| Stronger contribution from private sector targeted | |
The country targets to have an additional 350,000 private companies in business in end-2015 in order to speed up the economy which is still reliant on the State economic sector, according to a plan just approved by the Government. The plan is suggested by the Ministry of Planning and Investment.
Vinh, however, said data of the ministry and the General Statistics Office (GSO) indicates only about 70% of the total number of registered firms could survive. He said as of April 30 this year, only 463,802 enterprises out of the registered 647,627 firms were still in operation at home, accounting for 71.61%.Minister of Planning and Investment Bui Quang Vinh said the target number is based on the fact that an additional 70,000 private firms register for business every year. As such, it is estimated there will be around 600,000 companies in business in 2015. Meanwhile, the export value of small- and medium-sized enterprises (SMEs) is forecast at 25% of the country’s total by 2015. The figure is calculated based on data from the GSO, with the export turnover ratio of the private economic sector steadily picking up annually in the 2006-2010 period, from 21.74% to 29.04%. The private sector is also forecast to contribute 35% to total investment capital of the whole economy in 2015. This forecast is based on the calculation of GSO, saying the investment capital ratio of the private sector fell from 38% in 2006 to 33.9% in 2009 but bounced back in 2010 and 2011, at 36.1% and 35.2% respectively. The planning ministry also predicts SMEs will generate some 40% of the nation’s GDP by 2015. The GSO data shows that the private economic sector, mostly SMEs, contributed over 46% to the national GDP from 2007 to 2010. This sector is also expected to account for 30% of the State Budget’s revenue in 2015. A report of GSO shows that the contribution of non-State sectors made up 17.7% of the State Budget revenue in 2006 but it soared to 30.9% in 2009, signaling the uptrend over the years. It is expected the sectors will create jobs for roughly 3.5-4 million laborers in the 2011-2015 period after generating about 3.2 million jobs during 2006-2010. This is the second time the Government has ratified the plan to develop the private sector. The initial plan was passed by the Government in 2005, with the target to have 500,000 private enterprises operational in 2010. | |
| SaigonTimes |
