Business Business

18/04/2018 - 11:59

Supporting Small and Medium Enterprises: The Key to Growth

At the meeting to unify the contents relevant to the proposal for the issuance of the Resolution stipulating a number of policies to support small and medium enterprises (SMEs), Deputy Secretary of the provincial Party Committee, Chairman of the provincial People's Committee Nguyen Van Cao affirmed that the Resolution clearly expresses the determination of the province to create favorable conditions for enterprises to develop.

The issuance of this policy is also a big solution for improving the Provincial Competitiveness Index (PCI) in 2018 and the years to come.

Chairman of the provincial People's Committee Nguyen Van Cao inspects the production and business of an enterprise

A pressing requirement  

According to Chairman of the provincial People's Committee Nguyen Van Cao, in recent years, the province has made huge efforts to formulate and implement specific policies, programs and activities to provide a favorable environment for enterprises, contributing to generating jobs, increasing productivity and income for laborers.

The policies, programs and projects to support SMEs step by step come into operation, contributing to raising awareness and interest in supporting SME development. However, there remain the intrinsic constraints of SMEs on management capacity, technology innovation, and competitiveness enhancement; grasp of law, knowledge of international integration, and awareness of business culture and so on.

Mr. Duong Tuan Anh, Chairman of the provincial Association of Enterprises said that the Association has more than 350 enterprises and 286 members of the grassroots organizations. The majority of members are SMEs with small scale operation, low production capacity, growth quality and competitiveness vis-à- vis the region and the country.

In the integration period, enterprises have many openings for development but also face not few challenges; the support policies are, especially, being implemented in a discrete, dispersed and extensive way. Meanwhile, to develop sustainably, an enterprise needs to have the financial resources, technology, market access, and legal knowledge.

"Coupled with the efforts made by the province, the Association has been actively created more favorable conditions for the enterprises operating in the province to develop. However, the support has been given only to over 600 enterprises that are the members of the Association and affiliated societies and clubs, accounting for about 10% of more than 6,000 operating enterprises. This has not yet achieved the desired results,” said Mr. Duong Tuan Anh.

Till end 2017, the whole province has 6,400 enterprises, of which SMEs account for nearly 99.1% and contribute over VND 1,300 billion, accounting for 39% of the budget revenue from enterprises (VND 3,385 billion). In 2017 alone, out of 636 enterprises registering the foundation of new ones, there are as many as 622 SMEs (accounting for 97.8%). Supporting the capacity building for the SME sector to give a fillip to the provincial economy is a requirement of urgency.

The SME-supporting policy will facilitate development

Generating a driving force

The supervision results by the Economics-Budget Board of the provincial People's Council showed that Hue gains the advantage in training high quality human resources thanks to many universities and colleges; every year there are thousands of graduates, many of whom are young talented people who have started their career or are desirous to start their career creatively in Hue.

Young startup enterprises now expect the province to develop policies to support the office rental at the common work site, and centers for enterprise startup and incubation. Currently in the province there is only one business incubator which is Coplus Company.

Mr. Nguyen Quang Tuan, Head of the Economics and Budget Board of the provincial People's Committee, suggested the provincial People's Committee should study, support and facilitate the foundation of more enterprise startup and incubation centers, with top priority given to technology business incubators. Priority should also be given to the land fund and house fund for building common work sites, and startup enterprises should have more access to these business incubators.

According to the Chairman of  the provincial Association of Enterprises, Duong Tuan Anh, it is necessary to study to supplement the provincial Societies and Associations of Enterprises with more agents who are assigned to carry out a number of SME support tasks such as human resources training, information, legal counseling, trade promotion, etc. In addition, the provincial People's Committee needs to set up a SME-supporting center in order for enterprises to receive direct support.

Supporting services

In order to ensure the sustainable development of the enterprise community, besides the effective implementation of supporting policies, improving the operation quality of enterprises is of paramount importance.

Mr. Le Quang Minh, Director of the Development Investment and Credit Guarantee Fund for SMEs of the province, said that the current fund of the unit is about VND 288 billion. Enterprises have been granted the preferential loans in conformity with the portfolio ratified by the provincial People’s Committee. The Resolution with a number of ratified policies to support SMEs will be a new wind to create a powerful driving force behind the development of SMEs.

Story and photos: Thai Binh