Kon Tum Businesses Increasing Production Efficiency

Kon Tum province now has 1,079 effective businesses, with the private sector making up 94.53 percent, State-owned enterprises, 2.5 percent, the collective economic sector, 2.87 percent, and foreign-invested businesses, nearly 1 percent. The total business capital is about VND14,644 billion a year on average and the revenue is VND12,718 billion. Although the number and scale of local enterprises remains modest, their production and business efficiency is on the rise. Businesses in Kon Tum province are playing an important part in the local development.

 

Companies in Kon Tum province have created increasing volumes of products, goods and services for the province year after year. Their production value grossed VND3,293 billion in 2012, an increase of 9.3 times over 1991 and 4.38 times over 2000. The development of businesses has promoted the economic restructuring process towards a more positive pattern. The proportion of agriculture, forestry and fishery in the province’s total production dropped from 45.89 percent in 2000 to 41.24 percent in 2010 and 40.08 percent in 2012, the percentage of industry and construction climbed from 15.69 percent in 2000 to 24.32 percent in 2010 and 25.16 percent in 2012, and the proportion of services declined from 38.42 percent in 2000 to 34.4 percent in 2010, but rallied to 34.76 percent in 2012. The contribution of the all economic sectors to the provincial budget keeps rising, reaching VND1,635 billion in 2012, an increase of 30 times over 1995, 17 times over 2000 and four times over 2005. Together with investment increase and investment restructuring, the total investment capital of non-State sectors was VND890.6 billion in the 1991 - 2000 period and VND10,199 billion in the 2001-2012 phase, an average annual rise of 24.64 percent.

 

Not only paying taxes to the State Budget, enterprises in the province have also given a facelift to urban and rural zones and generated jobs for employees (about 30,386 workers are employed by local enterprises), helped restructure the workforce, improved the productivity and competitiveness of the economy, and maintained social and political security.

 

Mr Nguyen Van Hung, Chairman of Kon Tum Provincial People’s Committee, said these achievements are resulted from enterprises’ efforts to develop production and business operations, change ways to do business, seek market expansion, and apply science and technology to improve production efficiency in addition to the province’s institutional perfection, investment and business support and encouragement policies. Besides, they have constantly improved the quality of material and spiritual life of workers and focused on building up the Party, mass organisations, and implementing democratic regulations.