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Enterprises in rural areas create more jobs for the locals. Photo N.T |
Many companies have eyed rural areas in Binh Dinh recently. The move is expected to promote the agricultural and rural industrialisation and modernisation process. However, they still need supporting for further development.
Investing in rural areas
Enterprises which have decided to develop their business in rural areas may lose competitive advantages. In return, they could expand thanks to big land areas.
Alongside this, the compensation for land clearance in rural areas is much lower than in urban areas, let alone an abundant supply of cheap manpower.
To attract businesses to invest in rural areas, many industrial parks have been set up in districts, including 11 which have been fully operational.
Enterprises could effectively invest in not only urban but rural areas provided they are able to take full advantage of the areas, said deputy director of the province’s Department of Industry and Trade Nguyen Van Thang.
The province’s districts have attracted many investors thanks to their available advantages, contributing to change the economic mechanism, he added.
Nearly 500 firms are doing their business in Binh Dinh’s rural areas now, with the registered capital of more than VND1,400 billion, creating jobs for 13,000 people.
The businesses in rural areas contributed 16 percent of the province’s industrial production value, accounting for 19 percent of the province’s average industrial production value in three years (2006-2008).
Also, the development of businesses in rural areas is partly strengthening the urbanisation and the agricultural and rural industrialisation and modernisation process.
Requiring assistance
The development of businesses in rural areas still exists shortcomings. Most are small and medium-sized ones lacking competitiveness, experience, and capital.
In addition, enterprises in rural areas mainly target the domestic market. The infrastructure, unqualified manpower, administrative procedures, and traffic are causing difficulties for their operation and output.
“Enterprises in rural areas have to suffer sudden power cut causing damage for their products,” said Pham Thi Hien Luong, director of Nhat Tien Co., Ltd operating in Phu An industrial park, Tay Son district.
It’s necessary to well prepare the infrastructure for attracting businesses to rural areas. The industrial parks in rural areas are required to be synchronously built, aiming to meet businesses’ demands.
The administrative reform must also be strengthened, creating favourable conditions for enterprises investing in disadvantaged areas.
Other services relating to environment, health, telecommunication, and transport need developing, assisting enterprises in their operation.
To help businesses strongly develop in rural areas, the planning of industrial parks must be in correlation with the country as well as province’s industry development strategy, according to economists.
They will provide auxiliary services for big companies in producing hi-tech products. This could be an opportunity to carry out the technology transfer and experiences in management.
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