As the economic slowdown in recent years has posed daunting challenges to the business community, Hai Duong has introduced many policies and mechanisms to support and provide timely incentives for local businesses and attract new investors. Vietnam Business Forum’s reporter has an interview with Mr Vuong Duc Sang, Director of Department of Planning and Investment of Hai Duong province, on this issue. Tran Trang reports.How do you assess the development of the business community in Hai Duong province in recent years?
In recent years, most businesses in Vietnam in general and Hai Duong province in particular have run into considerable difficulties due to impacts of the global financial crisis and economic downturn. Many have suspended operations, been dissolved, or even gone bankrupt while new projects are on the sharp decline. But, the decrease in investment projects in Hai Duong province is partially resulted from its new investment attraction policies which focus more on the quality of projects, their technologies in use, investment scale, and products made. The province has turned down projects registering small capital investment, requiring much land, using obsolete technologies, polluting the environment and paying low taxes.
Most local businesses have been severely affected by the global economic crisis because they are small and medium businesses with limited scale, resources and management levels. Good performers are still big companies with strong capital, advanced technologies and management levels like Ford Vietnam Co., Ltd, Phuc Son Cement Co., Ltd, Sumidenso Co., Ltd, Tinh Loi Garment Company, Kefico Co., Ltd, Messer Industrial Gases Co., Ltd, Tung Kuang Company, and East Asia Aluminium Company. Notably, in 2013 and in the first quarter of 2014, many foreign direct investment (FDI) companies raised their investment capital to expand production and business. For instance, Toyo Denso Vietnam Co., Ltd increased US$31 million; Brother Vietnam raised US$35 million; SSV Garment Company added US$12 million; Mizyho Precision supplemented US$13 million; and JAGUAR international Co., Ltd added US$15 million. Increased investment capital for production and business expansions demonstrated their optimistic results and the business outlook will be certainly better in the coming years.
How has the Department of Planning and Investment supported businesses to overcome difficulties and challenges?
To support businesses, especially small and medium ones, to gradually surmount difficulties and challenges, the Department of Planning and Investment has positively and proactively proposed the Provincial People’s Committee to adopt measures as follows.
- Consult the Provincial People’s Committee to direct departments and agencies such as tax and customs authorities to publicly, transparently, fully and timely implement incentives and supports for enterprises like tax incentives, preferential credit loans, training credits, financial supports, land compensations, and land mine clearance funds.
- Consult the Provincial People’s Committee to assign tasks for the Business Development Support Centre to assist enterprises to carry out projects in the province.
- Advise the Provincial People’s Committee to reinforce and strengthen the organisational structure and activities of the Provincial Steering Committee to solve difficulties and obstacles against domestic and foreign enterprises in the province; establish and publicise “hot lines” of the Office of the Provincial People’s Committee, departments and other agencies to receive and handle feedback and complaints from businesses in a timely manner.
- Advise the province to reform vocational training methods, upgrade and complete training facilities, and open new subjects of training to serve the demand of enterprises.
In addition, the Department is actively coordinating with other departments and agencies in the province to review and abolish unnecessary administrative procedures, especially relating to land, tax, customs and construction fields, so as to assist investors by reducing costs and visiting times in the investing process.
In the coming time, what policies and mechanisms will Hai Duong province apply to improve the investment and business climate and to be more attractive in the eyes of investors?
To be more attractive in the eyes of investors, the province will implement some policies and measures as follows:
- Actively and flexibly carry out investment attraction activities, increasing incentives, creating open investment environment and favourable conditions for businesses.
– Building lists of prioritised investment projects in need of investment capital, particularly from big investors and multinational corporations. Prioritised and large-scale investment projects will be given specific incentives (or asking the Prime Minister for specific incentives) to draw the interest of investors;
- Coordinating with trade and investment promotion agencies to provide legal information and advice to businesses and assist them to seek business partners; timely capturing thoughts and aspirations and resolving difficulties and problems against them.
- Improving the qualifications, levels and attitudes of civil servants at administrative units to better serve investors; strengthening coordination with training entities to raise qualifications and skills of workers to meet investors
- Intensifying transparency and publicity of administrative procedures and processes, and legal documents; fully publishing information about planning, construction and land-use planning on websites of relevant departments and agencies and at affected localities to inform investors, businesses and citizens of new changes.
- Strengthening measures to improve provincial competitiveness index (PCI).
Đăng ký: VietNam News
