The private economic sector has quickly become an increasingly important factor of Hanoi’s economy and it is playing an active role in increasing the capital’s social and economic development, Secretary of Hanoi Party Committee Nguyen Phu Trong said.
Hanoi’s People’s Committee reported that there are currently nearly 25,000 private companies in the capital city. These companies have a total combined capital of 39 trillion dong (US$2.5 billion) and have contributed around 20% of the city’s gross domestic product with an average annual growth rate of 11%.
Before the Enterprise Law was introduced in 2001, Hanoi had few private companies that operated perfunctorily. In 2002, there were more than 4,000 with a combined capital o seven trillion dong (US$449 million).
The figure continued to rise to nearly 6,000 business in 2003 with total combined capital of more than 13 trillion dong (US$835 million).
In the first half this year, the Hanoi planning and investment department granted licenses to 3,710 new company start ups with total registered capital of nine trillion dong (US$578 million).
The department reported that there also were 93,000 household businesses.
Most of them have taken the initiative to update their technology and diversify their products. Private companies have mushroomed in hi-tech, capital-intensive industries such as software, computer assembly, automobile production and shipbuilding.
There are four small and medium-sized industrial zones: Vinh Tuy, Tu Liem, Phu Thi and Nguyen Khe, on Hanoi’s outskirts. Of the 124 businesses registered in these zones, 80% are private businesses.