Challenges persist despite steady growth

In recent years, the number of businesses in Bac Giang has grown significantly in both scale and quality. Newly established enterprises have increased steadily, with SMEs accounting for about 95% of all businesses in the province.

The production line of frozen potato at Vifoco Import Export Joint Stock Company.

Nguyen Cuong, Vice Chairman of the Provincial Business Association, said SMEs are playing a pivotal role in local economic development. Administrative reform has achieved key results and the investment climate has improved, allowing SMEs to contribute actively to provincial economic growth.

Bac Giang currently has over 17,500 businesses, including 489 private firms, 3,500 limited liability companies, 10,700 single-member limited liability companies, 2,900 joint-stock companies and over 1,700 branches or representative offices.

These businesses operate across diverse sectors and generate over 33,000 new jobs annually. In 2024, the average monthly income per worker exceeded 11.8 million VND.

However, in 2024, the number of companies ceasing operations remained high. The province recorded 164 dissolved firms (a 14% increase year-on-year), 846 businesses temporarily suspending operations (up 3%), and 970 firms and offices not operating at their registered addresses.

Some firms shut down due to market difficulties. ETC Vietnam Electronics Company in Viet Yen suspended operations for months due to weak product demand. HH4 Housing Development Company in Bac Giang City dissolved due to the prolonged real estate downturn.

Other businesses struggled with high operational costs, including rising logistics and material prices. Many were unable to secure financing to maintain or expand production and faced hurdles in investment procedures, land access, construction permits, environmental compliance and fire safety regulations.

Creating favorable conditions

Experts noted that Bac Giang still has a limited number of high-tech firms, supporting industries, precision engineering companies and businesses capable of leading and connecting value chains.

The production line of Bac Giang LGG Garment Corporation Joint Stock Company.

To support SME development, the Chairman of the Provincial People’s Committee has urged departments and localities to adopt a citizen- and enterprise-centered approach, resolving difficulties proactively with the motto: “No to refusals, no to delays, no to empty promises.” Clear responsibilities and deadlines are required.

All procedures involving businesses must be handled online, seamlessly and transparently. The province aims to cut administrative processing time by at least 30% in 2025.

Authorities are also working to empower business associations as bridges between firms and government agencies, encouraging regular dialogue to resolve problems during investment and business operations.

The province continues to support high-quality workforce training, focusing on vocational skills, enterprise-level management and tailored capacity building. Enterprises are also supported in modernizing equipment and facilities, adopting new technologies, developing brands, marketing products, and expanding markets.

In parallel, Bac Giang is implementing mechanisms to attract investment, provide clear planning and policy information, and create a favorable foundation for startups and business growth.

The Department of Finance is reviewing and streamlining administrative procedures to reduce burdens and costs for businesses. It is also implementing the Law on Support for SMEs to ensure efficient use of public funds.

Key priorities include promoting innovative startups, enhancing competitiveness in value chains, facilitating digital and green transformation, and encouraging the adoption of new business models and technology-driven growth.

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Many reputable international organisations have hailed Viet Nam’s progress in improving its business environment and enhancing national competitiveness, projecting that the country will maintain a growth rate of 7-8% in 2025.

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