land rent; 3-year corporate income tax exemption; 200% deduction of R&D costs, green credit with an interest rate of 2%/year - things that many years ago we only dared to dream of”.

Be proactive, take advantage of the offers!

According to Chairwoman and General Director of Hanel PT Electronics Company Tran Thi Thu Trang, opportunities will only become reality if enterprises also transform themselves. To do so, enterprises must: Be transparent, professional and ready to demonstrate the effectiveness of technology investment; Know how to plan long-term, seriously invest in R&D, develop human resources and international standard management; Proactively approach policies, contribute voices so that policies are increasingly closer to reality.

“When the State “opens the way”, businesses must take the lead. And I believe that, if effectively implemented, Resolution 68 will be a historic turning point in forming a generation of Vietnamese entrepreneurs with aspirations, ethics and global courage,” said Ms. Tran Thi Thu Trang.

Mr. Nguyen Trung Hieu - General Director of UKG Group Corporation also shares the same opinion when he said: "Incentives on land fund, tax and credit are key factors that directly affect the operating costs, expansion capacity and competitiveness of enterprises - especially the SME sector. When policies are relaxed and procedures are simplified, it is not only a "relief of financial pressure", but also a "catalyst" for enterprises to boldly invest, innovate and develop more sustainably!".

According to this person, enterprises need to be more proactive in three points: First, closely follow policies, promptly update information, enterprises must consider grasping policies as part of their operating strategy; Second, financial transparency, standardizing records: Many preferential policies on capital or tax require clear records and transparent financial reports. This is the point where many enterprises are still weak; Third, proactive thinking - do not wait. Policies are the framework, but enterprises must be the ones to "give the green light" to move forward. Enterprises need to proactively learn, ask questions, propose solutions and coordinate closely with functional agencies to turn regulations into specific advantages for their enterprises.

To take advantage of this opportunity, businesswoman Nguyen Thi Khuyen advised: Enterprises need to focus on three things: First, standardize legal and financial documents to be eligible to access incentives: This is the weakness of many SMEs today; Second, strengthen management capacity, digital transformation and information transparency, to create trust with banks, investors and management agencies; Third, proactively update policies, participate in public-private dialogue, through associations and business clubs to both understand policies and promptly reflect difficulties.

Ms. Tran Thi Thu Trang - Chairwoman of the Board of Directors and General Director of Hanel PT Electronics Company:

“I was really moved when reading Resolution 68. Not only because it is a policy, but also because it is a strong commitment from the Party and the Government to private enterprises, the force that is contributing 50% of GDP and nearly 82% of the country's workforce...”.

Ms. Nguyen Thi Khuyen - CEO of NASAKI Vietnam Co., Ltd.:

“As an entrepreneur starting from scratch, I was really moved and full of expectations when Resolution 68 was issued. This is not only a political message but also a strong commitment to action - that the private economy is truly an important driving force of the country's economy and the State is accompanying to remove barriers, creating a more equal and transparent investment and business environment. I believe that when policies are truly put into practice and businesses proactively change their management thinking, the aspiration to develop and bring the country into the era of national development is no longer a distant dream, but a near future for Vietnamese businesses.”

D.Trang - V.Huong

Source: https://baophapluat.vn/nghi-quyet-so-68-nqtw-cua-bo-chinh-tri-ve-phat-trien-kinh-te-tu-nhan-bai-2-giai-con-khat-von-va-mo-rong-quy-dat-cho-doanh-nghiep-tu-nhan-post548746.html