Summary of Doctoral thesis in Economics: Development of small and medium commercial enterprises in Ha Tinh province

The dissertation proposes measures to develop SMEs in Ha Tinh province, contributing to socio-economic development of the province.

MINISTRY OF EDUCATION AND TRAINING THUONG MAI UNIVERSITY - HOANG SI NAM DEVELOPMENT OF SMALL AND MEDIUM COMMERCIAL ENTERPRISES IN HA TINH PROVINCE Major: Economic management Code: 62.34.04.10 SUMMARY OF DOCTORAL THESIS IN ECONOMICS Ha Noi- 2018 The thesis is completed at Thuong Mai University Academic supervisor: Supervisor 1: Assoc.Prof Nguyen Thi Bich Loan Supervisor 2: Dr Chu Thi Thuy Refree 1: ………………………………………………………………… ………………………………………………………………… Refree 2: ………………………………………………………………… ………………………………………………………………… Refree 3: ………………………………………………………………… ………………………………………………………………… The thesis will be defended in front of the university’s of thesis evaluation committee at:……………………………….……… The thesis can be found at: - National Library - Thuong Mai University’s Library OPENING The urgency of the topic Small and medium enterprises (SMEs) in general and SMEs in particular are important to the overall development of the economies of the world That role is expressed through the attention and recognition of the governments of countries around the world Governments and local governments have issued many policies to support sme's development According to the association of SMEs (Vinasme), SMEs operate in many different fields such as manufacturing, industry, construction, agriculture, forestry, fisheries and commerce in order to create more jobs, increase income for laborers, contribute to socioeconomic development in general SMEs account for about 97% of all registered companies in Vietnam These enterprises contribute over 40% of total domestic income, generating over half a million workers per year, accounting for 51% of total employment, of which SMEs account for a large proportion (about 70%) of total SMEs in Vietnam This proves that in recent years the Government of Vietnam has issued many policies to support SMEs in general and SMEs in particular development Government policies have created favorable conditions for localities to develop a system of policies to support development of enterprises in order to boost the socio-economic development of localities, contributing to the development of socioEconomic development of the country In fact, many localities have succeeded in helping SMEs to develop such as Binh Duong province, Dong Nai province, Ho Chi Minh city, Da Nang city However, there is a fact that SMEs are often profitable, obsolete technologies, and therefore have no economies of scale Therefore, in order to solve difficulties and improve competitiveness, creating sustainable development for SMEs should have long-term policy solutions to support enterprises With the role of SMEs in the key economy is the connection between production and consumption, create more jobs suitable for large population, help create value for goods and services To promote the development of market economy, international integration, trade liberalization and the building of an independent and autonomous economy It can be said that SMEs are developing and operating very dynamically and in accordance with the conditions and level of development in our country, in the next time the type of SMEs still play an important role in the economy front The trade liberalization wave and the achievements of the 4.0 revolution are strongly applied in all areas of social life In addition, the Law on Enterprises 2005 and Decree 56/2009 /ND-CP of the Government on supporting development of SMEs; Particularly, the Small and Medium Enterprises Promotion Law was promulgated on June 12, 2017 and came into effect January 1, 2018, confirming the Government's interest, properly evaluating the role of SMEs The legal framework is important for supporting sme's development This will facilitate the development of SMEs in general and SMEs in particular By the end of 2016, there were 4,432 SMEs, of which 2,158 were SMEs, accounting for 49.7% of total SMEs, contributing to the province's GRDP by 10.65% It can be said that in recent years, the province's SMEs have achieved remarkable results such as the increase in quantity, medium scale, diversified forms of ownership, creating many jobs and contributing a lot to the provincial GRDP The result is that the province has implemented many solutions and issued many policies to support SMEs in general and SMEs in particular development Ha Tinh province has created a favorable environment for individuals, Organizing the establishment of enterprises as facilitating the establishment and establishment of enterprises; Implement policies to support business development in accessing capital; PAR; inspecting and supervising the operation of enterprises; To plan and build smalland medium-sized industrial parks and complexes so as to perfect the infrastructures in service of the local business Besides, there are still some drawbacks Specifically, most of the SMEs have weak financial resources, low technology, small scale, poor quality of human resources, the internal business development is not firm, lack of business strategy long-term business, and not fully promote the potential available in the locality Ha Tinh is a province in the North Central Region, which is associated with the East-West Economic Corridor, in the process of integration of the country However, due to many objective and subjective reasons, the development