I see missing paint, but it is hard to tell from the photo how deep the damage is. It looks like it is deeper than the paint layer, so it might be best to replace the drywall in that section because it might be difficult to smooth it out enough to apply paint.

If the surface is still fairly smooth but the paper is ripped off, you could try applying something like Gardz to seal the surface. This will make it easier to skim coat. Then prime and paint.

Edit: you can also do this without Gardz but plain brown paper will suck the water out of your compound mixture and it will make things more difficult.