Support small enterprises to grow quickly

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Enterprises still need more support to improve their competitiveness. Photo: Tran Viet.

Greening enterprises is coming to a fierce period

According to the General Statistics Office (GSO), the number of dissolved enterprises is up nearly 4,700, up 15.8% over the same period in 2017. Of which, more than 4,200 enterprises with capital of less than VND 10 billion, accounting for 91.4% of dissolved enterprises. These enterprises are small enterprises, even micro enterprises, so they do have not enough power to have a place in the market. In addition, these enterprises are affected by many objective causes due to the world economic changes; and domestic business which though improved, still has many barriers, causing difficulties and costs for enterprises. This shows that enterprises are under competitive pressures and "war" on greening enterprises, which is coming to a fierce period.

However, due to many concerns about the market as well as treatment towards enterprises, many enterprises are afraid of growing, so an expert assessed that Vietnam does not have true big enterprises. In particular, the government's target of 1 million enterprises by 2020 is likely to be difficult when many business households are reluctant to convert into enterprises.

According to Le Van Quan, Director of the Ha Noi Centre for Supporting Small and Medium-sized Enterprises, business households have many reasons for refusing to convert into enterprises, especially the fear of losing additional costs for accounting, tax and inspections.

However, many enterprises also said that if they do not convert into enterprises and do not raise investment and scale, they shall find it hard to have a brand as well as reputation to find partners and cooperation.

In fact, in recent years, the Government has issued many solutions to strengthen support for enterprises, especially when the Law on Small and Medium Enterprises was issued and the decrees attached. As a result, enterprises will be supported not only by the shortening of procedures but also by cost reduction, tax incentives, human resource training, legal consultancy. However, small and medium enterprises need more support to grow stronger.

Help enterprises to have a firm position

Expressing concern about the operation, a director from a company specializing in consumer goods production, the issue of post-establishment phase of enterprises is still empty. Because, when the Department of Planning and Investment of a locality sent the registration of the establishment of enterprises to a district or economic division, statistical division or tax division, these divisions will do nothing if the enterprises do not carry out their obligations. In addition, many localities said that there were supporting policies, but enterprises failed to implement or implemented ineffectively.

Moreover, Dao Thi Lan Huong, Chairman of the Long Bien District Business Association (Hanoi), said that recently, the association was proposed to be funded with more than VND 2 billion by the Swiss Kitchen Association for development in Long Bien district. However, when the association visited the leaders of Long Bien district, they did not care, so, the Swiss Kitchen Association withdrew its proposal, causing great disadvantage for businesses in the district. Therefore, Ms. Lan Huong suggested that the authorities should appoint the occupational association to support enterprises in the post-establishment phase and the fund should be from the Enterprise Support Fund to support enterprises more effectively.

In addition, enterprises also reflected on the status that support policies show many obstacles in practice, such as the inspection issue; many enterprises said that there are too many inspections by the authorities, sometimes overlapping, wasting time of enterprises. On the other hand, the issue of declaring goods subject to specialized inspection in many localities is not uniform, leading to slow customs clearance. However, the good point is that the recommendations on tax policies, business conditions have been realized and amended by ministries and sectors, especially in the fields of food safety and petroleum.

Understanding the desire of the above-mentioned enterprises, Le Van Quan said that Hanoi is developing a project to support enterprises, helping business individuals and small business households to convert into enterprises. Currently, there are 270,000 business households in the capital. If the project is implemented, a large number of enterprises will be established. In addition, the city and other organizations and associations will also set up many programs to support enterprises to strengthen investment and development. As a result, in the first four months of 2018, Hanoi has nearly 8,000 newly established enterprises.

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In addition, in order to intensify the support for enterprises, reduce the annoyance for enterprises to help them develop fast, Mac Quoc Anh, Vice Chairman and General Secretary of the Association of small and medium enterprises in Hanoi, said that besides supporting policies from the authorities, the staff also have to improve their capacity and ethical qualities to take responsibility for enterprises. On the other hand, enterprises themselves must improve their capacity and business efficiency; such as the matter of inspection, the authorities often want to check once but because the operation of the enterprise is not transparent, so it required many inspections. Many evidences proved that. Enterprises should also look back on their operations.