Binh Duong backs up small and medium-sized enterprises

The Provincial People's Committee has issued Plan No. 4895/KH-UBND to support small and medium-sized enterprises (SMEs) in 2024. Namely, the plan aims to synchronize policies facilitating SMEs, improve the business investment environment, motivate sustainable development and enhance the competitiveness of enterprises.

Binh Duong strives to become the country's leading destination for investment attraction. In photo: Production activities at He Vi Production and Trade Joint Stock Company (Ben Cat City)

 Provide support to overcome difficulties

According to the Provincial Department of Planning and Investment, in the first 8 months of 2024, the whole province had 5,182 newly registered enterprises with a registered capital of 30,039 billion VND, bringing the total number of domestic enterprises in the province to 70,912 enterprises with a total capital of 777,492 billion VND. The number of newly established enterprises increased by 25.9% but decreased by 5.7% in capital compared to the same period in 2023. On the contrary, in the province, there are 370 dissolved enterprises, with dissolved capital of over 2,000 billion VND.

Mr. Pham Van Xo, Chairman of Binh Duong Provincial Import-Export Association, commented that enterprises in the province are making efforts to stimulate export turnover. Many enterprises have been proactive, flexible, and have responded well to challenging production and business conditions due to the impact of the unstable world situation. They have actively controlled raw material sources, expanded customer outreach, and ensured liquidity. However, due to rising transportation costs, short-term cash flow pressures are affecting the competitiveness of businesses. Therefore, export enterprises need to proactively diversify markets and build sustainable supply chains that are flexible to market fluctuations; domestic enterprises need to have closer links...

It is noteworthy that dissolved enterprises are newly established and small-sized enterprises. These enterprises are vulnerable to adverse impacts from external shocks. Notably, domestic private enterprises could continue to shrink due to pressure on short-term cash flow, loan interest, export markets, etc. Enterprises hope that the Government, ministries, branches, and localities will have breakthrough solutions to continue helping enterprises overcome difficulties.

To create motivation for development

Plan No. 4895/KH-UBND of the Provincial People's Committee to support SMEs in 2024 clearly states that the subjects of support are enterprises established, organized and operating in accordance with the provisions of law and meeting the provisions in Chapter II of Decree No. 80/2021/ND-CP of the Government on criteria for determining SMEs; business households with business registration, with the need to develop and convert into enterprises in the province; agencies, organizations and individuals related to supporting SMEs. Enterprises will receive support for consulting and purchasing digital transformation solutions, collaborating in research and technology development. They will also be assisted in enhancing their technology capabilities, accessing markets, building their brands, and conducting trial production procedures. Innovative startups and enterprises participating in industry clusters will receive guidance on the procedures for obtaining interest rate support for loans from credit institutions.

Production activities at Thuan An Wood Processing Joint Stock Company

According to the plan of the Provincial People's Committee on improving the business environment and enhancing the province's competitiveness in 2024, Binh Duong strives to continue to become the country's leading destination for attracting investment, innovation, developing science and technology and creating an equal and safe business environment for people and businesses; namely, strive to reach 6,744 newly registered enterprises in 2024; reduce the rate of dissolved and inactive enterprises; reduce input costs, opportunity costs and informal costs for businesses and people. Meanwhile, Binh Duong has aslo made strong efforts to eliminate challenges and provide prompt support to individuals and businesses in order to revive their production and operations. The province aims to enhance its position in various rankings, including the PCI, PAPI, PAR INDEX, and SIPAS.

In order to better assist businesses in overcoming challenges, the Provincial Department of Planning and Investment has implemented digital transformation, utilized information technology and software, and actively promoted the Central Government's and the province's policies to support production and business recovery after the Covid-19 pandemic on its website for businesses and workers experiencing difficulties. The Department of Planning and Investment also established a Zalo group with the business community, with more than 400 businesses participating so far. Through that, the department receives and coordinates with relevant agencies to promptly resolve feedback and recommendations from the business community.

Nowadays, building a brand is difficult but maintaining a brand is even more difficult. Especially in the era of digital transformation, competition is increasingly fierce, and domestic private enterprises, especially SMEs, need to keep up with technology to avoid being left behind.

 Reported by Ngoc Thanh - Translated by Ngoc Huynh