Small and medium enterprises (SMEs) play a very important role in economy. To speed up development of SMEs, the province has over the past years applied policies for the sake of growth for SMEs. Binh Duong conducted PM’s Decision No. 236/2006/QD-TTg on developing SMEs for the 2006-2010 period. Especially, to assist SMEs in the integration period, the provincial People’s Committee on July 22, 2010 issued a plan No. 2143/KH-UBND on implementing Decree 56/2009/ND-CP. Accordingly, the plan was to ratify establishment of structure, concrete policy to hasten SMEs’ growth and to create a healthy competition.

  

A production line at Lai Thieu animal food company.

The local administration steered relevant agencies to apply the State’s regulations and policies, set out concrete goals to develop SMEs. In reality, the number of SMEs in the locality has over years developed rapidly. Before 1999, SMEs accounted for less 50% of registered businesses. In 2005, the rate reached 87.9% and jumped to 95.6% in 2010. SMEs have accounted for 52.7% of local GDP structure, placing jobs and increasing income for nearly 60% of local workforce. SMEs’ positive development has over years contributed to local stability on eco-politics and social welfare.

The local SMEs have showed a rapid adaptation on economy in the past period of global economic recession. SMEs have been developed across urban and rural areas and can mobilize and exploit potentials, sources from the society, generating a healthier competition between economic sectors. However, SMEs have faced obstacles of capital, production land… In addition, SMEs have faced shortage of linkage between production and consumption.

To assist SMEs effectively, it is necessary to conduct some solutions as follows:

-Keeping completion of legal framework, administration reform and distinctive policies in the stable and transparent trend of offering investment climate, production-business for SMEs.

-Issuing and applying regulations of developing supportive funds for SMEs, improving approaches of financial and credit capital sources for SMEs.

-Improving competition of SMEs via trade promotion, business administration and technology.

-Implementing assistances for SMEs under programs suitable to sectors, areas.

-Strengthening relations between SMEs supportive agencies.

As a dynamic province on economic development, the province has enough determination to mobilize the whole society’s potentials for local socio-economic development in general and SMEs growth in particular in the period of 2010-2015.

Reported by Master Ly Xuan Tha – Translated by A.C