Growing the Number of Production and Business Establishments

All businesses operating under the market mechanism have their own economic structure, expressed through business organization models. These business organization models will automatically behave according to the market mechanism and have strong vitality in the environment of the market mechanism.

* Characteristics of KTTN in Vietnam:

- The private economy has been restored and developed thanks to the innovation initiated by our Party.

initiate and lead.

- The private economy was formed and developed in the conditions of the Socialist State under the leadership of the Communist Party of Vietnam. Through the Party Congresses, the private economy has increasingly affirmed its position and role in the economy and developed more and more deeply. Therefore, the private economy needs macro management. The private economy was born in the conditions of the Socialist State, all production activities and development processes must be suitable to the country's conditions, following the socialist orientation.

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- The private economy in our country was born and developed in socialist production relations, not capitalist production relations. The process of existence and development of the private economy in our country today is considered the driving force for economic development, a form of production and business organization according to the goals of socialism, and a component part of socialist-oriented production relations.

- The private economy in our country is developing in the context of the country promoting economic restructuring. The 12th National Party Congress (2016) affirmed: "Perfecting mechanisms and policies to encourage and facilitate the strong development of the private economy in most economic sectors and fields, becoming an important driving force of the economy. Perfecting policies to support the development of small and medium enterprises and start-ups. Encouraging the formation of multi-ownership private economic groups and private capital contribution to state economic groups" [10].

1.1.4. Content of private economic development

1.1.4.1. Developing the number of production and business establishments

Growth in the number of enterprises is one of the important criteria for studying and evaluating the development of the private economy. Growth in the number

The increase in the number of businesses is not only an increase in the number of registered businesses, but also an increase in the number of businesses operating substantially and stably; on the other hand, the increase in quantity must be consistent with the trend of socio-economic development.

The development of the number of enterprises needs to consider and evaluate the appropriate industry and regional structure to meet the needs of the domestic and export markets as well as the structure of technological level suitable for the rapid development of science and technology in the country and the world.

Growth in the number of enterprises must be verified through competition and brand reputation. In other words, only increasing the number of enterprises that stand firm and develop in competitive and integrated conditions can properly assess the development of the private economy.

1.1.4.2. Developing forms of production and business organization

The form of business organization of an enterprise directly affects the formation of the organizational structure of the administrative apparatus. Normally, this factor has a "compulsory" impact on designing the administrative apparatus according to certain criteria.

The form of organization of an enterprise will be regulated by the laws of each country.

determined, so between different countries are often not the same.

According to the current legal organization of enterprises, in our country there are currently the following types of enterprises in the private economic sector:

- Joint stock company.

- Limited liability company.

- Private enterprise.

- Partnership.

The specific characteristics of the legal form of business organization among the above enterprises affect the financial management of enterprises such as organization, capital mobilization, production and business, and profit distribution.

1.1.4.3. Exploiting and using resources in enterprises in the economic zone

a. Capital capacity

- Capital is one of the extremely important factors for the existence and development of all businesses. The increase in capital of each business in

The private economic sector partly reflects the scale of private economic development. However, to truly assess this development, it is necessary to evaluate based on the efficiency that this increased capital brings.

- The investment capital of an enterprise is the initial capital as well as additional capital during the operation of the enterprise. During the operation, depending on the production and business strategy in each stage, enterprises can mobilize capital based on family relationships, close friends or bank loans. In other words, the ability to borrow and the ability to self-finance greatly affect the ability to expand production and business of the enterprise.

b. Material resources

- Material resources are the entire physical facilities of the enterprise with all physical means used to participate in the production and business process, including: Land, business premises, factories, assets, equipment, machinery, raw materials, means of transporting and preserving goods and goods supplies.

- Material resources are the basic conditions for businesses to exist and develop, they determine labor productivity and the effectiveness of business activities. Businesses with good access to the above resources will have many advantages and opportunities for development.

Developing production and business premises for enterprises is not simply expanding production and business areas but also building more suitable, convenient and effective production and business premises. In fact, favorable production and business premises are also a comparative advantage, creating a significant strength for enterprises.

