The quality of economic management at the provincial level continues to improve

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Businesses have more positively evaluated the business environment reform in localities. Photo: H.Diu
Businesses have more positively evaluated the business environment reform in localities. Photo: H.Diu

Actively support businesses in international integration

According to a survey of nearly 10,700 domestic private enterprises and foreign invested enterprises (FDI) operating in Vietnam in the Provincial Competitiveness Index (PCI) and Provincial Green Index (PGI) reports 2023 was just announced by the Vietnam Confederation of Commerce and Industry (VCCI) on May 9, 2024, the quality of local economic management has improved a lot.

Businesses highly appreciate business support. In 2023, 73.3% of businesses said consulting procedures to access capital are easy; 75% of businesses assess that the procedure for accessing consulting services to support management capacity improvement is easy to implement; 75% of businesses find that procedures to support access to industrial zones and clusters are convenient; 77.1% of businesses have easy access to legal consulting services. These results are all up compared to the previous year’s numbers.

Notably, a number of indicators to support businesses in international economic integration in 2023 increased sharply compared to 2022. 44.6% of businesses rated the quality of providing information about free trade agreements. (FTA) of local state agencies to meet business needs (32.6% in 2022); 66.7% said that problems in implementing documents implementing FTAs were effectively resolved by local state agencies (56.9% in 2022). Thanks to that, the rate of businesses having difficulty finding customers has gradually decreased since 2021. Businesses said they have proactively managed to find customers, resonating with the government’s business support programs. local to diversify customers, markets…

An issue that has been causing frustration for many years in business operations is that unofficial costs also continue to be in a downward trend. PCI 2023 results show that only 33.3% of businesses reported paying unofficial costs, a significant decrease from 42.6% in 2022. Compared to 66% in 2015-2016 , or the highest number was 70% in 2006 (the first year of conducting a survey of all localities across the country), the proportion of businesses reporting paying unofficial costs in 2023 is the lowest. This shows that efforts to prevent and combat corruption by the Party, Government and authorities at all levels have achieved clear results.

But on the other hand, there are still some areas that need to step up efforts to cut informal costs. Specifically, 69.9% of businesses still reflect the phenomenon of harassment when handling procedures for businesses in 2023, although this indicator has decreased from 71.7% in 2022. Percentage of businesses Payment of unofficial costs in some areas in 2023 has increased compared to the previous year such as: business registration, inspection, environmental inspection in particular or in inspection and inspection in general.

The 2023 survey results show that it will be easier for businesses to enter the market, but they still need to continue to cut unnecessary and unfeasible, unclear, difficult to determine, and inappropriate business conditions. Practice; abolish unnecessary certificates, reduce duplicate certificates in content… However, the reform of administrative procedures has achieved many positive results, of which the most impressive reduction is Tax and fee fields. In 2023, businesses will record a high quality of handling administrative procedures in general.

TOP 30 provinces and cities with the best operating quality in 2023. Chart: H.Diu
TOP 30 provinces and cities with the best operating quality in 2023. Chart: H.Diu

The biggest difficulty is accessing credit

However, there are still many problems causing difficulties for businesses, in which, according to reflections from PCI 2023, the biggest difficulty that businesses encounter is accessing credit. Considering the time series, this is also the highest number ever in VCCI’s annual business survey. The reason pointed out is that businesses do not have collateral, banks or credit institutions impose unfavorable credit conditions on businesses, along with a significant proportion of businesses reporting poor credit conditions. Borrowing procedures are troublesome. Even the phenomenon of credit officers intentionally catching errors and prolonging the processing time of business documents is still relatively high.

With the above situation, plus low credit growth over the same period, from the beginning of 2024 until now, the Prime Minister and the State Bank have continuously issued instructions to promote credit growth, create conditions for businesses to borrow capital.

Along with credit problems, businesses also reflect that obstacles in land access are showing signs of increasing, the business environment is not truly equal for small and medium-sized enterprises, dynamism and pioneering. of local government officials shows signs of slowing down.

Appreciate the support in production and business from local authorities with a focus on listening to the opinions of entrepreneurs and businesses through programs such as “Entrepreneurs’ Coffee”, but Mr. Luu Cong Thanh, Chairman of the Association, Young businessmen of Quang Ninh province expressed their wish that provincial leaders pay more attention to building a more equal environment for small and medium-sized enterprises to have more favorable access to land as well as other investment packages. In addition, Mr. Thanh also proposed that Quang Ninh province soon remove difficulties regarding land leveling and early handover procedures.

According to experts, the economic situation in 2024 will continue to face many difficulties, so businesses still need a lot of support to speed up recovery. Mr. Dau Anh Tuan, Deputy Secretary General and Head of the Legal Department (VCCI) said that localities need to continue to effectively implement efforts to reform administrative procedures and cut cost burdens for businesses. Local governments also need to create a fair business environment for small and medium-sized enterprises in accessing resources to operate, from accessing information, tax exemptions and reductions, and participating in public procurement bidding… At the same time, business support programs also need to focus on effectively solving the main difficulties businesses are facing in accessing credit, finding customers, market fluctuations, and ensuring stable determination and consistency of policy formulation and implementation…

The good news is that from the beginning of the year until now, many instructions on improving the business environment from the Government have been highlighted. The Government has also reissued Resolution 02/NQ-CP on key tasks and solutions to improve the business environment and enhance national competitiveness in 2024. Businesses expect and This new policy direction will be implemented promptly and effectively by local governments to improve the business environment and enhance national competitiveness in 2024 and the following years.

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