Lesson 3: Unlocking resources for business development

Private Economy B3.mp3

Over the past two decades, along with the development of the province, Hau Giang's business community has gradually grown and matured in both quantity and stature, and reputation in the domestic and international markets.

Early completion of traffic connection works helps to circulate goods quickly.

Business growth

With more than 4,800 operating enterprises and a total registered capital of nearly VND80,000 billion, the private economic sector in Hau Giang has been affirming its leading role in GRDP growth, accounting for about 73%. The whole province has 317 investment projects with a total investment of more than VND191,500 billion. Many brands of enterprises have been affirming their prestige and competitive position domestically and internationally.

Since the beginning of the term, Hau Giang, with its "heavenly time", "geographical advantage", and "human harmony", has made an impressive turnaround. From a province with low indicators in the region and the whole country, many indicators have grown strongly, ranking in the top group of the Mekong Delta and the highest group of the whole country. That is, the economic growth rate has continuously increased; in the 2021-2024 period, the average annual increase is 9.45%; the economic scale has increased nearly 2 times compared to the beginning of the term, from more than 37,500 billion VND to more than 68,600 billion VND; budget revenue has increased by about 20% each year compared to the previous year, twice as much as at the beginning of the term; the total mobilized social capital in the area has increased rapidly (about 89,000 billion VND); GRDP per capita reached 93.78 million VND, nearly 2 times higher than at the beginning of the term; the poverty rate is lower than the national average.

Products of enterprises, cooperatives, and production facilities in the province have gradually penetrated into large supermarket systems such as: CoopMart, BigC, Vinmart, Mega Market... with about 180 tons of products of all kinds per month. At the same time, 47 OCOP products and nearly 900 agricultural products have been put on the e-commerce trading floors Voso and Postmart. Total retail sales of goods and service revenue reached over 50,000 billion VND. Continue to effectively exploit the domestic market to both promote, introduce, and support product consumption. The province creates conditions for businesses to participate in many trade promotion activities through fairs, exhibitions inside and outside the province, Conferences connecting supply - demand, trade between provinces and cities. Display and promote at points of sale in Ho Chi Minh City, Hanoi , Can Tho City and Phu Quoc island district...

Ky Nhu Cooperative, Thanh Hoa Commune, Phung Hiep District, currently has 14 key products from Pangasius. Thanks to the efforts of its members and the province's support programs and policies, the cooperative's products have gradually affirmed their position in the market. Ms. Nguyen Kim Thuy, Director of Ky Nhu Cooperative, said that the unit currently has more than 50 members, with a raw material area of about 16 hectares. The cooperative constantly improves and enhances product quality, promotes the application of science and technology, especially digital transformation in the production process. Pangasius raw materials are raised according to VietGAP process, with full logs kept to control quality.

Mr. Pham Tien Hoai, Chairman of the Board of Directors of Tien Thinh Group Joint Stock Company, Chairman of the Board of Directors and General Director of Hanh Nguyen Logistics Joint Stock Company, Chairman of Hau Giang Province Business Association, said: Currently, the Mekong Delta still does not have enough specific credit policies to support the economic strengths of the region. In addition, the rapid completion of traffic connection projects, fast and safe circulation of goods, cost reduction, and increased competitiveness for businesses investing in the Mekong Delta.

Regarding improving the investment environment, simplifying administrative procedures will help businesses take advantage of business opportunities. Reducing waste through institutional reform is one of the most drastic innovations today. With determination, consensus, and working together, business people will overcome all difficulties, stabilize production and business activities, and develop the local economy.

“As a young entrepreneur operating in the Mekong Delta’s key industry, I will continue to transform into a creative business model, and at the same time, as Chairman of the Local Business Association, I will boldly participate in proposing new and dynamic policies to develop the Mekong Delta,” Mr. Pham Tien Hoai added.

