To enhance the role of enterprises in developing the Southern key economic region

Update: 01-10-2019 | 10:50:22

Tran Thanh Liem, Chairman of Provincial People's Committee, speaks at the forum.

At the forum "The role of enterprises in the development of Southern key economic region" has taken place in Ho Chi Minh City held by Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with People's Committees of provinces, cities, and trade promotion centers of provinces and cities in the Southern key economic region (SKER), Tran Thanh Liem, Deputy Secretary of Binh Duong Provincial Party Committee, Chairman of Provincial People's Committee, proposed many solutions to promote the role of businesses in regional development.

Regional links need to connect businesses

Vu Tien Loc, Chairman of VCCI, considered SKER as the leading economic region, making an important contribution to the national development. However, at present, this region’s development facing economic growth challenges tends to slow down; The average growth rate in the period of 2016-2018 was only equal to the national average. Advantages of this region have not been fully exploited to create new incentives for growth; infrastructure is not commensurate, connectivity is not synchronized; mechanisms and policies for regional development are incomplete, lack necessary breakthroughs...

Dr. Vu Tien Loc emphasized, businesses must create opportunities for themselves; business associations must be the proposing side and center connecting regional businesses. Regarding determining how to develop technology and logistics, businesses must propose solutions.

From a local perspective, Mr. Liem said that SKER had been promoting its advantages, contributing to macroeconomic stability, especially supporting the socio-economic development of provinces and cities in the region. In order to achieve the above-mentioned results, besides the efforts of the authorities, it is necessary to mention the bond of business community in the region. Economic bond, regional linkage is ultimately the connection of enterprises. Governments at all levels create a connection space, create the infrastructure for the connection and build incentive mechanisms, but specific actions must from businesses. Enterprise is the driving force of development and connection.

To enhance the role of businesses

At the forum, Mr. Liem also acknowledged bottlenecks in the implementation of regional links affecting the operations of businesses, such as limited transport infrastructure has not met development needs of the region, not promoted the potential and advantages, and not boosted goods transport among localities in the region.

“In the SKER, large-scale logistics centers and inland ports have not yet been established to play a role in transporting goods in the region. Besides, inter-regional, centripetal, belt roads, routes connecting sea ports, airports, and international border gates have not yet been completed. Additionally, the overload situation took place in urban transportation, on a number of national highways, even airports, seaports ... causing bottlenecks hindering the socio-economic development of the region. Meanwhile, the Central has no mechanism on resources for the region but are allocated to each locality. Therefore, difficulties in resources, benefit-sharing mechanisms, and unclear responsibilities have delayed the progress and hindered the implementation of inter-regional projects", said Mr. Liem.

Also according to Mr. Liem, although the quality of human resources in the region has improved, these have not met the development needs. Labor shortage and imbalance between supply and demand still occur in the allocation of labor resources. The high proportion of migrants and the increase in mechanical population in the region have caused the overload in infrastructure system, the risk of environmental pollution, water supply and drainage of provinces and cities in the region, especially in urban and industrial areas. At present, the region has not built a system of databases on priority sectors and domains, so it has not been able to support the selection of inter-regional projects as well as assess the process and effectiveness of joint activities...

Mr. Liem also proposed some solutions to further promote the role of enterprises in the SKER development in the coming time. Firstly, the provinces and cities in SKER should continue to promptly solve difficulties and obstacles, develop many mechanisms and policies to support manufacturing and business establishments in information supply and branding, expanding production, business, and trade of goods. Localities need to pay attention to creating a safe and low-risk investment and business environment; encourage and support business development in all sectors, fields, and localities; remove barriers creating inequality in access to social resources, production factors, business opportunities, market participation... In addition, localities need to promulgate policies to develop business activities by value chains for each industry; encourage cooperation, linkages between sectors, economic regions to improve the capacity and advantages to participate in the global supply chain in regional and international economic integration.

Secondly, localities in SKER suggested the Government and ministries pool state budget to invest in the construction of key transport works of the region, build and develop logistics system in the region that will be connected to the national and interregional systems. Along with that, the Government needs to develop a mechanism to make use of resources from businesses to build infrastructure for the region, in which logistics system is attached to the industrial - urban development.

Thirdly, localities in the region need to train and foster high-quality human resources to expand markets and participate in international economic integration; developing the labor market, strengthening the connection between the supply demand of manpower of provinces and cities in the region and the whole country, the region and the world.

Fourthly, to build a common database of provinces and cities in the region, economic sectors, and social fields; accelerate the implementation of key projects and large projects in the area to serve the construction of regional linkage activities. At the same time, localities need enhance the administrative reform, heighten operational efficiency of State agencies in order to create favorable conditions for enterprises to develop; continuing the administrative reform, improving the business investment environment, raising provincial competitiveness index (PCI), Provincial Governance and Public Administration Performance Index (PAPI).

The SKER has 8 provinces and cities, making the largest contribution to the country's economy, accounting for 45.4% of the national GDP. In 2018, total regional budget revenue accounted for 42.6% of the total national revenue. It is also the largest center of FDI attraction in the country with more than 15,000 valid projects; 140 industrial parks and export processing zones...

Reported by Tieu My – Translated by Ngoc Huynh

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To enhance the role of enterprises in developing the Southern key economic region

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