Enterprise in Dak Lak

At present Dak Lak has 1,600 small and medium enterprises (SMEs) with average capital of aboutVND 1.2 billion per enterprise. State-owned enterprises representfive percent (operating principally in forest management and protection and public utility services such as environmental hygiene). Private enterprises represent 95 percent. In general SMEs develop rapidly,are diversifiedand make important contributions to the transformation of the economic structure and create many products andgoods for society. Their contributions represent about 45 percent of the provincial budget. SMEs employ more than 62,000 people.

Most SMEs are of a modest scale, have small capital and principally operate in services such as trade and construction. Many cannot make investments in material production and so their machinery, equipment and technology are obsolete. As a result many are uncompetitive. Most managers and workers lack skills because of a lack of training opportunities. Alliances between enterprises in private, cooperative and State economic sectors are limited.

The registered capital of registered enterprises in Dak Lak province is significantly higher than Lam Dong and the Central Highlands average: VND 11 billion in 2003 compared to VND 6.15 in Lam Dong and an average of VND 9.38 across the region, but still below the national average of VND 23.6 billion per enterprise.

Table: Number of Enterprises, 31^st December 2003

Number of Enterprises, 31^st December 2003

Average capital per enterprise VND billion

Growth in registrations 2002/2003

percent

National

72012

23.9

14.47

Central Highlands Average

2315

9.38

8

Lam Dong

779

6.15

2

Dak Lak

762

11.03

8

Gia Lai

560

10.46

13

Kon Tum

214

8.52

21

Dak Nong

90

9.39

n/a

Source: GSO 2005

Figure: Provincial share of registered enterprises in the Central Highlands region 2003