of small and medium enterprises in the province has not been sustainable, the efficiency of operation is not high and not actively promoted its role In addition, in the context of the 4.0 industrial revolution, international economic integration and accession to new FTAs, poses many challenges to the provincial SMEs in the province Ha Tinh Starting from the reasons on the author selected topic: "Development of small and medium enterprises in Ha Tinh province" as a doctoral thesis Literatute review 2.1 Foreign research Tran Thi Bich (2008), "Productivity, efficiency and institutions: economic reforms and non-state manufacturing companies in VietNam"; Nguyen The Quan (2009), "Developing astrategic model for small- and medium-sized construction firms in Vietnam; Dang Duc Son (2007), "Developing a sound financial reporting medium for small and medium companies in VietNam", David Begg (2007), "Economics"; ARI KOKKO (2004), "The Internationalization of Vietnamese", OECD (2009), "The Impact of the Global Crisis on SMEs and Entrepreneurship Financing and Policy Responses; Marchese, M & J Potter (2010), "Entrepreneurship, SMEs and Local Development in Andalusia, Spain", OECD 2.2 Domestic research Le Xuan Ba, Tran Kim Hao, Nguyen Huu Thang (2006), "Small and medium enterprises in Vietnam in the context of international economic integration"; Nguyen Vinh Thanh (2005), "Enhancing the competitiveness of Vietnamese commercial enterprises in international economic integration"; Le Du Phong (2006), "Small and Medium-Sized Enterprises Development in the Field of Science and Technology, Hungarian Experience and Application in Vietnam"; Tran Kim Hao (2005), "Business Service Market for Small and Medium Enterprises in Vietnam: Current Situation and Solutions"; Dinh Van Thanh (2012), "Research on the scientific foundation for the development of Vietnam's trade in the period 2011-2020";Nguyen Thi Lan Anh (2012), "Development of management human resources of small and medium enterprises in Thai Nguyen province"; Le Anh Dung (2003), "Renovation of the State management mechanism for small and medium enterprises in Ho Chi Minh City"; Man Ba Dat (2009), "The Development of NonState Small and Medium Enterprises in Bac Ninh Province, 19972003, Situation, Experience and Solutions"; Tran Van Hoa (2007), Small and Medium Enterprise Development in Rural Thua Thien Hue "; Pham Van Hong (2007), "Small and Medium Enterprise Development in Vietnam in the Process of International Integration"; Tran Thi Van Hoa (2003), "The Impact of Macroeconomic Regulatory Policy on the Development of Small and Medium Enterprises in Vietnam; Pham Thuy Hong (2004), "Developing competitive strategies for small and medium enterprises in Vietnam in the process of integrating into the world economy"; Le Thi My Linh (2009), "Development of human resources in small and medium enterprises in Vietnam in the process of international economic integration"; Le Quang Manh (2011), "Promoting the role of the state in the development of small and medium enterprises in Vietnam"; Thai Van Re (2011), "Small and medium enterprises in Ho Chi Minh City after Vietnam joined the World Trade Organization (WTO); Ha Quy Sang (2010), "Financial solutions, accounting for small and medium enterprises in Vietnam"; Chu Thi Thuy (2003), "Some solutions to improve business performance of small and medium enterprises in Vietnam"; Nguyen The Binh (2013), "International experience on policies supporting small and medium enterprises development and lessons for Vietnam"; Nguyen Thi Lam Ha (2007), "Experience building and developing business incubators in China and lessons for Vietnam"; Pham Xuan Hoa (2013), "Experience building taxation systems supporting small and medium enterprises in some countries"; Tran Ngoc Hung & Do Thi Phi Hoai (2013), "Support for Small and Medium Enterprises Development of Agricultural Products in the North of Central Vietnam"; Dao Duy Huan & Duy Duy Tung (2012), "Restructuring of Small and Medium Enterprises in Vietnam; Doctor Kiem (2013), "Small and Medium Enterprises: Situation and Solutions in 2013"; Le Thi My Linh (2009), "Demand for support from the State and international organizations of small and medium enterprises"; Besides the above documents, there are many textbooks, articles, as well as seminars and seminars related to SME development such as e-commerce curriculum (2103), Bach Khoa- Hanoi, the basic e-commerce curriculum, the University of Commerce, the curriculum on state management of commerce (2015) by the author Than Danh Phuc, University of Commerce In general, many domestic and foreign researches have developed a theoretical framework for SME development, theories of SME development and solutions for SME development in different localities Therefore, NCS inherit the theoretical framework for SME development However, few works mention the content and criteria for assessing the development of SMEs in terms of economic management On the other hand, there is no specific study on the situation of SME development in Ha Tinh province in the recent time From that, we propose some solutions to develop the SMEs Purposes and research duties 3.1 Research purposes The dissertation proposes measures to develop SMEs in Ha Tinh province, contributing to socio-economic development of the province 3.2 Research duties - To systematize and deeply clarify the basic arguments for developing the SMEs; to identify the major factors affecting the development of SMEs - Analyzing the situation of developing