Enterprises play a decisive role in determining the growth of GDP in particular and the country’s development in general, therefore it’s necessary to have adequate and accurate information on enterprises. To meet that demand, the General Statistics Office (GSO) with the technical assistance from the World Bank has conducted annual complete surveys on enterprises since 2001 and released the results to the public for the first time in January 2004. In this second time, the dataset covering 3 years (2002, 2003 and 2004) is published.
The results of enterprise surveys conducted in 2002, 2003, 2004.
Enterprises play a decisive role in determining the growth of GDP in particular and the country’s development in general, therefore it’s necessary to have adequate and accurate information on enterprises. To meet that demand, the General Statistics Office (GSO) with the technical assistance from the World Bank has conducted annual complete surveys on enterprises since 2001 and released the results to the public for the first time in January 2004. In this second time, the dataset covering 3 years (2002, 2003 and 2004) is published.
The content of this dataset includes 2 parts:
Part 1: General conceptions and definitions
- “Enterprise”is an economic unit that independently keeps business account, acquires its own legal status, established by State Enterprise Law, Cooperative Law, Enterprise Law, and Foreign Investment Law and is still operating as of 31st December of the reference year.
The number of enterprises which are operating is different from that of lisence-granted enterprises published by Government functional agencies and tax code-granted enterprises published by tax office.
- 2. “Statistical unit” for sorting data on enterprise by type and sector, activity and province/city is establishment. All establishments of an enterprise will be classified according to the main head office, location and type of activities of the enterprise.
Part 2: Business data for 2001-2003.
The data includes principle indicators of enterprises that are divided into 3 sections:
Section A: Main indicators by type of business and the VSIC 2 digit category .
Section B: Main indicators by economic region and province/city.
Section C: Main indicators by activity combining with province/city.
This dataset shows the real situation of enterprises as follows:
- Rapid increase in quantity of enterprises contributes to providing more jobs and plays a decisive role in the generalgrowth of the economy.
During 2000-2003, number of really operating enterprises as of 31st December every year increases by 19.4% per year on average (29724 enterprises for 4 years).
Of which:
State-own enterprises decrease by 5.6% per year (914 enterprises for 3 years).
Private enterprises increase by 22.6% per year (29522 enterprises for 3 years).
Foreign invested enterprises increase by 20.1% per year (1116 enterprises for 3 years).
As of 1st January 2004 enterprises have provided jobs for 5.2 million employees, increasing by extra 546 thousand employees each year with average salary much higher than that of other economic activities:
In 2000: 1.054 million VND per month.
In 2001: 1.103 million VND per month.
In 2002: 1.249 million VND per month.
In 2003: 1.422 million VND per month.
The development is a decisive factor to high growth and stability of the economy:
Net turnover increases by 21.6% per year on average.
Total capital sources increase by 16.2% per year on average.
Contribution to the state budget increases by 22.0% per year on average.
Create more goods and services that are plentiful and good for the society.
- The development of enterprises creates a new economic mechanism including a lot of types of ownership and activities.
Structure of types of business and economic activities under enterprise sector (data in 2003):
– %
| Number of enterprises | Employees | Capital sources | Turnover | Contribution to state budget | |
| Total | 100,0 | 100,0 | 100,0 | 100,0 | 100,0 |
| 1 By sectors and types | |||||
| State enterprises | 6,7 | 43,8 | 59,1 | 46,6 | 48,5 |
| Private sector | 89,6 | 39,6 | 19,6 | 33,3 | 14,9 |
| + Cooperatives | 5,8 | 3,1 | 0,7 | 0,9 | 0,3 |
| + Private busineses | 35,6 | 7,3 | 2,2 | 7,1 | 1,9 |
| + Limited companies | 41,9 | 22,1 | 9,6 | 19,3 | 9,2 |
| + Joint stock companies | 6,3 | 7,1 | 7,0 | 6,0 | 3,5 |
| Foreign investment companies | 3,7 | 16,6 | 21,4 | 20,1 | 36,6 |
| 2. By economic activities | |||||
| – Agriculture, forestry and fishery | 3,3 | 4,9 | 2,2 | 0,9 | 0,9 |
| – Industry | 25,3 | 54,2 | 34,1 | 39,3 | 53,6 |
| – Construction | 13,5 | 16,7 | 7,8 | 7,8 | 2,9 |
| – Trade, hotels and restaurants | 44,0 | 11,4 | 11,9 | 40,9 | 24,5 |
| – Transportation and communication | 5,5 | 7,9 | 6,5 | 5,6 | 6,9 |
| – Other service. | 8,4 | 4,9 | 37,4 | 5,4 | 11,2 |
Changing structure of types of ownership and activities creates an opportunity to reallocate jobs in the whole country.
(3) In line with the increase in scale, enterprises are more making great achievements in production and business.
Total loss decreases and average loss per enterprise also reduces, interest rate increases:
| Year | Total loss
(billion VND) |
Loss per enterprise
(million VND) |
Interest per enterprise
(million VND) |
|||
| 2000 | 12227 | 1491 | 1612 | |||
| 2001 | 11392 | 1115 | 1558 | |||
| 2002 | 10959 | 828 | 1549 | |||
| 2003 | 10852 | 648 | 1764 |
Capital turnover for production and business is shortened, 2000: 0.79 circular per year; 2002: 0.90 circular per year; 2003: 0.92 circular per year.
Profit rate as compared with capital increases by 3.7% (2000) up to 4.3% (2002) and 4.5% (2003).
Quality of goods and service produced by enterprises is continuously upgraded to have more competition with imported goods.
- Enterprises’ current shortcomings
4.1. The quantity is large but the scale is small and separated in association with backward manual technology.
As of 1st January 2004, on average an enterprise has only 72 employees and 24 billion VND as compared with 2000: 84 employees and 26 billion VND, so this scale hasn’t improved after 3 years.
Small enterprises (under 10 employees) account for 46.6%, medium enterprises (from 10 to under 300 employees): 48.8% and large ones (over 300 employees): 4.6%
Fixed asset equipment per an employee is low, as of 1st January 2004, on average: 125 million VND per employee; of which state-own enterprises: 147 million VND; private enterprises: 50 million VND and foreign invested enterprises: 245 million VND.
4.2. It features spontaneity without clear orientations in the current development of businesses especially private ones and limited companies (changing nearly 20% every year).
4.3. Enterprises are growing but the effect is not very high and the competition is weak because the scale is small, technology and investment are low…
4.4. Number of enterprises contributing to the social insurance and health insurance accounts for 29.7% of total businesses and equal to 55.5% of enterprises having over 10 employees, there still have 44.5% of enterprises that have to contribute to the social insurance and health insurance, haven’t done their duty for their employees.
- Improvements should be made for coming years’ business surveys.
Methods to shorten time of conducting survey and processing combined data to release the survey results at the end of the reference year.
System of indicators, using fixed indicators for annual, every 2 years, every 5 years surveys.
Measuring methods for some indicators, and tabulated software to meet the requirement for grouping information by locality and region more accurately. Additionally, in serving researches of the Government on evaluating developing policies for small and medium enterprises.