Vinh Phuc Reinforcing Support for SME Development

Vinh Phuc province aims to have 1,300 - 1,500 new companies each year in the 2022-2025 period and implements various policies to support local companies, especially small and medium-sized enterprises (SMEs), to overcome difficulties, boost production, advance integration and keep pace with the Fourth Industrial Revolution.

Interflex Vina Company Limited (Ba Thien Industrial Park)

According to statistics,  Vinh Phuc has over 15,000 businesses, including more than 9,500 active ones, mostly SMEs. Recognizing the difficulties and challenges of local businesses in the context of international integration, especially entry into free trade agreements, the province has introduced many policies to support business development. The Provincial People’s Committee instructed relevant bodies to upgrade the information and communication portal and their websites to promptly provide information on planning, business support, investment projects and free advertisement for businesses.

 The Department of Planning and Investment is the lead agency for business support. It has provided useful advice for local SMEs. Director Nguyen Van Do of the Department of Planning and Investment said that the department recently invited experts from the Enterprise Development Department under the Ministry of Planning and Investment - the lead advisor on SME support content according to the Law on SME Support and related documents - to the “Conference on Implementation of Vinh Phuc SME Development Support Plan in 2023”. The experts shared information, directly answered questions and offered advice on solutions to difficulties faced by business support agencies and businesses in Vinh Phuc province. In 2023, Vinh Phuc province aims to provide consulting support for 200 SMEs and technology support for 300 SMEs. The province will also open 66 human resource development training courses.

The Department of Planning and Investment has also conducted several surveys to assess the needs of small and medium-sized enterprises. The survey results serve as the basis for implementing support activities in 2023 according to 70/KH-UBND of Vinh Phuc Provincial People’s Committee.

The Department of Industry and Trade has accelerated trade promotion, domestic and foreign trade programs and activities. It has increased domestic and foreign market information sharing to help businesses work out production and business plans and activities. The department has also encouraged businesses to establish product distribution chains. The State Bank of Vietnam (SBV) Vinh Phuc Branch has directed credit institutions to actively launch loans to support the economy. They have reviewed eligible subjects for 2% interest rate support according to regulations. According to the SBV, by January 31, 2023, commercial banks lent VND49 trillion to 3,300 companies, accounting for 48.81% of total outstanding loans. This is an increase of 16.36% from the end of 2021. At the same time, they provided VND250 billion in loans for supporting industries and VND21,700 billion for SMEs.

With timely support policies, in the first two months of 2023, Vinh Phuc had nearly 120 companies resume their operations. Many companies expanded their investment and production scale. The labor utilization index of industrial manufacturers rose by 2.96%. The output of key industrial products increased. Revenue from electronic components manufacturing services rose by 1.32% year on year to VND30,300 billion.

To further support businesses amid international integration, the Provincial People’s Committee approved the SME Support Project to 2025 at the end of 2022. The project aims to have 100% of newly established companies informed of digital transformation and have over 50% of them use digital platforms. In 2022-2025, SMEs are expected to create new jobs for 7,700 workers each year. They are also expected to increase their contributions to GRDP value by 10-15% annually and tax payments by 7-10% a year.

By Hien Nam, Vietnam Business Forum