HCM City looks to have 500,000 businesses by 2020

23-Jul-2016 Intellasia | TBKTSG | 6:00 AM Print This Post

The HCM City government will take into account all proposals of the HCM City Young Businessmen Association (YBA) and will prop up business so as to realise the goal of having half a million firms by 2020, heard a dialogue in HCM City on Tuesday.

HCM City chair Nguyen Thanh Phong reiterated the city’s effort to translate the target into a reality at the dialogue held by the YBA to find ways to remove hindrances to business. The event was also attended by leaders of departments, and 24 districts in the city.

At the dialogue, the YBA submitted proposals to HCM City leaders. In the 2016-2020 period, it wants the city to support 1,000 startup projects and call for a total investment of VND500 billion into 100 startups.

The association expects to serve as a coordinator for programmes designed to bolster SMEs’ competitiveness, and for departments and agencies to build a website for startups to get news updates, learn about latest policies and introduce products to potential partners.

The YBA seeks to organise theme fairs in nine sectors – finance-banking-insurance, trade, tourism, transport-port-warehouse, post-telecommunication-information-communications, asset trading-real estate, consulting, education-training, and science-technology-health.

The YBA wants a land lot to construct a working place for startups and look for investors. Currently, the city has over 266,000 businesses with most of them small and medium.

Nearly 16,850 enterprises were established in the first half of this year and 77 percent of them 16,844 firms registered to operate in the trade and services sectors. However, 11,726 firms suspended operations or were dissolved.

HCM City leaders said the city needs more companies in plastic-rubber, food-foodstuff, electricity-electronics-engineering and information technology, which enjoy many incentives.

Tran Bang Viet, a member of the entrepreneurship fund under the YBA, told the dialogue that the city’s support should focus on new firms that have already turned out products and generate revenues. Their products should be new to the market and hold growth potential.

Tran Viet Anh, general director of packaging firm Nam Thai Son Co Ltd, said that in the past Vietnam lacked consumer goods, so startups in this sector were able to reap success easily.

At present, Vietnam needs more enterprises in supporting industries and startups should join, said Anh, who was one of the founders of the YBA 22 years ago.

Anh said startups should seek help from bigger enterprises and that the YBA should name the failed startups over the past 22 years to allow young businesspeople to learn from past mistakes.

SMEs account for 95 percent of the city’s total. Therefore, the city has introduced many policies to back them but their competitiveness remains weak.

Duong Cong Duc, director of VietPhone M&E Contractor, petitioned the city government to set up a fund to help potential SMEs in key sectors and develop new industrial parks for SMEs who often have difficult access to land and technology.

Phong said HCM City enterprises usually operate in labour-intensive sectors and rely on outsourcing contracts from foreign firms. He told departments and agencies to help prop up the development of sectors with added value and of supporting industries, among other tasks, to realise the target of having 500,000 businesses by 2020.

http://english.thesaigontimes.vn/48710/HCM City-looks-to-have-500000-businesses-by-2020.html


Category: Economy, Vietnam

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