Enterprises accompanied to be promoted out of obstacles

Along with a steady increase in the number of newly established enterprises in Binh Duong province, some enterprises had to withdraw from the market, prompting the provincial authority to actively implement many solutions to clear the bottlenecks to minimize the number of businesses having to withdraw from the market as well as helping them maintain and develop production.

Binh Duong provincial authority always strives to improve the investment environment, accompanying businesses for sustainable development. In the photo: Industrial manufacturing enterprises introduce modern equipment and machines at the Vietnam Industrial Fair 2022 held in Binh Duong

Difficulties, challenges

High cost of input materials and transportation costs have affected business activities of enterprises. Binh Duong's registration of new business establishment in 2022 and especially in the past 2 months is also deeply affected.

As businesses are accelerating to complete purchase orders as planned, in the last quarter of 2022, production and business activities encounter many unfavorable factors such as inflation, supply disruptions, declining market demand etc. of stronger impact on the business community, from production to product sales. In fact, the number of newly established enterprises of registered capital is still quite good.

Tran Do Hoai Bao - Director of He Vi Production and Trading Joint Stock Company in Ben Cat town, said that in addition to common difficulties of accessing capital to maintain production, business operation is also a problem. The current dilemma for businesses, especially small and medium ones, is the thirst for capital resources, but the current policies are neither timely nor realistic for businesses to benefit in the best way or motivating enterprises to restore production. Hopefully, in the future, the State needs to consider extending to the end of 2023 a number of supporting policies for businesses such as a 2% reduction in value-added tax and credit policies such as restructuring the repayment term, and to maintain the debt groups.

According to the Business Registry of the Department of Planning and Investment, from the beginning of the year to November 30, 2022, Binh Duong has attracted over VND 96,721 billion of business registration capital resources, including 6,024 newly registered businesses with a total registered capital of over VND 38,205 billion, increasing by 23.1% in quantity and 14.9% in capital over the same period. 1,517 enterprises have adjusted to increase capital to VND 65,415 billion, increasing by 60.9% in quantity and 40.6% in capital over the same period. In which, the number of enterprises making declaration and registration online reached over 98%. The number of newly established enterprises and the amount of registered capital resources are still increasing steadily, showing the desire to start a business despite the instability of the economy which is affecting the health of businesses.

Thu Dau Mot City area has the highest number of 1,533 newly established enterprises, accounting for 25.45% of enterprises in the province with a registered capital of over VND 12,756 billion, accounting for 33.39% of total capital resources in the province. Coming up next is Thuan An city with 1,285 newly established enterprises, accounting for 21.33% with a registered capital of over VND 8,030 billion, accounting for 21.02%.

Companion efforts

On the other hand, the number of dissolved enterprises is 530 with the dissolved capital of VND d3,821 billion. The number of enterprises registered to suspend business in the first 11 months of 2022 was 1,353, showing the fact that although Binh Duong has reopened socio-economic activities, and restored production, business, trade and services in the "new normal", it is still under the effects of the COVID-19 epidemic.

According to Trinh Hoang Tuan Anh, Deputy Director of the Department of Planning and Investment, after more than 2 years of fighting the COVID-19 pandemic, the business community in the province has shown its efforts, resilience and persistence in the field of adapting to the hardest context. In the peak months of late 2022, many businesses are facing great problems, reflecting that the business sector is still suffering serious hit by the troubling world and domestic economy.

“Accompanying and supporting businesses is one of the key tasks that Binh Duong has been performing over the past time, especially in the current stage as businesses are still going through many difficulties and challenges. As for the business community, in the current volatile context, it is necessary to have flexible adaptation measures to come up with appropriate response scenarios and strategies to save themselves. In the long term, enterprises must improve the quality of human resources, automation in production to reduce costs, and to increase competitiveness and continue to stand on the market," said Trinh Hoang Tuan Anh.

In the context of many difficulties and challenges that businesses are facing, sectors and localities continue to create maximum conditions to promote production, to improve the investment environment, and actively implement monetary policy support packages with the focus on debt restructuring, interest rate exemption and reduction, credit support, extension of tax and land rent payment deadlines, policies to support businesses in paying wages to employees among others believing that, with determination of the province, the sustainable growth goal that Binh Duong is persevering and determined to implement is the way to turn challenges into opportunities for stronger development in the coming time.

Accumulated to November 30, 2022, the whole province has 59,484 businesses registered to operate with a registered capital of VND 627,044 billion. According to the action plan of the provincial Party Committee to implement the Resolution of the 5th Central Committee of 12^th term on developing the private economy and continuing to innovate and improve the efficiency of State-owned enterprises by the end of 2025, Binh Duong has about 80,000 enterprises at 74% of the number of domestic enterprises registered to do business so far.

Reported by Ngoc Thanh – Translated by Vi Bao