6. The original aims of the study were to bring together available information on: (i) characteristics of private companies regarding sectoral activities, ownership, and location; (ii) the quantity and quality of employment in the private sector; (iii) the geographical distribution of private sector employment; and (iv) the potential for future growth in job creation. More specifically, study components include:

- a. Descriptive macro-economic data on the private sector and employment. Previous research has shown that various ministries and organizations collect data on private enterprise—including the General Office of Statistics (GSO), Ministry of Planning and Investment (MPI), and Ministry of Labor, Invalids and Social Affairs (MOLISA), among others—but often data are inconsistent between sources.<sup>_4_</sup> This report will look at different data, combining figures so as to create a general overview of the private sector and its impact on employment.  The chief source of data is GSO, building on earlier statistics on the private sector and employment provided to the Mekong Project Development Facility (MPDF) in 1997 and 1998.<sup>_5_</sup>

- b. A firm-level survey on the private sector and employment.  The firm-level survey aims to confirm the picture of the private sector’s role in job creation laid out by macro-level statistics and to supplement it through additional questions regarding hiring practices and obstacles to further growth.  The survey was co-designed and co-implemented by the World Bank and the Institute for Labor Science and Social Affairs (ILSSA) under MOLISA.  MPI’s Central Institute for Economic Management (CIEM) assisted with provision of official lists of registered firms. See Section III for more on survey methodology and objectives.

- c. Specific case studies of select private companies.  The decision to also gather case studies was made in recognition of the fact that aggregate numbers may not fully communicate the job creation role of private companies.  Case studies aim to add texture and understanding of the complexities behind macro-economic and survey figures.  Areas of focus include the nature of the private sector employment (full time labor, casual labor, etc), the multiplier effect of private companies on employment through subcontracting, and employees’ perspectives on the pros and cons of private sector employment.  Core research for case studies was carried out by two independent Vietnamese consultants.  Actual names of subjects are not used for any of the case studies.

7. The report begins by defining what exactly is meant by the domestic formal private sector. It then reviews the methodology employed to conduct the firm-level survey meant to supplement and check official statistics. Based on the data gathered from official sources and the survey, the report then presents a static view of the domestic formal private sector and its present employment creation role—aiming to give the reader a sense of the context in which current developments are occurring. The main issues and questions of the report are then addressed in the “Trends” section that follows. Finally,

> 4 Steer, L. (2001). _The private sector in Vietnam. Facts, figures, policy changes and a survey of research findings._ Centre for International Economics, Canberra, Australia.

> 5 Leila Webster and Markus Taussig (1999). _Vietnam’s Undersized Engine: A Survey of 95 Larger Manufacturers_ , MPDF Discussion Series, No. 8, June 1999.

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