nsec symposium (presentation iv 07 vie nsec private sector dev)

8/6/2019 NSEC Symposium (Presentation IV 07 VIE NSEC Private Sector Dev)

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Status of Private SectorDevelopment in NSEC

Dr. Luong Minh Huan

Enterprise Development Institute (EDF)Vietnam Chamber of Commerce and Industry (VCCI)

NSEC SYMPOSIUM

Yunnan, 19-20/05/2011

Number of private enterprises

5324

2899

2283

43481

66819

0

10000

20000

30000

40000

50000

60000

70000

0

1000

2000

3000

4000

5000

6000

7000

2005 2006 2007 2008 2009

Hi Phng H i D ng Bc Ninh B c Giang Qu ng NinhPh Th V nh Phc Hng Yn Lo Cai Yn BiLng S n H N i NSEC

Unit: Enterprise

2

The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB doesnot guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.


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Role of private sector in NSEC

93.3 94.2 94.6 95.8 95.9

39.345.4

54.4 56.1 54.0

12.7 16.1

30.3 29.325.1

30.0

33.0

43.649.2 38.8

0

10

20

30

40

50

60

70

80

90100

2005 2006 2007 2008 2009

Ttr ng vdoanh nghi p Ttr ng vlao ngTtr ng vti sn Ttr ng vdoanh thu

3

Role of private sector in NSEC in 2009

0

10

20

30

40

50

60

70

80

90

100 96 95 95 92 9496 95 96 95 95 94 94 96

54

74 76 74

31

67

53 52

68

4855

70

54

T tr ng vdoanh nghi p T tr ng lao ng4

%


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Role of private sector in NSEC in 2009

0

10

20

30

40

50

60

70

80

90

22

5750

63

37

64

50

41

64

3642

75

25

34

62

71

84

28

69

58

22

64

5158

74

39

T tr ng vti sn T tr ng vdoanh thu 5

%

Average labor size in the private sector in NSEC

6

Labour


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Average labor size by province by ownership in2009

SOEs Private Sector FDI

H Ni 794 19 152

Lo Cai 268 30 53

Yn Bi 185 25 25

Lng S n 126 23 55Qung Ninh 1248 29 293

Bc Giang 191 20 330

Ph Th 315 28 626

V nh Phc 222 22 523Bc Ninh 462 25 208

Hi D ng 428 26 529Hi Phng 535 31 321

Hng Yn 174 43 300

NSEC 688 22 243

Unit: Labourer

7

Distribution of private enterprises by labor size

in 2009

Labour Size


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Average capital of private enterprises in NSEC

VND Bil.

9

Average capital of enterprises by ownership

in 2009

SOEs Private Sector FDI

H Ni 3239 16 188

Lo Cai 140 8 37

Yn Bi 103 5 21

Lng S n 50 6 24Qung Ninh 366 11 148

Bc Giang 106 4 45

Ph Th 193 7 95

V nh Phc92 8 313

Bc Ninh 141 11 123

Hi D ng 554 8 154Hi Phng 409 11 149

Hng Yn 145 18 87

NSEC 2048 14 165

Unit: VND Bil

10


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Distribution of private enterprises by capitalin 2009


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Labor income in private enterprises in NSEC

13

Unit: VND Mil.Labourers Average Income

Capacity of labor use in private enterprises in

NSEC

14

Average return on labor

Unit: VND Mil.


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Capacity of labor use in private enterprises inNSEC

15

Ln

Financial capacity of private enterprises in NSEC

16

Ln


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Financial capacity of private enterprises in NSEC

17

Ln

Capacity of capital use by private enterprises

in NSEC

18

Ln


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Profitability of private enterprises in NSEC

Percentage of Loss Making Enterprise

19

%


20

%


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21

%

Conclusions

Rapid growth (in number and proportion) of the private sector in NSEC:

30,682 enterprises (93,3%) in 200566,819 enterprises (95,9%) in 2009

Private enterprises in NSEC absorb about 54% of totalemployment by the corporate sector.

Small labor and asset size of private sector in NSEC, withgradual increase in capital size.

Compared with SOEs and FDI companies: weaker labor productivity and profitability, but better use of capital.

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Recommendations

For central governments of respective countries along NSEC:countries need to closely collaborate to create an enabling businessenvironment

Introduce suitable policies and regulations on : Streamlining of customs procedures: single-window clearance

mechanism Person and goods transport in NSEC: GMS Visa Taxes and user charges for goods and cross border vehicles: one-price

mechanism for all countries in NSEC. Control and prevention of trade frauds: fake goods, smuggled, forbidden

goods

Develop infrastructure : transportation, utilities, etc.

Policies and regulations have to be clear and consistent among NSEC countries,develop equal cooperation mechanism with the win-win solution in NSECdevelopment. 23

Recommendations

For organizations supporting NSEC development: continue tosupport governments, enterprise associations/organizations in:

Facilitating the development of private economic sector: enterpriseincubator and enterprise starting programs

Organize training courses to enhance capacity for privateenterprises: management capacity, negotiation skills, business

planning, market researching, etc.

Establish funds to support and encourage enterprises to innovate and

apply advanced technologies to enhance productivity.Encourage the establishment of financial support models for privateenterprises such as: Venture Investment Fund, Pioneeering Fund(Challenge Fund), SME Development Fund.

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Thank you for your attention!

ENTERPRISE DEVELOPMENT INSTITUTEVIETNAM CHAMBER OF COMMERCE AND INDUSTRY

No.9, Dao Duy Anh str., Hanoi.

Tel: 84-4-35771076. Fax: 84-4-35744031Website: www.vcci.com.vn

nsec symposium (presentation iv 07 vie nsec private sector dev)

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