GDP Structure in Tay Ninh Province 2001-2010

2.1.2. Socio-economic development situation:

The economy of Tay Ninh province has had quite good growth in recent years. In the period 2001-2005, the average GDP growth rate was 14%/year, higher than the average GDP growth rate of the whole country in the same period (7.5%/year) and higher than the average growth rate of the 5-year period 1996-2000 (13.5%). In the period 2006-2010, the average GDP growth rate of the province was 14.2%. The average GDP per capita in 2010 reached 30.2 million VND/person, 3 times higher than in 2005.

Table 2.1: Economic growth 2005-2010

Branch

GDP value (billion) copper)		Increase the average army (%)
2005	2010	2001- 2005	2006- 2010
Growth of the whole economy	6,698.70	12,988.93	14.0	14.2
I. Agriculture, forestry and fisheries	2,562.17	3,481,497	9.1	6.3
1.1. Agriculture	2,441,063	3,318,360	9.1	6.3
1.2. Forestry	85,995	105,403	9.3	4.2
1.3. Aquaculture	35,112	57,734	9.1	10.5
II. Industry and construction	1,678.67	3,762.55	18.6	17.5
2.1. Mining industry	18,614	15.24	14.2	-3.9
2.2 Processing industry	1,361,865	3,062.87	18.7	17.6
2.3. Production and distribution of electricity and gas fire and water	96.02	211.78	17.2	17.1
2.4. Construction	202,173	472,668	18.7	18.5
III. Services	2,457,855	5,744,875	17.4	18.5
3.1. Commerce, vehicle repair …	1,023,165	2,726,991	20.6	21.7
3.2. Hotels and restaurants	142,799	401,851	18.6	23.0

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409,769	689,745	13.2	11.0
3.4. Finance, credit	402,060	861,681	13.2	16.5
3.5. Scientific and technological activities	4,190	2,399	16.2	-10.6
3.6. Business related activities property and consulting services	24,523	65,276	27.7	21.6
3.7. State management and national defense and security, Party, unions and compulsory social security	118,114	259,904	15.9	17.1
3.8. Education and training	168,596	374,861	16.9	17.3
3.9. Health and social relief activities	76,647	126,953	17.9	10.6
3.10. Cultural and sports activities	17,349	28,489	18.9	10.4
3.11. Association	8,144	17,993	-7.4	17.2
3.12. Personal service activities and community	35,305	139,948	45.3	31.7
3.13. Domestic work activities family in private households	2,204	5,718		21.0
3.14. Activities of international organizations
3.15. Import tax on goods and services service	24,990	43,064	51.6	11.5

3.3. Transportation, warehousing and information LL

(Source: Department of Planning and Investment of Tay Ninh Province)

According to Table 2.1, all the above growth rates of the sectors are higher than the national average in the same period. However, due to the low starting point of Tay Ninh, although the province's economic growth has been rapid in recent years, the GDP per capita in 2010 reached 30.2 million VND/person, equivalent to the national average, but still lower than the average of the Southern Key Economic Zone (31.4 million VND/person).

Chart 2.1: GDP structure in Tay Ninh province 2001-2010

(Source: Tay Ninh Provincial Statistics Office)

In general, Tay Ninh's socio-economic development in recent years has continued to develop; the growth rate is quite good compared to the Southern Key Economic Zone; the material and spiritual life of the people has been improved; political security and social order and safety have been maintained stably.

2.1.3 Current status of KTTN development

Private enterprise is a concept that refers to the economic sector based on private ownership of means of production with forms of business organization such as: private enterprises, limited liability companies, small-scale individual economic establishments, joint stock companies, etc. The topic is limited to the development of domestic private enterprises in Tay Ninh province (abbreviated as enterprises).

Since the Enterprise Law was enacted (2000), the number of enterprises has been continuously increasing, both in terms of scale and investment capital. According to the Department of Planning and Investment, as of December 31, 2010, there were 2,966 enterprises operating in the area with a total registered capital of VND 14,771.6 billion, of which 1,479 were private enterprises accounting for 49.87%, 1,328 were limited liability companies accounting for 44.47% and 159 were joint stock companies accounting for 5.36%.

Type

Chart 2.2 Distribution chart by type of enterprise in 2010

TOTAL NUMBER OF ENTERPRISES BY TYPE OF ENTERPRISE

Joint Stock Company

159

Company Limited

1328

Private Enterprise

1,479

200 400 600 800 1,000 1,200 1,400 1,600

Quantity

Source: Tay Ninh Department of Planning and Investment 2010

Chart 2.3 Chart of capital structure distribution by enterprise type in 2010

INVESTMENT CAPITAL STRUCTURE

Private Enterprise 10%

29% Joint Stock Company

61% LLC

Source: Tay Ninh Department of Planning and Investment (2010)

The above results show that the private enterprise type accounts for the highest proportion because this is a simple and easy-to-establish type of enterprise, requiring only one individual to be the owner and take full responsibility for all activities of the enterprise with all his/her assets; the apparatus and management team are compact and very dynamic, the enterprise's organizational structure is decided by the enterprise owner, who can self-manage or hire an enterprise operator.

People

Chart 2.4 Number of employees in operating enterprises as of December 31, classified by type of enterprise

36,021

29,814

State-owned enterprise

25,808

23,145

22,274

17,849

14.65 1 2 3.428

15,598

13,606

13,837

12,399

12,363

Non-state enterprise

Foreign invested enterprise

45 44,142

43,405

2006 2007 2008 2009 2010

Source: Tay Ninh Statistical Yearbook 2010

Along with the increase in the number of enterprises, the number of workers has also increased dramatically over the years, especially the enterprise sector has attracted a large number of workers from the non-agricultural sector. The number of workers increased from 13,428 in 2006 to 25,808 in 2010, accounting for 31.62% of the total number of workers, much higher than the proportion of the State sector. The number of workers attracted is mainly the surplus workers due to the restructuring of State-owned enterprises or administrative reform.