SMEs in Ha Tinh province in the recent time, assessing the achievements, limitations of existence and causes - Proposing some solutions for SME development in Ha Tinh province in the coming time Subjects and scope of research 4.1 Research subjects The research subjects of the project are to develop SMEs in general and in Ha Tinh province in particular 4.2 Research scope - In terms of contents: On the basis of theoretical and practical analysis of the development of SMEs in Ha Tinh province, the thesis proposes some main solutions for developing SMEs in Ha Tinh province SME development entities include the state, the enterprises themselves and the organizations concerned However, from the study viewpoint of the thesis, the SME development entity here is the state Therefore, the content of SME development is in essence the content of state management of the development of small and medium enterprises State management of SME development consists of two levels, namely state management at the central level and state management at the local level Within the scope of the thesis research, the content of SME development is approached from the perspective of state management at the local level (provincial level) - In terms of time: The data used in the study of the thesis was collected from 2011 to 2016, solutions proposed to develop the SMEs to 2025, vision by 2030 - In terms of spaces: The main thesis on research on SMEs in Ha Tinh province Research methodology 5.1 Methodology Methodology of dialectical materialism and historical materialism: used as a basis for the study 5.2 Specific research methods 5.2.1 Data collection methods 5.2.1.1 Method of secondary data collection To collect secondary data for the research process, the author conducted the collection process including the following steps: Step 1: Identify the data needed for the study Step 2: Determine the secondary data to be collected from the external source (data type and source data) Step 3: Conduct secondary data collection Step 4: Conduct a detailed study of the data value Step 5: Form the secondary data to be collected for use in the thesis from the original sources 5.2.1.2 Primary data collection method Primary data was collected from two sources through direct questionnaires distributed to the respondents Primary sampling method - The first object: representatives of the small and medium enterprises (representatives of the Board of Directors or members of the Board of Directors) - Second object: Representatives of managers of local state management agencies 5.2.2 Data processing methods 5.2.2.1 Secondary data processing method Based on the collected secondary data, statistical methods used to describe, analyze, compare, synthesize and evaluate such as: compare the fluctuation (increase, decrease) the number of enterprises through each year, then calculate the rate of increase, decrease average during the study period Determining the proportion of SMEs in the total number of SMEs, summarizing the indicators on the efficiency of using human resources such as profit, profitability From then analysis and evaluation of trends of change (increase, decrease) through years 5.2.2.2 Primary data processing methods Based on the primary data, the authors sum up the data from the questionnaire The author uses the Microsoft Excel program and the SPSS statistical annalysis program to process, synthesize and analyze data according to the research content However, This study mainly uses descriptive statistics to analyze and evaluate information (presented in Appendix 04, 05) Contributions of the thesis New theoretical contributions The dissertation has clarified some basic theories on the development of small and medium commercial enterprises such as concepts, the building of evaluation criteria system; The contents of developing small and medium commercial enterprises are approached from economic management perspective such as creating the favorable environment and conditions for the establishment of small and medium commercial enterprises, implementing support policies for the operation of small and medium commercial enterprises, implementing administrative reform to create favorable conditions for the development of small and medium commercial enterprises The thesis has identified factors affecting the development of small and medium commercial enterprises such as the orientation and restructure of the Government; the local socio-economic development; scientific and technological development; natural conditions and local infrastructure, qualification and capability of state management officials… New conclusions about the current situation Based on the practical experience of some local provinces such as Nghe An, Thanh Hoa, Quang Nam, the thesis has drawn four lessons that could be applied to develop small business enterprises and in Ha Tinh provinces such as creating favorable conditions for the establishment of small and medium commercial enterprises, implementing policies to support the development of small and medium commercial enterprises, implementing administrative reform to improve the investment environment, removing barriers for enterprise development; investing in local infrastructure system The thesis analyzes the situation of developing small and medium commercial enterprises in Ha Tinh province in the period from 2011 to 2016 It then evaluates the achievements, points out the limitations and the causes of the situation The basic achievements are the rapid increase in the number