Province heightens sense of responsibility and support for business development

Binh Duong's economy in the first quarter of 2023 had a low growth rate. To best accomplish the goals set out in 2023, Binh Duong is making great efforts to make up for unaccomplished ones in the first quarter. One of the fundamental solutions pursued by the province is to accompany and support businesses. Departments, branches, and localities regularly hold dialogue sessions to listen to difficulties and problems of enterprises and investors, thereby finding ways to promptly solve them, create synergy, unlock many sources, gradually helping the province's economy prosper again.

Nguyen Van Loi, Member of the Party Central Committee, Secretary of Provincial Party Committee, Head of Provincial Delegation of the National Assembly, visits production factory of Takako Vietnam Co., Ltd (VSIP 1, Thuan An City).

Solve difficulties of businesses

According to Provincial Statistics Office, growth rate (GRDP) in the first quarter of 2023 of Binh Duong only increased by 1.15% compared to the same period in 2022, the lowest in the past two years. Compared to the same period in 2022, the province's gross product growth slowed down due to the decline of industrial and construction sectors. Production in some key industries declined due to high input production costs and a decrease in the number of orders. Enterprises confirmed that they were proactive and flexibly responding; actively controlled sources of raw materials, expanded markets to find more customers, ensured liquidity, retained employees, and welcomed new orders, but the situation is still not satisfactory.

A recent survey results of 415 enterprises in processing and manufacturing industry shows that among the main factors affecting production business, 14.4% of enterprises said that they could not recruit workers as required; 51.9% of enterprises thought that the demand of the global market was low; 30% of enterprises faced financial difficulties in accessing loans, high loan interest rates; 4.3% of enterprises said that they encountered obstacles in policies and laws of the State.

Nguyen Liem, Chairman of Binh Duong Furniture Association, shared that the common problem facing businesses is the lack of cash flow, inability to take out loans, many businesses cannot receive disbursement, becoming bad debts.  Liem suggested that departments and branches provide more practical support for businesses, from simplifying procedures, lowering interest rates, extending debt limits so that businesses can overcome difficult times.

At a meeting to assess the economic growth in the first quarter, tasks and solutions for the second quarter in 2023, Nguyen Van Loi, member of the Party Central Committee, Secretary of Provincial Party Committee, Head of Provincial National Assembly delegation, emphasized this is a very difficult time for businesses, more than ever, the authorities must show their companionship and active support to remove difficulties and obstacles for businesses. In the immediate future, provincial departments and sectors must work together to find the best solutions to support businesses in finance, commerce, and online payment; assist enterprises in getting benefits from policies on tax, insurance, and other issues under the direction of the Government and ministries and branches; banks must do their best to create favorable conditions for businesses to access loans...

Drastic solutions

Following the direction of the Government and the province, provincial State Bank branch and commercial banks in the province make moves to reduce interest rates, extend debts, freeze debts for businesses. Vo Dinh Phong, Director of State Bank - Binh Duong branch, said that in order to overcome difficulties and support businesses, banks in the province actively ascertained the production business situation, the extent of damage, developed a plan to remove difficulties for businesses and people. The State Bank continues to direct credit institutions in the area to decrease interest rates of deposits and loans; accelerate disbursement and provide interest rate support of 2%/year; save loan capital for production and business and create favorable conditions for small- and micro-sized enterprises to access loans.

Provincial People's Committee is resolutely implementing policy solutions to support production and business of enterprises. In photo:  Production activities at Thai Binh Joint Stock Company.

Nguyen Tran Hieu, Director of Provincial Customs Department, said that in order to share difficulties and aid enterprises, Provincial Customs Department assists enterprises to quickly made customs clearance, promptly refund taxes, create favorable conditions for enterprises to reinvest in production and business activities. Customs branches in the province always keep a close eye on the situation, regularly organize dialogues, encourage enterprises to overcome difficulties to stabilize production, create jobs for workers, and contribute to the state budget.

Pham Trong Nhan, Director of Provincial Department of Planning and Investment, said that the Department seriously implemented the directive of Provincial People's Committee on public investment, directed investors to promptly construct and disburse public investment capital in 2023. Namely, to help businesses adapt to the new situation, stabilize production and business, quickly recover, create a good foundation for breakthroughs, improve competitiveness.

Provincial People's Committee directed departments and branches to urgently carry out activities to support businesses and employees, such as organizing activities to connect labor supply and demand to help worker’s job search and and meet enterprise’s recruitment deamand; help enterprises to promote e-commerce; access to export information channels to find new markets. Localities in the province need to actively implement solutions to speed up the disbursement of public investment capital; review and simplify administrative procedures according to their competence, contributing to improving business environment in localities.

Reported by Ngoc Thanh - Translated by Ngoc Huynh