At present Dak Lak has 1,600 small and medium enterprises (SMEs) with average capital of about VND 1.2 billion per enterprise. State-owned enterprises represent five 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 diversified and make important contributions to the transformation of the economic structure and create many products and goods 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, 31st 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