of enterprises, the diversification in type of ownership; the economic angle and thus exists in the laws recognized and respected That is the very nature of the trading guild Thirdly, SMEs nowadays are the intermediate link between production and trade in goods and services, so the development of SMEs has indirect effects on all sectors of the national economy SMEs are very large In particular, in the period of international economic integration, trade liberalization will create great commercial value contributing to the overall development of the economy With the above characteristics, it can be seen that DNI has a great role in the socio-economic development of countries in the world Those features have certain advantages and limitations 1.1.2.3 The role of small and medium commercial enterprises in the economy Firstly, it directly contributes to the growth of the trade sector, thus contributing to the economic growth of the country Secondly, SMEs have an important role in transforming the economic structure towards industrialization and modernization Thirdly, contribute to the dynamic economy, maintain the freedom of competition, democratization and efficiency, contributing to the strengthening and development of economic relations Fourthly, create more jobs, increase income for laborers, stabilizing social politics Fifth, facilitate the incubation of entrepreneurial talent Sixth, attract capital and resources available in society 1.2 The concept and norms for evaluating the development of small and medium commercial enterprises 1.2.1 The concept of developing small and medium commercial enterprises According to the author, SME development is understood as follows: The development of SMEs is the increase in the quantity and quality of the SMEs, the improvement of the performance of the small and medium enterprises, ensuring the structure of the SMEs in line with the economic structure To contribute to local economic and social development 11 1.2.2 Criteria for evaluating the development of small and medium commercial enterprises - Number and size of medium enterprises - SME performance - Level of contribution to local socio-economic development 1.3 State management of small and medium enterprise development - Creating the environment and conditions for the birth of the small and medium enterprises - Implement policies to support the operation of SMEs - The administrative reform aims to create favorable conditions for SMEs to operate effectively - Checking and supervising the operation of the small and medium enterprises 1.4 The basic factors affecting the development of small and medium commercial enterprises - Orientation of economic restructuring of the Government - Socio-economic conditions of the locality - Level of scientific and technological development - Natural conditions and infrastructure of the locality - Qualification and capacity of the contingent of State management officials - International economic integration and globalization - Internal factors of small and medium commercial enterprises (business strategy, financial resources, human resources quality, business position) 1.5 Experience developing small and medium enterprises in some localities and lessons learned from the local 1.5.1 Experience developing small and medium enterprises in some localities - Experience in Nghe An province - Experience in Thanh Hoa province - Experience in Quang Nam 1.5.2 Some lessons on developing small and medium enterprises for Ha Tinh province 12 To formulate plans on development of small and medium commercial enterprises; To implement policies to support the development of small and medium commercial enterprises; reforming administrative procedures to improve the investment environment, removing difficulties for SMEs; To invest in the development of local infrastructure CHAPTER SITUATION OF DEVELOPMENT OF SMALL AND MEDIUM TRADING ENTERPRISES IN HA TINH PROVINCE 2.1 Overview of Ha Tinh province and the situation of developing small and medium enterprises in Ha Tinh province 2.1.1 Overview of Ha Tinh Province 2.1.2 The situation of developing small and medium commercial enterprises in Ha Tinh province according to evaluation criteria 2.1.2.1 The quantity and average size of small and medium enterprises in Ha Tinh province 2.1.2.2 Structure of small and medium enterprises in Ha Tinh province 2.1.2.3 Effectiveness of small and medium enterprises in Ha Tinh province 2.1.2.4 Contributing to the economic and social development of Ha Tinh province 2.2 Analyze the status of state management of small and medium enterprises in Ha Tinh province 2.2.1 Creating the environment and conditions for the establishment of small and medium commercial enterprises The number of licensed SMEs in the period from 2011 to 2016 is as follows: in 2011 there were 259 enterprises; 151 companies in 2012; in 2013 there are 66 enterprises; 2014 businesses have 205; By 2015, there will be 105 enterprises; In 2016 there were 430 enterprises In general, at this stage, the number of registered enterprises annually varies from year to year Specifically: in 2011 the number of registered business is 259 (Enterprises), in 2012 and 2013 tend to decrease However, in 2016, due to environmental problems affecting 13 the overall economic development of the province, the number of registered enterprises is 430 (Enterprises) 2.2.2 To implement the policy of supporting the development of small and medium commercial enterprises 2.2.2.1 Policy to support access to capital for small and