Accumulated as of April 15, 2024, Da Nang has been home to 40,576 businesses, branches and representative offices operating with a total registered capital of 257,065 VND billion, of which the number of small and medium-sized enterprises (SMEs) accounts for over 97 %. Allocating resources and promoting the implementation of policies to support small and medium-sized enterprises are key tasks to which the city is paying attention.

IT engineers work at Unitech Joint Stock Company, Hai Chau District, Da Nang. Photo: M.Q

Many support policies be done

To date, the Da Nang administration has implemented 38 support policies from the national government and issued 17 business support policies, of which the majority of policies are accessible to SMEs.

According to the Da Nang branch of the State Bank of Viet Nam, implementing Circular No. 02/2023/TT-NHNN dated April 23, 2023 to support customers in financial troubles, the accumulated total debt value (principal and interest) were restructured by credit institutions in Da Nang to restructure the debt repayment term and keep the same debt group was VND6,769 billion by March 31, 204 for 612 lenders and most of them were SMEs.

With a regard to the VND15,000 billion credit programme that has been expanded to VND30,000 billion for loan provisions to the forestry and fisheries sectors, the accumulated disbursement revenue until March 31, 2024 reached VND11.55 billion for customers.

Regarding interest rate support for organizations borrowing capital to invest in important socio-economic development projects in the city according to Resolution No. 84/2022/NQ-HDND dated December 15, 2022 of the Da Nang People's Council, the municipal Department of Finance is coordinating with relevant agencies and units to suggest the municipal People's Committee to provide VND6.11 billion worth of support for the Da Nang Port Joint Stock Company (VND2 billion) and Da Nang Transport and Chartering Joint Stock Company Loading (VND4.11 billion) in 2024.

When it comes to support innovative startup businesses, since 2020, the Da Nang administration has offered a total budget of nearly VND5.1 billion in support to them according to Resolution No. 328/2020/NQ-HDND dated December 9, 2020 of the municipal People’s Council on policies to support the innovative startup ecosystem in the city until 2025.

Thanks to the cited support, 169 projects and 69 innovative startups have been established, including fast-growing businesses that raised millions of USD in capital such as Datbike, Selly, Hekate, EM and AI. Besides, most of the products of innovative startups have been financially supported.

Through incubation programmes and support policies, products have been commercialised to reach the market in an easier manner.

The city has also supported 72 businesses to innovate technology with a total cost of more than VND8.5 billion since 2017, in line with Resolution No. 18/2016/NQ-HDND dated August 11, 2016 of the Da Nang People's Council on boosting technological innovation in businesses.

In addition to timely support in terms of capital access, interest rates and innovative startups, the city has continuously implemented many other support policies on industrial promotion and trade promotion; agricultural and rural development; developed seafood exploitation; improved productivity and quality of products and goods and speed up the support industry development.

Workers are seen at the Huynh Duc Trading - Services and Production Company Limited, Hoa Khanh Industrial Park, Lien Chieu District, Da Nang. Photo: M.Q

There will be more tailored support

Evaluating recent policies to support SMEs, Mr. Pham Bac Binh, the Chairman of the Da Nang Association of SMEs, said that there are many practical policies such as boosting industrial and trade promotion and supporting startup businesses. However, many businesses are still stuck with policies on tax support, fees, charges as well as loans.

The main reason is that the support policy has many criteria and high conditions or does not have specific instructions on how to implement it. Mr. Binh proposed that the Da Nang government to identify support policies that are ineffective and do not have access to businesses, so they should be adjusted or replaced soon so that businesses can have better access to better ones. Businesses must also improve and restructure themselves to improve their competitiveness.

According to Ms. Phan Nhu Yen, the Vice Chairwoman of the Da Nang Women's Business Association, some support policies require many conditions whereas the internal strength of SMEs is still limited, hereby making it difficult to access them. Another problem is that the business meets the conditions but the policy requires many cumbersome procedures so the business failed to approach them, too.

Recently, the city has organised digital transformation training programmes and legal support for SMEs. These helped businesses enhance digital transformation after participating in training courses. Therefore, relevant agencies should increase support in improving competitiveness and expanding markets," Ms. Yen said.

In order to concretise support policies, the Da Nang People's Committee issued Plan No. 82/KH-UBND dated March 29, 2024 on support for SMEs in the 2024 - 2026 period in Da Nang. In 2024, Da Nang aims to have 4,300 newly - established businesses and 13,500 businesses during the entire period.

Also this year, the city will support more than VND 4.2 billion for SMEs to boost innovations, develop human resources and technological development, and participate in industry clusters and value chains. Of this, over VND1.6 billion is earmarked for supporting SMEs to participate in industry clusters and value chains.

As reported by Ms. Tran Thi Thanh Tam, Director of the Da Nang Department of Planning and Investment, supporting businesses to join industry clusters and value chains aims to find product consumption markets and raw material supply markets for processing and manufacturing industries, as well as form domestic production supply chains to diversify supply sources and especially increase the added value of processed and manufactured industrial products.

Local agencies will also implement specific support policies on the development of supporting industries, the production of souvenir products for tourism, the development of information technology, and innovative startups, in addition to implementing central policies to support SMEs.

Reporting by MAI QUE - Translating by A.THU