Bring its economy back to normal orbit
The Covid-19 pandemic had a negative impact on almost all fields of life, socio-economic aspects, leading to a chain effect affecting many fields considered as strengths of the province. According to a report of the provincial People's Committee, the index of industrial production in the first 6 months of 2020 is estimated to increase by 6.4% against the same period in 2019; this has been the lowest increase in recent years.
Due to the implementation of social distancing measures for Covid-19 prevention and people's reduced income leading to reduced spending, the retail sales of goods and services sharply declined. Estimated total of retail sale of goods and services revenue in the first 6 months is VND 122,390.7 billion, an increase by 9.4% against the same period, which is the lowest growth rate in the last 4 years.
Furthermore, many countries still tighten import and export for prevention of Covid-19 pandemic, therefore, many import and export contracts of goods were interrupted, leading to a slow growth in import and export activities of many businesses against the same period. In the first 6 months, the export turnover was about USD 12,286 billion (an increase by 1.2% against the same period) and import turnover was USD 9,975 billion (an increase by 7% against the same period).
The index of industrial production in the first 6 months of 2020 was estimated to increase by 6.4% against the same period in 2019
Although the indicators are low against the same period and the lowest in recent years, this result were created by efforts of the entire political system. Under the severe impacts of the Covid-19 pandemic, Binh Duong's economy maintained its growth and created active points. Especially, after the domestic pandemic was well controlled, the economy of the country in general and Binh Duong in particular had signs of recovery and development. The businesses began to get access to supportive policies and made efforts to restore production. Employers of industrial zones and investors invested in constructing infrastructure and workshops with a total capital of over VND 5,954 billion, sub-leasing land and workshops with a total area of 41.6 hectares. The foreign investment reached USD 673 million. The domestic economy is forecast to grow strongly in the third quarter and get many opportunities to receive the "wave" of shifting projects into Vietnam in general and Binh Duong in particular in the near future, especially when the EU-Vietnam free trade agreement (EVFTA) has been valid since August 2020.
Implementing the Prime Minister's direction on commitment to unchanging the targets established in 2020, in which the GDP growth target in the province (GRDP) is established at 8.6%-8 , 8% for 2020, according to the Chairman of the provincial People's Committee Tran Thanh Liem at the regular meeting in June 2020: "This is a big challenge, however, the Covid-19 pandemic are well being controlled at present and thanks to determination and the best efforts, the province is still able to achieve this target". Accordingly, in the remaining months of 2020, Binh Duong will actively focus on economic growth and have determination to reach the targets. The post-Covid 19 economic recovery scenario has been completely developed with strategic solutions and a focus on the province's key strengths.
Mobilizing the resources for growth
One of the urgent solutions for economic recovery that was actively implemented by the province is to support businesses and investors to address difficulties due to Covid-19 pandemic. To create all favorable conditions to fully and promptly provide businesses with access to capital, credit and capital needs for production and business. At the same time, the State Bank of Vietnam - Binh Duong branch directed the credit institutions to accelerate the reform of administrative procedures, shorten time for approval of loan applications, improve the customers' access to loans; promptly apply supportive measures such as rescheduling term of debt repayment and considering the interest rate exemptions, unchanging the debt groups, and reducing fees for customers.
The Covid-19 pandemic showed the fact that the businesses want to stand firm, they should not heavily rely on a market. It is necessary to speed up trade promotion activities to help businesses expand goods consumption markets. On the other hand, the businesses should be encouraged to diversify import markets. In the context of economic difficulties, encouraging domestic consumption and implementing the programs "Vietnamese people give priority to using Vietnamese goods" will contribute to stimulating domestic production development.
Along with that, the localities in the province continue to promote the improvement of the business and investment environment, attract domestic and foreign investment to make good use of development opportunities, especially to seize the opportunity to shift the flows of investment capital from other countries. In the remaining months of the year, the functional branches will focus on innovation, improvement of marketing efficiency, calling for investment and meetings and dialogues of businesses, associations and investors.
Speeding up the implementation and disbursement of investment capital is considered as one of the effective solutions to promote growth in the current difficult period. The provincial People's Committee requested departments, committees, branches, districts, towns and cities to urgently complete investment procedures, hand over all plans of investment capital from the state budget in 2020; accelerate the implementation and disbursement of the remaining public investment plan for 2019 and 2020 (including ODA); focus on directing, soon completing and activating large and important infrastructure works, maximizing design capacity and socio-economic efficiency.
Support businesses to quickly clear goods for recovery of import and export activities
Binh Duong province gives priority to creating the most favorable and open conditions within the legal framework for production, business, export and import activities of businesses. The Provincial People's Committee directs departments, committees and branches and People's Committees of districts, towns and cities to well implement the one-stop and inter-linkage one-door mechanisms in addressing administrative procedures and strengthening the reform of administrative procedure handling through the implementation of online public services at levels 3 and 4; at the same time, to coordinate the effective implementation of the province's hotline 1022 in order to reduce the conditions leading to difficulties and troubles for organizations and individuals.
Mr. Le Minh Quoc Cuong - Director of Department of Labor, War Invalids and Social Affairs said that up to now, the Provincial People's Committee has approved to support a total amount of nearly VND 2.4 billion to 2,449 employees who had no labor contracts and lost their jobs (self-employed) with; VND 30 million to 30 employees whose labor contracts and employment contracts were terminated but were ineligible for unemployment benefits; VND 87 million to 87 business households.
According to Mr. Cuong, the Department will continue to propagate and encourage employees' morale, support appropriate labor training and employees who lose their jobs due to the impacts of Covid-19 pandemic. In order for foreign experts and investors to enter Vietnam for meeting production and business requirements of enterprises, the Department of Labor, War Invalids and Social Affairs shall coordinate with the Management Board of Industrial Zones in the province and the Department of Foreign Affairs guides businesses to carry out procedures for requesting immigration priority and conduct appraisals according to regulations. At the same time, the provincial People's Committee directs the consideration and settlement of the unemployment regime in a quick and prompt manner and even entitling to the special unemployment allowance without termination of the labor contract.
"Binh Duong commits to co-operating with the Government and localities throughout the country to strive to achieve the 2020 targets" - the affirmation of Chairman of Provincial People's Committee Tran Thanh Liem is also the common spirit of all levels and branches in the province to join hands for the socio-economic development of the province.