medium commercial enterprises First, interest rate support loans According to the assessment of local SMEs, up to 12% of businesses think that lending rates are very high, 24% of businesses rated high and 41% said it was normal, while only 3% Very low and 20% rated low This proves that despite the fact that the Central State and especially the local authorities have promulgated policies to support loans for SMEs, lending rates still remain a big obstacle for enterprises in the locality Second, support access to capital To evaluate the possibility of implementing policies to support enterprises in the province The evaluation from the managers of the results are as follows: Only 16% of enterprises have good access to state management; 52% of businesses are normal; the remaining 32% are poor in accessing provincial loan support funds In summary, small and medium enterprises are facing many difficulties in accessing domestic and foreign capital Although the government and local governments have recently adopted policies to significantly improve access to capital for small and medium-sized businesses by supporting interest rates on loans, establishing The credit funds reserved for this object, the reform of administrative procedures, the loosening of loan conditions, the expansion of mortgage assets, etc., have not yet resolved the shortage of capital for enterprises The common situation is that many enterprises have difficulties in accessing capital, the process of borrowing is time consuming and costly In addition, many businesses submitted loan applications declined because they did not meet the requirements of financial information, accounting and feasibility of production and business projects In addition, due to limited internal capacity of 14 enterprises, many enterprises not have access to the policies of the Government and localities when implementing 2.2.2.2 Tax support policy In general, the tax support policy has shown the Government's concern for enterprises, there are many tax policies to motivate and encourage the development of SMEs in both quantity and quality, thereby contributing to the increase However, according to the assessment of managers of small and medium enterprises, there are still many problems that need to be resolved, such as some complicated tax regulations on administrative procedures, longstanding tax examination and Trouble for businesses 2.2.2.3 Land and Business Support Policy 2.2.2.4 Policy support trade promotion According to the SME's, the evaluation of trade promotion activities supports the development of small and medium enterprises on a scale from to according to the gradual increase: none of enterprises rated at 1-very poor and 5-very good measure, good evaluation (8%), average (78.1%), poor (13.9%) Thus, standing on the side of the trade activities are still limited, even not good The advantages of small and medium enterprises are not promoted 2.2.3 The administrative reform will create favorable conditions for the development of small and medium commercial enterprises 2.2.4 To inspect and supervise the operation of small and medium commercial enterprises 2.3 Analysis of factors affecting the development of small and medium enterprises in Ha Tinh province 2.3.1 Orientation of economic restructuring of the Government To assess the impact of orientation on structural change to the development of the small and medium enterprises According to the evaluation of SMEs, 35 out of 137 enterprises rated good at 25.55%; 33 companies rated good 24.1%; 57 normal enterprises accounted for 41.6%; enterprises rated low 4.65%; Five companies rated very poorly accounted for 4.1% In general, the orientation of the province's restructuring has an impact on the SME sector in the province This is due to the shift of agriculture, forestry and fishery to industry, construction and trade, 15 which has led to the shift of human resources, along with the economic development policy The development of industry, construction and trade will create favorable conditions for the development of small and medium enterprises 2.2.3.2 The socio-economic development situation of the province 2.3.3 Level of science and technology development In general, the level of science and technology of the province is limited compared to some provinces and cities across the country Research and application of science and technology has not met the requirements of economic development of the province, not much contribution of scientific value Although the provincial People's Committee has issued a number of documents and policies related to the development of science and technology However, state management of science and technology, patents, standards of product quality, product labels, have not met development requirements in the current period Policies that encourage enterprises to innovate and apply modern science and technology in business management are promulgated but lack of synchronism, not really bring big benefits for enterprises In addition, the quality of science and technology researchers has been improved, but they still lack experience, have not attracted good experts and qualified in all fields On the part of SMEs due to limited capital, accumulated profits are not high, most of the SMEs have not set aside funds to develop science and technology, not interested in the application of modern science and technology in management, management and business business 2.3.4 Natural conditions and infrastructure of the province 2.3.5 Qualification