HCM City (VNA) – The increasing number of newly-established firms in the southern region in recent years has demonstrated their stronger confidence in Party and State policies designed to support the development of the private economy.

Policyplatform

The private economy is defined as an importantcontributor to the economic development of cities and provinces and the countryas a whole. Therefore, such southern localities as Ho Chi Minh City, Dong Naiand Binh Duong provinces have attached great importance to promoting privatefirms and creating all possible conditions for their development.

Following the spirit of the 12th Communist Partyof Vietnam (CPV) Central Committee’s Resolution on developing the privateeconomy, the southern economic hub of Ho Chi Minh City has put forth a numberof policies to support businesses’ operation, including taxes, customs andproduction premises, according to Huynh Thanh Dien, member of the city’sSupport Industry Development Project.

Statistics from the municipal Department ofPlanning and Investment showed that more than 309,000 enterprises are active inthe city with a total charter capital of over 3.5 trillion VND (154 millionUSD). The number of businesses is forecast to double by 2020.

Similarly, Binh Duong and Dong Nai provinceshave devised numerous policies to develop the private economy, especiallyimproving administrative procedures and investment promotion efficiency.

As a result, more than 29,000 enterprises haveregistered to operate in Binh Duong with a total capital of over 200 trillionVND, generating jobs for 15,000-20,000 workers annually. The province targetsadditional 23,000 new firms in 2016-2020.

The number of newly-established businesses inDong Nai is increasing with an average of over 2,000 firms each year.

Creatingdevelopment momentum

Synchronous measures from both State andbusinesses are essential to create a driving force for the private economy,including the reduction of production costs.

Nguyen Dinh Tue, Director of HCM City Centre forSupporting Small and Medium Sized Enterprises, said the southern metropolis isleading the country in promulgating policies to support businesses.

He advised the city to create fundamental changes inadministrative reform and improve the business environment.

For Dong Nai, the province has given priority to improvingthe quality of administrative procedures and ensuring transparency in additionto encouraging businesses’ innovation and application of science and technologyinto production and supporting individuals and start-ups.

Vice Chairman of the Binh Duong People’sCommittee Dang Minh Hung said the province aims to become a developedindustrial locality in the Southeast Asian region by 2020. 

The promotion of start-up movement is considereda key strategy, he said, adding that local authorities have approved a plan toimplement a project on national innovative start-up ecosystem through 2025.-VNA