Business in trouble
According to the Quang Nam Statistics Office, from the beginning of 2024 to now, the province has granted 9 new foreign direct investment (FDI) projects, bringing the total number of valid FDI projects to 200 with a total registered capital of more than 6.2 billion USD.
For domestic projects, there have been an increase of 9 projects and nearly 3 trillion VND in registered capital compared to the same period in 2023; to date, there have been 1,165 domestic projects with a total registered capital of more than 223 trillion VND.
However, business operations are facing difficulties because the number of businesses withdrawing from the market is higher than the number of businesses returning to operation.
848 newly registered enterprises and 389 enterprises returned to operation, but 1,298 enterprises withdrew from the market (an increase of 11.1% over the same period in 2023); on average, 144 enterprises withdrew from the market per month.
According to Mr. Tran Quoc Bao - Chairman of the Quang Nam Province Business Association, the real estate business community is facing many difficulties in project implementation; in which the most prominent is the problem of compensation and site clearance, stemming from the capacity of the agency in charge of compensation, current status management and the lack of determination of the locality.
According to statistics from the Quang Nam Tax Department, currently less than 37% of foreign invested enterprises (FDI) report profits. The rest report losses or have accumulated losses that increase every year. The peak was the Heineken Quang Nam Brewery having to stop operations in June 2024.
Most FDI enterprises in 2023 will operate ineffectively, with 9/13 industries having negative after-tax and pre-tax profits.
The government is committed to accompanying
At the end of September 2024, Quang Nam completed the province's special working group led by Chairman of the Provincial People's Committee Le Van Dung, to remove difficulties and obstacles for businesses and investors in the province.
Talking to Lao Dong, Mr. Le Van Dung said that the biggest difficulty now is that the mechanism and procedures for business operations are still cumbersome. More than ever, authorities at all levels must have the responsibility to share the difficulties of the business community.
According to Quang Nam leaders, in the past 3 months, there has been almost no construction material mine proposed that the Provincial Party Committee did not agree with. That shows that the province is very interested and creates favorable conditions. Localities and departments must act responsibly and in places where contractors are assigned, they must assign the work to enterprises.
Regarding solutions in the coming time, Quang Nam focuses on rectification and transparent public bidding to select construction units in accordance with legal regulations. "All businesses have equal opportunities, no front or back yard, no blue team or red team" - Chairman of Quang Nam Provincial People's Committee emphasized.
According to Chairman of Quang Nam Provincial People's Committee Le Van Dung, up to now, Quang Nam has only disbursed about 45% of the total capital for 2024, which is still very low compared to the national average. The province calls on the business community, especially in the construction sector, to join hands to ensure the disbursement progress.
