Currently, 60% of business owners in the private economic zone in Hue city have a college degree or higher, which is quite high, showing the convenience in operating and managing businesses, and at the same time, it is convenient in grasping the law, market and opportunities to develop production and business.
* On labor in the private economic sector
Labor is the most important resource of most businesses. A business with abundant human resources, good quality human resources, and the ability to work effectively will contribute to the success of that business.
Table 2.9: Number of employees in enterprises in the KTTN area in Hue city
(Unit: Labor)
Labor over the years
Year Private Enterprise LLC Joint Stock Company
Total | Quantity | % | Quantity | % | Quantity | % | |
2013 | 32,551 | 6.144 | 18.87 | 13,539 | 41.59 | 12,868 | 39.53 |
2014 | 32,239 | 5.455 | 16.92 | 13,767 | 42.70 | 13,017 | 40.38 |
2015 | 32,855 | 5.309 | 16.16 | 14,437 | 43.94 | 13,109 | 39.90 |
2016 | 33,226 | 5.409 | 16.28 | 14,788 | 44.51 | 13,029 | 39.21 |
2017 | 33,067 | 5,398 | 16.32 | 14,658 | 44.33 | 13,011 | 39.35 |
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Speed
0.394 -3.184 2.005 0.277
PTBQ (%)
(Source: Thua Thien Hue Statistics Office) In terms of the total number of employees in the private economic sector, we can see that the number of employees in enterprises has gradually increased over the years. In 2013, the entire private economic sector in Hue city had 32,551 employees, by 2014 it had slightly decreased to
32,239 workers, by 2017, the number of workers increased to 33,067 people.
Of these, LLCs and JSCs have more employees than private enterprises. In 2013, LLCs had 41.59% of employees, joint stock companies 39.53%, and private enterprises had the least number of employees, only 18.87%. In 2017, the labor structure remained the same, but the proportion
The labor force of limited liability companies has increased, and the proportion of labor force of private enterprises has decreased, accounting for only 16.32%.
The average growth rate of the number of employees of enterprises in the private economic sector reached 0.394%, in which the growth rate of private enterprises decreased by 3.184%, joint stock companies increased slightly with a growth rate of 0.277%, and limited liability companies had the highest growth rate of employees, up to 2.005%. To see more clearly the fluctuations of employees, we consider the chart in Figure 2.3.
(Unit: Labor)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
Private Enterprise Limited Liability Company Joint Stock Company
Figure 2.3: Labor in enterprises in the KTTN sector
period 2013-2017
Year 2013 Year 2014 Year 2015 Year 2016 Year 2017
(Source: Thua Thien Hue Provincial Statistics Office)
Table 2.10: Number of employees in enterprises in the KTTN area in Hue city classified by production and business sector
(Unit: Labor)
Acting
Comparison Year (%)
Speed
prizePTBQ
2013 | 2014 | 2015 | 2016 | |||||||
Total | ||||||||||
labor | 32,551 | 32,239 | 32,855 | 33,226 | 33,067 | 99.04 | 101.91 | 101.13 | 99.52 | 0.394 |
Labour | ||||||||||
career | 9,380 | 8,611 | 8,624 | 8,599 | 8,445 | 91.80 | 100.15 | 99.71 | 98.21 | -2,591 |
Build | ||||||||||
build | 5,538 | 5.021 | 4,951 | 4,861 | 4,858 | 90.66 | 98.61 | 98.18 | 99.94 | -3,222 |
Love | ||||||||||
2013 2014 2015 2016 2017 2014/
2015/
2016/
2017/
(%)
trade, DV 14,554 15,581 16,156 16,486 16,559 107.06 103.69 102.04 100.44 3,279
Transport,
warehouse 3,079 3,026 3,124 3,280 3,205 98.28 103.24 104.99 97.71 1,008
(Source: Thua Thien Hue Provincial Statistics Office)
In terms of production and business sectors, the trade and service sector is still the sector with the most employees in the private economy, with the number of employees over the years being approximately 50% and having a high growth rate over the years. From 14,554 employees in the trade and service sector in 2013, it increased to 16,559 employees in 2017. The transportation and warehousing sector is the least developed sector, with the fewest employees in enterprises in the private economic sector in Hue city. In 2013, the transportation and warehousing sector in the private economic sector had 3,079 employees, by 2014, it decreased to 3,026 employees and by 2017 increased to 3,205 employees. The industry in this area also has a fairly high number of workers thanks to the presence of enterprises in the An Hoa industrial cluster and manufacturing companies in Hue city. The average growth rate of enterprises in the trade, service and warehousing sectors is higher than other sectors. The change in the number of workers in the private economic sector moves in line with the trend.
