ABSTRACT
In Vietnam, an enterprise financed by one investor is termed a privately-owned enterprise; an enterprise financed by two or more investors is termed a privately-owned company. In this chapter, both will be termed private-owned enterprises (PEs). PEs in Vietnam varies significantly in terms of capital investment, ranging from Vietnamese dong (VND) 50-100 million to VND billion. In contrast to state-managers, private entrepreneurs benefit from self-ownership and self-management of their enterprises. Private management, employment recruitment and organization philosophy in Vietnam focus on family and friends. Above all, organization and employment are based on kinship and family relations. Over the last couple of years, private enterprises have proved to be very important in Vietnam's transforming economy. At this juncture, steps should be taken from the state to encourage private enterprises. In the final section, the chapter recommends way to facilitate an optimal development of the private sector in Vietnam.
