Over 30 provinces pledge favourable conditions for businesses with VCCI
  • | VNS | August 25, 2016 12:40 PM
Deputy Prime Minister Vương Đình Huệ has called on all provinces and cities to set up a centre to support businesses, especially small- and medium-sized enterprises (SMEs).

His call came at a ceremony in HCM City yesterday where the Vietnam Chamber of Commerce and Industry (VCCI) signed an agreement with 33 central and southern provinces and cities for creating a business-friendly environment.

Deputy Prime Minister Vương Đình Huệ speaking at the event.

The centres will provide all kinds of support - with legal procedures to incorporate or close down companies; incorporation procedures; import-export activities; approaching the market; setting up a business project; technology; tax and land issues; and accounting.

“SMEs and micro enterprises cannot have an accounting department because they cannot afford it; the centre will help them do it,” Huệ said, citing an example.

This would encourage SMEs and micro enterprises to develop, he said. 

The Government would subsidise 40-60 per cent of the centre’s operation costs with the rest covered by fees paid by companies, he said.

Huệ, who is also head of the Steering Committee for Business Renovation and Development, called on the VCCI to create a Business Support and Development Index to rate provinces and cities based on the number of enterprises, new ones and ones that recommence business after suspending operations.

The benefit that companies brought a province – a combination of the profits they make and their workers’ incomes – should also be an important basis, he said.

“The index will not be used to compare all provinces and cities; it will be used for a comparison with themselves or with others at the same level.”

He called on the VCCI to create the index this year so that it can be applied from next year onwards.

Developing local credit guarantee funds was the Government’s other requirement from the VCCI and provinces.

“Many SMEs and micro enterprises cannot get bank loans since they lack assets to mortgage, so they need help from the fund,” Huệ said.

Hà Nội and HCM City had efficient funds, he said, hoping other provinces and cities would follow.

The signing ceremony on August 24

Agreement signed to support businesses

The deal between the VCCI and the provinces was in response to the Government’s Resolution No 35 in May to support and develop businesses by 2020.

With the signing, the 33 provinces and cities have pledged to carry out the Government’s resolutions in improving the investment environment.

They are committed to implementing programmes and establishing models to support local companies and help them overcome difficulties.

Resolution 35 lists five tasks: reforming administrative procedures to improve the business climate; creating advantages for start-ups; ensuring a level playing field for all companies; helping reduce businesses’ costs; and protecting businesses’ rights and benefits.

VCCI chairman Vũ Tiến Lộc said companies were happy with the determination of the Government and provinces to create a good business climate.

According to the VCCI, it has signed agreements with 40 provinces and cities, including Hà Nội, HCM City, Đà Nẵng, Đồng Nai, Quảng Bình, and Quảng Trị, to support local businesses.

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