and capacity of the State management staff 2.3.6 International economic integration and globalization 2.3.7 Internal factors of small and medium enterprises in Ha Tinh province 2.4 A general assessment of the status of small and medium enterprises development in Ha Tinh province 2.4.1 Achievements and causes 2.4.1.1 Achievements 16 Firstly, the enterprises are rapidly increasing in number and diversification in terms of business types and types of ownership, thus contributing to the growth and economic restructuring of the province Secondly, SMEs are widely distributed throughout the province, thereby contributing to the exploitation of scattered resources from all sectors in the society, economic components in each locality to serve the whole needs and contribute to the creation of jobs and income for local workers The important achievement is that many of the SMEs in mountainous areas, newly established districts are facing many difficulties, creating jobs and employment for local laborers, contributing to economic development in the locality Thirdly, the development of SMEs in the province has promoted the market economy development Although the formation of a market economy will create a competitive environment that directly impacts the operation of the small and medium enterprises, it poses the need to improve the market economy, ensuring healthy competition But the increase in the number and type of activities of SMEs is also a factor promoting the healthy development of the modern market economy Over time, state owned enterprises are being rearranged and equitized according to the policy of the State to create favorable conditions for the State-owned enterprises to focus on key areas, creating the necessary premises for SMEs continue to develop and at the same time contribute to improving the efficiency of SOEs Fourthly, the business capacity of SMEs is reflected in the increase in capital size, the number of employees, the level of labor has been improved step by step, the business efficiency has been improved contributing to the accumulation To increase investment in innovating business methods more and more effectively in the direction of market economy and international economic integration Fifthly, the development of provincial SMEs in recent years has contributed to increasing local budget revenue, creating a value chain linking businesses in the province 17 2.4.1.2 Cause of the achievements Objective objective: Government economic development policy has limited the economic downturn Policies to support enterprises in general and SMEs in particular more and more open and favorable conditions create conditions for businesses in the province Subjective reasons: Firstly,The People's Committee of Ha Tinh province has stepped up propaganda and issued comprehensive policies to support SMEs in the province, creating the most favorable conditions for administrative procedures, land and capital for enterprises to approach Production and business expansion and expansion, sustainable development Secondly, The issuance of business licenses and appraisal of investment projects shall be effected according to the mechanism of one, transfer and public posting of dossiers, fee rates and settlement time of each work, issued by the provincial / municipal Planning and Investment Services Assume the prime responsibility for, and coordinate with the concerned departments and branches in, settling the procedures for registration of establishment of enterprises to ensure the quality, process and shorten the time for enterprises Thirdly, The SME sector in the province develops the available resources of enterprises from mobilizing internal resources, mobilizing and mobilizing external resources to organize and develop business to bring benefits to enterprises The promotion of socioeconomic development 2.4.2 Limitations, Existence and Cause 2.4.2.1 Limitations, exist Firstly, the size of most of the small and medium enterprises in the province is very small in terms of capital and labor, thus causing difficulties in developing and expanding the size of enterprises and improving business efficiency, reducing the closure Contribute to the provincial budget Secondly, the majority of SMEs in the province still focus on retail trade and transportation services, while other sectors are still 18 underdeveloped The development of small and medium enterprises is still concentrated in large centers and urban centers of the province Thirdly, the performance of small and medium enterprises (SMEs) is reflected in such indicators as turnover, profitability, profitability, low labor productivity, causing difficulties in expanding production and business scale Fourthly, SMEs generate jobs for the province's laborers, as well as contribute to the province's total product output However, the contribution to the province's socio-economic situation is low and does not match the potential of the province the development of SMEs 2.4.2.2 Causes of limitations, exist Objective reasons: Firstly, the system of policy documents supporting SMEs of the Central Government was promulgated but not synchronized and specifically, some contents of the policy are not suitable with the actual situation of the local Secondly, Ha Tinh is not geographically localized to attract local and foreign investors to invest in localities, weather conditions and climate are complicated The psychology of investors and enterprises in the province Thirdly, in the context of domestic and global economic