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Thai Binh eyes rapid SME growth

Update: November, 09/2013 - 10:21
Workers of Bich Ngoc Limited Company weave paintings for export in the northern province of Thai Binh. — VNA/VNS Photo Tran Viet

HA NOI  (VNS) — The Red River Delta province of Thai Binh aims to add 1,350 small and medium-sized enterprises (SMEs) by 2015 in a bid to boost economic growth and restructuring.

Under the plan, Thai Binh will have 4,688 SMEs in 2015, accounting for around 14 per cent of the province's total social investment.

The SME sector will contribute 13.21 per cent of the province's annual GDP growth and VND1.59 trillion (US$74.73 million) of the local budget as well as earning about $1.2 billion from exports, equivalent to 50 per cent of local export turnover.

Thai Binh plans to expand SMEs in all fields, focusing on high value-added and competitive products.

The province will also promote administrative reform in business and investment registration, direct local banks to lower lending rates and establish more industrial parks and clusters with convenient facilities.

Firms will receive technical support as well as assistance in applying advanced technology to boost the productivity, quality and competitiveness of products in both domestic and foreign markets.

At the end of 2012, Thai Binh had over 3,300 SMEs, accounting for more than 90 per cent of the province's total enterprises, according to the provincial Department of Planning and Investment.

The sector contributes more than VND500 billion ($23.5 million) to Thai Binh's annual budget while raising about $350 million from exports and generating jobs for around 72,000 workers.

However, the operational quality and effectiveness of local SMEs remains poor, as many owners lack precise business strategies or knowledge of legal regulations and business management.

Many firms use backward technologies and must rent premises for production, which raises the risk of environmental pollution as well as production costs.

The province needs to back the sustainable development of SMEs, which means helping them obtain premises for production, capital and management skills, said Secretary General of the Thai Binh Business Association Ngo Van Dung.

The association plans to establish a centre to offer support and consultation to local enterprises. — VNS


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