The
private sector needs to make increasing efforts to become a motive force in the
nation's economy, according to a research by a working group on the
implementation of the Law on Enterprises.
Over 83,000 private enterprises were
established under the law in 2009 alone, bringing the total of number of
registered firms nationwide to 460,000, said the group's report, citing
Ministry of Planning and Investment statistics.
Total capitalisation of private
sector firms rose from VND38.7 trillion (US$2.1 billion) in 2000 to VND657
trillion ($35.5 billion) in 2008, while the average equity in private
enterprises rose from VND1.2 billion to VND5.2 billion during the same period.
The average firm now has assets
worth VND14 billion and sees revenues of VND17 billion per year.
During the ten-year period between
1999 and 2008, the private sector was the largest creator of jobs, adding 4.3
million jobs to the economy – four times as high as created by State-owned
enterprises during the same period.
Nevertheless, the number of
large-scale private businesses remained modest, noted Dau Anh Tuan, a member of
the working group. Of the 500 largest companies in 2009, private enterprises
accounted for just 29 per cent, and most of those were former State-owned
enterprises that had been equitised, he said.
The private sector remained plagued
by inadequate investment in production technology and research, as well as a
lack of long-term business strategies and inadequate management capacities,
Tuan added.
