Dong Nai’s SOEs hold initiatives to improve investment climate and competitiveness of businesses

For the period 2001-2005, these five years are a remarkable and unique period because provincial state-owned enterprises (SOEs) have been making steps for in-dept integration into regional and global economies. Especially, the equitization of local SOEs has been speeded up during the period. SOEs must be restructured in order to gradually lessen their financial burdens while at the same time raising their economic efficiency and competitive capability in the course of regional and international integration. Besides, local SOEs also pay attention to in-dept investment in technology and equipment in order to improve the quality and enhance their competitiveness.  A total amount of VND 3,992 billion was invested over the period 2001-2005 to the development for these activities by provincial SOEs. The figure presented an increase of 9% compared with set target or exceeding the set target of VND 330 billion. Particularly, VND 1,598 billion was the invested amount of the local SOEs meanwhile VND 2,400 billion from the Central SOEs located in the province. Local SOEs have even more difficulties than Central ones because these enterprises have suffered from backward and incompatible technology. Thus, the invested amount helps the local SOEs bring in advanced technology, develop new products, improve products’ quality and standard and strengthen their competitiveness in the world markets. Many local SOEs set targets that have to meet in five years. After equitization, enterprises continue to strive to achieve their long-term goals. In particular, Bien Hoa packaging company in five years invested over VND 74 billion to raise its annual capacity from 15 tonnes to 40 tonnes and build a new factory with modern equipments and machineries. In addition, Donafoods Company invested nearly VND 80 billion to raise its exports up to 4,000 tonnes from 2,000 tones per year. The company has built a new processing factory that meets the food-safety standards of the European Union. Besides, Dong Nai Tobacco Company also has invested about VND 175 billion to enhance production capacity and product quality. Thanks to that, the company achieved VND 968 billion in turnover in 2004. Its turnover is expected to reach VND 1,000 billion in 2005, a threefold increase compared to 2000. Another examples as Dong Nai Paint Company, Dong Nai Livestock Company (Dolico), Tin Nghia company and others have also invested in new and innovative technology that help these companies raise their economic efficiency.     

Thanks to initiatives undertaken by Dong Nai’s SOEs, the total industrial production value of the province increased on the average 17.45 % per year. In which, Central SOEs located in Dong Nai contributed 8.2% of the total industrial production value while local SOEs posted 17.6% growth. Especially, outputs of major industrial products reached or exceeded the set target for 2005 such as exported cashew nuts raised up 7,000 tonnes in 2004 compared with 3,500 tonnes in 2000, representing an increase of 140%; processed coffee raised from 1,800 tonnes to 4,500 tonnes, jumped 125% ....

Valuable experience can be gained through improving investment climate and competitiveness of businesses for the period 2001-2005 by the provincial SOEs. This will give a strong impetus particularly to investment in Dong Nai’s SOEs in coming years.

Xuan Phu