Bac Ninh targets 2,500 new enterprises a year

Bac Ninh (VNA) – The northern province of Bac Ninh has set itself a target of 2,500 new enterprises each year in the period from 2020 to 2025, as part of its scheme to support small and medium-sized enterprises (SMEs).

Under the scheme, the provincial authorities will provide production ground for about 175 investment projects of SMES, in the form of leasing land or moving them into industrial parks and industrial cluster where infrastructure has been completed.

The province will also organise management training courses for 1,800 holders of managerial positions in enterprises, and vocational training for 15,000 workers.

Enterprises which are established during the 2020-2025 period will be provided with free-of-charge accounting and taxation software.

Relevant agencies will help local enterprises access fairs, exhibitions and workshops to seek business opportunities and new markets. They will also work to hold more events and programmes to provide local enterprises with accurate and up-to-date information on both the domestic and international markets, so as to help them decide directions for production and business activities.

In particular, the province will build an innovate start-up centre, which is tasked with connecting domestic and foreign resources to support local start-ups and develop the innovative start-up ecology in the province.

The scheme also aims to assist the development of the support industry, including enterprises supplying products and services for the Samsung complex and other foreign-invested enterprises in the province.

According to the Department of Planning and Investment, Bac Ninh granted business licences to 246 enterprises with total registered capital of over 4.34 trillion VND (187.46 million USD) in August this year. On average, each new enterprise has 17.65 billion VND in registered capital.

It is noteworthy that 99.24 percent of those new enterprises submitted their applications online, which is the third highest rate among localities in the country.

In the first eight months of 2020, Bac Ninh had 1,598 newly-established enterprises with total registered capital of nearly 15.6 trillion VND, representing increases of 4.3 percent in the number of enterprises and 1.94 percent in registered capital compared to 2019. Each new enterprise had 9.8 billion VND of registered capital on average.

In the same period, the province also granted licences to set up branches, representative offices and business venues for 483 affiliates, conducted dissolution procedures for 155 enterprises and 199 affiliates. Meanwhile, 550 enterprises and 88 affiliates suspended operation, and 310 enterprises and 41 affiliates resumed operation.

Bac Ninh so far counts 17,528 operational enterprises with combined registered capital amounting to over 281.34 trillion VND. Among them, there are 526 private enterprises, 9,615 single-member limited liability companies, 4,780 two-member limited liability companies, 2,606 joint stock companies and one partnership company.

Besides domestic enterprises, Bac Ninh has also paid attention to attracting foreign investors. Taking advantage of its geographical location just east of the capital Hanoi, the province has implemented reforms of its investment procedures and completed infrastructure projects, becoming an attractive destination for both domestic and foreign investors. These include major global corporations such as Samsung, Canon, Nokia, Foxconn and PepsiCo.

The province now has over 400 supporting industry enterprises including nearly 300 foreign-invested ones with total capital of about 3.1 billion USD. Bac Ninh has focused on three key industries: electronics and informatics; mechanical engineering; and processing of agricultural products, foodstuff and beverages. These three industries account for over 96 percent of the total provincial industrial production.

Bac Ninh has also promulgated a regulation on not only management of funding and development of supporting industry but also the specific expenditure level of supporting industry development activities in the province. In addition, the province plans to set up a research center for application development and technology transfer in supporting industries to serve as a focal point for organizing, connecting and implementing local supporting industry development.

In 2019, the province’s industrial production value reached over VND1 trillion and maintained the leading position in the country.

In order to continue creating momentum for industrial development, Bac Ninh will issue additional policies to attract enterprises and investors, especially to supporting industries in the fields of electronics, mechanics, information technology, and automation./.