CanTho (VNA) – Measures to develop nearly 7,000 new enterprises by 2020were top of the agenda of a meeting organised by Can Thơ city’s People’sCommittee and relevant agencies on May 23.

The Mekong Delta city, currently, has more than 6,900 enterprises with totalregistered capital of 55.5 trillion VND (2.47 billion USD), creating jobs forover 101,500 workers. On average, each enterprise has registered capital ofover 8 billion VND.

To implement Government’s Resolution 35, Can Tho targets to have 13,800enterprises by 2020. Of the total, 6,900 enterprises will be newly-establishedand some 20-25 per cent of them will apply high technologies in production.

The enterprises are expected to help increase the contribution of enterprisesto the city’s Gross Regional Domestic Product (GRDP) to 50-60 percent andcreate over 210,000 employees, of whom 40 percent will be female.

Last year, there were 1,100 enterprises set up in the city and more than 400 firmswere established in the first four months of 2017. Thus, from now until the endof 2020, to achieve the set target, each year, Can Tho needs some 1,700newly-established enterprises.

Nguyen Phuong Lam, deputy director of the Vietnam Chamber of Commerce andIndustry’s Can Tho branch, said that for developed countries, for every 10-15people, there is one enterprise, but in Vietnam, the ratio is 1:248.

In the Mekong Delta region, the ratio of enterprises to the population is onlyhalf that of the whole country, which is some 450 people per enterprise, but CanTho city, with more favourable conditions, has some 250-300 people perbusiness.

Lam said the city’s target of new businesses by 2020 is achievable, providedthat the city continues to improve its investment climate, including itsprovincial competitiveness index.

According to Lam, among Mekong Delta localities, Can Tho currently has the bestconditions for business development, but the city still lacks leadingenterprises to create a driving force for small and medium-sized ones.

In the long term, Can Tho needs to focus on developing startups, meaningbusinesses with new innovations and creativity, rather than establishing newones in the normal sense, Lam stressed.

Besides this, the city should also pay attention to seeking investment frombusinesses from other localities, such as HCM City, Lam said, adding that themunicipal authorities need to create good conditions for university graduatesto start their own business.

Tran Quoc Ha, director of the State Bank of Vietnam’s Can Tho branch, said thecity’s information e-portal should set up a forum for startups, providinginformation about the city’s startup policy so that all individuals know andparticipate in.

The city also needs a resolution served as the basis for implementing itsstartup plan, Ha said, stressing the importance of having a very specificpolicy for commercial banks to join hands in the programme.

Can Tho should have concrete policies and directions to develop enterprises inthe fields of information technology and automation, Ha added.

Nguyen Van Hong, director of the provincial Department of Planning andInvestment, said the city could reach the target of newly-establishedenterprises, but the number of new businesses set up according to the nature ofstartups – i.e. be creative and apply new technologies -- is not many.

This is the most challenging issue that Can Tho and many other places in theMekong Delta are facing, he said. — VNS