Timely Supporting Industrial Development

Vinh Phuc's industry has been adversely affected by the COVID-19 pandemic. With creative, flexible and active support measures for businesses, Vinh Phuc province has innovatively restored business operations of local enterprises and impressively facilitated industrial development.

Business operations of local enterprises have now become stable. In the first nine months of the year, the Industrial Production Index grew 13.55% from a year earlier. Main industrial products performed well in the period, with automobiles rising by 11% and revenue of electronic components by 25.7%. However, the province still witnessed over 40 enterprises pausing their operation and 140 companies working well below their capacity or scaling down production output. Over 14,000 workers were affected by the pandemic, with about 4,000 workers laid off.

During inspections, dialogues and meetings with local authorities, most businesses said that production was hard or suspended due to insufficient inputs, components and equipment; weakening economic demand; restricted mobility of foreign experts and delayed transportation of commodities. Despite having a stable customer base, many companies had their orders canceled or delayed due to lockdowns and restrictions, resulting in export contraction. Some new companies found it hard to seek customers to continue their business operations.

To help businesses to adapt to the new situation, the Vinh Phuc Provincial People’s Committee directed relevant agencies and localities to accelerate institutional reforms, remove difficulties in production and business, control input prices, and meet labor demand; effectively adopted support policies, especially for small and medium-sized enterprises (SMEs), to overcome difficulties caused by the pandemic to quickly restore their normal operations. The province has accelerated digital transformation, vigorously applied information technology to reform administrative procedures, create the most favorable investment environment and attract more investment inflows. Vinh Phuc has seriously implemented measures to support businesses as per the Government’s Resolution 105/NQ dated September 9, 2021 on support for businesses, cooperatives and business households amid the COVID-19 pandemic; reviewed, researched and considered support measures for businesses like disinfection cost, bus fares, housing rents for workers, electricity and water bills.

In the remaining months of 2021, Vinh Phuc province’s economy and industry are forecast to face difficulties. Therefore, in addition to carrying out COVID-19 pandemic prevention measures and introducing support policies for business development, Vinh Phuc will request central authorities to have support mechanisms for supporting industry companies, building capacity and performance for domestic material suppliers to reduce reliance on imports.

Last but not least, the province will have solutions to deal with difficulties and obstacles in logistics; support enterprises to boost trade, expand markets and find business partners; introduce regulations on flexible working hours in the context of no social distancing to avoid impact on business plans, thus helping them speed up and make breakthroughs in business performance in the remaining months of the year.

By Nguyet Tham, Vietnam Business Forum