 |
Vietnam non-state
businesses perform strongly
HANOI
- Non-state enterprises in Vietnam made robust
progress in 2004, reporting outstanding results in
both production and commercial services, said the
Ministry of Planning and Investment.
The
businesses took the lead in industrial production
last year with a year-on-year growth rate of
22.8%; 7.1% and 11% higher than foreign-invested
enterprises and state-owned enterprises,
respectively.
The non-state economic
sector also accounted for 63% of the country's
total retail sales of commodities and revenues
from services worth VND372 trillion (US$23.59
billion).
Also, according to the ministry,
the number of such enterprises registering to do
business in accordance with the Enterprise Law
continued to increase. An additional 35,000
enterprises have registered to do business, with a
total reported capital of VND72.1 trillion ($4.57
billion), reflecting year-on-year increases of
26.2% in number and 24.1% in capital,
respectively.
Moreover, nearly 6,200
enterprises registered to add about VND23.2
trillion ($1.47 billion) to their investment
capital, 31.1% more than last year.
Implemented investment capital of the
non-state economic sector was estimated at VND69.5
trillion ($4.4 billion) last year, 19.6% higher
than the previous year.
Despite the strong
development in 2004, the private business
community, including 110,000 enterprises, has
contributed only 10% to the nation's total income,
27% to the country's total investment and 5% to
the country's labor workforce.
Nguyen Dinh
Cung, secretary of the working group for
Enterprise Law enforcement, said the biggest
challenge hindering the growth of private
businesses is a lack of investment capital. The
current policies are irrational and block their
access to bank loans and credit.
Despite revisions to the Enterprise Law, businesses
have not yet enjoyed the incentives, especially
having land for lease, Cung said. With 17
industrial zones covering 1,400 hectares in Ho Chi
Minh City, only 10% is set aside for non-state
businesses.
The situation is similar in
Hanoi, where state-owned enterprises account for
95% of the capital's land for rent.
However, Cung said, the hindrances are
expected to be resolved as Vietnam is drafting the
Unified Law on Enterprise, integrating three
current laws - the Enterprise Law, the Law on
Foreign Investment and the State-owned Company
Law, which is due for ratification in 2006. The
unified law will eliminate discrimination between
state-owned, foreign-invested and private
enterprises.
(Asia Pulse/VNA) |
|
|
|
|
|
|
