10:03:18 PM | 4/9/2015
Accompanying businesses and removing "bottlenecks" in the current tough context to assist the business community to develop stably and sustainably is an important goal of Bac Ninh province. Vietnam Business Forum Magazine has an interview with Mr Nguyen Quoc Chung, Director of the Department of Planning and Investment of Bac Ninh province. Duy Binh reports.
How would you describe the development of the business community in Bac Ninh province?
In 2014, global and domestic economies continued to see complicated developments. But with the high political commitment of the Party and all-tier governments, the effort of all departments, agencies and organizations, the consent of all people, and especially the enormous contribution of the business community and entrepreneurs, Bac Ninh province managed to achieved outstanding economic and social development results. The business community played an important role in economic growth and development, economic restructuring, labour restructuring, employment generation, social security, livelihood guarantee for people as well as tax revenue. The image of dynamic, friendly, hospitable Bac Ninh with an open investment environment is attracting domestic and foreign investors.
In 2014, the Business Registration Bureau under the Department of Planning and Investment granted business registration certificates to 849 enterprises with a total capital of VND4,550.59 billion, including 104 joint stock companies, 193 limited liability companies with two members or more, 531 one-member limited liability companies, and 21 private enterprises. The authority also granted operation licences to 268 branches and representative offices. It also allowed 1,226 companies and 122 company affiliates (branches, representative offices and business locations) to change contents in their business registration certificates. As of the end of 2014, the province had 7,535 enterprises registered to operate under the Law on Enterprises with a combined capital of VND106,251,845 million, including 1,174 joint stock companies, 2,872 limited liability companies with two members or more, 2,803 one-member limited liability companies, and 686 private enterprises. The province also had 1,027 company affiliated units (branches, representative offices and business locations). To date, the Business Registration Bureau approved corporate dissolutions for 739 companies, revoked business registration certificates of 487 companies, ordered operational suspension of 215 enterprises, and suspended 448 law-breaking companies. Thus, as of December 31, 2014, the province had 6,261 companies, of which 5,646 enterprises are operational with a total registered capital of VND68,741 billion.
Mobilising all available resources for economic restructuring towards sustainable development is an urgent issue. Does the Department of Planning and Investment have any advice to the Provincial People’s Committee to carry out this process effectively?
In 2015, although there are more positive forecasts about global and domestic economic prospects as well as opportunities of new free trade agreements, we are still fraught with general challenges and difficulties in business and production activities. As for Bac Ninh, many of its comparative advantages have wane. Therefore, we need to change our mindset, have breakthrough strategies, and create new development momentums for the next development period. Right from the start of 2015, we have focused on carrying out socioeconomic development consistent tasks and solutions under the guidance of the Provincial Party Committee, the resolutions of the Provincial People's Council and the directives of the Chairman of the Provincial People’s Committee. To deal with difficulties and create a favourable investment environment for businesses, we need to focus on implementing the following contents:
Building regulations on support of enterprises and cooperatives and investment encouragement. The province focuses on supporting and encouraging the development of small and medium-sized enterprises (SMEs), domestic enterprises, enterprises engaged in supporting industries, and companies investing in agriculture and rural development (particularly those engaged in agricultural product value chains). It also supports and encourages businesses and individuals to renovate technologies, transfer of technologies, and connect input and output suppliers.
Establishing business registration and certification procedures and coordinating with relevant bodies in the province to mange enterprises as specified in the Law on Investment and Law on Enterprises.
Building processes of investing and investment registration certification; issuing mechanisms for coordination of investment management under the Law on Investment and the Law on Enterprises.
Building regulations on guarantee deposits for projects under the Law on Investment, the Law on Land, and the Law on Enterprises.
Foreign direct investment (FDI) has played an important role in the province’s economic growth. What measures will the province take to speed up the attraction of this investment source?
According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, as on June 20, 2015, Bac Ninh province ranked ninth out of 63 provinces and cities in the country and ranked third out of 11 localities in the Red River Delta by attracted FDI value. The province is home to 622 valid FDI projects with US$7.83 billion. To have these impressive figures, Bac Ninh has applied many policies to attract investment capital, select investment projects, focus on big projects using modern environment-friendly technologies.