Bac Kan Implementing Multiple Positive Solutions to Support Businesses and Investors

5:53:15 PM | 26/11/2013

After several years implementing solutions to improve its business environment, Bac Kan province has proposed more flexible practical measures, and been flexibly implementing programmes and resolution of the Government to solve difficulties faced by the business community of the province. Accordingly, the province has focused on the further reform of administrative procedures, allocation of capital to accelerate the construction projects for key infrastructure, innovation of promotion and access to potential investors. Around this issue, Vietnam Business Forum interviewed Mr Tran Ngoc Lieu, Deputy Director of the Department of Planning and Investment of Bac Kan province. Vu Thuy reports.
How do you evaluate the results of investment attraction and operations of enterprises in Bac Kan province?
By October 2013, Bac Kan province had attracted 77 domestic investment projects with a total capital of VND9 trillion and 3 FDI projects with total registered capital of US$267 million. In terms of business operation, so far the total number of registered enterprises in the province is 997, with total trading capital of VND6,058,468 billion. In which, the number of newly established businesses is 51, increasing by 10.3 percent over the same period in 2012. Sales revenue of businesses in the province reached VND12 trillion; paying VND300 billion to the state budget, creating 10,390 jobs with income averaged of VND3,000,000 / person / month.
Local businesses have been present and engaged in the production and trading in all industries and socio-economic sectors of the province, gradually contributing to the economic development of the province. The spiritual life of the people and the social issues have improved.
In your opinion, what are the biggest problems that businesses are facing today?
Amid the difficult conditions, Bac Kan’s businesses are greatly affected. With creativity and decisiveness, the businesses in the province have gradually affirmed their position in the society. Typical examples are Bac Kan Construction Consultancy JSC, Bac Kan Management and Traffic Construction JSC, Thanh Hung Co. Ltd, Huy Hoan Co. Ltd, Bac Ha JSC, Bac Kan Electricity, Bac Kan Telecommunications, Bac Kan’s Provincial Postal, Thanh Dat JSC, 19/8 JSC, Hoang Giang Co. Ltd, SAHABAK company, Bac Kan Construction Materials Production JSC.
The biggest difficulty that the businesses are facing today is financial capacity. In these difficult times, many companies are inexperienced in coping with the crisis. When banks are tightening lending investment, their activities are interrupted or prolonged. Not only that, businesses in the province are also fragmented, small and unfocused (especially businesses engaged in processing arrowroot). They do not have stable material area, their products are simple and do not meet the quality requirements for either export or domestic consumption. The potential for tourism and mineral exploitation is not well developed; executive level management of many enterprises is inadequate; facilities are simple and business size are small. The number of enterprises to invest in processing and manufacturing sector accounts for the low rate.
By regularly monitoring the activities of investors and businesses, we have managed to group the projects and timely encourage businesses to invest seriously and support them to complete the necessary administrative procedures. Especially in 2012, the province directed the implementation of the Government's Resolution 13. In particular, the banking system has implemented remedial solutions such as lowering interest to 15 percent, reducing interest rate for important projects, restructuring corporate debt, continuing to allocate loan for some important projects, such as MDF plywood factory project in Thanh Binh Industrial Zone.
Given the current situation, how will investment promotion strategies of the Department be adjusted and changed?
As a specialized agency of Bac Kan province, advising the province in investment promotion, the Department has advised the province to implement a master plan to promote investment in 2011-2015, implement 3PAD project and attract ODA in 2014-2020. In raising competitiveness index and improving the investment environment, the province has also proposed many programmes:
First, improving the investment environment and competitiveness. The immediate solution is to diversify investment forms, including creating better conditions for indirect foreign investment. Researching and drafting the list of projects calling for foreign and domestic investment until 2015. Adjusting structure and scale of production on the basis of properly defining product strategy and markets; increasing financial capability, the application of modern technology in the business to create high-value products. Enhancing business administration, improving business promotion and business linking.
Second, enhancing the dissemination of information. Constantly organising classes and courses on the content and the spirit of the Central Resolution to create consensus in society; promoting self-reliance, and determining to help Bac Kan grow fast and firmly in the new phase.
Third, complementing and improving the policy system and reforming administrative procedures of the province. Conducting systematic review of current legislation in accordance with the State's policies; issuing clear policy and creating the breakthrough and competitiveness for potential sectors of the province such as tourism, exploiting and processing of agricultural and forestry products, minerals. Minimising unnecessary procedures on land and investment business license. Announcing all policies, management mechanisms and guiding every business.
Fourth, improving the efficiency of investment projects. Developing faster and asynchronously transport infrastructure, upgrading roads, innovating to improve the efficiency of investment, diversifying investment sources; adjusting the overall planning of the manufacturing sector, agriculture and services, and effectively exploiting the capital of the state, ODA and NGOs.
Fifth, training and developing human resource. Focusing on expanding vocational schools. Developing the diverse forms of public and non-public schools, community learning centres to train human resources for investment projects.
Sixth, implementing environmental protection, ensuring national defence and security associated with sustainable development. Strengthening the capacity of individual authorities in environmental protection; remediating issues due to environmental problems; building and implementing environmental protection project to protect industrial parks and villages; reserving nature and biodiversity. Increasing alertness and awareness; boosting the movement to protect national security.