Choosing and equipping suitable machinery and materials will help businesses produce quality products, meet the needs and tastes of consumers, while reducing production costs and increasing the competitiveness of the business. In addition, physical factors such as warehouses, means of transporting materials and goods of the business also partly reflect the development of the business.

c. Human resources

“Human resources are the sum of specific individuals participating in

Labor process is the sum of physical and mental factors mobilized in the labor process" [21].

Human is the core factor in all activities of all types of enterprises, deciding the success or failure of enterprises and organizations in each country. In enterprises, this factor is extremely important because all decisions related to the strategic management process are decided by people, the ability to compete in the market is strong or weak, good or bad organizational culture... all come from people. Therefore, human resources are the first factor in the resources that managers of enterprises with long-term business orientation need to consider and analyze to decide on tasks, goals and solutions to implement.

d. Scientific and technological capacity

The ability of enterprises to apply science and technology to production and business activities is important and decisive in improving the labor productivity of enterprises. Currently, enterprises in our country are mainly small and micro enterprises, many enterprises still use hand tools in production activities, at the same time, many enterprises have also focused on investing in equipment, machinery, and applying science and technology to production and business. Along with the use of machinery and application of science and technology, the situation of used machinery and equipment still accounts for a high rate and the investment level for renewing technological equipment of enterprises still accounts for a low rate of enterprise revenue. Therefore, in order to increase the labor productivity of enterprises, especially in the trend of competition and global economic integration, the issue of improving the level of technology, applying modern machinery and equipment to production and business is a matter of special attention and appropriate investment.

e. Business market output

Product market output plays an important role for businesses. Currently, the products of businesses mainly have to find their own output markets. However, this problem is very difficult when our businesses are small and micro businesses, with weak competitiveness, and having to proactively find market output has put businesses in a difficult position, while

must manage to have operating capital, on the one hand must proactively link and cooperate to

expand product market

To do this well, the state must play a role in supporting the output market. The state must work with businesses to support businesses in developing markets, especially markets for consuming products with advantages, quality and competitiveness. Only then will our businesses develop more and more sustainably, with their reputation and capacity gradually affirmed to be able to compete fiercely in the current period of deep international integration.

1.1.4.4. Production and business efficiency of the KTTN sector

For businesses, production and business efficiency is not only a measure of quality reflecting the level of organization and business management, but also a matter of survival, deciding the existence and development of businesses.

In a narrow sense, the production results of the private economy are the output of economic activities of the private economy, which are reflected by the following indicators:

- Net revenue of the enterprise

- Business profits

In a broad sense, the production and business efficiency of KTTN is also considered from the perspective of

socio-economic development

1.1.4.5. Contribution of the private economy to socio-economic development

- Promote economic growth, economic restructuring

The development of the private economic sector has contributed to promoting socio-economic development, especially contributing to maintaining and increasing economic growth. In Vietnam today, the private economic sector accounts for a high proportion of the country's GDP at about 40-45%, especially during the period when Vietnam was affected by the global financial crisis of 2008-2009, it is the component with the highest industrial production growth, an important factor helping the economy recover. In addition, the private economic sector has gradually affirmed its important role in the Vietnamese economy, contributing to a more harmonious connection between economic growth and progress, social equity, protection of resources and the environment, promoting the process of forming and developing a full market economy in Vietnam.

The private economic sector also contributes to the rapid transformation of the economic structure, especially with the development of diverse types of production and business, types of services on the basis of promoting and exploiting the potential strengths of each country and locality. The current transformation is tending to shift from the agricultural sector to the non-agricultural sector.

- Pay to the State budget

Payment to the State budget includes all revenue sources paid to the budget.

State from production and business units.

The increasing state budget obligations of enterprises in the private economic sector also demonstrate the development of enterprises in this sector, and it is also the obligation of this sector to the economy.