General direction of the economy and development orientation of Hue city.
Table 2.11: Labor situation by age and by level
of private economic sector enterprises in Hue city
(Unit: Labor)
2017
Interpretation Private Enterprise % LLC % JSC %
1. Classified by age
5,398 | 100.00 | 14,658 | 100.00 | 13,011 | 100.00 | |
- Under 31 years old | 1,831 | 33.92 | 5,996 | 40.91 | 5,471 | 42.05 |
- From 31 to 45 years old | 2,642 | 48.93 | 6.808 | 46.45 | 5.311 | 40.82 |
- From 46 to 56 years old | 663 | 12.28 | 1,388 | 9.47 | 1,877 | 14.43 |
- From 56 to 60 years old | 153 | 2.83 | 294 | 2.01 | 298 | 2.29 |
- Over 60 years old | 110 | 2.04 | 172 | 1.17 | 54 | 0.42 |
2. Classified by level | 5,398 | 100.00 | 14,658 | 100.00 | 13,011 | 100.00 |
- University, College | 1,521 | 28.18 | 1,868 | 12.75 | 3,851 | 29.60 |
- Vocational high school | 1,061 | 19.66 | 4,306 | 29.38 | 1,614 | 12.40 |
- Elementary, technical worker | 1,743 | 32.29 | 2,666 | 18,19 | 6.010 | 46.19 |
art, vocational
- General labor 1,073 19.88 5,817 39.68 1,537 11.81
(Source: Hue City Statistical Yearbook)
When dividing the labor force in the private economic sector by age, we see that most of the labor force in the private economic sector is young labor under 30 years old and 31 to 45 years old, accounting for over 80% of the total labor force. Limited liability companies have more young labor force than joint stock companies and private enterprises.
In terms of education, the labor force in the private economic sector has quite a different level of labor. For private enterprises, up to 32.29% of the labor force has primary education, technical workers, and vocational training. There are 28.18% of the labor force has a university degree, the remaining 19.66% have secondary education and 19.88% have unskilled labor. The labor structure of joint stock companies also has a clear differentiation when up to 46.19% of the labor force has primary education, vocational training, only 29.6% have university or college education. Limited liability companies have the lowest number of university or college-educated laborers, accounting for only 12.75% of the total labor force of this type of private economy.
Thus, although the labor force with university and college degrees working in private enterprises and joint stock companies accounts for a relatively good proportion, the labor force with elementary level and technical workers still accounts for a very high proportion in these two types of enterprises, which shows that private enterprises and joint stock companies are still using low technology, mainly taking advantage of cheap labor and workers to work, serving the production and business activities of enterprises that do not require high qualifications.
2.2.3.3. Capacity in science and technology
The current state of technology and modern machinery and equipment also partly reflects the production and business capacity of enterprises. Researching machinery and equipment operating in enterprises contributes to the general assessment of the situation of private economic enterprises operating in Hue city.
Currently, enterprises in Hue city are mainly small and micro enterprises with little capital, so few enterprises use modern and advanced technologies; however, with the support of funding sources from industrial promotion programs, some enterprises have been initially supported in applying machinery,
equipment for production, building new technical demonstration models. In particular, there are 04 enterprises borrowing capital from the Science and Technology Development Fund with a budget of 2,240 million VND [21]. Typically, some support projects have brought high efficiency such as: supporting enterprises in the KTTN area in the fields of civil carpentry production, fine art carpentry, bronze casting, knitting, processing agricultural and forestry products, restoring and developing some traditional occupations and craft villages in Hue city.
Table 2.12: Information technology usage of enterprises in the KTTN area in Hue city according to the survey sample
LAN INTERNET Management software
Target
human resources
Number of enterprises | % | Number of enterprises | % | Number of enterprises | % | |
Total | 100 | 100 | 100 | 100 | 100 | 100 |
1. Yes | 17 | 17 | 100 | 100 | 3 | 3 |
2. No | 83 | 83 | 0 | 0 | 97 | 97 |
3. Other | 0 | 0 | 0 | 0 | 0 | 0 |
(Source: Author's survey data)
According to the survey results of enterprises in the KTTN area in Hue city, the situation of using the internet is quite good, 100% of enterprises use the internet for production, business, construction and ordering the construction of websites that are convenient for production and business activities; 17% of enterprises use internal LAN and only 3% of enterprises use human resource management software. Looking at the survey results, it shows that the use of human resource management software is still limited, enterprises in the KTTN area in Hue city are small and micro-sized, so the use of human resource management software is not much, mainly concentrated in some joint stock companies with large labor scale.
