Workers at a plastic bag production line at the Tran Boi Limited Company. Private enterprises propelled HCM City’s industrial growth of 15.1 per cent last year
Private enterprises have achieved the highest growth of any business sector in HCM City, a city official said. Nguyen Van Lai, director of the Department of Industry in HCM City, said despite higher prices for imported materials, the city achieved impressive industrial growth of 15.1 per cent for 2004.
Private sector enterprises achieved the highest growth, that of 21.9 per cent; State-run enterprises, 12.9 per cent; and the foreign-invested sector, 12 per cent.
Growth in the private sector was attributed to new Government incentives on bank loans, taxes, land rentals, and licensing procedures.
In 2004, the private sector accounted for 6 per cent of the city’s industrial growth rate of 15.1 per cent. The State-run sector contributed 5.7 per cent and the foreign-invested sector 3.4 per cent.
Many household businesses have grown into larger enterprises, offering a wide range of products, such as electric equipment, cables and other consumer goods.
Former household enterprise Tien Thanh has enlarged its 1ha factory in Ben Luc District in Long An Province to produce electrical equipment, such as plugs, sockets and electric wires. It now employs 300 labourers.
Another private enterprise, Tan Cuong Thanh, specialises in electric cables and electric equipment. It is building three more workshops in the central city of Da Nang, covering 9ha with investment capital of VND180 billion (US$11 million).
Numerous private businesses are also increasingly winning customers with their high quality products and price competitiveness, compared with imported products.
Nguyen Thi Lan, head of District 5’s economic office, said many local private enterprises have benefited from the city’s policy to encourage the private sector.
She said over the last five years, many private enterprises in the district received an investment of VND500 billion ($31 million) from the Government to promote production and business.
VNS - (03/03/2005)