Dong Nai province is one of the localities where the private economic sector has strong development providing an important contribution to the province’s development process. In 2000, the first year the Enterprise Law was implemented, the whole province had only 1,663 private enterprises with the registered capital of VND1,700 billion, by mid 2005, the number of enterprises had already increased to more than 3,500, with over VND7,700 billion of total registered capital. Every year, private enterprises provide new jobs to about 5,000 labourers, raising the current number of the labour force in the private sector to more than 30,000.

The outstanding feature in the private economic sector is that there are more and more effective enterprises paying special attention to investment in production and market expansion. Since 2004, many businesses have applied to enlarge their operation scopes with high investment ratio. The typical examples are Giang Nguyet enterprise (in Tam Phuoc commune, Long Thanh district), which invested over VND10 billion in processing wooden furniture from imported wood materials and Loc Hung Phat enterprise (Xuan Hoa commune, Xuan Loc district), which invested nearly VND1 billion in producing albums from PP and PVC; Trung Cao Mechanic Enterprise (Tam Hiep ward, Bien Hoa district) has put more than VND600 million in manufacturing mechanical products (coffee processing machines, wood pressing machines, bolts and screws); Hoan My Enterprise (Thach Phu commune, Vinh Cuu district) invested VND300 million in producing buttons for export from snail shell, wood, rubber and coconut shell; Thanh My Enterprises (Hiep Hoa commune, Bien Hoa City) invested millions of Vietnam Dong in developing farms for raising poultry. The other enterprises like Binh Tien – Dong Nai, Hao Cashew nuts Processing Enterprise (Xuan Loc district), Thanh Long Fine Art Ceramic Products (Long Thanh district) as well as the ceramic enterprises like Dong Tam, Thai Duong, Song Tien, Dong Thanh and Thanh Chau (Bien Hoa City) with the average investment of hundreds of billion Vietnam Dong to expand their production workshops and improve technologies for enlarging the domestic consumption market and export as well as creating stable jobs for many people and enterprises.

The private economic sector has held a more important position in the economic development of Dong Nai province. Some enterprises have penetrated domestic and foreign markets with prestige trademarks and products. The most remarkable enterprise is Binh Tien – Dong Nai turning out 4 - 5 million pairs of shoes, sandals and slippers, reaching a turnover of VND200 - 300 billion per year. The company’s products bearing Biti’s Trademark have won the heart of domestic consumers. They have also been exported to many countries like , and the . Truong Hai Automobile Manufacturing and Trading Enterprise, after more than 6 years operating at Bien Hoa 2 Industrial Park with the functions of repairing and building vans, has developed many branches, representative offices and selling agents nationwide. The annual turnover of Truong Hai is about VND400 -500 billion. In the recent time, Long Chau Bran Processing Enterprise has developed the trademark of Long Chau animal feeds on the domestic market with fast growth in the turnover and production scale (by 3.2 times per year). Currently, besides pigfeed, Long Chau still produces feed for cows, chickens, ducks, shrimp and fish meeting the breeding demand within and outside the province. Thanh Binh private enterprise has been the largest enterprise specialising in producing feed for pigs and chickens in Bien Hoa City for many years. In the most difficult periods, when the bird flu epidemic occurred on a large scale, the enterprise continued its effective investment in production expansion.  Thanh Binh has forged ahead in product guarantees by signing an insurance policy valued at VND100 million with the Dong Nai Branch of Pijico for consumers (in case of bird flu).

However, in the general context of the market economy, the private economic sector is facing many difficulties due to unstable consumption market and fluctuateing input prices. Therefore, enterprises in some economic sectors have begun to reduce the production like fine art ceramic products, garments and chemicals. In assisting them to remove obstacles, the State should provide supporting measures in capital sources, trade promotion, market development as well as effectiveness improving solutions like enhancing professional skills and production technologies. Only by doing so can private enterprises maintain strong development and high competitive capacity in the context of AFTA and WTO admission.

Thuy Tien