Half of Licensed Firms in Vietnam Survive: UNDP Report
Around 50% of the licensed enterprises in Vietnam can maintain their operations to date, according to a UNDP report.
The report on the development of private firms in the country between 1999 and 2009 conducted by UNDP and a government taskforce showed that Vietnam had 31,000 enterprises in 2000 and the figure grew to around 460,000 by December 12 last year.
However, roughly 200,000 of 460,000 in total can now survive, which proved that local firms did not have careful business plans, the report noted. In addition, cumbersome administrative procedures are blamed for the situation.
From 2005 to 2008, the Vietnamese private sector generated about 3.5 million new jobs and the FDI sector employed 1.4 million workers while state-owned enterprises laid off 500,000 laborers, it added.
In 2009, Vietnam licensed 83,000 new businesses, doubling the figure between 1990 and 1999.
Vietnamese companies are still facing lots of challenges in their operations, including small scale, backward technology, capital shortage, weak management capacity and the lack of qualified laborers. (Youth)
Vietnamese