turbulence, the long-term economic downturn has affected the efficiency of SME development policies credit support policies, tax support policies, policies to support investment promotion, affect the operation of investors and businesses Subjective reasons: Firstly, the province does not currently have a specific SME development plan in the short or long term This leads to the development of enterprises in the province in general and SMEs in particular are spontaneous and follow the trend of market demand without linking with the province's socio-economic development plans Orientation of economic restructuring of the province 19 Secondly, the implementation of policies to support the development of small and medium enterprises in the province is facing many difficulties Many policies have broad support, not for small and medium enterprises, some policies support content is not suitable for SMEs Thirdly, the establishment of the SME managerial apparatus in the province is the common responsibility of many branches, many levels and many organizations of the province However, in practice, the management is still limited, not systematic, overlapping due to legal regulations that not clarify the role of the focal point for state management of the development of small and medium enterprises This issue is quite fuzzy The coordination among agencies in the field of developing small and medium enterprises is limited, not effective for SMEs PAR of the province has made many positive changes in the recent past However, there are still a number of cumbersome administrative procedures, administrative procedures for small and medium enterprises have encountered many difficulties and prolonged time Fourthly, the capacity and level of the management team of the State in the province has many positive changes, but there still exist some cadres and civil servants in inappropriate positions, the reception and treatment The information processing is slow, affecting the efficiency of the work and cause difficulties for businesses Fifthly, the infrastructure system of the province has been invested but not synchronized, the infrastructure is only developed in urban areas and industrial parks CHAPTER DIRECTION AND SOLUTIONS TO DEVELOP SMALL AND MEDIUM TRADING ENTERPRISES IN HA TINH PROVINCE 3.1 The socio-economic development objectives and orientations in Ha Tinh province up to 2025 with a vision to 2030 3.1.1 Domestic and international contexts influence the development of small and medium commercial enterprises 20 3.1.2 The socio-economic development goals and orientations of Ha Tinh province up to 2025 with a vision to 2030 3.1.2.1 Socio-economic Development Goals in Ha Tinh up to 2025 with a vision to 2030 3.1.2.2 Socio-economic development orientation of Ha Tinh up to 2025 with a vision to 2030 - Development orientation of trade and services - Development orientation of industry - construction - Orientations for development of agriculture, forestry and fishery - Orientations for scientific and technological development 3.1.3 Development orientation of small and medium enterprises in Ha Tinh province to 2025, vision to 2030 First, the development orientation of small and medium commercial enterprises under the trade of goods and services trade Second, the development of small and medium commercial enterprises distributed by region Third, the development of small and medium-sized commercial enterprises belonging to the private sector, the restructuring of state trading enterprises Fourth, to promote the development of small and medium enterprises (SMEs) in the direction of cooperation, cooperation and enhancement of competitiveness Fifth, enhance the effectiveness of policies to develop small and medium commercial enterprises Sixth, development of small and medium commercial enterprises associated with the protection of the environment Seventh, continue to implement administrative reform in a way to create conditions for small and medium commercial enterprises to develop 3.2 Proposing some solutions to develop small and medium enterprises in Ha Tinh province 3.2.1 To create more favorable conditions for business registration and establishment of small and medium commercial enterprises 21 3.2.2 Better implementation of policies supporting the development of small and medium commercial enterprises Firstly, to help Ha Tinh province's SMEs develop a plan and business plan to minimize risks and improve their ability to cope with market changes Secondly, to improve the financial capacity, competitiveness, efficiency of using resources of enterprises, to ensure sufficient resources for enterprises, take advantage of opportunities and limit the challenges encountered to survive and play Thirdly, to build and expand business markets, joint ventures and joint ventures in investment, creating many opportunities for business cooperation, making full use of capital resources, advanced science and technology and capacity Modern management helps SMEs to be active in business Therefore, in order to help the SMEs grow in width and depth, the following policies should be completed in the coming time - Policy to support access to credit capital - Policy on land support and business premises - Policy on trade promotion support 3.2.3 To continue implementing administrative reform to create favorable conditions for small and medium commercial enterprises to operate effectively 3.2.4 To enhance the inspection and supervision of the operation of small and medium commercial enterprises 