12:10 | 02/12/2016 Industry
(VEN) - As the new Budget Law will take effect on January 1, 2017, localities must prepare industry promotion projects and plans with specific cost estimates for submission to the relevant authorities for approval.
After more than 10 years of development, industry promotion activities in northern provinces and cities have seen positive improvements, especially in terms of capital disbursement as well as project quality and quantity. However, in a number of localities, industry promotion still faced up with many obstacles.
Deputy Director of the Thanh Hoa Province Department of Industry and Trade Le Trong Han said that the province was allocated with VND5-7 billion for industry promotion each year. However, Thanh Hoa is a large province with a big population, which requires bigger financial assistance for industry promotion, Han said. Industry promotion staff members in Thanh Hoa encountered many difficulties in planning and consulting projects due to the province’s vast territories.
According to Phu Tho Province Industry Promotion and Energy Efficiency Center Director Do Hong Phuong, in 2015 and 2016, Phu Tho had to stop two national industry promotion projects because the projects were set in June 2015 but the capital didn’t come until mid-2016. During that time, the projects’ beneficiaries had no other way than to change technology and production equipment because of risks from the lack of investment capital. The planned projects, therefore, cannot be implemented.
In 2015 and 2016, The Industry Promotion and Consultancy Center of Quang Ninh Province was allocated with half of its regular funding. In 2017, it is more difficult for the center to find funding by themselves to ensure income for their employees.
Industry Promotion and Consultancy Center No.1 (IPC1) Director Nguyen Toan Thang said that IPC1 follows the public service model. In the coming years, the new policy will become effective, under which localities must prepare industry promotion projects and plans with specific cost estimates for submission to the relevant authorities for approval. At that time, the center will likely encounter many difficulties and it might have to think of transforming into a joint stock company, Thang said.
Observing new policies
According to the Ministry of Finance, localities must send 2017 industry promotion projects and plans with cost estimates to the relevant financial authorities before the new Budget Law takes effect on January 1, 2017. The Ministry of Industry and Trade drafted lists of public services of ministries. Localities must draft and submit industry promotion projects and plans to provincial people’s committees for approval. To facilitate the deployment, the Agency for Industry Promotion (AIP) should set general profiles of all localities and the ministry to set levels of funding allocation.
AIP General Director Ngo Quang Trung said that localities should closely follow the new Budget Law and promptly prepare industry promotion projects and plans with specific cost estimates for 2017.
Localities should efficiently combine national and local industry promotion programs with other programs, such as new rural area development programs, to increase resources for industry promotion. They should also closely follow ongoing projects to resolve their problems, review to find feasible projects for early implementation, and strive to use all of national industry promotion funding that they were allocated in 2016. It is necessary to review industry promotion guidelines, set up mechanisms for coordination between the industry and trade sector and other authorities to ensure effective implementation of industry promotion projects and programs.