Accompanying enterprises, dissolving the “bottleneck”, maintaining operations to overcome difficulties and develop sustainably are targets that Bac Ninh’s authorities of all levels are focused on. Vietnam Business Forum interviewed Mr Nguyen Quoc Chung, Director of the Planning and Investment Department of Bac Ninh, regarding local business climate. Duy Binh reports.
How has the local business community developed in recent years?
In 2012, enterprises in the province had to face many difficulties like shrinking consumer markets, large inventories and high interest rates, so many enterprises dissolved or malfunctioned, resulting in unemployment. However, as of 2012, the number of newly founded enterprises was 699 with total registered capital of VND3,933 billion. Up to now 5,721 enterprises are registered under the Enterprise Law with total registered capital of over VND99 trillion. Because of many difficulties, in 2012, 83 local enterprises were dissolved; 864 enterprises stopped functioning temporarily or did not declare taxes.
Currently, the province has about 4,137 enterprises that are operating under the Enterprise Law.
In 2012, Bac Ninh province licensed 41 domestic projects, approved 25 projects with total registered capital of nearly VND5 trillion, granted adjusted investment certification for 63 projects. As of 2012, the province had licensed 661 domestic projects with total registered capital of VND 74,413 billion.
In 2012, the province licensed 52 FDI projects with total registered capital of US$1,073 million, granted adjusted investment certifications for 107 projects. As of 2012, Bac Ninh province had licensed 363 valid FDI projects with total adjusted registered capital of US$4,375.6 million.
What solutions have you adopted to help enterprises deal with difficulties, and what are the results?
In the current period, to help enterprises overcome difficulties, it is necessary to well implement Plan 50/KH – UBND dated June 7, 2012, Resolution 02/NQ-CP dated January 7, 2012 of the Government on solutions to overcome difficulties in production and business activities, to support the market and resolve bad debts. The province should concentrate on comprehensively implementing the following solution groups:
Continue supporting interest rates after investment according to Decision 67/2012/QD-UBND dated October 8, 2012 of the provincial People’s Committee. Enhance operating effectiveness of provincial Financial Guarantee Fund. Deal with difficulties in annual land rent, consider over reducing land rent, water surface rent in compliance with Government’s regulations. Support market development: organise propaganda activities and implement the campaign “The Vietnamese prioritise using made in Vietnam goods” through activities like fairs, exhibitions, bringing goods to local communes and wards to boost consumption, reduce inventories and promote production. Implement appropriate solutions to attract and push up disbursement of FDI capital, especially concentrate on attracting new, large scale and high technology investment wave. Promote training and supplying human resource as enterprises require; cooperate with foreign enterprises in fields of human resource and technological exchange. Conduct solutions to deal with difficulties of real estate market and bad debts according to Resolution 02/NQ-CP dated January 7, 2013 of the Government on solutions to overcome difficulties in production and business activities, to support the market and resolve bad debts.
What have you done to improve the province’s PCI ranking?
The provincial committee has promulgated Directive 17-CT/TU dated March 14 2012; Chairman of provincial People’s Committee has issued Plan 16/KH-UBND dated March 14 2012 continuing to improve business environment, increase provincial competitiveness level, including identifying solutions to improve business environment, enhancing Provincial Competitiveness Index (PCI), addressing weaknesses in provincial business environment, maintaining the leading position, improving investment attraction, supporting enterprises development and economic development in the following period.
Enhance enterprise supports, shorten business registration time, reduce inconveniences for enterprises, coordinate with relevant organisations to timely solve inquiries of enterprises, at the same time better manage enterprises after registration; Proactively reform administrative procedures, upgrade the provincial electronic portal; Enhance transparency in management and direction; Carefully prepare infrastructure to inaugurate modern one-stop shop mechanism in 5 provincial departments; Review, support public units with the function of supporting enterprises, improve connection with enterprises and improve the quality of enterprise supporting service; and encourage enterprises to implement enterprise supporting service in the province.
In the PCI ranking list of the whole country, in 2012 Bac Ninh stood at the 10th place nationwide, the second of the North, the first in the Red River Delta.