3.2.5 Improve the management capacity of small and medium enterprises 3.2.6 Improve the internal capacity of small and medium commercial enterprises (1) Develop and improve the business strategy of the business (2) Improve the efficiency of mobilizing and using capital in enterprises (3) Enhancing management capacity for business leaders (4) Improve the quality of human resources in enterprises 22 (5) Applying science-technology to develop e-commerce in enterprises (6) Enhancing the expansion of joint-venture cooperation, linking and joining trade associations and boosting export activities 3.2.7 Some other solutions 3.2.7.1 To improve and modernize the province's infrastructure 3.2.7.2 Development of business support services for small and medium commercial enterprises 3.3 Some recommendations to the State and Small and Medium Enterprises Association 3.3.1 Some recommendations to the State 3.3.2 Some recommendations for small and medium business associations CONCLUDE In socio-economic development of countries in the world, SMEs in particular and SMEs play a very important role In recent years, SME development in general and small and medium enterprises in particular in Ha Tinh province have seen rapid development in the number and structure of SMEs, the number of SMEs in the province is widely distributed throughout the province, capital size of enterprises tends to increase In addition to the development of quantity and structure, the development of SMEs in the province has improved the efficiency of production and business, the average profit of enterprises tends to increase and contribute to the budget of the province in the period 2010-2015 increase Strengthen, create jobs, raise income for laborers Despite the abovementioned results, there are still some limitations in the province Determining the objectives, subjects, scope and methods of dissertation research has been carried out on the basis of the following tasks: Firstly, systematize and clarify basic arguments for SME development such as concepts, characteristics, evaluation criteria, content of SME development and factors affecting the development of small and medium enterprises 23 Secondly, from the experience of SME development in some localities, the thesis draws some lessons that can be used to develop SMEs in Ha Tinh Third, analysis of the status of SME development in the province, evaluating successes, pointing out the shortcomings and causes of existence, as a basis for proposing solutions Fourthly, on the basis of the target, the socio-economic development strategy of Ha Tinh province will be orientated towards 2025, with a vision to 2030, the thesis proposes some solutions for developing the SMEs up to 2025, vision to 2030 In addition to the results obtained, the thesis can not avoid certain limitations as follows: Firstly, from the point of view of SMEs under the WTO, there should be diversity of SME objects, as well as the system of policies supporting SMEs Due to the limited scope of the research, the thesis only proposes some major solutions for SME development in the province Second, there are many factors that influence the development of SMEs in the province However, in the research process, the authors only studied some of the major factors affecting the development of the small and medium enterprises Thirdly, the synthesis, comparison and evaluation of the results of primary surveys also face certain constraints and constraints due to the capacity and conditions of the authors Due to limitations on reference sources and their own scientific research capacity, the content of the thesis can not avoid the shortcomings of presentation form, structure, source of information and data The analysis of the thesis should also be examined With the spirit of always learning and listening, NCS is pleased to receive the comments and comments of scientists to contribute to further improve the contribution to the development of SMEs in the province of Ha Tinh 24 PUBLISHED PAPERS Hoàng Sĩ Nam (2015), "Situation Analysis and Solutions for Small and Medium Enterprises Development in Trade-Service Area in Ha Tinh Province", Journal of Information and Economic Forecast- October 118-15, pp 27-32 Hoàng Sĩ Nam (2016), "Analysis of factors affecting the development of small and medium enterprises in Ha Tinh province, Asia Pacific Economic Journal, No 478 9/2016, pp 20-22 Hoàng Sĩ Nam (2017), "The Current Situation of Access to Small and Medium Commercial Enterprises in Ha Tinh Province", Proceedings of the National Scientific Seminar on "Trends in the development of labor in type of business in Vietnam ", Hanoi Theater Publishing House, September 1977, pp 281-285 Assoc Nguyen Thi Bich Loan, Hoang Si Nam (2018), "Small and Medium Enterprises Development Policy in Some Provinces and Experience for Ha Tinh Province", Journal of Information and Economic Forecast- No.149,May 2018, pp 20- 24 ... of Ha Tinh province and the situation of developing small and medium enterprises in Ha Tinh province 2.1.1 Overview of Ha Tinh Province 2.1.2 The situation of developing small and medium commercial. .. medium enterprises in Ha Tinh province 2.1.2.3 Effectiveness of small and medium enterprises in Ha Tinh province 2.1.2.4 Contributing to the economic and social development of Ha Tinh province. .. the development of small and medium commercial enterprises Chapter 2: Situation of developing small and medium commercial enterprises in Ha Tinh province Chapter Orientations and solutions for development