Enterprises supported and facilitated for development within Covid-19 pandemic

Despite being heavily affected by the Covid-19 epidemic, thanks to efforts to improve the investment and business environment, the results of attracting domestic investment capital in the province have been still quite positive. In the first 6 months of 2021, Binh Duong has 3,428 newly established enterprises with a registered capital of VND24,640 billion, an increase of 13.6% in the number of enterprises and an increase of 36.7% in the registered capital compared to that of the same period in 2020. It also showed that the desire to start a business has still been well maintained.
Quantity of enterprises increase
According to the local Department of Planning and Investment, the average registered capital per enterprise in the first 6 months of 2021 reached VND 7.18 billion, an increase of 20.33% over the same period in 2020 regarding the size of the participating enterprises. The market continued to trend up. The total registered capital added to the economy in the first 6 months of 2021 is VND 56,337 billion (increasing by 75.88% over the same period in 2020), including the registered capital of newly registered enterprises at VND 24,640 billion and the additional registered capital of enterprises was VND 31,697 billion (increasing by 126.2 % over the same period in 2020) with 638 enterprises registering to increase capital. Up to now, the province has 52,117 domestic enterprises registered to operate with a registered capital of VND 495,793 billion.

In the face of Covid-19 epidemic, the provincial enterprises are making efforts to secure and maintain production operations. In this photo: Production activities are on-going at Thai Binh Duong Investment JSC

Despite the complicated return of the Covid-19 epidemic, many policies of the government and the province to support people and businesses have been effectively implemented. Clearly shown when all 9 out of 9 areas recorded growth in both the number of newly registered enterprises and the registered capital over the same period. In which, Thuan An city has the highest number of newly established enterprises with 768 enterprises (accounting for 22.40% of the province) and registered capital of VND 5,872 billion (accounting for 23.83% of the province). Next is Thu Dau Mot city with 760 enterprises (accounting for 22.17% of the province) and a registered capital of VND 6,953 billion (accounting for 28.22% of the province).

Continual enterprise supports

In the first 6 months of 2021, the province also attracted more than USD 1.4 billion of foreign investments. In particular, many large projects are promising to significantly contribute to the economic development results of the province. Mr. Trinh Hoang Tuan Anh, Deputy Director of Department of Planning and Investment, said that foreign investment is still a highlight, making an important contribution to the province's economy. 

Along with that is the significant contribution of private enterprises. The functional branches of the province still maintain the regulations on coordination of enterprise management in accordance with regulations. All information about enterprises is guaranteed by the exchange agencies to be accurate, complete and timely to provide maximum support to enterprises and not to create administrative procedures and to facilitate normal business operations in order to create jobs and stable incomes for employees.

However, the number of enterprises filing for suspension of their business continued to increase over the same period in 2020, showing the impact of the Covid-19 epidemic on the operation of enterprises. In general, dissolved enterprises are young and small-scale enterprises which are very vulnerable objects due to the negative impact of Covid-19 epidemic shocks. Therefore, in the coming time, in order to limit the number of enterprises withdrawing from the market while improving the business investment environment, it is necessary to promote supporting programs for small and medium enterprises in the province.

According to Mr. Trinh Hoang Tuan Anh, the provincial People's Committee has recently agreed with Department of Planning and Investment on the establishment of the provincial Enterprise Support Center to strengthen consultancy, support, and training activities to help improve competitiveness and access to development resources for organizations and enterprises. This will also be the focal point to help propagate information to the business community about supporting policies and, thereby, restoring the "health" of enterprises and improving economic indicators of the province. Department of Planning and Investment will continue to coordinate with other departments, branches and local People's Committees of the province to strengthen the management, supervision and support of enterprises and dependent units. In particular, Department of Planning and Investment will focus on grasping the difficult situation and investment capital needs of enterprises, thereby, proposing to all levels and sectors to have appropriate solutions to support and minimize the abandonment of enterprises, dissolution, and bankruptcy.

Reported by Ngoc Thanh – Translated by Vi Bao

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