To increase the State budget revenue, in addition to implementing the State's tax policies, it is necessary to reduce the time for tax declaration and tax procedures for enterprises in the private economic zone. In addition, implementing tax policies must also create fairness and create conditions for enterprises to operate normally and develop further.

- Solving employment, increasing income for workers

Employment is always an important issue in the process of socio-economic development. The development of all types of enterprises is always associated with employment for workers. Employment plays an important role, it governs all activities of individuals and society. Specifically, for individuals, having a job goes hand in hand with having income to support themselves. For the economy, labor is one of the important resources, an irreplaceable input for some industries. For society, each individual and family is a constituent element of society, so employment also has a direct impact on society. Therefore, to meet the need for employment, it is necessary to pay attention, create conditions and have strategies for sustainable development of all types of enterprises; There are policies to attract investment to develop many businesses and create conditions for businesses to operate more and more effectively to closely link economic efficiency and solve employment problems for workers, contributing to increasing workers' income.

1.1.5. Trends in private economic development in Vietnam

In Vietnam, private economic development is a long-term strategy in developing a multi-sector socialist-oriented economy, contributing significantly to the successful implementation of the central task of economic development, industrialization, modernization, and enhancing the country's internal strength in international economic integration.

In the coming time, the private economy will operate and develop according to the following trends:

1.1.5.1. Development in scale and quantity, especially strong development of small and medium enterprises

Currently, our country's enterprises are mainly medium, small and micro-sized, especially in terms of capital, labor and premises, which are not really commensurate with other economic sectors.

With the goal of having about 1 million enterprises by 2020, and more than 1.5 million enterprises by 2025; of which, large and medium enterprises account for about 5-6%. Thus, the development trend of our enterprises is still mainly small and medium enterprises, so it is necessary to focus on creating all conditions for all types of enterprises in the private economic zone to develop strongly in the coming time, especially access to open mechanisms and policies, access to favorable capital sources and an open business environment are prerequisites for enterprises to expand production and business, improve efficiency and competitiveness.

1.1.5.2. Trends in business relocation by business type

According to the Vietnam Chamber of Commerce and Industry's 2016/2017 Annual Report on Vietnamese Enterprises, by type of enterprise (legal form when registering a business), the number of enterprises operating in the form of LLCs and JSCs is increasingly high. If in 2007, only 52.08% of enterprises were operating in the form of LLCs, by 2015, this type of enterprise accounted for the majority with 65.04% of the total number of enterprises operating in Vietnam. Similarly, the proportion of enterprises operating in the form of JSCs increased from 15.06% in 2007 to 20.70% in 2015 [13].

1.1.5.3. The private economic trend continues to improve its competitiveness, develop strongly and become an important driving force of the socialist-oriented market economy.

To improve the quality, efficiency and competitiveness of the economy, the private sector must constantly restructure its sectors and fields, aiming for in-depth development to gradually improve quality, efficiency, improve financial capacity, access capital resources to promote and improve operational efficiency. At the same time, it is necessary to increase the application of scientific and technological advances; innovate technological equipment to put into production and business activities, and improve the competitiveness of enterprises. In addition, to improve competitive efficiency, the State must play a role in creating favorable conditions for the development of the private sector.

1.1.5.4. Trend of association with enterprises of other economic sectors

to form multi-ownership enterprises

This is the trend of our country's economy in the process of deep integration into the world economy. This trend will develop strongly when the state-owned enterprise sector is reorganized, innovated, and plays a leading role in the national economy, when the state's economic institutions and policies are built and perfected, the Party's leadership, the state's management and the role of people's organizations are strengthened and their effectiveness and efficiency are enhanced.

The types of businesses are interwoven, the forms of ownership can be interwoven.

life in the directions:

- Private economy participates in buying shares of state-owned enterprises during equitization or divestment.

- Forms of production, business and service provision linkages appear according to production networks and market value chains between the private economy and the state economy, cooperative economy and foreign direct investment enterprises to spread and transfer technology and develop supporting industries.

- Households voluntarily associate to form cooperative organizations; individual households and small owners operate according to the enterprise model.

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