Province overcomes difficulties, aims for growth

Binh Duong strives to implement executive solutions to help the provincial economy overcome difficulties to recover and reach the growth target of 2023, with priority given to removing policy bottlenecks to stimulate production, business, disbursement of public investment capital, infrastructure construction...

Wood enterprises in the province are determined to maintain production, create jobs for workers, and contribute to promoting economic development.

 Remove difficulties

During the first 9 months of 2023, the province's economy must continuously suffer “vortexes" from the world and domestically. In the world, growth was low while consumer demand was weak, protection barriers were increasing, inflation was still anchored at high levels, and many countries continued to maintain strict monetary policies. All of this leads to a decrease in purchase orders of provincial enterprises. However, after experiencing 2 years of the Covid-19 pandemic, Binh Duong has closely followed the situation, promptly deployed policies, and effectively organized the implementation of policies of the Government, ministries and branches; at the same time, promoted self-control and strengthened discipline. As a result, the province's nine-month economy recorded positive changes, each month is better than the previous month, the next quarter is better than the previous quarter.

According to the assessment of Provincial People's Committee, the first 9 months of 2023 took place in difficult conditions, with more challenges than advantages. Provincial People's Committee early forecast and assessed the situation from the last months of 2022 to focus on directing and leading to remove difficulties and obstacles. As a result, out of 35 main targets according to the 2023 socio-economic development plan, up to now, 19 targets have achieved over 50% of the plan and exceeded the yearly plan. The Provincial People's Committee's report shows that the province's socio-economy gradually recovered month by month and quarter by quarter. Gross regional domestic product (GRDP) in the first quarter increased by 1.71%, in the second quarter increased by 5.73%, and in the third quarter increased by 7.0% over the same period last year. GRDP over 9 months is estimated to increase by 4.9% compared to the same period in 2022 (same period increased by 7.2%). Of which, industry - construction increased by 4.2%; services increased by 6.9%; agriculture, forestry and fisheries increased by 3.3%; Product tax minus product subsidies increased by 5.8%.

Up to now, the total investment in social development is estimated at VND60,723 billion, up 9.6% year-on-year. Business registration and foreign investment attraction remained stable. The disbursement rate of public investment capital was equivalent to the same period, but the disbursed capital was VND5,500 billion higher. Key projects such as North Tan Uyen - Phu Giao - Bau Bang road, Ring Road 3, Ring Road 4, Ho Chi Minh City - Chon Thanh Expressway are urgently accelerated.

However, unfavorable and unpredictable developments of the global economic and political situation continue to greatly affect production business activities and growth drivers. The two indicators of export and import turnover decreased sharply over the same period (export turnover decreased by 13.2%, import turnover decreased by 14.8%). Businesses faced many difficulties and workers' jobs were affected. Forecasts for the remaining three months of 2023 will be still difficult and challenging. In the coming time, the Provincial People's Committee will give directions, have specific solutions, strive to fulfill 34 targets. In particular, the province focuses on disbursement of public investment capital, removing difficulties and obstacles for businesses regarding land, investment licensing procedures, real estate projects, social housing, production and business, and trade - service…

Face reality

There is only one quarter left for the province to strive to complete its goals. Meanwhile, businesses have not been able to accelerate the recovery of production and business. Even if consumer demand increases at the end of the year, exports may still face difficulties if major markets in the world fall into recession. Enterprises are also trying to manage production recovery and aim for growth goals in 2023.

“There is only one more quarter left for businesses to strive to complete their yearly goals, of which the most important goal today is to maintain production and ensure jobs for workers. However, this is considered a difficult target in an economic context with potential risks, especially the risk of rising inflation at the end of the year. Up to this point, businesses can only achieve more than 50% of revenue compared to 2022, which is already a success," said Nguyen Liem, Chairman of Provincial Wood Processing Association.

According to experts, Binh Duong's 2023 economic growth target of 8.5% is a huge challenge. An advantage is relatively optimistic consumer demand with retail sales continuing to perform well over the past 9 months. In the last 3 months, the economy is expected to recover quickly and be a bridge to development in 2024, however, achieving the goal is very difficult.

Tran Thanh Trong, Chairman of Provincial Mechanical and Electrical Association, said that businesses need breakthrough mechanisms and policies to strengthen internal resources to overcome difficulties. “There are still many businesses that have difficulty accessing capital. Loan interest rates have decreased but are still high, so specific loan interest support is needed for each group of businesses. Besides, there is a need for an independent agency to evaluate business support activities to adjust policies more effectively. Ministries, branches and localities have mechanisms for domestic enterprises to participate in public investment projects, creating an important link to avoid wasting enterprise resources”, Trong suggested.

 Vo Van Minh, Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee: With a high sense of responsibility, Provincial People's Committee and departments and branches always accompany and support businesses in production and business activities, "conisder difficulties of businesses as difficulties of the provincial government, the success of businesses is the success of the province". In addition to the timely and complete implementation of the Central’s policies to support businesses, Steering Committee for resolving difficulties and problems for businesses and Team for resolving difficulties and problems with real estate projects regularly listen to recommendations and proposals, proactively solve difficulties within their authority. The Steering Committee for resolving difficulties and problems for provincial enterprises has held 10 meetings to discuss and direct the removal of problems related to land, investment procedures, real estate market, administrative procedure reform, support production and business, and stimulate export.

 Reported by Tieu My, Cam Tu - Translated by Ngoc Huynh