Promoting the role of domestic investment enterprises

Attracting domestic investment and foreign direct investment is an important resource for socio-economic development. In recent times, in Phu Tho province, domestic investment enterprises (DDI) have grown strongly in quantity, scale, and production and business sectors and have made important contributions to the process of economic restructuring and social life in the locality.

Precision mechanical processing at Cosmos 1 Technology Co., Ltd., Thuy Van Industrial Park, Viet Tri City.

Positive contributions to socio-economic development

Along with the development of the economy, the number of DDI enterprises in the province has also increased, gradually improving the level of management, quality of human resources, revenue, profit, and operational efficiency. DDI enterprises have made important contributions to promoting growth, shifting economic structure, and improving people’s lives.

The province has over 12,000 registered DDI enterprises, of which over 7,000 are operating, with nearly 1,200 DDI projects under implementation. From 2021 to present, the province has attracted new and additional capital for 410 DDI projects with registered capital of VND 122,000 billion, with an average scale of over VND 300 billion/project.

Some enterprises have proactively transformed, boldly invested in new industries, and pioneered in innovating business models towards green and circularity. At the same time, they have gradually participated in the global product supply chain through cooperation with foreign direct investment (FDI) enterprises to process and produce some stages in the production chain.

With a large number, DDI enterprises are present in most industries, production, and business fields, creating jobs for over 90,000 workers. Of which, the number of enterprises currently investing in the processing and manufacturing sector is over 1,500, construction is about 1,000, and wholesale and retail are about 2,000... Developing DDI enterprises will absorb high technology and, importantly, create brands bearing the mark of the locality, the province, and further, build the Vietnamese brand.

Cosmos 1 Technology Co., Ltd., Thuy Van Industrial Park, Viet Tri City, operates in the field of precision mechanical processing, creating jobs for more than 1,000 workers, in recent years contributing to the budget about 20 billion VND/year. Mr. Nguyen Nang An, General Director of the Company, said, “With 100% domestic capital, we have major partners such as Honda Vietnam, Nissin Brake Vietnam, and Panasonic... The company focuses on promoting its internal strength in investing in innovative production technology, building human resources to meet the development requirements of the enterprise through focusing on researching new production technology associated with the investment process of advanced production equipment. With full and modern capacity and measuring tools, we ensure the suitability of products from the stage of checking input materials to checking components in the process and checking and measuring finished products. Cosmos strives to become the top choice of customers in the field of mechanical engineering in Vietnam”.

Along with that, DDI enterprises have penetrated deeper into the global supply chain, contributing to reducing dependence on imports and narrowing the gap in technology level, product quality, and competitiveness with FDI enterprises. In the service and retail sectors, large domestic retail enterprises have invested in the province with supermarkets and stores such as Co.opmart, Winmart, Dien may xanh, The gioi di dong, MediaMart... Enterprises have been quick and timely in investing in infrastructure, developing distribution channels, contributing to the development of commercial infrastructure, and creating conditions for the development of the distribution and retail network of goods in the province.

On the development path, difficulties always exist, but with the spirit of innovation and creativity, enterprises have affirmed their position and made positive contributions to the socio-economic development of the locality. Along with that, enterprises always share and accompany the locality in social security work, gratitude, poverty reduction, disease prevention, and natural disasters...

Ngoc Anh Wooden Chopsticks Company Limited, Minh Luong Commune, Doan Hung District, specializes in producing chopsticks for export, creating jobs for nearly 100 local workers.

Accompanying businesses

In addition to the advantages, there are also difficulties in the operation of DDI enterprises because most of the enterprises are medium, small, and micro-sized. Capital, management capacity, experience in production, and business activities are still limited, and competitiveness is not high. With the strong development of science and technology, rapid digital transformation is increasingly becoming a decisive factor in the competitiveness of enterprises. This is an advantage but also a challenge for enterprises to innovate, invest in technology, as well as management capacity and labor qualifications.

To support business development, the province has implemented synchronous solutions to improve the investment and business environment, attracting investment resources for development. Based on requirements and tasks, all levels and sectors have focused on implementing, concretizing, reviewing, and supplementing planning and plans, issuing mechanisms and policies to support business investment activities in the area. Administrative reform has been focused on facilitating the settlement of investment procedures, land, land use conversion, and land allocation to investors. Every year, the province evaluates and selects key projects, reviews investment projects to focus on directing, removing difficulties and obstacles, and enhancing the responsibility of leaders, creating conditions for investors to invest with confidence. At the same time, the province promptly implements the government’s policies on tax reduction, fees, charges, and interest rate incentives... for businesses to restore production and business. To promote the role of enterprises and entrepreneurs in the province, the Provincial People’s Committee issued Plan No. 556/KH-UBND, dated February 5, 2024, on implementing Action Program No. 47-CTr/TU, dated December 22, 2023, of the Provincial Party Committee to implement Resolution No. 41-NQ/TW, dated October 10, 2023, of the Politburo on building and promoting the role of Vietnamese entrepreneurs in the new period.

In which many important solutions were proposed: Perfecting policies and laws, creating a favorable, safe, and equal investment and business environment for entrepreneurs and enterprises to develop and contribute; synchronously and effectively implementing mechanisms, policies, and solutions of the government and the provincial people’s committee to support enterprises; promoting the start-up and innovation movement; encouraging potential enterprises and strategic investors to invest in the province. At the same time, develop business models based on innovation, application of science and technology, digital economy, sharing economy, circular economy, green economy, environmental protection, and response to climate change; encourage qualified individual business households to transform into enterprises...

Mr. Nguyen Hong Son, Chairman of the Provincial Association of Small and Medium Enterprises, said: “In the past, Phu Tho province has always paid attention to, accompanied, and effectively supported enterprises, creating a friendly business environment, especially creating favorable conditions for small and medium enterprises to expand their scale, improve competitiveness, and production capacity. Faced with new development requirements, our team of enterprises continues to promote their role, aiming to increase both quality and proportion of contribution to the province’s economy”.

With the effective support of all levels and sectors and the efforts of enterprises, we believe that DDI enterprises will promote their potential, demonstrating dynamism, creativity, and solidarity in creating and developing production and business; affirming their role as an important force in the socio-economic development of the province.

Nguyen Hue