Unlocking Resources for Small and Medium Enterprises

In the vibrant growth landscape of Phu Tho’s economy during the early months of 2026, the corporate sector continued to record numerous positive signals. By the end of April, the entire province registered approximately 1,850 newly established enterprises, representing a year-on-year surge of around 45% with a total registered capital exceeding 16,000 billion VND.

DT Vina Automation Joint Stock Company (Yen Lac Commune) invests in manufacturing machinery and equipment, upgrading the competitiveness of its precision engineering products to satisfy the demands of diverse domestic and international partners.

These numbers clearly demonstrate that the confidence of the business community is progressively making a robust recovery. However, behind this numerical growth remain various issues that warrant deep reflection, particularly regarding small and medium enterprises (SMEs)—the force accounting for the lion’s share of the local economy.

Mr. Tran Quang Thai, Director of Quang Thai Co., Ltd.—an enterprise specializing in the logistics sector in Vinh Yen Ward—emphasized: "For many years, SMEs like us have constantly been likened to the “blood vessels” of the economy. In Phu Tho, the vast majority of active enterprises fall into the small-scale group, concentrated in commerce, services, construction, supporting industries, logistics, and agro-processing, making vital contributions to the local economy."

Yet, the paradox lies in the fact that despite their large numbers, the resilience and competitiveness of this corporate bloc remain heavily constrained. Not a few enterprises are still struggling with the equations of capital access, production premises, high-quality human resources, and particularly market access capabilities.

Mr. Nguyen Van Tuan, Director of Tuan Dung Construction Co., Ltd. in Vinh Phuc Ward, shared that what businesses fear most today is not a shortage of orders, but input costs and protracted procedures. There are times when merely finalizing land dossiers or fire prevention and fighting approvals consumes months of an enterprise’s time.

These cases are by no means isolated incidents. Reality indicates that in an increasingly fierce competitive environment, SMEs require a more substantive support ecosystem rather than just generic, high-level policies. For a small-scale enterprise, a procedure prolonged by just a few months can wipe out a business opportunity, or worse, drag the unit into debt and bankruptcy.

Looking from a positive angle, Phu Tho possesses highly favorable conditions to cultivate its private business community. High economic growth, a progressively perfected infrastructure framework, a steep surge in Foreign Direct Investment (FDI) inflows, and the expansion of supporting industry demands are generating a massive market for domestic enterprises. The question is whether domestic firms possess sufficient capacity to participate deeply in that global value chain.

Currently, various large-scale FDI conglomerates are investing heavily in electronics and high-tech components in Phu Tho. Nevertheless, the number of local enterprises qualified to become supply satellites remains modest. The gap in technology, corporate governance, and manufacturing standards continues to stand as a steep barrier.

Mr. Le Duc Huy, owner of an enterprise specializing in manufacturing auxiliary components for Honda Vietnam Co., Ltd. (Phuc Yen Ward), shared that he spent many years working directly inside the Honda Vietnam factory. Recognizing that the market for auxiliary manufacturing for large corporations is highly abundant—provided that quality satisfies the partner’s strict requirements—he boldly established his own company, constructed a factory, and dedicated his operations to manufacturing and supplying auxiliary goods to Honda Vietnam.

To date, after years of operation, his company stands as one of the satellite enterprises that has secured high credentials from Honda Vietnam with regular annual orders, generating stable employment and decent incomes for hundreds of local workers.

This reality shows that to achieve sustainable development, the province cannot solely focus on attracting large-scale investments but must simultaneously nurture an SME ecosystem. This serves as the foundation to create an endogenous springboard for the economy.

A welcoming signal is that in recent times, administrative reform and digital transformation have recorded positive turnarounds. The online public service processing rate has reached over 91%, and numerous procedures have been significantly shortened. When time costs decrease, enterprises will unlock more resources to concentrate on their production and business operations. This is precisely what the business community expects.

However, reform does not stop at shifting paper dossiers onto digital environments. More importantly, it requires a fundamental shift in the service mindset. A small enterprise navigating administrative procedures must be viewed as a development partner rather than merely a subject of state regulation.

From reality, it is evident that wherever civil servants proactively guide and accompany enterprises, the investment climate there becomes noticeably more vibrant. Conversely, the moment an attitude of avoidance or passing the buck emerges, businesses will lose faith. In the context of fierce competition for investment attraction among localities, the differentiator sometimes lies not in tax incentives or land rental prices, but in the quality of governance and the speed of executive processing.

For SMEs, capital access remains a monumental hurdle. Although credit balances across the province increased by nearly 20%, many enterprises still report difficulties in accessing medium and long-term loan packages due to a lack of collateral or financial profiles that fail to satisfy requirements. This raises an urgent demand to robustly develop credit guarantee funds, empower innovative startups, and simultaneously upgrade corporate governance capacities for enterprises.

An economy aiming for rapid and sustainable growth cannot rely 100% on FDI "eagles." True strength must stem from tens of thousands of domestic enterprises that are structurally competitive, highly adaptable, and fueled by an aspirational drive to rise.

Phu Tho stands before a historic window of opportunity as its economic scale continuously expands, infrastructure receives robust investments, and the business environment improves positively. To translate opportunities into long-term developmental momentum, the most critical factor remains unlocking the internal resources of the small and medium enterprise sector.

Quang Nam