The value of fixed assets of operating enterprises in 2010 was VND 2,839.64 billion, 4 times higher than in 2005. In 2010, the province's private sector paid VND 626,233 billion to the State budget, an increase of 26% compared to 2009. The contribution of this sector accounted for 63.32% of GDP, 3 times higher than the proportion of 18.43% of the foreign-invested sector. In particular, the proportion of GDP of private enterprises has generally increased over the years: if in 2005 it only accounted for 10.2%, in 2010 it was 15.54%. Notably, the GDP growth rate of the private economic sector is always 1.5 to 2 times higher than the general growth rate as well as higher than the growth rate of other sectors.

However, besides the achievements, private enterprises still have some limitations and difficulties such as:

The quality of labor in enterprises generally has low cultural level. According to the survey data on private enterprises in the province in 2010, more than 50% of the total labor force

Enterprises that have not finished high school, are not trained at vocational schools but mainly through vocational training methods, especially small-scale enterprises.

It is worth noting that among private business owners, only 32% were former government officials and civil servants, with little experience in production and business; the remaining 68% are owners of private businesses newly established in recent years, most of whom have not been trained in economic management, especially business management in a market economy. Business owners, as well as business operations, due to their pursuit of profit, have not paid adequate attention to the business environment in general and the natural environment in particular.

Age and education are also issues of concern. Although over 60% of business owners are over 40 years old and are a key force leading businesses, their educational level is low, with only 10% of business owners having a college degree or higher. Therefore, most private enterprises have weak management and organization levels, low production and business efficiency, especially social efficiency and environmental protection are issues that need to be addressed.

With such cultural and professional level, enterprises face many difficulties in accessing credit capital. Enterprises operate based on their own capital and increase capital mainly by deducting from undistributed profits or borrowing from informal sources, which affects the profitability of enterprises; on the other hand, due to the mechanism of banks, enterprises have difficulty accessing long-term loans, leading to improper use of capital such as short-term loans for long-term investment; this directly affects the efficiency of capital use and enterprise operations. In addition, due to insufficient capital to invest in modern technology and equipment, it leads to high consumption of raw materials, high costs, weak competitiveness, and reduced business efficiency of enterprises.

From the strategy of using capital resources, the equipment and technology in enterprises are very outdated, except for a few newly established enterprises.

The number of people using outdated technology compared to other countries in the region. Low quality of goods, high prices, limited competitiveness, market expansion, especially export markets. In addition, access to world market information, skills to improve product designs... are factors that inevitably affect the business environment of KTTN.

2.2. Current status of basic elements of investment environment

2.2.1 Natural resources

2.2.1.1 Land resources

According to soil survey documents, Tay Ninh has 5 main soil groups with 15 different soil types according to origin. The soil resources in the area are quite rich, can grow many different types of crops, and are also very favorable for developing infrastructure works.

Table 2.2 Current land use status in 2010

Soil type

Area (ha)	Structure (%)
Total natural land area	403,966.83
Agricultural land	342,538.86	84.79
Non-agricultural land	61,339.53	15.18
Unused land	88.44	0.02

Source: Tay Ninh Statistical Yearbook 2010

The total natural land area of Tay Ninh province is 403,966.83 hectares; of which, agricultural land (agriculture, forestry, fishery) accounts for 84.79%; non-agricultural land accounts for 15.18%; the remaining unused land accounts for 0.02%. Reserved land resources for socio-economic development have basically been used up, so the issue of rational, effective, economical use to increase the value created per hectare of land used in each industry and field is of particular importance in the future.

This is one of the difficulties for private enterprises in the investment process, especially investment in agricultural production, as well as private enterprises need to

Expand land area to invest in production facilities and other service businesses.

2.2.1.2 Water resources

Surface water sources in Tay Ninh mainly rely on the canal system in the whole province, with the total length of the system being 617km, an average of 0.11km/km2 and mainly relying on two major rivers, the Saigon River and the Vam Co Dong River.

In addition, Tay Ninh has abundant underground water resources, widely distributed. The total exploitable underground water flow is 50 - 100 thousand m3 / hour. In the dry season, underground water can still be exploited, ensuring quality for daily life and agricultural and industrial production. However, if KTTN enterprises invest in these exploitation industries, they need modern equipment to use them reasonably, ensure water environment and hygiene environment and have the right policies in exploiting this type of resource.

2.2.1.3. Mineral resources:

Table 2.3 Distribution area and potential reserves of minerals

Type

Minerals

Main distribution area	Reserves potential (million m2 )
1. Peat	Chau Thanh, Tan Bien, Ben Cau, Trang Bang	13.00
2. Kaolin	Tan Chau, Duong Minh Chau, Town, Hoa Thanh, Go Dau, Chau Thanh, Trang Bang	19.40
3. Construction stone	Tan Bien, Town, Duong Minh Chau	84.78
4. Construction sand	Tan Bien, Go Dau, Ben Cau, Chau Thanh, Duong Minh Chau, Hoa Thanh, Trang Bang	29.00
5. Pebbles	Tan Chau, Duong Minh Chau, Town, Chau Thanh, Trang Bang	4.48
6. Leveling materials	Tan Chau, Duong Minh Chau, Go Dau,	180.00

Trang Bang
7. Brick and tile clay	Tan Chau, Tan Bien, Chau Thanh, Ben Cau, Town, Hoa Thanh, Go Dau, Trang Bang	285.00
8. Limestone bamboo shoots	Tan Chau	69.36
9. Secondary laterite family	Tan Chau	85.00
10. Water mineral	Chau Thanh, Trang Bang	1.00

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