According to Mr. Nguyen Dang Hai, Director of the Department of Finance of Hau Giang province, the Resolution of the 14th Provincial Party Congress, term 2020-2025, calls for the establishment of 1,000 new enterprises, in the period 2020-2025, Party committees and authorities at all levels will strengthen investment promotion, create the most favorable conditions for enterprises to seek opportunities and invest in Hau Giang, consistent with the province's viewpoint in attracting investment that is "Enterprises come, Hau Giang is happy", "The success of enterprises is also the success of the province". With the slogan "2 fast, 3 good", that is "Fast site clearance and investment procedures" and "Good opportunities, good policies, good infrastructure", the province is ready to welcome and accompany, creating all favorable conditions for enterprises to operate and develop. Since then, many large and reputable enterprises have come to learn and invest in the province, contributing to increasing the number of enterprises in the province.

In addition to the achieved results, according to the Provincial People's Committee, Hau Giang's private economy is still facing many difficulties and challenges such as: small business scale, low competitiveness, weak access to capital, weak linkages between businesses and with the FDI sector and state-owned enterprises. In particular, the innovative startup ecosystem is still in its infancy...

Based on local practice, the Provincial People's Committee proposed that the Government continue to improve institutions, remove bottlenecks in land, credit access, and investment procedures, in order to create maximum convenience for the private economic sector to develop sustainably. In addition, it is necessary to promptly issue specific mechanisms and policies for the Mekong Delta, including Hau Giang, on the development of private enterprises. Strengthen decentralization and strong delegation of power to localities to promote the dynamism, flexibility and responsibility of the grassroots level. The province hopes that the Government will direct commercial banks and credit institutions to have appropriate credit support policies for small and medium-sized enterprises and start-ups, especially in the recovery period after the pandemic and the current complex climate change.

Links create momentum for growth

Ms. Cao Xuan Thu Van, President of the Vietnam Cooperative Alliance, believes that developing the private economy is also developing the cooperative collective economy, a symbiotic relationship. A modern economy cannot develop based on separation alone, it needs to follow a vertical and horizontal structure, in this case private enterprises and cooperatives, to open up a new growth space. Private enterprises can see cooperatives as sustainable supply partners, capable of concentrating raw material areas, clean energy products, high quality, ensuring traceability. Cooperatives can see enterprises as technological support, with experience in management, market, and finance to improve competitiveness.

According to Ms. Cao Xuan Thu Van, developing the collective economy is a sustainable way, which is also developing cooperatives, as well as developing private enterprises. This relationship is not only mutual but also creates a symbiotic ecosystem that brings high value to both sides.

Cooperatives are a solid foundation for the private economy in rural areas. Cooperatives organize production, helping households and small businesses access inputs, outputs, credit and technology at reasonable costs. Private enterprises can place orders for cooperatives to produce according to standards, serving export or high-end consumer segments. Private enterprises are the driving force to upgrade cooperatives from traditional, small-scale production to investing in cooperatives to develop in a new, modern way. Many new-style cooperatives are also led by private enterprises, by entrepreneurs who have the conditions to develop, invest in technology, management, logistics, helping cooperatives operate like real businesses. Capital contribution and sharing of satellite cooperative models are creating a large-scale production cluster.

The private sector helps cooperatives move quickly into the digital economy. E-commerce platforms operated by the private sector are actively bringing cooperative products to the market, supporting traceability, livestreaming, and marketing. This is an opportunity for cooperatives to increase their value and requires large resources to do so.

The Ministry of Finance said that the goal of developing the private economy by 2030: The private economy is the most important driving force of the national economy; a pioneer in the development of science and technology, innovation and digital transformation, contributing to the successful implementation of the goals of Resolution No. 57-NQ/TW of the Politburo. There are 2 million enterprises operating in the economy, 20 enterprises operating/thousand people; there are at least 20 large enterprises participating in the global value chain. The average growth rate is about 10-12%/year, higher than the growth rate of the economy; contributing about 55-58% of GDP, 35-40% of total state budget revenue; creating jobs for about 84-85% of the total workforce; labor productivity increases on average about 8.5-9.5%/year. Level, technological capacity, innovation, and digital transformation are among the top 3 ASEAN countries and top 5 Asian countries.

DREAM TOTAL

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Lesson 4: Awakening the desire to get rich

Source: https://baohaugiang.com.vn/kinh-te/bai-3-khai-thong-nguon-luc-cho-doanh-nghiep-phat-trien-142489.html