Bac Giang’s new firms surge over 20 percent in Q1

An industrial park in Bac Giang (Photo: VNA)

Bac Giang (VNA) – As many as 225 new businesses were set up in the northern province of Bac Giang in the first quarter of this year, up 20.3 percent from the same period in 2021.

Registered capital of those new businesses exceeded 2.2 trillion VND, surging 83.5 percent.

Bac Giang’s number of newly established firms has been among the highest ones in Vietnam. Most businesses in the province operate in industry, construction and trade-services.

However, most local firms are of small size with limited financial capacity,  and lack technology as well as legal knowledge and experience in trade.

Chairman of the provincial People’s Committee Le Anh Duong said that to address bottlenecks and promote production of local firms, the province will create optimal conditions for all economic sectors to access investment chances, administrative procedures, policies, resources and credit.

Local leaders will maintain regular meetings and dialogues with businesses to promptly remove bottlenecks for them.

The province will promote the role of the steering committee on investment and business development and a working group that helps the Chairman of the People’s Committee collect and handle information and opinions of firms and investors.

Bac Giang authorities will support firms to access credit to invest in prioritised fields, expand consumption market via trade fairs at home and abroad, and develop human resources.

The province will exert efforts to build the collective economic sector and new-style cooperative models applying high technologies in line with the Fourth Industrial Revolution.

Identifying industrial development a key economic drive, the northern province of Bac Giang eyes turning itself into an industrial locality following a modern and sustainable orientation.

Goals have also been set for the sector’s gross regional domestic product (GRDP) to grow by 19 percent annually during 2021-2030 and for its value to exceed 652.15 trillion VND (28.3 billion USD) by 2025 and hit 2.2 quadrillion VND by 2030.

Bac Giang aims to set up 23 new industrial parks (IPs), expand five IPs, and merge six industrial clusters into a 6,518-ha IP, pushing the total number of local IP to 29 spanning 7,840 ha by 2030.

Meanwhile, 29 new industrial clusters will be established and three other expanded, covering a total area of 1,853 ha. By 2030, Bac Giang hopes to house 66 clusters spanning 3,209 ha.

The local IP development follows a model that consists of an IP and an urban-service area with modern technical and social infrastructure. Prioritised industries include mechanics and manufacturing, and farm produce and food processing. Investment attraction, high-quality human resources building, and technological transfer and application are also focal points.

According to the provincial Department of Industry and Trade, to date, Bac Giang has six IPs covering 1,322 ha; five of them have become operational. They have attracted 409 projects from domestic and foreign investors worth 9.4 trillion VND and nearly six billion USD, respectively.

In the first month of 2022, Vietnam saw a surge in both the number of newly-established enterprises and registered capital compared to the same period last year, according to the General Statistics Office (GSO).

The latest GSO report showed that the whole country saw 13,000 new enterprises established in January, with registered capital of over 192.3 trillion VND (8.47 billion USD), up 16 percent in the number of enterprises and 23 percent in registered capital month-on-month. Compared to the same period last year, these figures are 29 percent and 24 percent higher, respectively.

The number of businesses returning to operation also surged in all areas. This signal shows the efforts of the business community despite the pandemic, the GSO said. 

Specifically, 19,100 companies returned to operation across the whole country in January, up 353 percent compared to December 2021 and up 194 percent over the same period last year. This brought the number of newly established and re-operating enterprises in the first month of this year total up to 32,100, surging 94 percent year-on-year./.