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Enterprises expected to overcome difficulties in 2014 Year of the Horse

Monday, 17/02/2014

The production and business activities of enterprises of Vinh Phuc province in 2013 had many difficulties. However, the issuing many policies timely of the State and Province brought many expectations about the recovery and development in 2014.

Vietnam Germany steel pipe joint stock company is one of the high growth enterprises (over 10% in 2013).

The high inflation rate, tight monetary policy, public spending, reduced credit growth... in recent years had significantly affected to the production activities of enterprises in the province. Tight monetary policy created the limited loans of enterprises, the majority of small and medium enterprises were not accessed to capital, so they had to manufacture slowly or stop manufacturing. In addition, the high interest rate and increased input cost led to increased output cost and the limited consumption. The small enterprises was also less competitive, had difficulty in finding the domestic and exported market. The difficulties in manufacturing and purchasing power declining dramatically put enterprises into the dratted competition of dominating market. These enterprises with good business plan had achieved high results, however, the bad enterprises would be eliminated. Up to late November, 2013, the province had 2948 enterprises stopping operations, accounting for 34,5 % of all enterprises in the province.

Besides, there were many enterprises overcoming difficulties, achieving high growth of over 10 % such as Prime Group joint Stock Company, Vietnam Germany steel pipe joint stock company, Vinh Phuc pharmaceutical joint stock company, Vĩnh Yên Shoes Joint Stock Company.

In 2013, the business community had received the most attention ever. Facing to the economic difficulties , the government had the supported decision making such as: income tax exemption or reduction of small and medium enterprises , personal Income tax exemption or reduction, tax payment extension of construction field, land rent exemption or reduction… Besides, the province is also interested in directing, creating conditions and removing difficulties for businesses such as electricity, water priorities, infrastructure construction for industrial parks, dealing with difficulties, listening to the recommendations of the enterprises and remedies; encouraging and rewarding successful business, creating conditions for Business Association Of Vinh Phuc Province to support efficiently for enterprises.

All these efforts had helped the business community in the province overcome difficulties, develop the number of new businesses increasing to 513 enterprises in comparision with 2012. In the last 6 months of 2013, nearly 600 members of the Business Association provinces, there were 30% of 600 enterprises of Business Association Of Vinh Phuc Province stopping operations before 2013 had returned to manufacturing. Besides, the efforts of the business development in recent years has contributed significantly to the economic growth of the province. In 2013, the business community contributed to State budget revenue more than VND 17,000 billion, accounting for 95% of total State budget revenue, donated over VND 10 billion to the charitable programs. In addition, the enterprises created new jobs for over 10.000 employees and exchanged about over 600 employees to Japan, Taiwan , Malaysia...

Despite of existing many difficulties, Mr. Nguyen Van Cuong, Chief of Staff of Business Association Of Vinh Phuc Province said that the production and business activities of enterprises would be prospered. Basing on the experiences in the past years, the enterprises will have to adjust, change the strategies, organization of production and business activities.

According to many experts' forecasts, in 2014, the domestic economic situation will continue to recover and develope. It is the basis for businesses in the province to overcome difficulties and catch opportunities to achieve good results in business, ready for a year of the Year of the Horse "success".

Vinh Phuc News


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