As of 1 July 2004 1,220 private enterprises had registered their businesses with total charter capital of 2,100 billion VND. According to data reported by districts and towns, by 1 April 2004, 15,332 households had registered their business performance with total committed capital of 230 billion VND. The number of registered private enterprises has increased at an average of 25 percent/year, with average registered capital increasing by 65.3 percent/year (from 2001 to 2003). In 2003 and first six months of 2004, outside investors established 101 enterprises (accounting for 25.6 percent of registered in the period) with registered capital of 717 billion VND (66,3 percent of total registered capital in the same period). In addition, in 2003 and the first six months of 2004, businesses increased their original charter capital by a total of 320 billion VND. The large volume of external investment in Quảng Nam and additional capital investments by existing businesses demonstrate that the investment environment in Quảng Nam is very attractive and the investment promotion policies and mechanisms are implemented efficiently. Currently private enterprises are improving their performance and increasing scale, diversifying business types and products, and adapting to the competitive pressures of local and overseas markets and step by step preparing to integrate into the world economy. In 2002 the private sector export turnover was 7,081,000 USD, accounting for 19.36 percent of total export turnover of the province (36,575,000 USD). In 2003 export turnover was 1,055,000 USD, accounting for 19,64 percent of total export turnover of province  (56.287.050 USD), an increase of 56 percent on 2002. The fast growth of the private sector has contributed to the province’s economic growth rate. In 2002 the province’s GDP growth rate was nine percent, of which the private sector accounted for 63.18 percent. In 2003 GDP grew at 10.36 percent and the private sector made up 62.6 percent. In the first six months of 2004, the GDP growth rate was 11.15 percent and the private sector accounted for 63.17 percent. Businesses contribution to state budget:   The contribution to the state budget by the private sector is every year at an average of 27.48 percent (from 2000 to 2003). Most newly established private businesses have enjoyed tax exemptions restricting their contributions to the state budget. In the coming time, private sector will make an active contribution to the local state budget.   Employment:   Over last two years the private sector has created employment for 46,700 laborers:   ·         In 2002: 17,200 laborers were employed, accounting for 63,2 percent of total laborers employed in the same year period (27.200 laborers)  ·         In 2003: 18,100 laborers, making up 64 percent of total laborers employed in the same year period (28.463 laborers)  ·         First six months of 2004: 11,400 laborers, accounting for 66 percent of total laborers employed in the same year period (17,300 laborers).   The private sector produces a significant share of the province’s GDP, employs many workers, contributes considerably to the state budget and transforms the provincial economic structure heading to industrialization and modernization. To increase the economic growth rate the People’s Committee and Party shall develop policies and mechanisms to support and encourage the development of the private sector commensurate to its role in the national economy. Private sector development is a key component of the long term strategy of multi- sector economic development with a socialist orientation, which will result in the industrialization, modernization and resource improvements as the country integrates into the international economy.   Quảng Nam is actively restructuring and renewing state enterprises. Twenty-ne companies have been equitized, 12 have been merged, three have been contracted, two have been transformed into administrative earning firms,  five have moved the management focal point, one has been dissolved and seven are in the process of transformation. Following transformation firm performance and productivity become more  efficient and stable.   Foreign Direct Investment   As of 2005, 18 foreign direct investment (FDI) projects have come to Quảng Nam with total registered capital of 107 million USD, accounting for 15 percent of the total FDI projects in the southern coastal central area and 22 percent of total registered capital in the whole area. However, the contribution of the foreign invested sector to the province’s GDP has steadily reduced since 2000. According to the General Statistics Office (GSO), in 2000 total FDI stood at 75.3 billion VND, accounting for 1.8 percent of GDP. By 2003, total FDI had fallen by 0.9 percent, to approximately 55.7 billion VND. Since 2003 the province has attracted some large scale  foreign invested projects to take advantage of the newly established Open Economic Zones, including Cathay Bank from Taiwan,  a Heavy Aircraft maintenance and repair project funded by the AAAWA corporation valued  at 500 million USD, an electricity and fertilizer production project funded by the Chinese Corporation Forum, each valued at 400 million USD. Chu Lai open economic zone is reported to have attracted 25 foreign invested projects, although it is unclear how many are in operation.