According to the Da Nang branch of the Viet Nam Chamber of Commerce and Industry (VCCI), the city now has the largest number of businesses in the central region and highlands.

Workers at the Huong Que Production-Processing-Import Export Trading Company Limited

As of 30 September, there had been more than 26,300 businesses in total in the city, with a total registered charter capital of over 190,400 billion VND. Most of them had been involved in trade, construction, tourism, and services.

Notably, recent years have seen a growing number of newly-established businesses.

In 2015 alone, over 3,400 new businesses have been established in the city. The figure increased to 4,400 in 2016 and more than 4,600 in 2017.

In particular, new businesses registered in the city was reported at over 3,800 in the first 9 months of this year, with a total charter capital of nearly 20,000 billion VND, an increase of 6% and 5.7% in the number and capital respectively in comparison with the same period last year.

Mr Nguyen Tien Quang, Director of VCCI Da Nang, highlighted the vital role of private businesses in making significant contribution to the city budget, and their role in developing local tourism, services, trade, and other industries.

He also remarked local private businesses have created many employment opportunities for job seekers, and helped the city implement effectively its social welfare policies.

According to the latest figures released by the municipal Department of Planning and Investment, in 2007 alone, the Gross Regional Domestic Product (GRDP) of the city’s private businesses hit over 49,300 billion VND, accounting for 64.4% of the city’s GRDP, and contributing over 9,700 billion VND to the city’s budget.

Mr Le Truong Ky, Chairman of the Board of Directors of the DINCO group cum Vice Chairman of the municipal Young Entrepreneurs’ Association, confirmed that private businesses are driving forces for the city’s economic growth. Over the past 15 years, the local young entrepreneurs have expanded their operations and significantly contributed to the city budget.

However, Mr Quang pointed out some shortcomings in the operation of private businesses.

In particular, the majority of the city’s private companies are encountering difficulties and challenges due to their small size and weak competitiveness. In addition, they are facing a serious lack of products with regional and national-level brand names.

Some private businesses are facing a shortage of capital. Moreover, their staff donot possess highly-professional skills, whilst their technologies and machines are out of date. This has resulted in the low efficiency of their operations. Meanwhile, their products have yet to build strong brand names at home and abroad to win the trust of their customers.

In an effort to help private firms to promote their development, the city authorities have issued more incentive policies for them to boost their production and create a strong momentum for furthering the city’s progress.

Importance has been attached to enhancing the city’s business environment, and helping private businesses increase their competitiveness.

In addition, the focus has been on organising exchange activities with businesses nationwide in order to facilitate local private enterprises to advertise their products, seek their suitable partners, expand their consumer markets, and develop effective strategies to make their business more efficient.