Part 4: Private economic sector makes more important contribution

Part 3: Roadmap equitization

Over the past years, the private economic sector in Binh Duong has been taken care of by the province in accordance with the direction of the central government. The results show that the private economic sector has made an increasingly important contribution to the socio-economic development of the province.

Production operations are on-going at Viet Ha Cashew Import-Export Joint Stock Company (Thuan An Town).

Photo: X. Thi

Private economic sector development promoted

Looking back on the 30 years of reforms, we can clearly see the positive contribution of the private economy to the country's socio-economic development. The most prominent feature is that the private sector has contributed to solving employment problems for workers; mobilizing capital from people and society into production and business operations; at the same time, promoting economic growth and contributing more and more to the state budget; together with that, creating a business environment, promoting the development of the socialist-oriented market economy and contributing to acceleration of the process of international economic integration.

Binh Duong has applied the Party's renovation lines to create the best conditions for non-state economic sectors to use land and invest in production at very early stages. Accordingly, the province has directed to thoroughly implement the policy of land allocation for investors, construction of industrial zones and clusters to attract investment in and outside the country, contributing to the economic restructuring of the province. Up to now, the private economic sector in Binh Duong has more than 26,000 operating enterprises, estimated at over VND 190 trillion. Although the investment capital is only 30% of the foreign investment in the province, the private sector is contributing 30-35% of the local GDP.

From the early days of development, Binh Duong has identified the private economic sector as important resource in the process of industrialization and modernization, gradually changing the local socio-economic appearance. From this point of view, Binh Duong has many regimes and policies to encourage and promote private economic development. Thereon, a series of domestic and foreign private enterprises have come to Binh Duong to invest in long term business.

Over the past years, the province has had thousands of private sector enterprises, creating jobs for tens of thousands of workers, contributing significantly to State budget revenues and the development of Binh Duong. Not only domestic and foreign enterprises invest in the province, but the enterprises in the province are also growing constantly, characterized by land and people of Binh Duong, such as Minh Long I, Cuong Phat, Vinamit, U & I and so on.

Roles well promoted

The fifth Conference of the 12^th tenure Central Committee of the Communist Party of Vietnam issued the following basic orientations: the private sector was developed in all aspects not prohibited by law. The development of all forms of linking production, business, supply of goods and services by production, market value chain between the private economy and the state economy, collective economy and enterprises is to be promoted. Foreign capital is aimed at receiving and transferring, creating widespread diffusion on advanced technology and modern governance.

In addition, the performance of small and medium enterprises, innovative enterprises and entrepreneurship movement are promoted and improved. At the same time, it is convenient for households and individuals to volunteer to form enterprises or other forms of cooperation, encouraging the formation of private, multi-ownership private-owned corporations and contributing capital to state-owned conglomerates capable of engaging in regional and global production networks and value chains.

Currently, over 500,000 private enterprises in the country are under existence, accounting for nearly 90% of the total number of enterprises nationwide. In particular, the private sector accounts for about 51% of the country's workforce and generates about 1.2 million jobs every year. That proves the important, indispensable role of the private economy in the socialist-oriented market economy in our country today.

In the process of economic development, Binh Duong always takes the groundbreaking industry. In 1997, Binh Duong has 6 industrial parks, located mostly in the south of the province, with a planned area of 800 hectares; now it has up to 28 industrial parks, distributed throughout the province. Thanks to security infrastructure, the province has attracted effective investment with more than 26,000 domestic enterprises registered with 2,768 foreign direct investment projects of a total registered capital of over US$ 25 billion.

It can be seen that, under the proper leadership and direction of the Provincial Party Committee, People's Council, People's Committee, Binh Duong's private economy has increasingly been promoted by its role and position in the process of local socio-economic development. The strong development of the private sector in the province has gradually diversified and strengthened the competitiveness of enterprises and made the economic picture of the province more vivid. Thereby, the private sector contributes significantly to the development of infrastructure, trade and service development, and knowledge raising to bring Binh Duong closer to further socio-economic goals.

In general, the private economic sector is playing an increasingly important role in the socio-economic development of the province. However, the private economic sector still faces difficulties and challenges in the development process. Therefore, in the coming time, the sector still needs to be boosted with more appropriate mechanisms and policies to realize the Resolution of the 5th Plenum of the Party Central Committee; private economic sector development has become an important driving force in the socialist-oriented market economy.

Next: Part 5: Sustainable and effective development of private economic sector

Reported by Khanh Vinh – Translated by Vi Bao