Vinh Phuc Supporting Businesses to Overcome Difficulties

In the first months of 2023, slowing global economic growth, shrinking consumer demand and increased cost burdens hit the business operations of Vinh Phuc province-based enterprises. The number of temporarily closed companies and dissolved companies rose by 43% and 20% year on year, respectively. Before this tough challenge, the Vinh Phuc Provincial People’s Committee promptly supported businesses to regain their motivation and spirit.

Provincial and local agencies are implementing many solutions to promote business development

According to a survey of 355 companies of all sizes in Vinh Phuc province, in the first months of 2023, 16 large enterprises and 156 small and medium-sized enterprises reported confronting difficulties due to fewer orders from customers and shrinking consumer markets; 51 companies reported capital shortages; 60 enterprises lacked unskilled and high-quality workers; 25 companies reported overlapping inspections from authorities; nine companies lacked production space; 13 companies found it hard to handle administrative procedures; and nine companies struggled with supply chain disruptions. In addition, many lacked production orders from December 2022 and operated at 35-50% of their production capacity.

To remove difficulties for businesses and regain positive economic growth from the second quarter of 2023, the Vinh Phuc Provincial People’s Committee directed the Department of Planning and Investment and the Industrial Zones Management Board, to host many meetings with relevant bodies and businesses to grasp situations and offer solutions to each difficulty and problem. Specifically, regarding the credit source plan agreed on April 17, 2023, the lending between credit institutions and customers shall comply with the Law on Credit Institutions and Circular 39 of the State Bank of Vietnam on the lending activity of credit institutions and foreign bank branches to customers. Regarding labor, the Department of Labor, Invalids and Social Affairs has solutions to forecast demands to limit local labor shortages in industrial zones. The Department of Industry and Trade studied and proposed solutions to relocate outsourcing projects and factories that do not harm the environment, employ a lot of unskilled workers and do not require skilled workers to rural areas to create jobs for local people.

As for difficulties in administrative procedures, Vinh Phuc will accelerate e-government construction, improve the operation quality of the Public Administration Service Center; direct authorities at all levels to strictly implement Directive 23 of the Prime Minister to prevent harassment, corruption and trouble to the people.

Only in the first three months of 2023, the assistant team of Vinh Phuc Provincial People's Committee received about 30 documents, 250 phone calls, and nearly 400 SMS messages through the hotline. The province opened many dialogues with enterprises to seek solutions to deal with their hardships. The radical instructions of the Provincial People's Committee towards provincial departments and agencies were frankly raised at the dialogues in a bid to correct the working responsibility of public employees.

Determined to improve the investment environment and maintain its PCI rankings in the Top 10, at recent conferences on solutions to corporate difficulties and obstacles, Chairman of Vinh Phuc Provincial People's Committee Le Duy Thanh requested provincial and local agencies to actively grasp situations and propose solutions to remove difficulties, promote growth, and restore production and business. Especially, they must continue to effectively implement the Scheme on SME support and help local companies to gradually switch to sustainable production and business development; transparently publicize land planning and other planning to enterprises.

At the same time, they are required to improve State management of environmental protection, guide enterprises in energy conservation, and encourage companies to adopt green production, investment and business approaches.

By Manh Dung, Vietnam Business Forum