HN: Private sector urged to promote ability

Chief of the Party Central Committee’s Office Ngô Văn Dụ, during his working session with Hà Nội’s authorities on Thursday, also asked the City to continuously renew its mechanisms and policies so as to encourage the private sector’s development.

Mr. Dụ requested the municipal authorities to enhance their inspection and supervision, create linkages among different economic sectors in order to improve the domestic aggregate strength and build an independent economy.

For his part, Mr. Nguyễn Thế Thảo, Chairman of the Hà Nội People’s Committee, said that the municipal authorities are creating favorable conditions for the private sector’s development that helps create more jobs and promote economic growth in the capital city and the country as well.

A number of private companies still violate State management regulations due to the authorities’ poor post-inspection activities, added Mr. Thảo. In fact, only 59% of the total 70,000 registered private companies in the City are operating while some have not yet registered and paid their tax obligations. This explains the reason why the City has a large contingent of private companies but few strong brands.

The expansion of Hà Nội is said another difficulty for small and less competitive companies.

According to Hà Nội’s authorities, the total capital invested by the private sector increased up to VND 535,305 billion in 2008 from VND 165,753 billion in 2002. The number of private companies has multiplied seven times, much higher than the combined figure of 12-province Red River Delta.

This sector’s State budget contribution grew to VND 4,989 billion in 2008 from VND 633 billion in 2002. Private enterprises create some 85,600 new jobs annually.

By Kim Anh