Bình Dương seeks to bring the economy back to a strong growth trajectory

April 20, 2023 - 08:05
In the first quarter of this year, the province's gross domestic product grew 1.2 per cent year-on-year - the lowest quarter growth in recent years, according to the provincial People's Committee. 


Backpack are made at a factory in Bình Dương.— VNA/VNS Photo Chí Tưởng

HÀ NỘI — Amid the economic downturn, the southern province of Bình Dương has proposed many solutions to help businesses solve difficulties, regain and ensure the momentum of production and export. 

In the first quarter of this year, the province's gross domestic product grew 1.2 per cent year-on-year - the lowest quarterly growth in recent years, according to the provincial People's Committee. 

During the period, the production of some key industries declined due to high input production costs and a decrease in the number of orders such as furniture, down 69 per cent year-on-year; rubber and plastic-made goods (30 per cent); paper and paper products (25 per cent); leather and related products (15 per cent) and apparel (10 per cent). 

Meanwhile, only 28 per cent of enterprises in the province expected an increase in export orders in Q2 compared to Q1; 38.3 per cent said their order would be stable in Q2; 33.1 per cent forecast that the number of export orders would continue to decrease in Q2 and 29 per cent said they would continue to reduce their labour size in Q2. 

Deputy director of the provincial Department of Industry and Trade Nguyễn Thanh Hà attributed a decrease of 40 per cent in the number of orders in Q2 to the Russia-Ukraine conflict, which had caused oil prices to rise.

Meanwhile, inflation had increased sharply in many countries, and the economic downturn had affected consumer demand in major markets such as the US and Europe, Hà said. 

At the same time, the provincial enterprises had to face a serious working capital shortage due to late payment by customers who also faced difficulties. Local firms also found it difficult to get access loans due to a hike in the interest rate and lack of collateral. Besides, the enterprise which did not have a good business plan failed to have export orders.

In a bright spot, Hà said, enterprises that had been operating for a long time still won several orders from traditional customers in the US and the EU. That allowed them to maintain operations and retain employees.

Finding solutions

Director of the provincial Department of Planning and Investment Phạm Trọng Nhân suggested the Government draw up supporting policies and improve the country's investment and business climate to help local firms overcome their challenges. 

Nhân also petitioned the State to support enterprises to adapt to the new situation, stabilise production and business, create a premise for breakthroughs and improve their competitiveness.  

The State should have policies to help businesses promote e-commerce, and access information channels to find new export markets besides their traditional ones, Nhân said. He also suggested local units create favourable conditions for the firms, especially small and micro ones to access loans with preferential interest rates. 

Secretary of the provincial Party Committee Nguyễn Văn Lợi said this was a very difficult period for local enterprises.

During a meeting with businesses and industry associations on removing economic difficulties in Q1 and finding solutions for Q2, Lợi required all levels, branches and state management units to accompany and support removing difficulties for enterprises.

Lợi asked these departments and sectors to work together to find the best solutions to support businesses in finance, commerce, and electronic payment and help them get benefits from policies on tax, insurance and other issues under the direction of the Government and ministries and branches. 

Banks needed to do their best to create conditions for businesses to access capital and credit packages, he said. 

The Provincial People's Committee should direct the departments and branches to urgently implement activities to support businesses and workers such as organising events to connect labour supply and demand to meet the firms' needs of employees.

Assistance in promoting e-commerce, in accessing export information channels to find new markets should be also included, Lợi said.

He also emphasised the importance of speeding up the disbursement of public investment capital, and simplifying administrative procedures to contribute to improving the business environment in the locality.

According to Lợi, the provincial People's Committee has also drastically implemented solutions to facilitate production and business, attract investment, and accelerate the disbursement of public investment capital to bring the economy back to a strong growth trajectory in the next quarters in 2023.

Data from the provincial Department of Planning and Investment revealed that from the beginning of the year to February 15, the province had 486 newly-established enterprises with a total registered capital of over VNĐ2.88 trillion.

As of February 15, the province was home to 60,172 with a total registered capital of over VNĐ636 trillion. — VNS