2.2.3.4. On market accessibility
It can be affirmed that Vietnamese enterprises in general have limited market access. Enterprises in the private economic sector in Hue city also face these limitations, however, many enterprises have strived to rise up, constantly searching for new markets; innovating forms of propaganda
Communication, advertising, marketing to increasingly expand the market, develop production, improve the quality and business efficiency of the enterprise.
Table 2.13: Main consumption markets of enterprises in the KTTN area in Hue city according to the survey sample
By type of enterprise By business sector Rate
Indicators of Private Enterprise LLC Trading Service Construction Industry Transport JSC %
load
Market
in the province32 | 56 | 12 | 71 | 11 | 11 | 7 | 100 | |
Domestic market | 3 | 16 | 3 | 4 | 6 | 7 | 5 | 22 |
Foreign | 0 | 1 | 1 | 1 | 1 | 0 | 0 | 2 |
(Source: Author's survey data)
The main consumption markets of enterprises in the KTTN area according to the survey sample show that 100% of enterprises have consumption markets in Thua Thien Hue province; 22% of enterprises have consumption markets in neighboring provinces, and 2% of enterprises with the survey sample results have consumption markets abroad. Products with domestic consumption markets are mainly concentrated in garments, footwear, wood processing, passenger and tourist transportation, etc.; the foreign markets are mainly textiles and seafood products.
Table 2.14: Main advertising tools of enterprises in the KTTN area in Hue city according to the survey sample
Advertising media
Number of enterprises answering yes | Rate (%) | |
1. Press | 12 | 12 |
2. Billboards, banners, posters, flyers | 55 | 55 |
3. Online marketing tools | 65 | 65 |
4. Event organization | 10 | 10 |
5. Other marketing tools | 10 | 10 |
(Source: Author's survey data)
The survey results show that most of the enterprises in the private economic sector in Hue city use online advertising tools, accounting for 65% and visual advertising tools such as: Pano, banner, poster, leaflet accounting for 55% of the survey sample. Next is the use of press media accounting for 12% of the survey sample. The organization
Events and other advertising tools are used less. Through this, it can be seen that enterprises in the KTTN sector have not paid much attention to advertising means to improve the efficiency of production and business activities of enterprises; advertising costs are not high; advertising forms through organizing events, participating in fairs and exhibitions are less focused on due to high costs, while enterprises are mainly small, micro-sized, with little capital...
2.2.4. Production and business efficiency of enterprises in the KTTN sector
Revenue and profit most clearly reflect the production and business results of an enterprise or economic sector. To examine the production and business results of enterprises in the private economic sector, looking at table 2.15 shows:
Table 2.15: Revenue and profit of enterprises in the KTTN area in Hue city
(Unit: Million VND)
Comparison Year (%)
Type 2013 2014 2015 2016 2017 2014/
2013
2015/
2014
2016/
2015
2017/
2016
1. Private Enterprise
- Revenue | 4,533,393 | 4,484,408 | 5,293,131 | 4,694,063 4,748,875 98.92 118.03 88.68 101.17 |
- Profit 2. LLC | 20,806 | 19,560 | 24,629 | 21,915 23,891 94.01 125.92 88.98 109.02 |
- Revenue | 5,658,506 | 6,162,165 | 8,737,706 | 9,676,355 10,250,736 108.90 141.80 110.74 105.94 |
- Profit 3. Joint Stock Company | 25,637 | 29,008 | 39,132 | 44,551 48,255 113.15 134.90 113.85 108.31 |
- Revenue | 3,815,880 | 4,326,496 | 5,241,064 | 7,094,448 8,723,549 113.38 121.14 135.36 122.96 |
- Profit | 54,972 | 63,595 | 74,250 | 95,922 103,245 115.69 116.75 129.19 107.63 |
(Source: Thua Thien Hue Provincial Statistics Office)
- Revenue: Total revenue of enterprises in the KTTN area in Hue city over 5 years reached 93,440,775 million VND, of which, LLCs had the largest total revenue, reaching 40,485,468 million VND, accounting for 43.32% of total revenue.