VIETNAM'S DA NANG OFFERS INCENTIVES TO BOOST PRIVATE SECTOR.

HANOI, Aug 1 Asia Pulse - Da Nang city authorities have unveiled incentive policies and measures to promote the private sector, which they believe will play a fundamental role in the city's economic growth over the next decade.

The city is projecting private production of processed and consumer goods for domestic and export markets will reach a GDP of VND4,400 billion (US$284 million) by 2010.

This figure, if achieved, would account for 38-40 per cent of the entire city's GDP, said Huynh Nam, deputy chairman of the People's Committee.

The city's private firms reported a whopping registered capital of nearly VND580 billion last year and have played an important role in the local economy for the past five years, averaging a yearly growth rate of 10.55 per cent.

The firms contributed 14.22 per cent to the city's budget last year and generated jobs for more than 90,000 locals, representing 27.8 per cent of total employees in Da Nang.

However, the future is not all rosy, with obstacles hindering the growth of local private firms including limited capital, weak trade promotion and outdated infrastructure.

Director of the city's Department of Planning and Investment Tran Van Minh, affirmed that local private firms are thirsting for capital but are finding it difficult to access credit sources.