Hanoi creates momentums for rural youth to startup
Updated at Tuesday, 08 Aug 2017, 10:02
The Hanoitimes - The rural youth have difficulties in following the startup campaign due to the lack of funding and information of production planning as well as the unstable production and consumption market.
Phuc Tho is planned as a green belt of Hanoi as the district has few traditional craft villages as well as industrial parks. Since the beginning of the year, the district has focused on economic restructuring and drawing investment to improve its people’s income. As the result, the Ba Huan company has opened here a high-end egg factory with the total investment fund of over 100 billion VND. The district is currently inviting Honda to invest. However, according to Phuc Tho leaders, the district economic development unmatched the its potentials. There are only a few young businessmen with strong entrepreneurship despite the fact that the district owns many favorable conditions for business with regard to transportation and proximity to rivers.
Explaining why young people are not keen on the start-up movement, the secretary of Cam Dinh Youth Union Ho Van Thin said that the majority of the rural youth do not have enough funding to develop their production. The amount of capital borrowed from the Youth Union source is very limited, while the loans from the Social Policy Bank are only up to 50 million VND, insufficient for starting up. The young people are short of funding as they want to expand production and economic development of the family. So far, the Youth Union of Phuc Tho district has established and manage nearly 30 saving groups and which have provided loans worth 130 billion VND to approximately 700 households. Each household, on average, borrows only 18 million VND.
Jujube planting in Hiep Thuan commune
As the farming district, Phuc Tho youth have chosen farm economy to start up. However, according to the Secretary of Youth Union of Van Nam commune, the youth farms are established in areas not planned for farming. In addition, they have difficulties in finding markets for their output, coupled with high land rent, the startup movement in the district has not been able to thrive.
Forty thousand young people in Phuc tho district make up 20% of the district population. Secretary of the Youth union of Ngoc Tao commune – Nguyen Duc Vuong said , many young people living in rural area want to make a career in their hometown. However, besides their own efforts, they need business orientation and supporting programs suitable to the district conditions.
According to the Secretary of Phuc Tho Party Committee Hoang Manh Phu, Phuc Tho will focus on developing cluster of craft villages making wood ware, machinery, ceramics, textile & garments together with trademark development. Especially the district will focus on high-tech application in agricultural production to raise productivity.
“In order to encourage young people to start up in rural areas, youth union members must be in the forefront in improving knowledge and qualification, applying IT in production. Before any start-up idea, young people must now beforehand their own capabilities, potential markets, product orientation and business strategy” said the district Party secretary.
Agriculture in industrial revolution 4.0 is not the same as before, which now requires high technology application, and the linkage in chain value. These factors would require strong determination from young people to start-up – secretary of Phuc Tho Hoang Manh Phu.
Ngoc Thuy - Thien Tu