Many policies to support small and medium enterprises

By the end of 2022, Lao Cai had 6,841 enterprises granted registration certificates, with a total registered capital of VND91,077 billion, of which more than 90% were small and medium enterprises. Due to many reasons, the production and business situation of enterprises is currently facing many challenges. Therefore, the business community expects the province to have solutions to remove and support to overcome difficulties.

According to the report of the Provincial Business Association, the Lao Cai business community contributes about 70% of the province's total GRDP, more than 50% of the province's total domestic budget revenue and total investment capital; creating jobs for about 80,000 workers.

The province's goal is that by 2030, the whole province will have about 16,000 enterprises, of which about 70% will operate effectively, each year registering about 900 new enterprises, creating new jobs for about 8,000 workers, contributing about 75% of the province's total GRDP, 60% of the total domestic budget revenue in the area, accounting for 60 - 70% of the province's total investment capital.

However, business operations, especially small and medium enterprises, still face many difficulties.

Enterprises operating in the province's industrial parks said that the province's land rental prices are higher than those of industrial parks with similar conditions, the infrastructure in the industrial parks has not met the requirements for investment expansion, and some products of enterprises in the industrial parks are facing difficulties in the consumption market.

Meanwhile, businesses in the construction industry reflect that most of them are small and medium-sized, so they are not qualified to participate in large-scale projects, lack jobs, and businesses are increasingly facing difficulties.

According to the Provincial Business Association, since the Covid-19 pandemic broke out, many supply chains have been disrupted, along with subjective factors that have caused many difficulties for businesses.

The business community expects the province to have solutions to remove and accompany businesses to overcome difficulties.

At meetings to resolve difficulties for businesses, provincial leaders always affirmed the role and importance of the business community.

The province has issued many mechanisms, policies and programs to connect, support and create conditions for businesses to continue to develop and contribute more to the province's development.

These are Project No. 246 dated July 8, 2022 of the Provincial People's Committee on developing enterprises in Lao Cai province to 2030, with a vision to 2050; Decision 3911/QD-UBND dated November 3, 2021 on establishing a special working group to remove difficulties for businesses and affected people; Decision 325/QD-UBND dated February 20, 2023 on establishing a working group to accelerate the implementation progress and disbursement of public investment projects in 2023 in Lao Cai province...

The province issued Plan 331 dated September 30, 2022 on supporting small and medium enterprises in 2023. Implementing 3 groups of subjects: Enterprises established, organized and operating in accordance with the provisions of the law on enterprises in the province that meet the criteria for determining small and medium enterprises prescribed in Article 5 of Decree 80/2021/ND-CP of the Government ; business households wishing to convert into enterprises in the province; agencies, units and individuals related to supporting small and medium enterprises.

Lao Cai province also deployed 11 tasks and solutions to support small and medium enterprises, including: Propagating and disseminating laws; supporting access to capital and credit; supporting taxes and accounting; supporting production premises; supporting technology, supporting incubators, technical facilities, and co-working spaces; supporting market expansion; supporting legal advice information; supporting human resource development; supporting small and medium enterprises to transform from business households; supporting digital transformation and creative startups; supporting participation in industry clusters and value chains.

Regarding the facilitation of small and medium enterprises to participate in bidding for construction projects of the province, Lao Cai province thoroughly instructs investors to strictly implement the provisions in Clause 3, Article 6 of Decree 63 dated June 26, 2014 of the Government detailing the implementation of a number of articles of the Law on Bidding on contractor selection: For construction and installation packages with a package value of no more than 5 billion VND, only small and micro-sized enterprises are allowed to participate in bidding according to the provisions of the law on enterprises.

In fact, Lao Cai province annually approves investment policies for about 200 projects, of which about 30% of the projects have construction packages under 5 billion VND.

For large-scale projects, in the coming time, the province will assign departments and branches to study the separation of independent, small-scale construction items into independent bidding packages, creating favorable conditions for small and medium-sized enterprises.

At the same time, it is recommended that small and medium-sized enterprises actively form joint ventures and associations to improve their capacity and ensure they are qualified to bid for large-scale bid packages.

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